In this section we will share some insight we received from Nick Kirrage and provide links to a selection of articles he has written.
To read our interview with Nick which covers the route to fund management through to what he sees as the biggest challenge for investors click here
Inside the mind of a value investor – interview with Nick Kirrage
After meeting Nick Kirrage and listening to his thoughts on a range of company specific and more general philosophical topics, there was one moment that clearly stood out. He was explaining the importance of committing to a robust and time tested process to create long term success and he asked us to consider a question.
Off-target – Human beings often focus on the wrong information and investors are no exception
We have talked before about how people often end up focusing on the wrong information but, this time, let’s try and illustrate the point with a brainteaser. Imagine Jack is looking at Anne but Anne is looking at George. Jack is married but George is not. Is a married person looking at an unmarried person – a) yes; b) no; or c) from the given information, is it just not possible to say?
Shop talk – Why did the market react so badly to Boohoo’s recent trading update?
Earlier this month, two very different retailers issued very different trading statements and saw their share prices react in very different ways. Nothing too surprising there you might think – except for the fact that Boohoo.com, the business that saw its share price consequently dive, had published the sort of numbers for which the other, Sainsbury’s, would happily chew off its metaphorical arm.
Plane truth – Those who focus only on life’s winners will miss out on some valuable lessons
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 thus far was to reinforce the wings, central fuselage and tail – after all, the planes had been returning from missions with those areas riddled with bullet holes.
Pattern of behaviour – The longer the time periods used, the more value reveals its strengths
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 it exactly mirrors any particular previous time periods but that the pattern of the returns being generated looks very similar.
Your starter for tenure – How important is a manager’s experience in fund selection?
When it comes to evaluating funds, just how important a consideration is fund manager tenure – that is to say, the length of time somebody has been at the helm of a particular portfolio? It is a question that crops up with a fair degree of frequency – including at a recent investment conference organised by Citywire and at which we were speaking.
Cut and thrust – Dividend cuts may reflect past mistakes but also future growth potential
It goes without saying that dividend yield is an important consideration for income-hungry investors but so too is dividend growth. After all, a dividend payment that does not grow over time and therefore cannot keep up with inflation – or preferably outpace it on a consistent basis – will soon enough be of limited value to anyone.