This planning ahead means I always want a good ‘Pipeline’ of Blogs in a pretty good state of Draft, stretching out several weeks. That way, if Life gets in the way, I can still keep a good flow of Blogs for the Website.
Whenever I trip over a New Stock that might have potential, I very quickly do a sort of ‘Triage’ on it where I can rule it In or Out for further analysis in probably under 2 minutes. This process will be the subject of another Blog which I have written in Draft and will be out soon.
In a simple, easy to follow, word…….EVERYTHING.
If that is too simple, we can do 2 words for people who like complexity - EVERYTHING, EVERYWHERE.
It’s like I am Fully Immersed in a World that just throws up Ideas everywhere all the time - you just have to keep your Brain open to whatever might hit you.
I am constantly alert and on the hunt for New Stocks - whatever I am exposed to during the day, could present an opportunity. To be precise, the following are probably my most used sources:
- Investors Chronicle (IC) (should this have an apostrophe? I just checked the front cover and it seems to lack one. Surely this is poor grammar?) - this has to be my Number 1 and favourite ‘New Ideas’ source. The bit I really love and I spend huge amounts of time on is the ‘Company Results’ section at the back. I sit down with a Coffee or 3 and I slowly plod through each of the short write-ups on the Stocks that have reported in the previous week. Some of them I don’t bother reading or I just read the Bold Print at the bottom where the IC team give their view. This tends to be on Small Resource Stocks and Small Biotech / Pharma Stocks that I dislike immensely - I have learnt from bitter experience that it is very hard to make money from these unless you specialise and have a Short Term Trader mindset. I also pay little attention to really tiny stuff - Market Caps below about £15m have no real interest for me. If you go to the ‘WheelieBin / WheelieWatchlist’ page of the WD Website you will see the categories of stuff I tend to avoid. I read all bits of the Magazine (hey, you know I am a Tight Git, just trying to get my money’s worth !!) and any page can throw up Ideas in my mind - often it is not just that a Specific Stock is mentioned, it might be that they alert my attention to a Particular Sector. For instance, they might say New Car Sales are going well and this would make me think “oooh, maybe I need to look at Car Retailers like CAMB, INCH, VTU, PDG etc.” You have to be careful with the Tips Section - I am not saying you should never buy Tips, in fact, I think they can be an excellent route to New Stock Ideas, but the key is not to rush into them. Take your time, the Tipped Stock always shoots up in the first few days after the Tip and usually in a couple of weeks it has drifted back down to earth. This is one reason why I do not rush to read the Mag in detail - I tend to have a quick whiz through on Friday or Saturday and then I will read over the next week or so. The key is to think hard about the details in the Tips and to project your thoughts into the Future to try and figure out how good it is likely to be. Valuation is obviously a key element. Simon Thompson’s Column (that sounds rude !!) should also be treated in a similar way - don’t rush in, take your time and read what he has to say in a calm, rational, way. The Funds Section can be extremely useful as can John Baron’s Column and Bearbull is pretty good also. The ‘Sector Focus’ bits can get you thinking about how a Particular Sector is likely to perform in the Future. The Director Deals page is superb for alerting me to Stocks where Directors are clearly Bullish about future prospects.
- T1PS - I am a member of t1ps.com as I am sure I have mentioned before. It costs £79 a year and is worth it - for instance, they got me into Sprue Aegis SPRP very early in the game and it has paid for my Yearly Subscription for many years to come. You have to be careful though, they do tip and cover some pretty risky small Stocks - stick to your ‘Style’ and only buy what fits in with your thinking. To be fair, part of the Junk they cover is a hangover from Tom Winnifrith’s disastrous foray into Junior Resource Stocks - to be fair to the Team, since Tom went, the Tips have improved a lot. This is not a criticism of Tom necessarily - his non- Resource Tips were pretty good in the past - but he screwed up so bad on Miners it was shocking. The £79 Subscription also gives access to ‘The Evil Kneival Diaries’ and 4 Free Tickets for Master Investor in April. **UPDATE - since I wrote my first draft of this text, t1ps has evolved into something new called ‘Master Investor’ and it will be a free magazine with premium content. I am not sure about this - I will probably cancel my subscription. On a wider note, some of these Tipping services can be useful but you have to use them wisely - and they may not be worth the money.
- Twitter - I have only been on Tweetererer for maybe 4 months and it has struck me what a superb source of Ideas it is. Not only that, I find I can chuck out a question into the Cybersphere and some wonderful people reply very quickly to help. It really is excellent. I am lucky to have identified a very good bunch of people who are Great Investors and the stuff they kick around is a hugely helpful source of Ideas - hopefully some of the stuff I throw out helps people also. If you want a good list of people to follow on Twitter - pop over to my ‘Beginners’ page on this Website and you will find a list. I have since bumped into a few more great people, if I remember I will try and update the list.
