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Showing posts from June, 2020

How I pick shares- Part 3 (Hidden Value)

Value investing is at its core the marriage of a contrarian streak and a calculator.
- Seth Klarman


Thank you for the encouraging comments that I've received in the last couple of blogs*. It's nice to find out what I write is of help to people.
Just to recap, in the first part I looked at how gathering knowledge is a good thing to start with. In essence the better researched that you are, the better chance you have of success. As Peter Lynch put it memorably, Ifyou don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
In the second part, I began to look at value and how you can start to find those undervalued companies that have a decent chance of growing into their true value.  You actually need to train yourself to think independently of the herd, because if everyone else had thought they were undervalued and had bought the stock, the price would be a lot higher than it is. This is why it pays to be…

How I pick shares- Part 2 (Value)

The person who turns over the most rocks wins the game. Peter Lynch
This is a timely post* in the United Kingdom as for the first time this week in a while, Markets have paused for thought and stopped their relentless rise upwards. Coupled with that, football (soccer) fans, very much including myself, are excited by the prospect of the return of the sport at a competitive level for the first time in 3 months this week. This blog talks of the strange marriage between football and shares.
I wrote a fortnight ago the first part of my series on how I pick shares. In that article, I focused on Knowledge, applying the principles from the post I wrote back in January on how Fantasy Football taught me how to gain an edge in share investing. 
Well I'm now going to build on the concept of Knowledge with a further principle- that of Value. This from my Fantasy Football article:
Value
(4)  Being constantly on the lookout for “value”. There is an interesting trend in Fantasy Football that after abo…