Four Kinds of Share Lose Money. Do You Own One?

Ed Croft on the StockRank Styles, and what thirteen years of UK data say each one returned. Thursday 8 October, 5pm BST.

This webinar took place on WebinarJam. View the original recording.

Download the the slides and research to follow along at home

Download Slides

Most of us buy a share because of its story. The turnaround that's finally working. The growth company that's about to break out. The old favourite that's "so cheap now". The story is why you bought it, but it isn't what you own.

At Stockopedia, every UK share is classified into a StockRank Style, built from the three things that actually drive returns: whether the business is good, whether the shares are cheap, and whether the price is rising. Four of those Styles have historically outperformed. Four have historically underperformed.

We put the Styles through thirteen years of UK data, share by share, and the gap is bigger than we expected. Super Stocks compounded at over 15% a year. Sucker Stocks lost 9% a year.* The difference wasn't luck, and it wasn't risk. It was which box the share was in.

By the end of the hour you'll be able to look at any share you hold, name its Style, and know what that Style has actually paid.

What you will learn

  • The four Styles that have historically underperformed, and the story each one tells you.

    Value Traps, Falling Stars, Momentum Traps and Sucker Stocks: why each looks like a bargain, a comeback or a rocket, and what thirteen years of UK data say they returned instead.

  • Why "it's so cheap" is the most expensive sentence in investing.

    The bias that pulls private investors towards exactly the wrong shares, and the one-glance check that catches it before you click buy.

  • The four Styles that have historically outperformed.

    Super Stocks, Turnarounds, High Flyers and Contrarians, ranked by what they actually returned, in the UK and across ten thousand shares worldwide.*

  • Why risk is a multiplier, not a source of return.

    The Style and Risk grid: the "risky" shares that paid nearly 18% a year, the "risky" shares that lost 15% a year, and the two-word difference between them.*

  • A share that changed Style months before its price tripled.

    How Frontier Developments went from Falling Star to Super Stock while the story was still bad, and what the classifications saw first.

  • How to find today's Speculative Super Stocks in sixty seconds.

    Ed builds the screen live on the site, then walks the list, so you can run it yourself.

Who this is for

You pick your own shares, and you've had at least one that you understood better than anyone and lost money on it anyway. You don't want tips; you want to know the odds before you buy. If that's you, this hour will change how you look at your portfolio.

It isn't for anyone looking for a hot stock to buy tomorrow. We don't recommend shares, and 37% of even the highest-ranked names fall in a typical year.* This is about putting the odds on your side, not removing them.

Q&A

The last part of the session is open floor: Ed analyses investors' shares and finds their Style live.


* Style returns are from a Stockopedia study of UK shares over £10m, April 2013 to September 2026, held equal-weight and rebalanced once a year, with no dealing costs. Percentages include the average annual dividend yield measured over 2016-2026. The "risky shares" figures are the Speculative Super Stocks and Highly Speculative Sucker Stocks cells of the same study. Global figures are total return in GBP, September 2016 to September 2026. The 37% figure is from the StockRanks win-rate study over two-year holding periods. Past performance is not a reliable indicator of future results. This webinar is for education and research: it is not investment advice and no stock mentioned is a recommendation. Smaller company shares can be illiquid and carry higher risk. Stockopedia is an educational and informational service for self-directed investors.

Get the free newsletter