John Kingham provides a practical approach to defensive value investing in an essential new book The Defensive Value Investor
Defensive investing focuses on strong, steady companies that produce decent rates of income and capital growth, but with risk often coming from a lofty share price. Value investing on the other hand is focused on buying companies on the cheap, but the danger is that these companies are cheap for a reason. Defensive Value combines the two and involves buying relatively defensive companies at value for money prices.
In his new book The Defensive Value Investor John Kingham explains how to screen for shares with the best combination of quality, value, income and growth, how to conduct a thorough qualitative analysis, when to buy, when to sell, and how to combine investments into an easily manageable portfolio to reduce risk and increase returns. He also illustrates the method throughout with the help of real-life examples.
Each step of the process has a simple “rule of thumb” to make it easy to remember what you should do. When these rules are put together they provide a checklist of straightforward, actionable statements for the Defensive Value Investor to follow. Some may choose to adopt the full Defensive Value approach, others may prefer to incorporate some of the techniques into their own share analysis. Either way, this comprehensive book is an essential addition to the library of every investor.
John Kingham says:
“I wrote this book because I wanted to give private investors a practical step-by-step guide to building a high yield, low risk share portfolio. Having spent five years developing the defensive value approach to improve my own investment performance, and having spoken to dozens of other investors, I felt that a practical guide was what most active private investors needed more than anything else.
I think defensive value investing is particularly relevant right now because the market has recently entered yet another bear market. Although bear markets are a normal part of stock market investing, it is obvious from the inevitable hysteria that too many investors take on too much risk in pursuit of unrealistic returns. Perhaps if more investors were more defensive in their approach there would be less hysteria and fewer sleepless nights, both of which must surely be a good thing.”
The Defensive Value Investor is a complete step-by-step guide to building a high-yield, low-risk share portfolio.
Defensive investing focuses on strong, steady companies that produce decent rates of income and capital growth, but with risk often coming from a lofty share price. Value investing on the other hand is focused on buying companies on the cheap, but cheap companies often deserve to be cheap because they are high risk and unlikely to grow. Defensive Value combines the two and involves buying relatively defensive companies at value for money prices.
John Kingham explains how to screen for shares with the best combination of quality, value, income and growth, how to conduct a thorough qualitative analysis, when to buy, when to sell, and how to combine your investments into an easy to manage portfolio which reduces risk and increases returns. He also illustrates the method throughout with the help of real-life examples.
Each step of the process has a simple “rule of thumb” to make it easy to remember what you should do. When these rules of thumb are put together they provide a checklist of straightforward, actionable statements for the Defensive Value Investor to follow.
You may choose to adopt the full Defensive Value approach, or you may prefer to adopt a number of the techniques for use in your own share analysis. Either way, this comprehensive book is an essential addition to the library of every investor.
About The Author
John Kingham is an experienced private investor, investment blogger and newsletter publisher. His professional background is in computer software for the insurance industry, where he worked for clients ranging from Lloyd’s syndicates to some of the world’s largest general insurers. In 2011 John left the computer software industry and began publishing UK Value Investor, a monthly newsletter for defensive value investors. John currently lives in Kent with his wife and son. His website can be found at: www.ukvalueinvestor.com
