We have been delving through a lot of prospectuses lately to try to understand what’s really going on behind the accounting numbers. In a philosophical moment, we were moved to summarise one of the key messages in haiku form… Continue…

by Tim Kelley Posted in Insightful Insights.

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This is a frustrating market for value investors. Like many of our ilk, we are struggling to find high quality companies trading at prices that we consider attractive. As a result, we now hold significant cash balances in our funds waiting for opportunities to emerge. Continue…

by Tim Kelley Posted in Insightful Insights, Investing Education.

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It’s a fact of life that companies in your portfolio will from time to time report bad news. When this happens, one of the most useful questions you can ask yourself is: “Is this a permanent or a temporary  effect?”. Continue…

by Tim Kelley Posted in Insightful Insights.

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So far in our “Boost your Returns” series we have: Continue…

by Tim Kelley Posted in Insightful Insights.

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In Part 1 of our “Boost Your Returns” series, we introduced the idea of using pattern recognition technology to help identify listed companies with the potential to outperform or to underperform. Continue…

by Tim Kelley Posted in Insightful Insights.

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Boost your Returns Part 2 – It’s Alive!

In Part 1 of our Boost your Returns series, we introduced the idea of using pattern recognition technology to assist in the selection of potential investment candidates. You may recall we proposed using a machine learning model called a Support Vector Machine (SVM) to identify the features that separate good investment opportunities from poor ones. Having done that, we can aim the model at the A1-B3 universe in search of some hidden gems. Continue…

by Tim Kelley Posted in Insightful Insights.

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The field of machine learning has advanced in leaps and bounds in recent decades. A milestone was passed in 1996 when IBM’s Deep Blue became the first machine to win a chess game against a reigning world champion and, since then, advances in computing power and pattern recognition technologies have seen machines improve their performance at tasks that previously could only be accomplished by humans. Continue…

by Tim Kelley Posted in Insightful Insights.

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In looking at company financial statements, one useful question to ask is how cashflows compare with earnings. At the end of the day, cashflows are what give a company its value, but valuation tends to focus more on accounting earnings. Continue…

by Tim Kelley Posted in Investing Education.

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