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.
7 Mar 2014
In End of story, The Value Perspective outlined some of the issues that arise from the tendency of human beings to want to hear information presented in the form of a story. One snag about offering any sort of narrative in an investment case, we argued, is it only highlights one possible version of the future when of course there are so many others that could each play out instead.
6 Mar 2014
When we touched on Bitcoins in July 2013 we mentioned the following “The Bitcoin Exchanges on which Bitcoins trade are relatively new and largely unregulated and may therefore be more exposed to fraud and failure than established, regulated exchanges for other products.” “It may be illegal now, or in the future, to acquire, own, hold, sell or use Bitcoins in one or more countries …”
28 Feb 2014
In two recent articles, The Value Perspective has stressed the importance of sticking with your investment process no matter how stupid, mad or just plain wrong other people might accuse you of being. This holds true whether, as an investor, you have been going through some difficult times, as we saw in Short notice, or some good ones, as we ourselves have enjoyed, as referenced in Open-and-shut case.
27 Feb 2014
Back in the 1960s, a number of Western agricultural scientists travelled to Lake Titicaca in the Peruvian Andes to study how the peasants there farmed their land – and returned home baffled by what they had found. “The peasants’ cumulative agricultural efficiency is so appalling,” they later wrote, “that our amazement is how these people even survive at all.”
26 Feb 2014
Towards the end of January, analysts at Societe Generale issued a research piece observing how some market watchers were growing increasingly nervous that the number of days since the MSCI World index last suffered a 10%-or-more correction had now passed the 400 mark – the eighth longest period on record.
20 Feb 2014
In articles such as Peer review and Differing accounts, The Value Perspective has stressed how important it is for anyone considering peer-to-peer lending to be entirely comfortable with the balance of risk and reward on offer. Some statistics on the practice that have recently emerged from China have done little to change our views.
19 Feb 2014
Merger and acquisition (M&A) deals have a nasty tendency to work out poorly for the acquiring shareholder – indeed, according to this Financial Times article, academic studies have repeatedly shown around 70% of M&A deals destroy value for the company doing the merging or acquiring. That being the case, something strange appears to have been happening over the last couple of years.
13 Feb 2014
How much excitement is there to be found in that part of the financial world where shipping and raw materials converge? If you barely made it to the end of that sentence with your eyes open then clearly you are unaware of the sort of frenzy some commentators can work themselves up into over the Baltic Dry index.
11 Feb 2014
This January was a bad month for investors and, as an old stockmarket adage has it, “As goes January, so goes the year”. Now, regular visitors to The Value Perspective will be aware we are not instinctive followers of old stockmarket adages but, then again, neither is it in our nature to dismiss potential nuggets of investment wisdom out of hand so let’s investigate the idea more closely.
7 Feb 2014
From time to time, in articles such as Your 2014 anti-forecast, The Value Perspective likes to remind visitors that, when all is said and done, there are only three drivers of total investment returns. These are the dividend received, real earnings growth and any rise or fall in valuation – that is, the change in a business’s price/earnings (PE) multiple.