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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. Fairpoint exits debt solutions

    Fairpoint exits debt solutions

    By Simon Thompson | 27 July 2016

    The provider of consumer professional services is winding down its debt solutions business to focus on legal services.

    The negative publicity surrounding government changes in whiplash claims looks overdone especially as Fairpoint only derived 9 per cent of its first-half revenues from this area, and any changes in legislation will not be implemented before autumn 2017 and are likely to follow prior precedent, so are unlikely to be retrospective.

  2. Four small caps with upside potential

    Four small caps with upside potential

    By Simon Thompson | 26 July 2016

    A quartet of small caps offer investment potential

    'The businesses are being valued at the equivalent of 5.5 times operating profit based on the current market capitalisation. True, US dollar exchange rates are a challenge due to the increasing levels of goods sourced and purchased in the Far East, but even so, they look undervalued'

  3. Business as usual

    Business as usual

    By Simon Thompson | 18 July 2016

    Shares in a quartet of small-cap companies are maximising profits on my bear market theory

    Buoyed by robust cash generation, net funds are worth 17.5p a share, so the cash-adjusted forward PE ratio is only 8.6. And analysts predict a rise in the payout per share from 6.9¢ to 7.2¢, equivalent to 5.5p at current exchange rates, or 12 per cent more in sterling terms than a month ago. On this basis, the shares also offer a prospective dividend yield of 3.3 per cent.

  4. Deep value small caps

    Deep value small caps

    By Simon Thompson | 13 July 2016

    Shares in a quintet of small caps all offer great value

    The yield blowout in the property sector has lifted unleveraged implied yields to a record spread over gilts. While uncertainty dominates the commercial property sector, and volatility is likely to remain, the market has disproportionately punished the large Reits

  5. A golden performance

    A golden performance

    By Simon Thompson | 07 July 2016

    The soaring gold price is very good news for a company on Simon Thompson’s watchlist.

    Investment demand for gold more than doubled to US$23.4bn in the first quarter of 2016 and meant total demand exceeded supply by quite some margin. This imbalance will continue as long as investment demand stays firm as seems likely for the immediate future.

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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