About qualitysharesurfer

UK based private investor sunlighting as a competition economist

Valuation metrics

Buying assets for less than they are worth is fundamentally at the heart of most sensible investment strategies. However, approaches to identifying value can range widely, from direct attempts to value businesses to approaches that exploit the systematic behavioural errors that other investors make (resulting in ‘factors’).

In my view detailed valuation exercises are generally too arbitrary and difficult and so are a bit of a waste of time compared to basing a strategy on statistical factors (e.g. quality, value, momentum). However, some simple valuation modelling can have incremental value if you understand its limitations and get the rest of your investing framework right. Continue reading

Exciting week

It was an exciting week full of trading updates and results for most of the shares in my portfolio. I’m pleased to say it turned out very well and the portfolio has rocketed back up to new highs. I made quite a few trades, selling out of three holdings, reintroducing two I sold recently and adding to a number of holdings on positive trading updates. Continue reading