How to Value Shares and Outperform the Market

Acknowledgements
Risk and copyright warnings
Preface

Prologue: The Birth of My New Valuation System

PART I - CRITICAL INVESTMENT CHOICES

1. Asset Selection - Choosing Equities
The outperformance of other assets by equities
Index-linked investments
The reason for equity outperformance

2. Why You Should Manage Your Own Funds
Fund management options
The impact of fees on long-term fund values
The underperformance of commercial funds
Better returns from a smarter approach

PART II - INTRODUCTION TO VALUE INVESTING

3. What Is Value Investing?
The principles of value investing
Origins of value investing
Traditional value investing approaches and their weaknesses
Value investing and growth investing

4. Other Approaches to Investing
1. Technical analysis
2. Event-based investing

5. My New Approach to Value Investing
The sources of value
A five-year investment period
Dividends at the heart of the process
The detailed steps to determine current value

6. The Superior Returns You Can Expect from Using the System Effectively
The long-term returns achieved by the ShareMaestro funds
Building wealth through superior, long-term compound returns
What returns to expect from a share portfolio

PART III - THE NEW VALUATION SYSTEM

7. A Step-By-Step Guide to Valuing the Market
Input data
Results
The final valuation
Setting up a master valuation sheet
The nature of the input data
The reliability of the System's FTSE100 valuations

8. Using the System's Market Valuations as Buy and Sell Signals
Extreme signals
The optimum buy and sell signals for the FTSE100
Validation of the buy and sell signals
The importance of the FTSE100 dividend

9. A Step-By-Step Guide to Valuing Individual Shares
A more difficult task than valuing the market
Input data 104 Results
The final valuation
Setting up a master share valuation sheet

10. Testing Different Valuation Scenarios
Altering inputs in the FTSE100 valuation
Altering inputs in the valuation of individual shares
Identifying one-way bets
Value-buying rather than random-buying substantially increases your chances of success

PART IV - PUTTING THE SYSTEM INTO PRACTICE

11. Medium-Risk, High-Return Strategy
The principle of the strategy
FTSE100 ETF Strategy
Detailed track record of the strategy
Trading the FTSE250 to get even greater returns

12. Running Your Own Share Portfolio Successfully
1. Time your entry to the market
2. Draw up a shortlist of shares
3. Select shares for investment
4. Limit risk
5. Set up email alerts for the shares in your portfolio
6. Review progress and take appropriate action
Advantages of the share portfolio management strategy

13. Optimising Share Selection
1. Qualitative evaluation techniques
2. Quantitative evaluation techniques

14. Transforming Your Pension Prospects
Introduction
Why most young workers face pensions penury
How to escape pensions penury
Pension practicalities

15. Evaluating Fixed-Rate, Five-Year Cash Investments
Basic rate taxpayers
Higher rate taxpayers

16. Evaluating Structured Product Investments
Example of stress-testing a structured product

17. High-Risk, Stellar Return Strategy
Covered warrants
FTSE100 covered warrants strategy
Financial spread bet strategy
A possible modification to stop losses

PART V - INVESTMENT ESSENTIALS

18. Establishing Your Investment Objectives
Determining and monitoring your overall investment objectives
Your other investment objectives
Setting your investment targets
Freeing up money for investment

19. Taking Advantage of Tax Breaks
Self-Invested Personal Pensions (SIPPs)
Individual Savings Accounts (ISAs)
Additional Voluntary Contributions (AVCs)
Financial spread betting
Other allowances and planning devices

20. The Best Service Providers
1. Current account
2. Instant-access interest-bearing account
3. ISA provider
4. SIPP provider
5. Online broker
6. Covered warrants
7. Financial spread betting
8. ShareMaestro
9. ShareScope

21. Key Risk Controls
Manage your own funds
Do not be a passive investor
Use your parachute
Use stop-losses
Investing in individual shares
Make use of tax breaks
Monitor credit risk
Never put all your eggs in a high-risk basket
Monitor the FTSE100 dividend growth trend

Epilogue
Appendices
Appendix 1 - Free Web Information Sources
Appendix 2 - Glossary of Terms
Index