Okay, maybe I’m not a Tesco bull, but I’m certainly not a Tesco bailer. I’ve been a shareholder since 2012 and I have no intention of selling in the eye of the hurricane; my contrarian nature would not allow it.
So when it came to writing my latest article for the BullBearnings website I thought I should write about how shareholders could sleep soundly at night, even if they owned Tesco. I have a feeling that almost nobody will agree.
And so to this weeks links, from the wide and varied things I’ve seen on the web this week:
- How to invest in shares and still sleep soundly at night – That BullBearings article, mostly about diversification, slightly about Tesco.
- Article of faith – The price you pay (measured by CAPE in this article) is more important than the growth of earnings and dividends according to the guys at The Value Perspective, and I’m inclined to agree.
- How to use CAPE to beat the market – CAPE is a bit of a long running obsession of mine. This article looks at Meb Faber‘s work on global CAPE valuations.
- Putting the ‘c’ in “long-term” – Richard Beddard on the relationship between contrarianism and long-term investing.
- There’s no such thing as a risk-free company – Yet more on Tesco, this time from MoneyWeek.
- How many stocks should you own in your portfolio? – I’ve written on this many times and so I’m glad to see that someone else (Ed Croft from Stockopedia) agrees with me for a change, that 10-15 stocks is probably not enough to sufficiently reduce risk for most investors. That’s enough to reduce volatility (i.e. the academic measure of “risk”) but it still leaves you with a high risk of underperforming, which is the risk that most people really care about. A 25-30 stock portfolio is much less likely to underperform, which is what I’ve been saying for a very long time!