Phil Oakley Book

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26th Mar '18 by Prof Calculus

49 comments 10461 reads

In my quest to become a better investor I have just read Phil Oakley's book

'How to pick quality shares' by HH , the book was good with lots of information on EBIT , Free cash flow etc . I am trying to create a stockopedia screen based on his ratios .

Is there anyone out there that has successfully done this and perhaps could send me a link or email me ? as I am finding it difficult to create .

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Prof Calculus

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49 comments

xcity

27th Mar '18

I'd been with Stockopedia for some time before using Sharepad (now into 2nd year). Took me quite a while to get the Sharepad layout and way of doing things, but am now finding that I tend to use it rather than Stocko when I'm doing detailed work. Helped by now having a fast internet connection, if it is very slow as mine used to be then Stocko would be better.
Sharepad has large holdings and movements as well as directors dealings. I use that frequently. Also has a lot of ratios. I'm not a great user of the Stockranks and am irritated rather than informed by the descriptions - 'contrarian' 'sucker stock' etc. tbh, I find analysing quicker and much easier on Sharepad. Also has all my holdings (Stockopedia doesn't) with a feature to add dividends automatically (doesn't work for bonds unfortunately) which makes it better for portfolio management. Stockopedia has its screens and community.
I'm happy to have both. Just regard tools like this as a relatively small % cost of managing my portfolio.

Rusty2

27th Mar '18

OK thanks, maybe I need more time with Sharepad. I did find the directors % misleading, Burford Capital (LON:BUR) and Fevertree Drinks (LON:FEVR) has 0% but I know there have been large sales recently.

On Sharepad is there a way to filter for different shares similar to screening on Stockopedia?

xcity

27th Mar '18

Yes. Go to the list view, select filter. Then go to the library (button on R) and it gives you a large set of pre-made filters.

I think the DD takes a little while to catch up with dealings. Not checked in detail, but seems to be a few days.

Rusty2

27th Mar '18

OK thanks, I will have a play with it tomorrow.

JohnEustace

27th Mar '18

Herbie, The recent Burford Capital (LON:BUR) sales were by founders who are not in fact directors of the company.
Unusual but in this case the Sharepad data is correct.
http://www.burfordcapital.com/investors/corporate-governance/board-of-directors/

Prof Calculus

28th Mar '18

Based on Phil Oakley's book I am looking to try the trial period does anyone know if can I stock screen the ratios mentioned in his book such as debt to equity ratios ,EBIT etc . Also does company data go back 10 years ?

JohnEustace

28th Mar '18

Tony,
SharePad has a pre built library of filters that includes some built by Phil Oakley. The one called Phil Oakley Quality Shares is based on his book so the work is already done for you.
I just ran it on the FTSE 350 and it took me 9 clicks to install it from the library and run it. You can copy and edit the filter once installed to your hearts content.
Out of interest the FTSE 350 shares passing the filter this morning are MONY, JUP, CPG, DPLM, BRW.

They say they have up to 20 years history for each share, more than any other service.

Prof Calculus

28th Mar '18

Hi John

Many thanks for your feedback -really appreciate it.
I know it is a personal choice but in your opinion is it worth the £250 per year fee ?

Any feed back good and bad would be welcome

Velo

28th Mar '18

Is the Phil Oakley book a disguised sales pitch for Sharepad or a genuine standalone investment book? ie., How many direct references are there to Sharepad within the book? And thus leaving the reader feeling they won't fully get the full benefit of the book without a subscription to Sharepad.

Seriously, is Sharepad mentioned more than once or twice in the book?

xcity

28th Mar '18

I think that's not the best way to think about them.

They are both expressions of Phil Oakley's analytical experience and beliefs. Sharescope/Sharepad was created to help him do it, and the book tells people about them. He will mention using Sharepad, because that's what it does.

As a business man, I think that Sharescope/Sharepad (must be Sharepad by now, I would have thought) is the main product. So your view is probably correct from his business' point of view.

