Investing with Anthony Bolton

I was super busy at office and I failed to update my blog for a couple of days. However, I really have a lot of things to say, like my research on '魚蝦蟹' (after seeing P won $1,000 from $300), my making of mango cheesecake, pics we took at 光明頂 etc.

However, one thing which is important is to put the quotes from the book which I'm reading: Investing with Anthony Bolton (Harriman House Publishing 2004; ISBN 1-897-59790-9)

Many people have different investment strategy. Some loves to sell all their shares daily, weekly, monthly, anyway, or regularly. Some loves to see have their profit from the rise of the stock value, some loves to have handsome dividends. Always it really depends on your goals and the time you could devote in managing your portfolio, and the risk you could manage and expose to. Being a conservative investor, I would just like to earn $$, no need to be earn every bit from a rise, but some which I could manage. (It doesn't mean that I don't want to earn a lot from a upsurge, but no need to be 'every bit')

Anthony Bolton is named the most successful investment manager in Britain. His Fidelity Special Situations fund could rise from £1,000 in 1979 to more than £80,000 in 2006. The 80-fold increase means an average compound growth rate of 19.9% p.a., or 6% p.a. more than the FTSE All-Share index over the same period, as good as Warren Buffett and Peter Lynch.

Here are you some the nice quotes from the book:

• You have got to use the excesses of the stock market to your advantage. Looking at recovery stocks forces you to go against the herd. Most people feel confident doing what the herd's doing... ... If three brokers ring me and tell me something is a buy, then I normally say 'that doesn't look too good'. The market is excessive. It gets too optimistic on things and then gets too pessimistic on things. I also think it is quite short term and won't look at things like the longer-term dynamics of the business (pp. 24-25)
• ... his ideas rarely come as bolts from the blue, but accumulate in his mind until he has a conviction that something is the right thing to buy or sell. You need both knowledge of what constitutes a good company and an insight into how a company of its type should be valued. It is then a question of spotting anomalies, assimilating new information as it comes in and waiting for convictions to devleop... (p.31)
• ... 'Conviction waxes and wanes and a lot of the time you're uncertain about everything, but when you do get a strong conviction, then it is important to back it strongly'. In other words, when he feels strongly that he has found a winner, he will put a lot of money behind it, even if that means making his funds more heavily concentrated than many of his rivals... (p.31)

There should be more... more would come when I read further!