A few days ago I sent out the following tweet.  


I feel these 5 small rules are as true today as they were when I first realised simplicity.  Robbie Burns the Naked Trader taught me most of these rules and his book is still my own personal bible. It is kept in my desk drawer and every few months I scan over it again, just to help refresh my memory and to keep my investing discipline in place.

This tweet was sent the day before the now infamous UTILITYWISE | Projected Under Consumption Of Energy Contracts | RNS.  The RNS stating the following;

that it [The company] has been made aware of apparent material levels of under-consumption in certain contracts placed with one of the major energy companies dealt with by the Group (the "Energy Company"). "'

Subsequently the share price dropped around 40% on the day. The share price has been in a downward momentum since May 2014.   Utilitywise (LON:UTW) has been and still is a hotly debated stock and more interestingly between some investors that I follow and have a huge respect for.

This post today will focus on simplicity and why sticking with simple, easy to understand rules should in most cases keep you away from the risks associated with the likes of UTW.   

As always I want to mention that while I have posted my opinions in the past I have never been a professional writer.   My grammar and spelling can be appalling but I hope my message I want to bring is clear enough.

But before we go onto simplicity lets first talk about my most loathsome word of all - adjustments.   (ok so there are quite a few nasty words i could categorise but I'm going to stick with adjustments as a pretty good contender for the most loathsome word ever.


Okay so I am sure many highly sophisticated, experienced analysts, accountants, investors will think that adjustments are important!  Of course by adjusting the figures said person will be able to calculate a more accurate view of the accounts for valuation purposes.   That's fine but  I think Im pretty amateur to be honest.  As an amateur I'm probably at a disadvantage to the experts and up…

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