value

Be careful, think before “updating” to Windows 10

I rarely blog on issues outside of economics, investing or trading but this is different.

I have just made my biggest mistake of 2015. After many intrusive requests, I relented and installed Win 10.

What a mistake It took nearly 3 hrs to fully install Win 10. Then the problems started:

  • Win 10 had disabled one app that I use frequently.
  • While I could receive emails using Outlook I could not send emails.
  • Win 10 removed some icons including explorer.
  • The use of Word was very clumsy.
  • And at start-up Win 10 is impossibly slow.
  • Cortana in Win 10 is the so called “personal assistant” but seems to me to simply be an intrusive spying module. What does Microsoft do with the data?

Fortunately it took only 20 mins to totally remove Win 10 and revert to Windows 8.1. But now I am left with a compromised machine with… Continue reading

How effective is value investing

Value investing came into prominence with the publicised outperformance of investors such as Warren Buffet. The idea behind value investing is to buy only those stocks which have good fundamentals when they are trading at less than their intrinsic value. But how effective is value investing for the average investor?

I have become sceptical about the value investing approach after a recent experience with a major fund manager who is a value investor. My investment was an individually managed account which over a two year period underperformed the index and significantly underperformed my other equity investments. In May of 2014 I started to record data on a weekly basis comparing the ASX200 with my investment approach, the funds under management and a value investing approach. In comparing all three portfolios with the index, each had an equal amount of capital invested in a portfolio of 10 stocks.

The value investing… Continue reading

Stock market value and volatility

There is a high probability that the bull market in equities will continue, given the very low returns from alternative investments in an environment of very low interest rates and high liquidity. But investors in equities while searching for stocks with value need to be tolerant of increasing volatility.

Market valuation.

In the United States there is increasing concern that a very strong USD is placing increasing pressure on the profitably of large corporations whose markets are mainly overseas. By historical standards the USD is far from its highest levels and could be expected to rise further. The result may be a slowing of the bull market in the United States. There is also concern that the equity market will be affected if the Fed raises interest rates. So while the United States bull market will in all probability continue, one must question the valuations of many stocks.

In Australia… Continue reading

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