How to invest according to Anthony Bolton
Thursday, 30 April 2009
In an extract from his book, Anthony Bolton discussed his favourite type of share...yes that’s one that goes up in value over time. But often when reading snippets from articles, or listening to lectures, sometimes little comments or points of view can be the nuggets of gold you are looking for. Anthony Bolton mentions Jeremy Grantham, chairman of GMO, who makes some very interesting observations about growth and value investing in the US:
"Growth companies seem impressive as well as exciting. They seem so reasonable to own that they carry little career risk. Accordingly, they have underperformed for the last 50 years by about 1.5 per cent a year. Value stocks, in contrast, belong to boring, struggling or sub-average firms. Their continued poor performance seems, with hindsight, to have been predictable and, therefore, when it happens, it carries serious career risk. To compensate for this risk and lower fundamental quality, value stocks have outperformed by 1.5 per cent a year."
Anthony Bolton went on to comment “I couldn't put it better. I know where I want to place my bets given these long-term odds.”
Well Anthony Bolton and I do have something in common after all. Except that stock picking value shares is likely to be elusive for most fund managers, instead invest in a collection of value shares similar to an index fund and your long term returns might outperform as Jeremy Grantham states above.
posted by Murray Round Wealth Management @ 11:08,
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Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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