How to build a portfolio of high yield, high growth and high quality companies
If you’ve decided to stick with large-cap investments you’re not alone.
Many investors prefer larger companies for a variety of reasons such as income, stability, robustness in the face of hard economic times, or even just a brand name that they’ve heard of.
But once you’ve decided that the Smallcap and Fledgling indices are not for you, then what?
One of the problems with investing in individual companies is the amount of information that the internet gives us today. There are hundreds of web sites offering thousands of ratios like price to earnings, gearing or the ‘quick’ ratio. And once you’ve got this data what do you do with it?
Einstein is often quoted as saying “Everything should be made as simple as possible, but not simpler”.
It turns out that in the world of stock picking, it’s possible to simplify the process to a surprising extent.
Just as importantly, following a pre-defined strategy is likely to be better than following a ad-hoc approach, where decisions are made up as you go along.
Introducing the UKVI large-cap strategy
The following articles outline a simple, repeatable strategy for investing in medium and large companies, which is based on the findings of many academic studies. It is focused on valuing companies by their LONG-TERM success and deliberately minimises reliance on short-term news.
If you want to stay up to date with future posts, just subscribe to the weekly email updates.
