What is 'quality', how should you deal with computer tricksters and what's the best way to get out of debt? All those and more were covered on the boards this week.
The value of management
When we examine potential investments, it's all very well poring over accounts, counting the pennies and calculating all sorts of ratios. But for many, there's a valuable 'quality' aspect to well-managed companies that defies quantitative measurement. How important is it? Very, according to lootman, who explains on the Value Shares board...
"But if you're trying to say that the concepts of quality and good management are always ‘false' or not worthy of constituting value, then I'd have to disagree with you.
They are worth tangible amounts even if they can't be easily, directly or conveniently measured or quantified. It's just that the skill of valuing such properties is a very different process than merely screening for numbers like yield, P/E, P/B and so on."
And which is the best approach to deciding how to invest? Well, it's all about knowing yourself...
"So the endless growth versus value debates that never get resolved are really a false problem. There are just investors who are good at determining value and those who are good at determining growth. And the problem of investment then becomes not a 'which is best' exercise but rather a ‘who am I' exercise."
Worth a read, it is.
A look at French Connection
Write-ups for the annual share competition are coming in thick and fast at Paulypilot's Pub -- Share Ideas, and this week we were treated to an analysis of French Connection (LSE: FCCN) by the landlord himself, paulypilot...
"Let me state at the outset, that I think the mkt cap is ludicrously low, and that IMO this is a great time to buy the shares, since they are pretty much at a 5-year low, and barely above the company's own net cash, and well below the value of the company's own working capital (and there are no long term creditors to take off, other than £0.9m deferred tax).
It's pretty much the perfect share for me - easy to understand business, bullet-proof Balance Sheet stuffed with net cash, rock bottom valuation, profitable business, shares bombed out because company has under-performed, but potentially big upside in for free."
Sound good? Head on over to have a proper look.
Out of debt
The Dealing with Debt board is one of our most helpful, and we love it when a plan comes together successfully and someone manages to cast off the evil shackles once and for all. This time, 26YrOldMan told us how he managed it...
"Well it has taken longer than I expected (I am now 31)...
My debt had all been generated by living above means as I have always had a good wage but my lifestyle in my late 20's kind of run away with itself. Some advice (mainly for men) in my type of position which I wish I knew when I was 26.
To some/most people this will appear ludicrous advice that you may find it hard to believe needs to written down but trust me it does."
It certainly does need to be written down, and there's nothing ludicrous about it at all. Our congratulations go to 26YrOldMan, together with our thanks for sharing the story.
Beware computer crooks
Ever had a phone call from someone saying they're a Microsoft representative and claiming you have computer problems, and then offering to help you for a price? Apparently it's quite common, and over on the Help with this Blasted Computer Board!, TheSteelyDan gave us the lowdown on the scam...
"They pose as ‘Windows Support Centre', or suchlike, and say that they've been receiving reports from your computer that there's a problem. You'll probably be asked how old the machine is - however old it is, seemingly, you'll be told that the warranty on your Windows software has expired, or that you should have taken one out when you bought it. Then, you'll be talked though opening something called the Event Viewer, and shown a screen that contains a number of warnings and errors. They will tell you that this is serious..."
Sadly, people are getting caught out by these crooks every day, so have a read of the thread -- and if you get a call, do what TheSteelyDan suggests, and just hang up.
Seen any good posts?
Don't forget, if you see any board posts that you think deserve to be featured here in our weekly roundups, just let us know -- use the 'Report this Post' link, and tell us it's a roundup candidate.
Last week's roundup: A Eurozone Update
