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Hi and welcome to Quality Share Surfer.

This is a UK focused investing blog in which I chronicle my decisions following a real life portfolio and discuss and improve my investment strategy.

My investing strategy is based the idea that shares with certain attributes, e.g. value, quality and momentum, outperform the market on average. It is focused primarily on exploiting two such attributes in combination: a) the tendency for high quality, defensive businesses to outperform over time and b) the tendency of shares with momentum to continue to do well. You can find out more about my strategy following the menu above.

Hope you enjoy and please leave comments if you find this interesting or would like to ask questions or discuss related topics.

Quality Share Surfer

A behavioural perspective

This post is a sequel to one I wrote a few weeks ago about the ‘external perspective’. As I said then, I think it’s important to challenge yourself by looking at investing from different perspectives. I’ve found that this can be a useful way of gleaning insight. I want to follow up my previous post by looking at a more fundamental question for which there are also multiple perspectives: ‘how should you think about your investing strategy?’ Continue reading

Still in the woods…

The market correction we are currently experiencing is not showing any imminent signs of abating. Significant market corrections can be self-fulfilling in nature, as fear leads to falling prices, which in turn can lead to further fear of further price falls. This vicious circle can happen even if the original fears are not well founded, as I believe to be the case now. It’s hard to predict how long the bearish conditions will last. The fact that valuations are still pretty high compared to historical averages suggests there is scope for prices to fall further. On the plus side, an environment of excessive pessimism seems to be building and I can see a few potential catalysts on the horizon that could lead to a sizeable rally in the not too distant future.

I made my scheduled trade last week, selling Accesso Technologies and buying Auto Trader.

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RWS bought

I’ve been very busy for the past couple of weeks with my day job, which has become pretty hectic. This hasn’t left me much time to write blog posts – I’ve restricted myself to simply updating on my trades until things quieten down. I have a few ideas for some more interesting strategy-related posts but probably won’t have time to start getting them down until mid to late November. Stay tuned. In the meantime, I have one trade to update on from last week: RWS Holdings. Continue reading

Looking on the bright side

The panic seems to be subsiding, well at least momentarily, after last week, though share prices still seem to be quite volatile. I’m surprised at how sensitive my outlook is to share price volatility, despite my better judgment. Last week felt like it could be the beginning of the end, even though the rational part of me reasoned that there wasn’t much to worry about. A small bounce and I’m already looking forward to a monster Santa Rally. Those emotions are tricksy little blighters. Continue reading

Portfolio review: October 2018

I’m writing this portfolio review off the back of a pretty horrendous week for my portfolio. The markets have been weak all round and I’m sure many investors will have suffered losses, but with my focus on high quality growth stocks I’ve been hit particularly hard. It’s the worse week I’ve had in quite a few years. At times like these I think it’s important to accept your losses rather than regret them and to look forward to the opportunities and risks ahead. This review gives me the opportunity to take a step back from the carnage and focus on ensuring my portfolio and strategy are well-equipped for what might be coming next.     Continue reading

GAW bought

I was going to start this post with a brief commentary about the general state of the market. This is how I have tended to introduce my posts updating on portfolio trades. Reading back through them, it now seems quite amusing how often my degree of optimism changes week to week. While it is quite interesting to have a record of this emotional rollercoaster, I’m going to stop doing these commentaries. I’m trying to become more relaxed about short term price movements and this feels like one thing I can change (along with checking my portfolio too frequently). Preoccupation with the ups and downs of the market doesn’t help my performance. Unless I have good reason to believe a crash is coming, it’s not worth worrying. It may even be counterproductive. Continue reading

About time

My mechanical portfolio experiment has got me thinking more about the dimension of time. Investing is basically a race, more of a marathon than a sprint, but a race nonetheless. Like all races, minimising the time taken to get from A to B is the thing that matters the most. If you didn’t care how long it took to generate returns, you would keep your money in a low risk savings account. We all understand this, but we often don’t pay so much attention to the time dimension in practice. Thinking about the time dimension more explicitly can help you to deal with a notoriously difficult part of investing strategy – how frequently and in what circumstances should you sell?

Continue reading