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Triumph of the Pessimists

The long history of the stock market suggest it pays to be an optimist – but investors in individual equities have reason to be a little more gloomy Photo by Kind and Curious It’s often said that to be a successful investor you need to be inherently optimistic. In other words, you have to believe … Continue reading “Triumph of the Pessimists”

To Trade or Not to Trade

Why it might pay to follow the Nick Train mantra of “if in doubt, do nothing” Photo by Artem Beliaikin We’ve been hearing a lot of late about buying the dip (aka BTFD), displacing sell the rip as the prevailing mood. Fintwit is awash with people calling the bottom, suggesting that, after 8 weeks of … Continue reading “To Trade or Not to Trade”

Bouncing back

A quick look at ways to assess a company’s recovery prospects Photo by Martin Sanchez Life is messy, a truism that applies to companies as much as it does to people. For one reason or another, things can and do go wrong, even to the most organised people or best run companies. To keep reading … Continue reading “Bouncing back”

Strategic business analysis: How to SWOT those PESTs

The financials don’t tell you everything about companies – here’s how to start digging deeper to put the pieces together Photo by Hans-Peter Gauster Numbers matter in investing. They tell us, amongst other things, how fast a company is growing (or not as the case may be), how profitable it is, how efficiently it invests … Continue readingStrategic business analysis: How to SWOT those PESTs

Changes in valuation are a double-edged sword

Understanding the risks and opportunities that a company’s valuation might show is a crucial part of an investor’s toolkit. Photo by Diana Orey on Unsplash Phil looks at how investors can learn from changes in a company’s valuation over time. To keep reading sign up for an annual or monthly subscription here. If you’re already a subscriber log in … Continue readingChanges in valuation are a double-edged sword

A different way to look at company profits

No measure of company profit is perfect. The little used EBITDA minus capex has a lot to offer investors. Photo by Ibrahim Boran on Unsplash To keep reading sign up for an annual or monthly subscription here. If you’re already a subscriber log in here. Login

Valuation matters (eventually)

Great companies are not a buy at any price even if it feels like it. Phil repeats his concerns about the valuations of very good businesses and asks whether better opportunities now exist in cheaper shares. Photo by Claudio Schwarz on Unsplash When I started my investing career nearly a quarter of a century ago, the prevailing wisdom … Continue readingValuation matters (eventually)

Is Wickes an unloved spin off?

Some simple techniques for analysing quarterly or half year reports can give investors valuable insights into a company’s performance and future prospects. Photo by Roselyn Tirado on Unsplash In Joel Greenblatt’s excellent book “You can be a Stock Market Genius” one of his tips for finding potential winning stocks is to look at what are referred to as … Continue reading “Is Wickes an unloved spin off?”

How to avoid cash flow slip ups

Investors are right to focus on cash flow analysis, but need to tread carefully Photo by Mathieu Stern on Unsplash For years, investors have been told to focus on a company’s cash flows rather than its profits. Profit has built up a bad name for itself as it is seen as easier to abuse and … Continue reading “How to avoid cash flow slip ups”

Why you need to understand operational gearing

Operational gearing is one of the most important things for an investor to understand about any business before they put any money into it. We hear alot said about operational gearing, but little of the nuances behind it. Put simply, it explains the relationship between the changes in a company’s revenues and changes in its … Continue reading “Why you need to understand operational gearing”