This article was first published by me on Talkmarkets: https://talkmarkets.com/content/stocks–equities/what-if-value-investing-is-a-little-bit-dead?post=214196
Is value investing dead in 2021?
My conclusion is value investing has died to a small extent as it pertains to taking quantitative screening tools and using them to pick out large cap shares in well covered developed markets.
The solution for investors in 2021 should value investing indeed be dead
To summarise this can mean hunting for value investments in smaller companies and more so outside of the US market. The bad news is it might involve a bit of work.
My detailed take on this debate and how I arrive at this conclusion, starts in the below article from 2019.
I am not sure that it is, but I would like to explore some of the arguments that it may be. I have come across enough articles over the last year or so to suggest it could be broken, or even dead. If it is does that just mean as value investors we may need to tweak our approach slightly?
It has been a hot topic on various reddit value investing forums, so I thought I would weigh in with my 2 cents worth. Are the days of deep value investing working over?
Continue reading “What If Value Investing Is A Little Bit Dead?”
A checklist for buying ASX Listed Investment Companies (LICs)
A list of 10 factors to check as a guide when to buy, scroll down for further explanations on each.
1) Discount / Premium to NTA
2) Management Expenses and ALL other costs
3) Performance Track Record
4) Investment Style
5) Alignment of management’s interest with shareholders
6) Ownership Structure
7) Investment Management Agreement (IMA)
8) Size of the LIC
9) Future Dividend Capacity
10) Marketing / Reporting of the LIC
When I look back at my investing mistakes, one common theme is rushing into a new purchase. I find I have usually done better when a number of months pass until I begin accumulating a position in a new idea.
When investing in LICs I try to make sure I have considered numerous factors first. That helps me avoid getting itchy fingers and hitting the buy button quickly. Continue reading “LIC Investing – 10 factors to check before buying.”
I thought I would go with this heading after seeing so many financial pundits on social media focusing on how right they were shortly after the recent correction. Continue reading “I was wrong! How to deal with FOMO in the markets.”
This year I have felt my blog has been a bit more down beat with my recent post warning of overheated asset classes, and generally I have probably written more about the selling I have done rather than any new buy ideas. Hopefully today’s blog post is a bit more upbeat as I go out and mention two new current holds and later clarify about why avoiding some markets at times in favour of cash is not necessarily being a permabear. Continue reading “AM I TOO PESSIMISTIC AND UNDER INVESTED?”
- LEVERAGE 2. LEVERAGE 3. LEVERAGE 4. LEVERAGE 5. HOPE
My ramble on the property market, the banks, APRA, index investing, market timing and diversification.
Ok so you probably gathered I am experimenting with a bit of click bait.
Continue reading “YEAR 9 STUDENT AND PART TIME MCDONALD’S EMPLOYEE GOES FROM 0 TO 13 INVESTMENT PROPERTIES DURING THE SUMMER HOLIDAYS – HERE ARE HIS 5 TIPS FOR BECOMING A PROPERTY TYCOON”
I meant to write this post when beginning the blog to assist in describing my investment style but it slipped my mind. It resurfaced in my thinking when I recently read a book Margin of Safety, by Seth Klarman. Some areas he cites in the book that are useful to look for opportunities are very similar to what I look for. It would also be great if readers can comment on any current “special situations” they see out there in the markets. Continue reading “WHERE INSTITUTIONS AVOID AND RETAIL INVESTORS FIND BORING (special situation investing discussion thread?)”
Warning – Long post and with links gets longer!
Gold has been topical today after a sizeable retracement and I thought I would tackle the above questions. Especially considering conceivably, I could even be selling more gold stocks soon, time will tell.
Many great investors avoid commodities altogether and I have a lot of respect for that view, so why have l held stocks and ETFs this year with commodity exposures? Continue reading “What is my investment style and why I hold some gold shares (as of today anyway, maybe not tomorrow!).”