Stock Market Consulting – August 2018 (Value Investing FM) – Investment Academy – Learn value investing from scratch

As happens on the last Sunday of each month, here is the stock exchange office for August 2018 in which Adrián Godás and Paco Lodeiro answer questions from listeners. On this occasion, we deal with topics such as living off the stock market, Google's PER, Plus500, managing currency risk, investing in precious metals (gold, silver and platinum) and we will give our opinion on some companies (Enegy Fuels, Denison, Miquel and Costas, Alba, Naturhouse, Tencent, Eni…), among other topics.

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Stock Market Consulting - August 2018

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Questions from the August 2018 Stock Exchange Consultation

About Paco's best operations

Paco, congratulations on your record track. One question: could you explain the top 5 of your operations? That is, do you have any "umanis" for True Value or "American Express" for Mr. Buffet that explains a good part of the track record, or on the contrary, has the performance been very "uniform"?


About the objective of auditing a track-record

First of all, I would like to congratulate you, Paco, for the profitability you have achieved. I understand that what you are after with auditing your "track record" is to be hired in a fund. Or do you offer some other type of advice?


On how to manage

In case you have not counted it in previous issues, how many companies do you follow? Do you have companies that you like but are expensive at the point? How much time do you spend managing the portfolio? In short, from what amount managed is it more efficient to do it yourself than to hire funds from trustworthy managers?


On the most depressed sectors

If they had to put the most depressed sectors or subsectors on a podium, which would take the gold, silver and bronze? Uranium, drillers and frozen bread XD?


About Energy Fuels and Denison

Hi, I think I have some for Adrián. What do you think of the Q2 of the uranium miners, especially Energy Fuels and Denison?

(Albert Mendoza)

About the video game sector

Regarding the video game sector, how we would value it, I understand titles, but with the crazy rise they have had on a financial level, they seem very overvalued.

(Albert Mendoza)

About Google's PER (Alphabet) and other topics

Good Paco, I can think of several questions ... You say that you have Google (Alphabet) that is at a PER 32.65 you do not think that it is too expensive ... I see that you prefer quality at price something that, for example, the people of AZ, Cobas, Magallanes, etc they don't, what is the average PER of your portfolio? How much liquidity do you have? How about investing in the S & P500 as Buffet advises (they say it exceeds 90% of investors)? Thank you very much and sorry for so many questions;) Greetings

(Miguel Granadino)

On living off the bag

Hi Paco, how are you? I would like to know if you already live from what you earn in the stock market, and if so, how it is managed. Every year you take for example 50000 euros and you drive? Or what? Regards.


About the process to choose our investments

What process do you follow to choose your investments and do you know the process that some of the great investors follow to generate their investment ideas?

(Alberto Barea)

About opening an offshore account

What do you think about "Opening a bank account in a Tax Haven": Offshore Accounts?


About Miquel y Costas, Alba and Naturhouse

Thank you very much for the initiative. I have come to the web listening to the podscats, specifically the interview with Luis de Blas. And from there I have been listening to them all for a few days because they are educational and fun.

I have Cobas and AZ and some stocks on my own. If you know them, I would like to know your opinion about Miquel y Costas, Alba and Naturhouse (mainly on a qualitative level).

Greetings to Adrián, who makes me very funny!

(Marcos de Pontevedra)

About hedging currency risk

Hi Paco and Adrian, I love your podcast. I've been following Estebaranz for a year, reading and starting to invest, and discovering you has been great. Also, although I am from Barcelona, ​​my whole family is from Galicia, so I feel a certain familiarity when I hear you. I wanted to take advantage of this office, to ask you a question for the following:

How do you do, or what option do you think is the best, to cover currency risk at a particular level?

I sold two US shares that had appreciated over 12%, when I saw that much of this rise was due to the increase in the value of the dollar. The truth is that I was "scared" (sorry for the expression) to think that the exact opposite could have happened, because I have no idea what move they are going to make.

Thank you very much for your work, and long live the value!

(Juan Blanco)

About Plus500

Good afternoon!

