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 […]

Keeping it Simple

The Flesch score measures how easily a text can be read. Scores range from 0 – 100 with 0 meaning very difficult to understand to 100 meaning very easy to understand. Some generic examples of Flesch scores are: Comics = 92 Wall Street Journal = 63 UK Income tax act = 26 Scientific Journals = […]