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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 | 17 November 2015

    This year's portfolio is beating the market, but it hasn't been plain sailing

    It's clear to me that the company is firmly in an earnings upgrade cycle, and one being driven primarily by its track testing systems division, which includes driving robots and soft crash vehicles and accounts for 70 per cent of revenues.

  2. Engineering a break-out

    Engineering a break-out

    By Simon Thompson | 12 November 2015

    Shares in a small cap maker of industrial fastenings are on the verge of signalling a major share price move

    ‘Having tested the summer share price low on two occasions, and each time the support has held firm, the share price is exhibiting positive divergence on the chart with the 14-day relative strength indicator (RSI) rising on each retest of the summer low. In addition, the moving average convergence divergence (MACD) momentum oscillator is on the verge of giving a positive cross over, and the share price has moved above both its rising short-term 20-day exponential moving average (EMA) and its bull market trend line, the 200-day EMA.'

  3. Riding a seven-year high

    Riding a seven-year high

    By Simon Thompson | 10 November 2015

    Shares in the provider of consumer professional services are on a roll with further gains likely

    Shares are trading on a 2016 PE ratio of 9.5, representing a 1.5 point earnings multiple discount to the rating ascribed to Gateley. That undervaluation is hard to justify especially as the company is expected to deliver EPS growth of around 8 per cent in both 2015 and 2016, so it is growing faster than its rivals. Add to that a tasty dividend yield and I have no hesitation reiterating my positive stance on the shares

  4. Tapping into hidden value

    Tapping into hidden value

    By Simon Thompson | 09 November 2015

    This Aim-traded company has substantial hidden value in its balance sheet, which will be come apparent in the months ahead

    If each home has a gross development value of £800,000, then the plot itself simply has to be worth £200,000. In other words, I believe that there is £36m of hidden value in the Beaconsfield site, being the difference between the £60m open market value of the 300 plots, and the £23.5m carrying value in the accounts

  5. Under-promising, over delivering

    Under-promising, over delivering

    By Simon Thompson | 13 October 2015

    'Shares in the designer of testing equipment for the car industry are motoring and with good reason too'

    'I am not ready to bank profits just yet as I feel that the company remains very well placed to profit from the increased regulations within the automotive industry. I wouldn't be surprised at all if the positive earnings momentum leads to further upgrades as the financial year unfolds'

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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