Tag: value investing

What If Value Investing Is A Little Bit Dead?

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

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?”

LIC Investing – 10 factors to check before buying.

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.”

ASX INDEX ETFs, LOW FEE GRANDFATHER LICs SIMPLE NOT EASY.

Is there even such a thing as a simple passive investment strategy?

Before rushing into ASX index ETFs or index hugging low fee LICs, there are many behavioural biases to think about. I will explore below what you should think about first to better equip yourself to this popular strategy. 

Firstly, let’s get started early with the obligatory Warren Buffett reference you always come across from any financial article in the media. (Hey at least I didn’t put it in the headline with a huge picture like most do). I consider a key driver behind the popularity of ETFs in recent times is due to media attention given to Warren Buffett’s Berkshire letter in 2013 that discussed a strategy for the trustee for his wife’s inheritance. Continue reading “ASX INDEX ETFs, LOW FEE GRANDFATHER LICs SIMPLE NOT EASY.”

Is technology improving our productivity? Is that where we should invest?

Sometimes personally I feel the answer is no to both.

My digital detox I mentioned in early June had mixed success. I did get away from the smart phone and read some investment books, well via an iPad anyway, that I look forward to discussing more later. Working for myself requires plenty of discipline that I am still learning about and yet to fully master. I have done ok in this aspect but there is much improvement to be had. Continue reading “Is technology improving our productivity? Is that where we should invest?”