Value investing remains topical in the current climate, so in this post we’ll look at this strategy in a little more detail and how it contrasts with our approach.
ISACO’s aim is to help ISA and SIPP investors achieve their investment goals faster. For more information on ISA investing, you may be interested in our free Top 10 Tips for Successful ISA Investing.
What is value investing?
Value investing is an investment paradigm that derives from the ideas on investment that Ben Graham and David Dodd began teaching at Columbia Business School in 1928.
Although value investing has taken many forms since its inception, value investing generally involves buying securities whose shares appear underpriced by some form of fundamental analysis.
High-profile proponents of value investing include Berkshire Hathaway Chairman Warren Buffett.
However, ISACO’s lead investor and chief investment strategist Stephen Sutherland believes he probably would not have been able to achieve market-beating returns for our ISA and pension clients if he’d adopted a value investing style.
Growth investing as an alternative
The best investors in the world consistently pursue a strategy that works for them. When they find an approach that achieves good results, they focus on that.
Using ISACO’s lead investor as an example, in the 90’s when Stephen was early in his investment career, he analysed many different approaches to stock market investing. Studying Warren Buffett and value investing was one of the investment styles he investigated. However, it was only when he studied the likes of Bill O’Neil, Jesse Livermore and Gerald Loeb did he fall in love with growth investing, which is an investment strategy that contrasts with value investing.
ISACO’s approach
ISACO’s Investment Guidance Service follows a growth style of investing. In particular, Stephen helps our clients invest in investment funds that own companies that exhibit signs of above-average growth.
For example in the last three years* he has helped our clients achieve a return of 84.9%, which equates to annual growth of 22.7% per year.
Keeping with this example, a £100,000 portfolio would have grown into £184,900 over the last three years1.
Please remember that past performance should not be used as a guide to future performance. The value of investments can go down as well as up and you may not get back the amount you originally invest.
About ISACO
We specialise in providing a premium Investment Guidance Service for ISA and SIPP investors with portfolios in excess of £100,000.
Our mission is to help investors achieve better performance over the long-term, better protection in falling markets and at a better price.
For more information about ISACO and our Investment Guidance Service, please read our free brochure.
1 Nov 2008-Nov 2011
Please remember that past performance should not be used as a guide to future performance. The value of investments can go down as well as up and you may not get back the amount you originally invest.
