About qualitysharesurfer

UK based private investor sunlighting as a competition economist

Short attacks!

I wasn’t intending to write a post this week as I am still very busy with other engagements at the moment. However, after the dramatic short attack on Burford Capital last week, which until quite recently had been one of my largest positions, I’ve decided to record my thoughts and a number of recent trades. Continue reading

Portfolio review: July 2019

It was inevitable that equity markets would lose some steam after the spectacular bounce in the first quarter. The second quarter has been more volatile as the conflicting narratives of impending recession and indefinitely continuing low interest rates play out, though overall the markets have continued to make progress. After a fantastic April, my portfolio has been slowly and steadily inching forward over the last couple of months. Continue reading

Is small beautiful?

I can only post fairly infrequently at the moment as I have a lot on my plate, what with planning our DIY summer wedding and simultaneously embarking on the most important work project of my career so far. It’s been a lot harder to make time for the blog. I do intend to keep it running, but at a slower pace for the time being.

A recurring issue I’ve been grappling with recently is whether I should be trying to shift my focus more to smaller businesses. Instinctively, it feels like the smaller cap space should be a more productive hunting ground for a small private investor like me. I’d expect small caps to be less well researched and the markets more illiquid, giving greater scope for shares to be mispriced. On top of that there should be greater scope for growth when you start from a smaller base. However, in practice I’ve found that identifying high quality is much harder in the small caps space. Should be trying harder? Continue reading

INTU bought

Markets had a bit of a wobble since my last update a couple of weeks ago, but are now looking up again. The financial news often feels like Groundhog Day at the moment, with the same concerns about a US or global recession, the reaction of the Fed, inverted yield curves, trade wars and Brexit appearing then receding from week to week. My portfolio has been holding up relatively well apart from one fly in the ointment – Burford Capital.

Continue reading

Invest in the best (no compromise)

In my view, the most important empirical result in equity investing is just how unevenly long term returns are distributed across different businesses. This has important implications, yet is often overlooked. It provides the clearest rationale for why focusing on quality is the main, or perhaps even the only, thing that matters in the long run. Continue reading