Hi and welcome to Quality Share Surfer.
This is a UK focussed 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 focussed 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
November was a pretty poor month for my portfolio, with it falling over 5%. This has come on the back of a good year or two, which may have led me to become overly sensitive to a bit of market volatility. I think there are some lessons to be learned, but I’m not sure I’ve been learning all the right ones recently. Continue reading
Winter normally means good news for share prices. There seems to be an element of this expectation around this year, but at the same time there is quite a bit of talk of overvaluation and the possibility of an imminent correction. I’ve seen several articles warning investors to look out for the signs of euphoria that would indicate the bull market is coming to a close. This is easier said than done! While the mood is probably a bit ‘more euphoric’ than last year, I think there still seems to be a healthy enough degree of scepticism about (and cash on the sidelines) to support another leg in the rally.
It’s time for another quarterly portfolio review. Overall, the performance of the portfolio has slowed considerably over the past three months and has become a little more volatile. I’m hoping this drop in performance is temporary, but there’s been a strong run since last summer and it might be unrealistic to expect that sort of performance to continue. I’m hoping extending my coverage to US and European stocks may provide some additional firepower.
The last week and a bit has not been so kind to my portfolio, or the UK stock market in general for that matter, though higher valued stocks have been more severely hit. I’ve no idea whether it’s a blip or the start of a more serious correction, though I have been prompted to sell a number of stocks that hit my stop losses.
I only invest in very high quality businesses. Part of this is about the business economics, which can be captured in financial metrics: I like businesses that are highly profitable relative to their costs and how much they need to invest in capital. Another more qualitative part of my assessment is whether a business has an edge. Continue reading
The last couple of weeks have seen a lot of positive news from US tech companies as they report their earnings. Many are surpassing expectations, including the giants: Facebook, Amazon, Apple, Google etc. While there is quite a bit of commentary about how technology companies are leading the US stock market rally and parallels drawn to the dot.com bubble, valuations and prospects look pretty promising to me. After buying Alphabet last week, I decided to increase my US exposure with Apple and another couple of purchases of US stocks. Continue reading
It was an OK week with the portfolio making steady but not spectacular progress, rounding off a solid month. The most interesting development was that I bought into my first US company, the tech titan Google. Continue reading