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.
21 Nov 2014
Whenever a high-profile fund manager leaves their job, the chances are it will provoke a flurry of media comment on whether investors would do better to stick with the fund or follow the manager – or, as The Clash might put it, should you stay or should you go? So it has proved after an eventful few weeks of managerial comings and goings that included the exit of ‘Bond King’ Bill Gross from Pimco.
20 Nov 2014
Every few years, The Value Perspective undertakes a fund ‘health check’ by reviewing the last decades’ worth of performance numbers for the portfolios we run. What we are hoping to see from the data is not that it exactly mirrors any particular previous time periods but that the pattern of the returns being generated looks very similar.
19 Nov 2014
The enthusiasm that greeted rumours of a takeover bid by Glencore for Rio Tinto to create a £100bn mining and commodities-trading giant was in no way dampened by the sector’s current poor health. At The Value Perspective, our shopping list of stocks often contains some of the worst-returning share prices over the past quarter or year. That being the case, the table below might suggest base metals mining stocks should be piled high in our investments, but they are not. Why is that?
14 Nov 2014
Diamonds – as any James Bond fan will tell you – may be forever but, if you want your marriage to be remotely durable, you would do well to keep diamonds or indeed anything much in the way of expense out of the equation. That, at least, is the conclusion arrived at by the US economists Andrew Francis and Hugo Mialon in their recent paper A diamond is forever and other fairy tales.
13 Nov 2014
When it comes to evaluating funds, just how important a consideration is fund manager tenure – that is to say, the length of time somebody has been at the helm of a particular portfolio? It is a question that crops up with a fair degree of frequency – including at a recent investment conference organised by Citywire and at which we were speaking.
11 Nov 2014
In recent months, The Value Perspective has found a few different ways to look at the idea of ‘shorting’ – that is, seeking to profit from the failure of a business or a decline in its share price. These have included the apparent reluctance of hedge funds to short at present (Short change) and the sort of lessons other investors can learn from short-sellers (Short shift).
6 Nov 2014
Over the years, our holiday reading has taken The Value Perspective down many different roads although these have always tended to lead back to the comforting embrace of value investing. Our latest trip to warmer climes proved no different as, through Jan Bondeson’s intriguingly titled ‘Animal Freaks’ , we became acquainted with the learned pig craze of the 1780s and the animal that started it all off.
4 Nov 2014
The economist Kenneth Arrow spent the Second World War as a weather officer in the US Air Force. Given the job of making long-term weather forecasts, he and his team soon arrived at the conclusion that their predictions were no more accurate than pulling random numbers out of a hat and so they sent a request to their superior officers to see if they could be relieved of the task.
31 Oct 2014
It goes without saying that dividend yield is an important consideration for income-hungry investors but so too is dividend growth. After all, a dividend payment that does not grow over time and therefore cannot keep up with inflation – or preferably outpace it on a consistent basis – will soon enough be of limited value to anyone.
30 Oct 2014
The recent travails of Mulberry, which culminated in the UK-based luxury goods company issuing a profit warning on 14 October, led us to revisit Spot the difference, an article written by The Value Perspective back in June 2012, which compared and contrasted the attractions of the then market darling with electrical retailer Kesa, now known as Darty.