Identifying quality

Identifying high quality businesses is undoubtedly the key aspect of my investing strategy. If I get this right then I will benefit from the magic of compounded growth over time from businesses that are in general likely to be undervalued. In an ideal world I should be buying the kind of shares that I can ‘buy and hold’ forever.

This post is an attempt to bring a bit more structure and clarity to how to assess quality and to unpack some parts of it in a bit more detail. Continue reading

Watchlist review

I wasn’t going to say much about my watchlist to maintain a bit of mystery and so my hordes of followers didn’t inflate the prices of the stocks I on the list before I bought them. But thinking about it the one reader who seems to be following my blog at the moment is from China and may not even speak good English let alone have enough money at hand to invest in the UK stock market to do this.

Developing and maintaining a watchlist of the best possible shares on the UK market is a key part of my process so here’s how I go about it and what’s on the list. Continue reading

Is the trend your friend yet?

A large part of the investing community appears to have complete disdain or disregard for momentum, either treating it on a par with divination through chicken entrails or disinterestedly accepting its existence but with a ‘not for me’ attitude. While there are many ways to skin a cat, given¬†the overwhelming weight of evidence finding excess returns to momentum this has always seemed rather narrow-minded to me. Continue reading

Overall review

Now I’ve been through all the underlying shares there are a few important points to cover about my overall portfolio. I want to look back at the overall performance and the major past decisions and mistakes from the past year. I also want to look forward and consider whether my portfolio is has the right strategy and is sufficiently well diversified to deal with the upcoming ‘macro’ environment. Continue reading