After last week’s depressing tone I’ve virtually nothing to say about the general market and the economy this week as nothing has changed and I don’t want to be gloomy. We can’t change what happens with the economy but we do have a choice what shares we invest in, so I’ve decided to just talk about companies this week.
Investing can be very humbling when things go wrong. I’ve learned over the years not to get emotionally attached to stocks and to be brutally honest with myself when things go wrong.
We will all make mistakes as investors and I have made plenty this year with the UK Quality Shares portfolio. I bought businesses whose resilience was found out by the coronavirus (such as WH Smith, Intercontinental Hotels and Greggs) and have sold very high quality businesses (Games Workshop and AJ Bell) just because they were expensive.
Business quality trumps everything as far as I am concerned and in a low interest world what might have previously been seen as expensive is actually fair to reasonable value. Holding on to good businesses is a must and is a discipline I intend to stick to.Download PDF