Monday, July 9, 2012

UK Value Investing Weekly


Hi

I've got three posts for you today.  The first one is about the importance of sticking to an investment process, rather than making it up as you go along.  Of course, the process needs to be a good one!  But without a process most investors will do no better than a dart throwing chimp.

Why you need an investment process

The second post is about having some way of knowing if the stock market is attractively priced or not.  This isn't about how the market might perform over the next 6 months, that's easy - nobody has a clue.  I'm talking about how the market is likely to perform over the next 5, 10 or 20 years, using history as a guide.

When is a good time to invest in the stock market

And finally, I'm not exactly known as a high-frequency trader, but I'm not a buy and hold investor either.  If I own some shares and for some reason they become less attractively priced (typically because the price goes up), then I'll sell, take the profits and move on.  This happened recently with UTV Media, a company which I owned and which was in my newsletter's portfolio too.  The investment worked out well, although mostly due to luck as I point out.

Case study - UTV Media

5-star review

This week's 5-star stock is BHP Billiton.  I actually own this stock already and its in my newsletter's portfolio, so I won't say too much.  Have a look at the company stats and see if you come to the same conclusion as me, or if you think the risk/rewards don't add up.

Have a nice weekend,

John Kingham
Web: ukvalueinvestor.com
Twitter: @ukvalueinvestor

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