Value & Growth Traps

A value stock, in the traditional sense of the word, is typically a company that screens well on traditional value metrics like low P/B, P/E, P/FCF, high dividend yield and other “value” ratios. A growth company screens well on quality metrics like high ROIC, operating margin, revenue growth, low leverage etc. For value stocks, the […]

The Art of the Scuttlebutt – Why Games Workshop succeeded while Hornby and Stanley Gibbons failed

Knowing how to ask the right questions is a very important skill when doing scuttlebutt i.e. investigative reporter type research into a stock. Phil Fisher, Warren Buffett, Peter Lynch and Keith Ashworth-Lord were/are all practitioners of the scuttlebutt. I have however learnt the most about scuttlebutt from Geoff Gannon from Focused Compounding Capital. Here is […]

How I Screen for Stocks

This year, I am going to focus all of my attention on AIM (Alternative Investment Market) listed stocks. The AIM market was launched in 1995 in the UK and allows smaller companies raise money from investors without the regulatory burden and cost associated with listing on the main market.   Since inception, the performance of […]