Lord Lee interview - we want your questions

Monday, Nov 16 2015 by
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Lord Lee interview  we want your questions

Next week I’ll be travelling to the House of Lords to interview Lord Lee of Trafford, the Lib Dem peer, investing legend and author of How to Make a Million - Slowly.

Lord Lee is famous for becoming Britain’s first ISA millionaire back in 2003. Since then his investment portfolio has grown a great deal further as outlined in his long running column at the Financial Times. His buy-and-hold investment style is heavily focused on small-caps, where he prioritises attractive value and high dividend yields in family owned companies.

If you want to learn a bit more about Lord Lee’s investment process and haven’t yet bought his book - we’ve previously summarised some key points in this article.

I have a lot of questions that I’m keen to ask him, but I want to hear yours too. If you’d like me to ask Lord Lee a question, just let me know in the comments below. I can’t make any promises but I’ll prioritise those questions with the most thumbs-ups.

PS - Given Ed has enforced a strictly ‘no-suit’ policy at Stockopedia’s HQ can I get away with a jacket and jeans when travelling to the House of Lords ?

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Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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37 Comments on this Article show/hide all

ls2g08 18th Nov '15 18 of 37

On a portfolio management front, I would be interested to hear Lord Lee's opinion on home bias.

Secondly would he attribute his investment success to stock picking or asset allocation?

Also does he think his success is repeatable, or was his strategy partly right place, right time?

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Raldridge 18th Nov '15 19 of 37

Could you ask him about his most recent SELLS. He has sold out of Northbridge Industrial Estate at just 20% of its original high not so long ago and I wondered why he had felt the need to do this and simply not hold onto them... if he is indeed a long term holder? And if the low oil price is to blame and he felt this could leave the company in danger of failing, why did he invest in the first place in such a cyclically vulnerable company? Thanks, Richard

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Chipspa 18th Nov '15 20 of 37
1

Could you please ask if there is any attempt being made to reintroduce a tapering on capital gains for shares.
i.e. if you hold a share for 7+ years there would be no capital gains tax.
This would fit in with the governments aim of people investing for their future whilst also differentiating between investing and speculation.

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andrewjames 18th Nov '15 21 of 37
1

Does he think that there is a tipping point - in terms of portfolio size - when it makes sense for an active PI to engage a 'full service" broker to give bespoke advice/place trades, rather than rely on the lower cost nominee services available on a number of platforms? In particular, does he think that a bespoke broker provides better pricing, net of higher broker costs, particularly for those who do not have access to Level 2 data?

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hayashi22 18th Nov '15 22 of 37
1

I'm looking to get a' Lord Lee style' haircut in Arbroath. Does he have any suggestions?

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tournesol 19th Nov '15 23 of 37
3

In reply to post #112323

"Does he think that there is a tipping point - in terms of portfolio size - when it makes sense for an active PI to engage a 'full service" broker to give bespoke advice/place trades"

That's an easy one

My own active broker charges 1.6% commission on the way in and the same again on the way out. So 3.2% on a buy/sell.

The bigger my portfolio, the bigger my transactions, the more I pay.

In contrast my low cost dealing accounts charge a flat fee of around £10 per pop.

The prices obtained by the full service broker are sometimes marginally better than those obtained by the low cost dealers but nowhere near 3.6% across the piece.

The only time the full service a/c has proved significantly better was when I needed to sell a large holding in a very illiquid stock. I could not get any price at all from the low cost systems. The full service guys did manage to dumpt the stock.

The key take-away from that experience was to resolve never to invest in illiquid stocks ever again.

I am in the process of moving from full service to low cost and it is going well.

T

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purpleski 19th Nov '15 24 of 37
1

Ben

My questions (echoing some of those above):

1. Would he consider auctioning himself for lunch with Lord Lee (a la Warren Buffett) at the House of Lords? Going by the interest here...:-)

2. Does he see an anomaly in the fact that I buy ARM Holdings (LON:ARM) (backing in a sense a UK company) and I pay stamp duty but I buy Apple Inc (NSQ:AAPL) and I pay no stamp duty. It is an anomaly I find ludicrous.

