Investing 101
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Asset Allocation
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Value Investing 101
This series is about my own particular take on value investing. This is a very wide field and there are many kinds of value investors, in fact I've been through three different approaches to value investing before settling on the system I now use.
Basically the system I have developed, which is really just a systematic version of the investment approach used by some of the world's best investors, is about generating a growing income in order to retire on that income. This means there's a lot of overlap with dividend investing and income investing, but that's okay, they're just names after all. It's the results that matter.
If you like the idea of investing in big, strong companies that pay a handsome dividend and also have good growth potential then you should be interested in the articles below.
1. Are Your Shares as Safe as Houses?
2. Building an Income to Retire on
3. How to Find the Right Kind of Growth
The rest of the series will be on line soon...
4. How to project future growth
5. Why debt is a four letter word
6. How to project share prices and total returns
7. What's so great about a consistent business history
8. Reasons for the attractive price and will they have an impact on the projections.
9. Feasibility of total return projections
10. Final sanity check
11. Position sizing
12. When to sell
Asset Allocation Strategies
A Value Based Allocation Strategy
I've devised a novel approach to asset allocation which is simple and robust and seems to give a much better risk/reward trade off than just tracking the market as a whole. Asset allocation is basically how you split your assets between different things, like stocks, bonds and property, although typically I'm only talking about stocks and bonds.
I came up with this approach after getting pee'd off at the madness that is professional asset allocation.
During the dot com boom of the late 1990's my professionally managed pension's stock allocation climbed more or less in line with the FTSE 100. So as the price of the market became more expensive relative to earnings, and as the odds of a fall became more likely, my holdings in the increasingly unattractive FTSE 100 went up!
Looking at the allocation it seems that they weren't doing any 'rebalancing' which, if you know anything about Modern Portfolio Theory, is a basic job of a fund manager. This absence of skill was costing me something north of 2% of assets, no doubt. If that's not money for old rope I don't know what is.
To a large extent that's why I now manage my own money and do a much better job to boot.
Books
Books are essential in order to find out which method of investing you are best suited for. Below are a few of the books that have helped build my investing mindset. Enjoy.
This series is about my own particular take on value investing. This is a very wide field and there are many kinds of value investors, in fact I've been through three different approaches to value investing before settling on the system I now use.
Basically the system I have developed, which is really just a systematic version of the investment approach used by some of the world's best investors, is about generating a growing income in order to retire on that income. This means there's a lot of overlap with dividend investing and income investing, but that's okay, they're just names after all. It's the results that matter.
If you like the idea of investing in big, strong companies that pay a handsome dividend and also have good growth potential then you should be interested in the articles below.
1. Are Your Shares as Safe as Houses?
2. Building an Income to Retire on
3. How to Find the Right Kind of Growth
The rest of the series will be on line soon...
4. How to project future growth
5. Why debt is a four letter word
6. How to project share prices and total returns
7. What's so great about a consistent business history
8. Reasons for the attractive price and will they have an impact on the projections.
9. Feasibility of total return projections
10. Final sanity check
11. Position sizing
12. When to sell
Asset Allocation Strategies
A Value Based Allocation Strategy
I've devised a novel approach to asset allocation which is simple and robust and seems to give a much better risk/reward trade off than just tracking the market as a whole. Asset allocation is basically how you split your assets between different things, like stocks, bonds and property, although typically I'm only talking about stocks and bonds.
I came up with this approach after getting pee'd off at the madness that is professional asset allocation.
During the dot com boom of the late 1990's my professionally managed pension's stock allocation climbed more or less in line with the FTSE 100. So as the price of the market became more expensive relative to earnings, and as the odds of a fall became more likely, my holdings in the increasingly unattractive FTSE 100 went up!
Looking at the allocation it seems that they weren't doing any 'rebalancing' which, if you know anything about Modern Portfolio Theory, is a basic job of a fund manager. This absence of skill was costing me something north of 2% of assets, no doubt. If that's not money for old rope I don't know what is.
To a large extent that's why I now manage my own money and do a much better job to boot.
Books
Books are essential in order to find out which method of investing you are best suited for. Below are a few of the books that have helped build my investing mindset. Enjoy.
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