Video interview with fund manager Richard Staveley of Harwood Capital

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31st Jan by Paul Hill

41 comments 1144 reads

#RKW #CPI #FTC #FCH #VANQ #AGFX #RM #VANL #FLO #FSJ #STVG #KOO #PEN

In this week’s Exchange, accomplished UK fund manager Richard Staveley of Harwood Capital, who runs the Rockwood Strategic investment trust, takes me through his latest thoughts on the following:

00:00 Secret sauce behind Rockwood’s success.

06:40 Capita

13:35 Filtronic & how to value the stock

19:05 Funding Circle

24:00 Vanquis Banking

32:55 Argentex

38:50 RM

43:00 Van Elle

47:25 Flowtech Fluidpower

52:25 James Fisher

56:30 STV Group

60:55 Kooth

66:25 Pennant International

70:35 Favourite stock idea for 2025 & portfolio management.

https://www.youtube.com/watch?v=uRYjDypLDpk

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About the Author

Paul Hill

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Stocks owned : EQLS, AGFX, Pfizer, Bristol Myers, WATR, VCT, SPI, MBH, BIG, TET, IXI, ASTO, IOM, ESYS, ELCO, IHC, IXI, CML, TRB, TRCS & AOM Elsewhere, I'm also paid by Vox Markets (as a contractor) to interview interview fund managers, capital market experts & companies (re EQLS, VRCI, BELL, FIN, AVG, VLG, SUP, ELCO, MPAC & WATR). I believe all these stocks are clients of Vox.Please Do Your Own Research. more »

41 comments

Paul Walton

3rd Feb

If your investment doubles its 1 bag your original investment is a zero bag, you make 50% that's half a bag and so on

Rusty2

3rd Feb

No. Your original investment is 1 bag. If you invest nothing then you won't have any gains. Start with 1 bag or £1,000 or whatever.

aflash

3rd Feb

Try this.

On the theme of 'bags' it obviously has more to do with bragging rights than maths.

Richard Staveley says of (FTC) Filtronic 'bought at 12p, presently 99p if it hits 120p will be first Rockwood Strategic ten bag'

buy	market	number of	%
price	price	bags'
12
12	24	1	100%
12	36	2	200%
12	48	3	300%
12	60	4	400%
12	72	5	500%
12	84	6	600%
12	96	7	700%
12	108	8	800%
12	120	9	900%
12	132	10	1000%

Rusty2

3rd Feb

Your table table does not tie up with what Richard Staveley says. 120p is ten bags. If it goes up 10x it is a 10 bagger.

Paul Walton

3rd Feb

It's taken from baseball. A home run is 4 bags, first base is 1 bag and so on, Page 32 of One up on Wall Street. Peter Lynch coined it

Rusty2

3rd Feb

So if you lose 100%, you don't lose any bags, because you have no bags to lose?

lf you invest £10,000 that is one bag.

Helvellyn

3rd Feb

That's called losing a PACKET :-))

Paul Walton

3rd Feb

Bags only apply to making money or runs in baseball. You don't go backwards when playing baseball!

Rusty2

3rd Feb

You do in investing. That is like investing £1,000 and never losing.

There are plenty of examples on google, what multibagging means and they all are saying the same thing. 5x is 5 bags, 10x is 10 bags.

Paul Walton

3rd Feb

Yeh 1x is 100% so you've 1 bagged. A zero bag is where you havent made any money or in baseball terms you havent yet moved off the home base. Ask Peter Lunch he had many 10 bags

Rusty2

3rd Feb

https://www.investopedia.com/t...

https://www.fool.com.au/defini...

https://corporatefinanceinstit...

Paul Walton

3rd Feb

The Fool article is wrong. It's gone up 10 fold but for it to be a 10 bagger it would have to have achieved a price of $110 from a starting price of $10. A home run is 4 bags 1st base, 2nd base, 3rd base then back to home

Rusty2

3rd Feb

You better tell Richard Staveley, it will only be a 9 bagger. Needs to be 132p according to you, to be a ten bagger.

The way the market is going there is going to be a lot minus bags.

10x nothing is nothing.

Paul Walton

3rd Feb

According to Peter Lynch not me

Rusty2

3rd Feb

So everyone is doing it wrong, even Nasdaq and Wall street?

Paul Walton

3rd Feb

Simple math. If a stock goes up 10 fold or 10x you've made 900% on your initial investment which is 9 bags using Lynch's original statement. If i'd 10 bagged or 10x I couldn't care less which was which, I'd be sitting on a whole load of cash regardless!

illiswilgig

3rd Feb

Peter Lynch One Up on Wall Street on Tenbaggers

P32

In Wall Street parlance a "tenbagger" is a stock in which you've made ten times your money

in normal usage ten times your money is a gain of 9 times plus your investment returned. I went in with one bag of cash. Now I come out with ten bags of cash. Where saying 'you make' is equivalent to 'you get' your money. As in you 'make' your money back.

Despite most investors using 10x for a tenbagger I agree that this is ambiguous. So which is it that Peter Lynch means? He provides an example of what he means in the introduction (to the millenium version) P14

'With that in mind, before DotCom.com can turn into a tenbagger, it's market cap must increase tenfold from $10 Billion to $100 Billion'

I'd say that makes unambiguous what Peter Lynch means by a tenbagger?

cheers

Mark

WimborneMiser

3rd Feb

So if I bought shares with an average purchase price of £8.135

and sold them in stages for an average selling price of £16.70

I've doubled my money and surely I've had a double-bagger?

If not what it is?

That was a real life example with YU. and my return with dividends was 109% and to me that's a double-bagger

WimborneMiser

3rd Feb

At 174 you’ve doubled your money, so a doublebagger

doctor dave

3rd Feb

Regarding Baggers - there is a glitch in the space-time continuum between a one-bagger (doubled your money), or a two-bagger (tripled your money) and a ten-bagger (made nine times your money).

The key point being that by the time you have ten-bagged you've done too well to care about the maths anymore.
DD

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Video interview with fund manager Richard Staveley of Harwood Capital

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Paul Hill

41 comments

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