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Simon Thompson's Bargain Portfolio

The idea behind our annual Bargain Shares Portfolio is very simple. It’s to invest in companies where the true worth of the assets is not reflected in the share price, usually for some temporary reason, but where we can reasonably expect that it will be in due course.

Our portfolios are based on the investment ideas of Benjamin Graham (see box ‘Rules of Engagement’) and they have beaten the FTSE All-Share index in 13 out of the 16 years in which we have run them. During that time, they’ve generated an average return of 22.7 per cent in the first 12-month holding period compared with an average increase of 4 per cent for the FTSE All-Share.

Latest Updates

  1. Bargain shares updates

    Bargain shares updates

    By Simon Thompson | 21 September 2016

    Simon Thompson reviews results from four of the constituents of his 2016 Bargain shares portfolio.

    With the business turning profitable, and attracting the attention of foreign investors, then it’s hardly surprising that the shares have soared. In fact, after another sharp rise yesterday, they are up by over 60 per cent since I recommended buying seven months ago.

  2. Clear-cut decisions

    Clear-cut decisions

    By Simon Thompson | 19 September 2016

    Simon Thompson runs through results from a quartet of small-cap companies.

    The bottom line is that the shares are only rated on 13 times cash adjusted earnings, and offer a forward dividend yield of 4.2 per cent, a rating that fails to acknowledge the company's competitive advantage, potential for organic growth and market share gains, and additional special dividends.

  3. The inside track

    The inside track

    By Simon Thompson | 14 September 2016

    Simon Thompson gives the inside track on four small-cap companies.

    Trading in the first four months of the current financial year is ahead of the same period in 2015, but even if these businesses only match last year's performance then they are still only being valued at £8m, or five times operating profit.

  4. Juridica’s bumper cash return

    Juridica’s bumper cash return

    By Simon Thompson | 07 September 2016

    Shares take a tumble, but have investors over reacted?

    The bottom line is that there could be upside to several of the remaining investments, and with Juridica’s share price effectively backed by 40p a share of cash, of which 32p will be returned to shareholders shortly, then there is solid asset backing.

  5. Priced to motor

    Priced to motor

    By Simon Thompson | 06 September 2016

    A trio of small cap companies offer great value.

    The economic slowdown that many economists had predicted has failed to materialise post the EU Referendum, so much so that retail sales for July have confounded the sceptics who predicted consumers would rein in spending.

Our portfolios

Mr Bearbull's Global Fund Portfolio

A portfolio of instruments designed to capture the rise of emerging markets

Mr Bearbull's Income Fund Portfolio

A collection of high-yielding shares that's beaten the market since 1998

Chris Dillow's Benchmark Portfolio

Simple portfolios picked using simple rules that often beat the market

John Baron's Investment Trust Portfolios

A portfolio of investment trusts designed to generate growth and income

David Stevenson's SIPP Portfolio

Our columnist describes how he manages his pension fund and what he puts in it

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