Professor Glen Arnold

In the last newsletter I drew attention to Orchard Funding’s (LSE:ORCH) net current asset value, NCAV, per share, at 72p, being appreciably more than its share price of 56.8p. This was a good starting point for including it in my net current value portfolio. Other factors, mostly on the qualitative side, also came into play […]

I’ve bought shares in Orchard Funding (LSE:ORCH) at 56.8p because its net current asset value is 72.1p and it is financially and operational stable with a loyal customer base and low-risk business model as well as a highly experienced and capable managerial team. It also produces a reliable 3p dividend each year supplying an attractive […]

The stock markets, the US ones in particular, at this late stage in a bull market, seem to be increasingly influenced by speculators. Warren Buffett and Charlie Munger have long argued against speculation in shares, saying that share buyers should thoroughly understand what they buy (understand the underlying business, the managers and finances). So the […]

Warren Buffett and Charlie Munger were recently asked whether the current boost to fiscal and monetary stimulus will lead to higher inflation, the consequences of which could be significant for the equity markets. BUFFETT: “The answer is we don’t know…the best we can do is recognise that we don’t know and proceed in a way […]

It is important to clearly distinguish between rates of return on capital employed by operating businesses and potential rates of return available to those buying shares at various prices. It’s perfectly possible for a very high return on capital company (small amounts of money used internally relative to profits) to have shares so expensively priced that they […]

At Berkshire Hathaway’s Annual General Meeting (1st May) Warren Buffett warned investors to keep a close eye on managerial quality because it is there that the biggest risk resides. In the lead up to that statement he talked about how, when you’ve made a mistake and put money into a badly managed firm or in […]

Warren Buffett, speaking at the Berkshire Hathaway AGM, said: “The Fed moved with speed and a decisiveness on March 23rd 2020,  that changed the situation, where the economy had stopped. Then Congress acted very, very big, so you have fiscal and monetary policy that responded in a way that was incredible, and it did the job…better […]

In the May 1st Annual General Meeting of Berkshire Hathaway Warren Buffett warned investors with little experience or sense of stock market history to be cautious.  Investing in a way that allows you to out-perform is not as easy as it looks. He said: “I would like particularly new entrants to the stock market to ponder […]

Yesterday’s newsletter showed that Fletcher King (LSE:FLK) is trading below its net current asset value. In addition, its share price has fallen so much that it is now only 7.5 times average earning per share over the last ten years (excluding the Covid period). This newsletter describes the five types of property-related services it offers […]

I’ve bought Fletcher King (LSE:FLK) shares at an average price of 32.65p.  This property advisory and property management company had cash at the bank of £3.1m (and no debt) at the last accounting date, which is more than its current market capitalisation of 9.2m shares x £0.3265p = £3m. In addition, it owns a stake […]