Prof Calculus

28th Mar '18

Could be as as there are a least 30 graphs in the book all Sharepad as well as company reports which are all Sharepad sourced . You may have a point nonetheless the book was interesting.

Rusty2

28th Mar '18

Thanks John, yes you are correct I had forgotten they are not directors.

Rusty2

28th Mar '18

Just been trying the filters and comparing his selections with Stockopedia, obliviously uses different criteria but most of those 5 have fairly modest SR scores, although the QR is high for 2 them. Only AIM stock is Portmeirion (LON:PMP). I may do a folio and see how they perform. Interestingly no US shares qualify and only 3 European ones do.

Damian Cannon

28th Mar '18

It's definitely a standalone investment book. When I got the book at Xmas I didn't have access to Sharepad. So I just created my own spreadsheet from the historical data for Dominos Pizza (which is an example he uses repeatedly) and recreated his analysis. Funnily enough I found a few minor numerical errors this way!

However the numbers and graphs that he uses are taken straight from Sharepad and there's no doubt that following his analysis is easier if you use the same tool. This is why I signed up earlier in the year with a view to testing the site to see if it added value. So far I'm liking it although I haven't properly set up my portfolio or any filters so far.

DMG2305

28th Mar '18

I read Phil Oakley's book and thought it was excellent. I am not a sharepad subscriber but will probably try it out at some stage. I don't think you need to be a Sharepad subscriber to benefit from the book it's easy to apply his main principles using Stockopedia. After reading the book I tried putting together a screen loosely based on his book, unfortunately I have not figured out how to post a link to the screen but its address is below if you can get through to it. I think with the screens you are best to keep the rules to a minimum so you get a decent selection of shares to choose from, you can always do a sanity check on the shares by checking the stock ranks are good and high before doing further research.

I'd be interested in hearing feedback on the screen, I own a good few of the shares on it but haven't looked into all of them.

https://www.stockopedia.com/screens/hq1-349203/

Nick Ray

28th Mar '18

That is a great screen, which uses some ratios not included in computing the Stock Ranks (such as OCF and CROIC.)

But I think you might have a mistake. You have OCF/EPS >= 0.8 EPS. Did you mean OCF/EPS >= 0.8 instead (since the EPS to OCF comparison is already present in the first term)?

DMG2305

28th Mar '18

Thanks Nick,

Yes - thanks for pointing that out to me. I was really trying to make sure that Free cash flow was at least 80% of EPS but I don't think it was possible using the rules so I used OCF. I'll amend the screen now. After reading the book I appreciate much more the importance of high cash generation together with high ROCE which is what I'm focusing on mostly now when buying shares.

Best

Des

JohnEustace

28th Mar '18

Hi Tony,
I've been a ShareScope and now SharePad subscriber for quite a few years and personally wouldn't be without it. That's a bit because I have got into a way of working that suits me and I'm thinking along the lines of not broken, don't fix it. There is some duplication with Stockopedia in that I'm paying twice for the basic data but in the scheme of things there are other things I would save on first.

I would say SharePad is a great tool if you want to do your own more detailed or individual style of research and have the time to put into it.
There are many of their tutorials on YouTube if you want to take a look at their channel there. This one shows how to create Phil Oakley's charts. https://www.youtube.com/watch?v=SBanVP2X-EY

iwright7

28th Mar '18

DM or Nick,

I too like the look of this PO Quality screen, to but I am trying to figure out how to remove the x EPS in the ratio x ratio sub-section

OCF/EPS >= 0.8 x EPS
to OCF/EPS >= 0.8

Could either of you detail, or update the link and I will save that. Cheers, Ian

Prof Calculus

28th Mar '18

My screen is here it is work in progress not sure if I have got it right happy to amend

https://www.stockopedia.com/screens/phil-oakley-408753/

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Phil Oakley Book

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Prof Calculus

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