The Value Perspective is an extensive resource for providing information on 'value investing' in equities. Value investing is a proven, long-term approach which focuses on exploiting swings in stockmarket sentiment, targeting companies which are valued at less than their true worth and waiting for a correction. We aim to share the thoughts, opinions and passions of five experts in this field, along with independent commentators, providing greater insight into this often poorly understood area of equity investing.
16 Apr 2014
One of the standout aspects of the 2014 Budget was Chancellor George Osborne’s announcement that British retirees will no longer have to use their pension pot to buy an annuity. Whatever this may mean for the personal finances of the UK’s population, the news set the cat among the pigeons in the diversified life assurance sector, for which annuities have been a good line of business.
11 Apr 2014
A friend on secondment in Los Angeles emails with an example of US hospitality – although the precise term he uses in connection with a recent offer of a mortgage with a 3.5% deposit, 4.5% interest fixed for 30 years and a salary multiple of 5.5x is “stupid lending”. “Repayments equate to 60% of my monthly pay,” calculates our Green-Cardless chum, “and that is considered normal!”
10 Apr 2014
In Forever with blue genes, we quoted some observations of one of The Value Perspective’s favourite investors, Seth Klarman, on current market valuations. One “fashionable” company the Baupost Group founder has picked out by name as having “nosebleed” valuations is Tesla so we thought we would take a closer look at how the electric vehicle manufacturer comes to be valued as highly as it does.
8 Apr 2014
One statistic some commentators have been trotting out of late as a way of illustrating how well the US economy is doing is the ongoing uptick in car sales. After all, buying a new car is one of the bigger purchases people tend to make so one might reasonably assume an increase in sales volumes must indicate a similar improvement in consumer sentiment, right?
4 Apr 2014
Do you have the worry gene? Seth Klarman says he does and, since the billionaire founder of the Boston-based Baupost Group is also one of the professional investors we take most seriously here on the Value Perspective, we thought we would take a closer look at what he means by this. Might more investors benefit were they to have the same condition?
3 Apr 2014
A stone's throw from where The Value Perspective spends its days tirelessly hunting down market inefficiencies lies Gutter Lane. This was once the home of accountancy firm Cooper Brothers and, as City folklore has it, the address represented a small sticking point ahead of the 1957 merger with its US counterpart Lybrand, Ross Bros & Montgomery that would create the shiny new Coopers & Lybrand.
1 Apr 2014
Hard as we find it to believe, here on The Value Perspective, not everybody is a fan of value investing. From time to time, its detractors are prone to wonder what relevance such a long-established and essentially straightforward investment strategy can possibly have in a world that is ever more fast-moving, technological and complicated.
28 Mar 2014
Just because you think something is a good idea, it does not necessarily follow it will be a good investment. You may be convinced the world would be a much better place if only you could find the funding to produce a book of photos of Soviet-era bus-stops, a robot pet stick insect or a musical based on the Rocky movie franchise. You may well be in a minority but that does not mean your dream is over.
26 Mar 2014
In his report Alpha and the paradox of skill, Michael Mauboussin, one of The Value Perspective’s favourite thinkers on value investing, talks about a successful US chief executive who spent his youth trying to become a better poker player – working hard to learn the odds of any possible hand, how to spot giveaway ‘tells’ in other players and so forth.
25 Mar 2014
Amid all the feverish coverage of Facebook’s purchase last month of the popular messaging app WhatsApp for $19bn (£11.4bn) in cash and shares there was one comment that particularly caught The Value Perspective’s attention. The comment suggested that if you ignore the rather large price-tag then Facebook may have gotten quite a deal on WhatsApp. Comparing the deal to the central premise of the film and book ‘Moneyball’ our commentator noted that it was all about the numbers.