Baldinvestor.com

Insights into behavioral investing on the Australian share market

Value investing returning to form

Value investing is a style of investing that has outperformed growth over the long term. It is the type of investing that Baldinvestor aspires to follow, and also the style that has seriously underperformed for quite a long time. Shares like Afterpay have increased by up to 10X since March, with no profits and has already retreated substantially from its recent high. We expect this correction to continue as the focus of investors shifts.

We are starting to see movements to the upside for long neglected value shares. Shares with real businesses with real cashflow that are seen as too old school are starting to be bid, suggesting that a shift to value style shares may be occuring.

The world is in a very uncertain position and after many years of a strong bull run especially in technology shares, a shift to a more value orientated approach makes sense. These shares will offer much more downside protection should a crash occur, can pay dividends as they are profitable and may recover strongly in the event of an economic recovery.

The chart patterns of many of these shares are also looking constructive. Having not recovered as strongly as growth after the March crash, the share prices are now turning up positively. This is also the case for resources companies, who are responding positively to the massive government money printing.

Some of these shares to look at include Gale Pacific, the shade cloth manufacturer, Schriro Holdings, the BBQ maker who still appears very profitable, and the lead /silver producer PMY. To find the latest pick of Baldinvestor which is a leading media player that looks great value, register or login to the website.


2020-09-16
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  • Value investing returning to form
  • 2020-09-16
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