Wed 7:36pm


This space is reserved for LongbeardRanger to introduce himself.

Investment Strategy
I trade... monthly
I tend to buy... after much research
I hold for... years
I invest with... <£500k
Diversification is ... essential to reduce risk
I focus on high quality companies - that is, companies with high returns on capital, in cash, where I believe there are reasons that those returns can be sustained. My research is a mix of quantitative and qualitative, as I believe a pure focus on financial analysis or quantitative factors can miss certain unusual investment opportunities - for example, investments in industries or businesses where traditional financial metrics are misleading.

LongbeardRanger's Latest Blogs

A few weeks ago I participated in an interesting discussion here about the pitfalls of accruals, and how companies with accruals-based earnings are net underperformers, over time. This creates a big problem if you want to invest in financial firms, who are the "poster boys" of accruals-based accounting.  In this context I thought it would be interesting to take a look at the one financial…

LongbeardRanger's Latest Comments

David, Yes, I agree with you. I think review sites of this nature are of very dubious reliability. There can be circumstances where this kind of thing is useful. For example, net promoter scores and similar metrics can, I think, be useful tools. However, they're only useful if a company uses them honestly to properly assess their own performance. Once they start being external or…

The main thing I don't like about Purplebricks' business (which makes it very different from the portal businesses such as Rightmove, Auto Trader, and Just Eat, all of which have terrific business economics) is that it continually has to compete and win new customers. It has no ongoing, durable customer relationships. That's just a basic factor in the estate agency business (possibly less so on…

Roland, Good article, you highlight a lot of the issues with using screens to assess banks. (Some of the same difficulties crop up with insurers - and, in fact, any company that isn't a normal trading company.) Personally, I feel that the best measure for a retail bank is price to deposits. It's a bank's deposit base (sticky, low cost or free funding) that allows…

Graham, Re System1 - you comment: It's a huge reduction in PBT despite a relatively modest reduction in gross profit, which I believe is attributable to much higher staff costs after some new hires were needed to bolster the offering. It's the old problem with investing in consultancies - the revenue split between staff and shareholders can end up primarily favouring the latter I can…

James, I will say this. The absolute worst thing funeral providers can do, as a group, is sign up to your service. Why? Because it will make the industry more competitive, and in particular, more price competitive. (My rule of thumb is that competition on quality, speed of delivery, customer service etc, are all ok from an investment perspective - but when an industry starts…

LongbeardRanger's Top Awards 2

LongbeardRanger Followers

LongbeardRanger has 0 followers :

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis