A continuing mantra you will hear and read from me is around the value that talking to other experienced Private Investors and Traders can provide. In addition, I find this is widely under-appreciated and it is probably the biggest source of Learning that I undertake these days. Indeed, undertaking the TPI Podcasts venture and being able to discuss countless aspects of Investing with someone as talented and successful as @Conkers3 is a huge help to my thinking with regards to how I go about things.
This can be on different levels - probably the main focus for me is to hear the techniques and methods other Investors use and these discussions bring ideas for potential ways in which I can tweak how I go about things in order to improve my Results. On another level, and probably of less interest to me, are the views of other Investors with regards to which Stocks they are invested in and what their take on certain Stocks is. Of course this can be hugely dangerous because it is immensely ‘Noisy’ Information and I won’t just listen to any old Tom, Dick or Fred and there are only a limited group of Investors who I do take notice of on particular Stocks and I perk my Ears up when they give an opinion. Screening out less useful opinions is of course difficult and it is only over time with experience that you can find out who is worth listening to and who just adds to your Noise levels - yet again a situation where there are few alternatives (if any) to actually going through the motions and doing your ‘time’ in the Markets.
I realised that just one Checklist for the ‘WD40’ would not actually suit my needs - because I Invest in a range of Investment ‘Styles’ to ensure more Diversification. On this basis, I have decided to produce the following Checklists:
This is the Final Checklist and you can find the other ones at these Links:
This is the third of the Buy Checklists I am creating and once I have Published the final one I will put Links in it to all the others. This one is for Stocks that have fallen foul of the Markets usually after a Profit Warning or several and although Buying such stuff can be Risky it is often a very good strategy for making sizeable Returns and I regularly find that for Quality Stocks that have real decent Businesses underpinning them, they nearly always recover after an often lengthy period in ‘Rehab’. This can apply to Stocks I already hold that have gone a bit messy or for Stocks that are new to my Portfolio.
So far I have published Checklists for these kinds of Stocks and you should be able to locate them fairly easily on the ’Educational Blogs’ Page as they are from recent Weeks and the final one will be for a ‘Quality at a fair Price’ Buffett Stock:
I recently published a Blog with a Buy Checklist for Stocks for my Income Portfolio and now I’m turning my attention to my ‘Normal’ Portfolio.
I realised that just one Checklist for the ‘WD40’ would not actually suit my needs because I Invest in a range of Investment ‘Styles’ to ensure more Diversification. On this basis, I have decided to produce the following Checklists:
As I start to produce these I will probably realise that I need more but I really hope this doesn’t happen as it will just confuse things and make it all too complicated.
I am sure I mentioned that I wanted to create ‘Buy Checklists’ that I could use to help me make a final Decision whether to Buy a Stock or not and having thought about it I have come to the conclusion it is not an easy thing to do !!
I have sort of already done the opposite of this - a ‘Negative’ if you like in a photographic sense - in the form of the ‘WheelieBin’ and if you look at the Website page with the WheelieBin on it you will find a good Checklist of what constitutes a Stock that is best avoided.
This Video was doing the rounds on Twitter recently and is merely 7.5 minutes long but in that time the wisdom that Warren Buff puts out is pretty remarkable:
I have watched this a few times (I recommend Readers do likewise) and many of the usual lines Warren trots out are repeated here but they are without doubt bang on the money and if we take these principles on board then that is going to put us in good stead. The following points from this remarkably short Interview stand out to me:
This is the Second Part in a Blog Series of just the pair, and you can read Part 1 here:
Averaging Down and what it means for The Diminishing Problem
As we have established, when you have a Stock in your Portfolio which is going ‘wrong’ and the Share Price is on the slide, it is a ‘Diminishing Problem’ in that as it drops the impact on your Overall Portfolio reduces.
Now the opposite effect is in play when you have a Good Stock which is going up - as it grows in Relative Size as a Proportion of your Portfolio, then the Positive Impact increases over time. These combined effects are extremely useful and another of the rare ‘Free Lunches’ that the Stockmarket gives us.
This is the Second Part of an excellent Article on Accounting Basics produced by Justin (@justinscarboro2 ) and kindly offered for sharing on my Website. If you have not read Part 1 you can find it here:
Oh, and while I think about it Part 1 had some excellent Reference Material in it so I have created a new Blog Category called ‘Accounting’ so if you click on that you should be able to find it quite fast in the future.
This Second Bit covers Company Valuations in the main and I did some Blogs myself on this subject quite a while ago now and you can find those here:
There are Links at the bottom of that one to the earlier 3 parts.
(P.S. - Thanks Justin, the feedback I have had from WD Readers has been really glowing on Part 1 and I expect we will get more such applause for this bit - Pete).
I am sure this is a Blog that Readers will find extremely useful, especially those who are fairly new to the Great Game and want to get their head around the whole ‘Accounting’ thing a bit more. This Blog arose after some conversations on Twitter and Justin (who has an Accounting background) said he had produced this a while ago and that if peeps wanted it then he would send it over to me and I could shove it on my Site - thanks Justin, you saved me writing a Blog this Week !!
You can find Justin on the Tweets as @justinscarboro2 and he is well worth following because he is very knowledgeable on the Stocks and I think until just a few years ago he was an Analyst in the Retail Sector and he has also worked in many Senior Roles in various Companies, most recently with Air Partner AIR.
After reading it through I decided it was pretty involved and made the decision to chop it into 2 Parts - next Week I will published the bit on Company Valuation.
I hope you enjoy it and huge thanks again to Justin for providing this excellent material.
My mate David from Blackthorn Focus is holding an Investor Event on Tuesday 26th June in Cambridge which you can see details of below and I asked him if he could knock up some words on each of the Companies as they look quite interesting. He has done exactly this and I have added some thoughts underneath.
I have also repeated the bit about the Duxford Aerodrome Event on the day before - Monday 25th June - everyone is invited and it will be a fun day out I am sure.
Full disclosure, I am taking no commission or anything from David. He is a mate and we regularly chat about Stocks (he is an excellent Investor) and I am merely helping get the word around about the Event he is organising. It is up to Readers if they want to go or not and it could be a decent chance to talk to the Directors of some interesting quality companies.
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