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Investors with a more conservative desire might find the Ice style appealing. By focusing on businesses that have shown consistent financial performance and growing dividends, we seek to beat the market with a mix of income and steadily rising share prices. We consider this to be a lower-risk investing strategy than Fire, but company and industry specific risks mean diversification remains important.
Ice investing can generate large, short-term gains on occasion, but we’re primarily seeking steady gains over time, and shallower declines during wider stock market falls. These qualities are most commonly found in established firms, but the Ice approach does not focus exclusively on large companies. We often see ample opportunity to invest in medium-sized companies, with strong niche positions in their industry and the ability to grow their dividends for years to come.
“In the past when making Ice recommendations for Share Advisor, I haven’t been afraid of re-recommending a business and averaging up into a rising share price. A quality company that consistently meets – or better, exceeds – expectations might eventually become more richly valued by the market. But these kinds of companies can often exceed expectations for longer than the market expects, and therefore they might still be undervalued, even after a run-up in the share price.”
Mark Stones, Share Advisor