- Newspaper Tips - I don’t actually subscribe or particularly read any Newspapers - but I seem to get exposure via Emails and Twitter etc. I get an email from Digital Look that lists lots of Newspaper Tips. As with IC, these are just a route for further investigation - Never Buy a Tip without doing proper checks on it first. I particularly like the Telegraph ‘Questor’ Tips - although they were saying Buy QPP !! Tips must always be used as just another potential route to a good stock - never just blindly buy because so and so says they are good.
- RNS - Every morning around 8.30am or so, I read through the RNS News Announcements on moneyam.com. I am mainly looking for Stocks I am invested in, but I also take note of other ones that interest me as I browse through. Twitter is also great here - there are loads of Glorious People who Tweet out brief summaries of Company Announcements - a very good source of New Ideas.
- Robbie Burns - I am sure you are aware by now how much I revere the Legendary Naked Trader - it is clear to me that he is the Best Investor I have ever stumbled across. Therefore, if Robbie buys into a Stock, you would be an Idiot to not have a good look into it. Yes, he does get some wrong, but it is rare. Sadly, he is now too comfortable and doesn’t update his Website like he used to. You get the odd Update now and again on a Wednesday so just keep checking.
- Paul Scott - Paul’s Small Cap Value Report on Stockopedia is excellent - another great source of Ideas. It is just a shame he concentrates on Small Stocks as his views on some bigger stuff would be highly valuable.
- Bengt Saelesminde - Bengt can be a good source of Ideas for Larger Stocks - his ‘The Right Side’ column on MoneyWeek is very good. The guy comes out with some different, contrarian, views sometimes but has a strong record of being right.
- Fleet Street Letter - I get a sneaky peek at FSL when it comes out - it tends to be very Contrarian and focuses on Big Stuff but it can be very helpful.
- Observation - this is just what I see and experience all around me. For instance, I might pop into a new Restaurant and think “this seems a good business, is it listed?” or it could be a New Shop that opens or similar. My Dad got me very keen on Pets at Home PETS as he always goes on about how good they are for Dog Food. My Brother works for James Latham and he knows all about Accsys Technologies AXS - so that got me thinking……A trip to Legoland might have made me realise that the Queuing Devices made by Accesso Technologies ACSO were getting widely used. A great buddy of mine is very senior in the AA - another great Idea that was fortuitously brought to me.
- Investing Mates - I have a good group of friends from many years back who are keen Investors - they continually throw up good Ideas to get me thinking and they are very helpful to bounce New Ideas off or to get Opinions on Stocks I already hold.
- Investor Shows - I attend Master Investor even year and I have done forever it seems. I don’t pay much attention to the speakers, but I like to Roll around the Booths and speak to the Companies exhibiting. I always draw up a List beforehand of who I want to speak to and I am focussed on getting that done. I work hard not to be distracted by Companies that are not on the List. I have attended the Shares Mag / Cenkos ‘Innovators and Investors’ Conference for the last couple of years and it is a good event. I don’t pay much attention to the PowerPoint nonsense, but I speak to the Companies in the Hall and look for Ideas (I did a Blog on this last week).
- Emails - I subscribe to several Free Emails that give Daily Ideas etc. - please look at my ‘Useful Links’ webpage on WheelieDealer2 for more information.
- TV - it’s surprising in some ways how much Business Information you can glean from normal TV (particularly BBC2). You gotta just look out for it. One recent Series that was really good included a Programme on Moss Brothers which was superb and also one about Self Storage companies - with Safestore SAFE, Big Yellow BYG and Lok n’ Store LOK all getting a mention. On BBC News24 they have a programme hosted by Evan Davis called ‘The Bottom Line’ - it is a TV version of a Radio4 show. They have 3 guest Directors usually and it lasts 30 mins and discusses particular aspects of business - you quite often get FTSE Company Directors on this programme. In fact, it was what got me really keen on Supergroup SGP originally, when a Director was talking about how the Growth was so fast they had huge problems coping with it from a Logistics point of view - it was clear they were sorting their systems out and this would address the demand which was booming. Sometimes CNBC and Bloomberg can be useful for giving awareness of new companies - but I tend to steer clear of their Macro Sensationalism these days - they try to make Stocks sound exciting - they should not be. Dull is best.
Anyway, that’s enough routes to good stocks. A good draft of my ‘Triage’ process has been produced so that should emerge in coming weeks - the next Blogs to appear will be about Leverage and Spreadbetting safely.
Til then, adios, wd.