Equity Market Cycles Consist of Many Seasons
Equity markets can be irrational, dysfunctional and inefficient.
Kingfisher has a simple approach to market cycles. Instead of overreacting with the market, we take advantage of bargain prices. Conversely, if the market is over-excited, we sell shares at overvalued prices. We try to capture the value on offer for our clients in both high and low market seasons.
“I’ve never bought a stock unless I thought it was on sale" John Neff.
We believe the less paid, the greater the return received. This comes in the form of dividends and capital appreciation. Kingfisher believes while share prices can be inconsistant with underlying value, over the long run share prices ultimately orbit the trend of a company’s earnings.
“The intelligent investor is likely to need considerable will power to keep from following the crowd” Benjamin Graham.
“It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognised” John Neff.