The Value Perspective

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.

The Value Perspective News

  • Home truths – Next time house prices crop up at a dinner party, take a value perspective

    Home truths – Next time house prices crop up at a dinner party, take a value perspective

    Nick Kirrage

    18 Jul 2014

    Here on The Value Perspective, we enjoy chatting about house prices as much as the next person although, when the subject does inevitably crop up at a dinner party, we are usually to be found approaching things from a completely different angle to the other guests. When it comes to buying and selling houses, it seems, there are some psychological hurdles people find tricky to clear.

  • Smooth operators? – Can so-called ‘yieldcos’ follow through on the quiet life they promise?

    Smooth operators? – Can so-called ‘yieldcos’ follow through on the quiet life they promise?

    Andrew Lyddon

    17 Jul 2014

    In a world where many people continue to view volatility solely as a negative, it isn’t overly surprising that companies continue to look for ways to carve out assets with more predictable cashflows and sell them to those willing to pay through the nose for sort of thing. Opco-propco structures were the fashion in the UK pub and hotels sector prior to the financial crisis, but the breadth of industries getting involved is increasing such that the low volatility vehicle now has a different generic name. Step forward and take your bow, the ‘yieldco’.

  • Balancing lacked - Bond investors may need to think harder about the risk-reward equation

    Balancing lacked - Bond investors may need to think harder about the risk-reward equation

    Ian Kelly

    16 Jul 2014

    In recent pieces such as Long-term cares, and Sale of a century, The Value Perspective has raised a metaphorical eyebrow about the way some investors seem to be weighing the balance between risk and reward. This time, however, we will let one picture replace 1,000 words on how the market would appear to have become less discerning than it used to be.

  • Long-term cares – A new paper suggests bond investors need to be careful reaching for yield

    Long-term cares – A new paper suggests bond investors need to be careful reaching for yield

    Ian Kelly

    11 Jul 2014

    Long-term bond returns under duration targeting is the name of a paper published earlier this year in the Financial Analysts Journal that recently caught the eye of The Value Perspective. Honestly. To its credit, it makes greater use of real-world data than many of the magazine’s offerings but it is still pretty heavy on formulae and Greek letters.

  • Pipe dreams - Talking up the price of your business can be dangerous if it does not get paid

    Pipe dreams - Talking up the price of your business can be dangerous if it does not get paid

    Ian Kelly

    9 Jul 2014

    Should you have experienced a strong sense of déjà vu about the way AstraZeneca set about fending off what it clearly saw as the unwelcome advances of fellow pharmaceutical giant Pfizer, it may not have been solely down to Astra’s basic strategy resembling that of any other business looking to avoid a corporate predator – ‘Just look at the golden future we will enjoy if left to our own devices’.

  • Costa benefit analysis - What can the 2014 World Cup tell us about behavioural finance?

    Costa benefit analysis - What can the 2014 World Cup tell us about behavioural finance?

    Andrew Lyddon

    4 Jul 2014

    As we reach the business end of the 2014 World Cup, with all four quarter-finals taking place over the next couple of days, the obvious question has to be: what useful value-oriented lessons might we learn from the tournament? And the equally obvious answer has to be: none – or at least none yet, because useful value lessons tend to take a good deal longer than a fortnight to become fully formed.

  • Wrong target - Investors in absolute return funds may not be buying what they think they are

    Wrong target - Investors in absolute return funds may not be buying what they think they are

    Nick Kirrage

    3 Jul 2014

    What are investors looking for from an absolute return fund? Clearly the answer will vary from person to person and yet, here on The Value Perspective, we feel we are at least on safe ground in suggesting that what investors are very much not looking for from an absolute return fund is holdings that have a more than 90% correlation with those of funds in the UK All Companies sector.

  • Sale of a century - Even in the best circumstances, why would anyone buy a 100-year bond?

    Sale of a century - Even in the best circumstances, why would anyone buy a 100-year bond?

    Nick Kirrage

    2 Jul 2014

    Various questions leapt to mind as The Value Perspective caught up with a Bloomberg report that the Mexican government had sold £1bn of fixed income securities due to mature a century from now – in March 2114. Why, for one thing, would Mexico want to denominate a bond in sterling? Surely its own currency or, failing that, the currency of its northern neighbour would make more sense?

  • Questionable interpretation– Investment quotes are great just so long as they are used properly

    Questionable interpretation– Investment quotes are great just so long as they are used properly

    Andrew Lyddon

    27 Jun 2014

    Here on The Value Perspective, we will often use quotes from other people because, while it may hurt a little to admit it directly, we ultimately understand we do not have a monopoly on keen insights into the world of investment. We also understand that when you use someone else’s quote, it is important to put a bit of thought into what it is they actually meant by it.

  • Siren song - Perceived correlations can be extremely seductive – and extremely dangerous

    Siren song - Perceived correlations can be extremely seductive – and extremely dangerous

    Nick Kirrage

    24 Jun 2014

    Professional investors are forever on the lookout for evidence to help support the idea that what they – OK, we – do for a living is a lot more science than art. Anything seen to add more sophistication to how we think about our particular area of expertise is seized upon gratefully, which is why the notion two different sets of data might have a deeper relationship can be so seductive – and so dangerous.

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