Monday, May 5, 2014

IGValue portfolio: Apr 2014 lessons & review

One of the goals of the IGValue blog is for me to keep it real by quantitatively measuring my performance and learning from my mistakes. So every month I try to review progress and make a list of things I have learnt. 

Lessons this month

  • The volume of companies to be reviewed needs to be very large to find even a few good ones
  • Stock screens like low P/E and high returns on capital have lots and lots of errors and need to be carefully used
  • Discipline is the key in keeping away from Companies on the edge - where the moat maybe just short or the price may be just a bit high (margin of safety is there but not enough)
  • Discount to market QIP (Qualified Institutional placement) puts retail & small investors at a disadvantage and necessarily does not drive prices down
  • Moat grading needs to be more mathematical as personal bias is likely to creep in without it

Overall I have reviewed 27 companies on the blog so far and have found only 11 with the right kind of moat of which only 3 were trading at the right price. At the end of April  2014 the portfolio comprises of 95.8% cash and the rest is in those 3 stocks.

I am continuing to look for value in common stocks and hope you enjoy reading the blog. If you have specific companies you want me to look at please email me at ig at igvalue dot com.

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