I just wanted to ask you a few questions;

I am trading with a demo account at plus 500 and in the meantime I am trying to train to make the jump to a real account.

I have realized that when it comes to operating long-term, there is an interest in having the operation open at night called “night financing”.

Do you think that in the long term, it is a high cost?

Would it be a commission to take into account?

Is it a common interest in all brokers?


(Toni Rincón)

On how to compare a track-record with benchmarks

Good afternoon Paco

I'm listening to your podcast and the truth is I have a question for a long time that maybe you can answer me

First congratulations on that track record 🙂

The question is: regarding comparing with the index with reinvested dividends (I do the same) I do not know if I should count my gross or net dividends (?)

I'm counting my net dividends for now, but I think the index will count the gross, so I think I'm doing it wrong and should use the gross dividends (and it would improve my track record a little bit)

(Alvaro Faraco from Twitter)

About Ence

What do you think of Ence? I think it is a company based in Galicia, so I suppose you will know it very well. I am struck by the fact that its President has a significant stake in the company's capital. And on the other hand, I have read that one of the reasons for the current rise in its price is due to the increase in the price of a raw material, cellulose. Thank you very much for your comments.


About Eni

Paco, I join your congratulations. I know that most of your positions are quality companies with competitive advantages: Google, Facebook, Harley Davidson, etc. I would like to know what you think, especially Adrián from the Eni company. Of the few companies that pass my quant filters: low volatility, high returns on capital, momentum, good finances, trading in euros… Greetings.

(Pills of knowledge)

About investing in China

Hello, I am listening to your podcasts and I find them very interesting. Taking advantage of the fact that Adrián is an expert in video games and has analyzed the market, and that Tencent has taken a hit in the recent results and is having several approval problems in games, I would like if it is possible for you to clarify several doubts about the market in China in an upcoming office, based on what can be read in the press these days, which is a lot but not very clear:

* I understand that Tencent has had to withdraw an important game at the "suggestion" of the Chinese government, and has stopped the option of in-game purchases in at least one other mobile game, also for regulatory reasons, so it cannot monetize, and I have even understood that the approval of games like Fornite for PC is pending.

Do you know how is the approval process for games in China: they need an approval for the game itself, and also approval by platform (mobile, PC), and also another approval to be able to charge users for weapons, special powers ...?

* I have also understood that Tencent or other Chinese companies have local marketing agreements with companies such as EA or Blizzard-Activision, is that right, what does it mean: that Tencent advertises / markets games from WeChat or its portals, facilitates their download, organizes games online or face-to-face events? So does it have income from its games and also a percentage of those multinationals, do you know what percentage each part represents?


On how to measure liquidity in a track-record

Congratulations on the magnificent track record! Doubt: How does the account manager treat liquidity for a private investor? How do you distinguish between what is liquidity and what is outside the portfolio? How does that affect when it comes to comparing your personal track record with that of a fund?

(Diego from Twitter)

About the minimum amount necessary to start investing

Buenos días,

I am 26 years old, I am a computer consultant and I have savings of about 11.000 euros. I am interested in starting to invest in value, since I do not want inflation to eat all my savings.

Could you tell me if starting with 6.000 investment is good or too little? What amount is the minimum that you consider sufficient to start investing? On some occasion I have seen that you recommend carrying out operations of at least a thousand euros, but I don't know if you consider that 6.000 euros is too little and commissions can be a problem.

Mention that I do not want to invest everything in case I have an unforeseen event that requires immediate liquidity.

A greeting.

(Pablo Yáñez)

On investing in gold, silver and platinum

I do not know if I will receive a response to this email but I risk asking you a question: what is your opinion about why the prices of gold, silver and platinum have fallen so much and for so long, without still showing signs of recovery. Every time they say that cryptocurrencies will go up in price because they are limited I think of the price of gold. I have ideas like the lack of support for currencies, credit, massive purchases from China and Russia, etc., but I would like to know what you think and possible arguments for or against the price increase.

I hope you have a lot of success in your investments. Regards.