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01 March 2019ADDING OR LOSING VALUE - THAT IS THE QUESTION

Last month most of the major indices rose a little with, roughly speaking, Europe still in Bear territory, the US clinging on to its Bull status and the Eastern Indices while below year highs are still just about in Bull territory.

So, nothing much has changed, we need to have lots of patience and stay in cash for now as we wait for these indices to start rising in a sustained manner.

While we wait it might be a good idea to refresh our view on what it is that we are looking for in our investments. Are we looking for Income or Growth or a bit of both. Are we committed to holding our investments for at least 5 years to allow them time to work. While we are thinking about Growth and Value we also need to be looking at Quality and how we measure that. After all little point in making an investment in an apparently growing company only to discover that the growth is not sustainable and is perhaps on the decline and with it the share price. To keep us on the right side of this we look at Momentum over an extended period to ensure that we satisfy ourselves that the attractive share that we see as being a suitable investment today will maintain that trajectory in the years to come.

 And lastly when we are satisfied that we have a good prospect for investing we look at the Annual Accounts to check for any manipulations or massages to the figures that may make them appear better than they might otherwise be.

TIP: Always read a set of Accounts from the back forward to the front and not the conventional way.

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