Fundamental Analysis and Research

Fundamental Analysis is such a wide ranging subject that whole series of textbooks have been written on it; our members’ papers focus on those aspects that they find important and useful in their day-to-day investment activities and explain how they are used. Come and see how serious investors put the textbooks into practice.

Title:        Long Term Annual Returns   This paper is restricted to members only

Author:    Jim Steel

Description:
For the really really long term investor the returns over 40 years!


Title:        Reasons Not To Be Cheerful Autumn 2003, Spring 2004, Autumn 2007, Spring 2009

Author:    Jim Steel

Description:
In 2008 the credit-crunch, sub-prime crisis and fears of the recession or depression that they will lead to are mainstream news. But since 2003 SIGnet members have been given a remarkable insight into the problems that lay ahead in this series of prophetic articles.


Title:        The Investment Case for China

Author:    Jim Steel

Description:
A review of the case for investment in China, referencing books on it, namely: The Chinese by Jasper Becker (published 2000) and The China Dream by Joe Studwell (published 2002). The article identifies some critical issues with the prima-fascia investment case stemming from the relative poverty of the population and structural weakness in the economic system.


Title:        Success Breeds Success Autumn 2003, Continuing Success Spring 2004, When Will They Crack Autumn 2004

Author:    John Lander

Description:
For the last two years John Lander has written about companies that continually increase their earnings per share (eps) over 5 or 10 years or more. The latest article is in the latest edition of The Serious Investor; the previous three are here on the website for easy reference.


Title:        Intrinsic Value

Author:    Martin Davey

Description:
An explanation of Intrinsic Value, how to calculate it and why it is relevant to the long term investor.


Title:        Sir John Templeton

Author:    John Lander

Description:
Sir John Templeton is one of the top stock-pickers in the world, if the least known. This article contrasts his views with those of Warren Buffett, highlighting some important differences, and providing some references for further reading.


Title:        Debt and Delusion

Author:    Jim Steel

Description:
An incisive review of the global macroeconomic situation as it appeared in the Spring of 2002, with several useful references. On a similar theme to "Reasons not to be Cheerful" it explains how the debt crisis is unsustainable. The only issue left unexplained is how the credit crunch was postponed until 2008!


Title:        Chorion and Intangible Fixed Assets

Author:    Jim Shoesmith

Description:
Some accounting matters such as the write of intangible fixed assets, particularly impairment charges, can be so fundamentally important to investors’ views of a company that there may be a need to go further than the information in the annual report and accounts. A recent Warren Buffet Way meeting (7th June 2005) felt this was the case at Chorion. Our further investigation is important not only for investors in that company, but also for investors in other companies and for anybody who needs an understanding of company accounts. The matter is therefore considered in an article by Jim Shoesmith in the ‘fundamental analysis’ sub-section of the ‘papers section’ within the ‘members only’ part of this website. Jim wishes to express his thanks and appreciation to Nigel Milton of IFG and to Sue Murphy the Finance Director of Chorion for helping him so readily and so speedily.


Title:        SIGnet Income Protection Strategy

Description:
This article addresses the problem of selecting assets to protect wealth in the short term whilst awaiting opportunities which may arise when the markets offer a more compelling case for investment. The use of high yielding shares is presented as a possibly overlooked area. Screening by a series of criteria leads to a short list of eight candidates. It must be stressed that these are not recommendations, but a report on an academic exercise. This article appeared in Investors Chronicle of June 2009.