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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 14 out of the 18 years in which we have run them. During that time, they’ve generated an average return of 20.7 per cent in the first 12-month holding period compared with an average increase of 4.2 per cent for the FTSE All-Share.


Latest Updates

  1. Four small-cap buys

    Four small-cap buys

    By Simon Thompson | 21 March 2017

    Simon Thompson highlights four investment opportunities in his small-cap hunting ground

    I feel a realisation value of 50p a share is not unreasonable in a break-up scenario, representing a 40 per cent premium to the current share price but still a near 50 per cent discount to risked net asset value estimates

  2. Going for growth

    Going for growth

    By Simon Thompson | 20 March 2017

    Simon Thompson highlights a quintet of small-cap buys

    There is no overhead resistance until the December 2013 highs which would value the equity on a very reasonable 12 times conservative net profit estimates after adjusting for cash. Offering 25 per cent upside to my new target price, I continue to rate the shares a strong buy.

  3. Five value opportunities

    Five value opportunities

    By Simon Thompson | 15 March 2017

    Simon Thompson assesses newsflow from no fewer than five small-cap shares

    With the trading outlook positive, the board committed to returning cash by earnings accretive share price supportive buybacks, and the rating modest, then I have no hesitation reiterating my 180p target price.

  4. Engineering reratings

    Engineering reratings

    By Simon Thompson | 06 March 2017

    Simon Thompson highlights a quartet of small-cap shares that offer significant upside potential

    Trading in line with book value, on a forward PE ratio of 7.5, and offering a 3.2 per cent prospective dividend yield, my target price is looking increasingly conservative

  5. Full house

    Full house

    By Simon Thompson | 28 February 2017

    Simon Thompson is taking profits on a holding that has generated a 300 per cent plus return, and highlights several undervalued small cap investment opportunities.

    Rated on an unwarranted 15 per cent discount to EPRA triple net asset value, and offering a dividend yield of around 4 per cent, the valuation is attractive enough to support further share price gains.

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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