Maynard Paton reveals why he buys shares.
I see it like this. All I have to do is select the right company, buy at the right price, sit back and hope hundreds of other employees can work hard to produce a fantastic long-term return.
You see, I keep on thinking about those early Microsoft shareholders. Those who bought in at the software firm's 1986 flotation have since seen their stake increase more than three hundred times! As far as I'm concerned, holding onto 'the next Microsoft' is the only way I'm going to enjoy serious money!
Sadly my portfolio won't support an early retirement just yet. But I have located a few sizeable winners in recent years, including Halma, London Stock Exchange and Nokia. Fingers crossed these companies can continue to do well over the long term.
Of course I've had my setbacks. In particular, I lost about 80% on a small software group called MMT Computing in the tech crash of 2001/2. Other portfolio disappointments include GlaxoSmithKline and Johnston Press, which I still hold but currently trade at prices close to what I paid five years ago! So take it from me -- locating brilliant long-term shares is not easy!
Still, I reckon I've done quite well over time and thankfully my winners have more than offset my losers. I've learnt plenty of investing lessons, not least that becoming a successful stock-picker requires a fair amount of dedication, nerve and patience. These days I like to share my knowledge and experience through the Motley Fool's Champion Shares service.
I really enjoy writing Champion Shares. It allows me to trawl the stock market full time and tell ordinary Fools about the shares I think will do well in the future. I assess the track record, accounts, management, prospects and valuation of each tip, and I like to think I provide a balanced view of the upside and downside possibilities.
Like my own portfolio, my Champion Shares performance includes a few winners, a few losers and a few shares that haven't really moved either way!
The service has been going for two years now and I continue to welcome new Fools to Champion Shares. Like me, they're looking to beat an index tracker and uncover those elusive long-term winners. Obviously not all my tips will do well and as I say, I've already recommended a few losers. But I keep recalling those early Microsoft investors. In my view, it could only take one super share pick to bring financial independence a few steps closer!
This 30-day free trial gives you full access to the Champion Shares service. I look forward to seeing you there.
Maynard's top investing tips
Keep it simple
Stick to the obvious. I've found the best shares to own are straightforward businesses where a few simple sums suggest they're undervalued. The more complex the situation, the more chance things could go wrong.
Start a watch list
Make a list of your favourite companies and determine what price you should pay. Keep an eye on developments, update your buy prices when necessary and you'll be ready to strike when the market hits the panic button.
Be patient
Never expect quick results. The best returns generally take years to achieve, usually after a frustrating period where the share price goes nowhere. If you're happy with your research, keep the faith.
Risk Warning
You run the risk of losing money when investing in shares. Prices may change quickly, they may go down as well as up and you may not get back the full amount invested. You should not invest using money you cannot afford to lose. We have taken all reasonable care to ensure that all statements of fact and opinion contained in this publication are fair and accurate in all material aspects. Investors should seek appropriate professional advice from their stockbroker or other adviser if any points are unclear. Champion Shares gives general advice only, and the investments mentioned may not necessarily be suitable for any individual.
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