THINKING OUT LOUD

Few Bargains Abound

20 September,, 2019
by Rob Zdravevski

At present, within the stock universe which I watch and know, there are few to no bargains to be found.

 

It’s important to at least understand that within my style of longer term value-based investing, that in the absence of a bargain or obvious value, the default position is cash.
Furthermore, this is a market where you are not being rewarded with anything extra by taking more risk.
Thus, there is no reason to become a “forced buyer” if you are holding excess cash.
Being a marginal investor or one which buys equities which are “fair value’ and then employing a strategy of “hope” isn’t advisable.
My fundamental style of analysis involves looking at a company’s balance sheet, income statement and cashflow followed by assessing its market position, products and “moat”, and then combining a view of its management composition and prospective sales to form an opinion about its investing valuation and merits.
That’s the least amount of jargon I can use to best describe the main part of my work.
So, currently, I continue to monitor the existing portfolios and whether any changes are required while I fill my day with reading, thinking and analysis about various investing themes and ultimately, trying to take advantage of opportunities which may provide an adequate (perhaps better than) return compared to the risk being taken.