Rejecting companies that have made mistakes: Companies that are striving on a frontier, particularly a technological frontier, will experiment with projects; and many of these will fail. Technological pioneers must be permitted to endeavour, to go for the big breakthrough.
Look for a good average success to average failure ratio. If the firm is run by good managers bad performance will be transient. Short-term focused investors have a habit of over-responding to earnings drops: ‘time and again the investment community’s immediate consensus is to downgrade the quality of the management. As a result, the immediate year’s lower earnings produce a lower than the historic price earnings ratio to magnify the effect of reduced earnings. The shares often reach truly bargain prices’. (Philip Fisher) Judging a shar...To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
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Glen ArnoldI'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact Jackie.Tran@henryspain.co.uk investing is about making the right decisions, not many decisions.
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