Monday, November 5, 2012

Investing as simple as ABC

On 2 November 2012, I grabbed a copy of the share tables in the Daily Telegraph and started trawling through the list, aiming to start at A and ending at Z. For several years, I have screened shares using rudimentary software provided by Etrade. I cannot help but feel I am playing a mugs game. Everyone will be screening for shares using popular criteria such as PE, ROE, Book Value, etc.

So I finally overcame my laziness and procrastination and took Buffett's advice.  There is really no other way, given that I am not blessed with talents of imagination and creativity, and that I am basically an introvert without a benefit of a wide network to draw information upon.

It was not as painful as I feared. As at today, I have finished all industrials up to G. At this rate, this exercise will be done and dusted well within a month. True to Buffett's experience, there are many names which I spent very little time on. There are also quite a number of decent companies which I already own or have kept on my watchlist for a good entry price.

As a matter of perspective, there are over 2000 listed entities on the ASX. Only 1/3rd of them are making profits. Let's see whether there are some gems hidden in there.

Like I said, simple as ABC.  I never said it will be easy.


Anonymous said...

Hi Peter, did you discover that the published tables gave you any better value than etrade in the end and what was this?
Keep up the good work!

Anonymous said...

Hi Peter, love your blog. Did you discover the printed tables had any value over etrade filters? if so in what way?