3. Does he (I think he does PZ Cussons (LON:PZC) Christie (LON:CTG) ) have holdings he would NEVER sell (again a la Buffett)?

Very envious of your chance to meet Lord Lee, on of the truly great private investors. Have fun!

Kind regards

Michael Broom Smith

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tomomo 5th Dec '15 25 of 37

Interesting new piece (based on interview) in the FT

http://www.ft.com/cms/s/0/1616896a-9851-11e5-9228-87e603d47bdc.html#axzz3tQmRjivO

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cig 5th Dec '15 26 of 37

In reply to post #112383

The stamp duty anomaly is hard to fix in practice given open financial markets, UK residents could just open an account with a non-UK broker to avoid paying a stamp duty that applied to non-UK stock. In practice a government can only do such taxes on their domestic stocks, and even then within limits as if it's too high even domestic companies will list elsewhere.

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jjis 5th Dec '15 27 of 37

There was a Podcast interview with him and an article in today's paper which I wrote up here if anyone is interested in that. Seems the FT have had first dibs on his Lordship as they published his book!

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Novice Investor 5th Dec '15 28 of 37

Ben asked for questions to put to Lord Lee. Is he not going to report back here?

NI

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purpleski 5th Dec '15 29 of 37
1

Also for those interested do remember you can get a rough idea of Lord Lee's current holdings at:

http://www.parliament.uk/biographies/lords/lord-lee-of-trafford/1132

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Edward Croft 5th Dec '15 30 of 37

In reply to post #114087

Lord Lee postponed the original date, but I believe it's been re-arranged for this week.

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herbie47 5th Dec '15 31 of 37

In reply to post #114090

I thought he had sold Northbridge Industrial Services plc?

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pka 5th Dec '15 32 of 37

I think it would be interesting if someone from Stockopedia put Lord Lee's holdings into a virtual portfolio, perhaps specifying an arbitrary amount such as £10,000 for each holding. That would allow readers to see how each of the holdings scored against the various StockRanks and the other valuation criteria offered by Stockopedia.

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herbie47 5th Dec '15 33 of 37

In reply to post #114099

I did do a folio on 23rd June with what I thought were his holdings, I used £1,000 per share, the problem is he buys and sells quite a lot and its difficult to keep track of his actual holdings, also of course it does not reflect his actual buying and selling prices or the size of his holdings. Anyway since June the folio is up 0.2%, he had quite a good run in the last 2 weeks as he was down about 2.5% a few weeks ago. Best performing is FW Thorpe (LON:TFW) and worst is Northbridge Industrial Services (LON:NBI).

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pka 5th Dec '15 34 of 37

In reply to post #114105

Hi Herbie, you wrote: "I did do a folio on 23rd June with what I thought were his holdings, I used £1,000 per share, the problem is he buys and sells quite a lot and its difficult to keep track of his actual holdings, also of course it does not reflect his actual buying and selling prices or the size of his holdings."

Is it possible for other people to view that folio? I would find it interesting.

The FT article below gives the size of each of the holdings in Lord Lee's portfolio in November:

http://www.ft.com/cms/s/0/1616896a-9851-11e5-9228-87e603d47bdc.html#axzz3tQmRjivO

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purpleski 6th Dec '15 35 of 37

In reply to post #114096

He may have done. The HofL site is only as up to date as the information they are provided with and I am not sure quickly they up date once they have been notified. But it is a good overall view of his holdings though I personally think it is his philosophy that is more interesting than trying to duplicate his trades though I am not saying you are trying to do that!:-)

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Flatiron 6th Dec '15 36 of 37

If the interview hasn't taken place yet, could you ask did he operate his stop loss on the recent purchase of Flowtech Fluidpower (LON:FLO). Thanks.

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andrewdb 7th Dec '15 37 of 37

If he was starting out now, what general principles would he follow.

The pe <= 7 / yield >= 7 concept may well have been valid in the 70s ,
but the only stocks I am aware of that fit this filter in the last year or two were chinese AIM.

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Ben Hobson

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