Plane truth – Those who focus only on life’s winners will miss out on some valuable lessons

By Nick Kirrage During the Second World War, the US Air Force asked statistician Abraham Wald for his thoughts on protecting their bombers from enemy fire. Weight considerations limited how much armoured plating could be used and the consensus view … Read More

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Gluttons for punishment – The only fun bit about value investing is the potential return

By Kevin Murphy Why would anybody want to be a value investor? It is a difficult, grim and – almost by definition – lonely existence. Take a glamorous area of investing such as personal computers and where are the value … Read More

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Long run, Forrest, long run – Buying a great stock may be hard but holding on to it is harder

By Jamie Lowry On The Value Perspective we like to quote from a film once in a while and what better one to quote than Forrest Gump. “Lieutenant Dan got me invested in some kind of fruit company. So then … Read More

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Why investors are wrong to think they can eliminate risk completely

By Kevin Murphy The world today is a worrying, uncertain and risky place. There is geopolitical risk and macroeconomic inflation to uncertainty while the media is awash with worrying stories about anything from stagnant wage the Ebola virus. People are … Read More

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Gone with the flow – Investors cannot hope to know the true liquidity of assets that rarely trade

By Ian Kelly For something so integral to investment, liquidity – the ease (or otherwise) with which an asset can be bought or sold – is extraordinarily hard to quantify. Assorted academics have attempted to create a suitable metric for … Read More

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Thanks but no thanks – Why investors should be very wary of some high-dividend US stocks

by Ian Kelly If you were to ask a certain type of investor what it is they are thankful for this Thanksgiving, their reply might well include the phrase “US high-dividend stocks”. Indeed a number of our own clients have … Read More

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Active service – A new paper has identified two factors that can lead to strong performance

By Andrew Lyddon ‘Active’ is a curious adjective in investment. Depending on your views on what the press has got into the habit of characterising as the ‘active versus passive debate’, for example, it can be seen as either a … Read More

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Pattern of behaviour – The longer the time periods used, the more value reveals its strengths

By Nick Kirrage Every few years, The Value Perspective undertakes a fund ‘health check’ by reviewing the last decades’ worth of performance numbers for the portfolios we run. What we are hoping to see from the data is not that … Read More

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Don’t blame it on Rio – Glencore may turn out to be fortunate it had its advances rebuffed

By Ian Kelly The enthusiasm that greeted rumours of a takeover bid by Glencore for Rio Tinto to create a £100bn mining and commodities-trading giant was in no way dampened by the sector’s current poor health. At The Value Perspective, … Read More

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Marriage guidance – Weddings and portfolios can both end up focusing on the wrong things

By Ian Kelly Diamonds – as any James Bond fan will tell you – may be forever but, if you want your marriage to be remotely durable, you would do well to keep diamonds or indeed anything much in the … Read More

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