Few years ago, while reading an article about
various investing methods, I came across the value investment approach,
which was first introduced by Benjamin Graham, and made popular by Warren
Buffett. Those who are not familiar with either of them, I would recommend these
books: 'The Intelligent Investor' by Benjamin Graham, and either 'The Snowball'
by Alice Schroeder or 'Buffett' by Roger Lowenstein.
At the heart of the Value Investing, there is a simple concept of buying
a share in the company where its shares are selling at considerably less price than
company’s total net asset (generally, value of its tangible asset) value and
sell the share when it reaches near to that value. Of course, there is a lot
more investigation required by an investor to find out a company's valuation and
where the other part of the value investment principle, of 'margin of safety',
becomes invaluable.
If you would like to start investing in the UK and EU based
companies or want to start your research, I found below websites are very useful:
https://www.fidelity.co.uk [Mainly mutual funds]
http://www.hl.co.uk [Mutual funds and shares]
https://www.halifaxmarketwatch.co.uk [Mainly stock markets]
It has never been easier and cheaper to start investing, especially
true for the UK residents. One can start investing in the stock market (or in
bonds, gold, etc. for that matter) with as little as £25 per month with low
management fees.
Some of the UK based Mutual fund managers I follow are:
http://www.lindselltrain.com [Fact
sheets & insights]
https://www.fundsmith.co.uk [Annual reports and videos]
http://www.sanford-deland.com [Fund based upon Buffett's investment
methods]
https://woodfordfunds.com [Diverse investment although not a value
investment]
and US based websites:
http://www.berkshirehathaway.com [Annual reports and letters]
https://www.oaktreecapital.com [Memos
from Howard Marks]
http://www.theinvestorspodcast.com [Books reviews, interviews &
Podcasts]
I leave you with the below quote which caution a potential investor
before buying shares in a 'turnaround' company:
"When a management with a reputation for brilliance tackles a
business with a reputation for poor fundamental economics, it is the reputation
of the business that remains intact."
- Warren Buffett
Important Information: I do not give investment advice so you need
to decide if an investment is suitable for you. If you are unsure whether to invest,
you should contact a financial adviser.
