Another week flies by, Scotland remains part of the UK and the FTSE 100 still hasn’t really gone anywhere so far this year. As if that wasn’t enough, here’s a list of some things I read/watched/did in the last seven days:
- Supermarket price war deja vu? – Yet another view on the UK supermarket scene, this time from the value team at Schroders
- Mello 2014 – A three day event aimed at “the serious long term investor seeking less speculation and more security often in dividend paying companies”
- What is free cash flow yield? – Another handy video introducing some useful-to-know topics from Killik & Co
- Choosing an investment strategy that suits – Interactive Investor’s Richard Beddard points out why it’s important to use a strategy that you can stick with over the long-term
- List of shares sold from the UKVI model portfolio – I’ve updated the performance page with a handy list of links to writeups of all past investments
- Shareholder rights campaign launch event – ShareSoc are launching this campaign on the 14th of October. Speakers will include John Kay and (Lord) John Lee
I have just read Schroeder comment on Tesco and I can agree with them on some of the assumptions, although having a 6% margin in the past will not guarantee a 3% margin in the future.
Today I have heard about overstating the profits for the first half by £250m and some Tesco’s directors suspended, which raises some eyebrows. I used those figures when buying shares in Tesco and the announcement sent me in ‘Red’.
However at this price I bought a few more shares. I don’t think that Tesco will go back at what it was 8 years before, but I believe now it trades too cheap. Investors are disregarding now the value of the land and property, and probably even the fact that it can take advantage in the disruption caused in the food sector by Russia and the ending of the milk quotes in Europe next year.