Professor Glen Arnold

Yesterday I managed to buy some put option on the Dow Jones Industrial Average at a reasonable price – before the worst of the sell off.  They are June expiry 200 options. They rise in value as the Dow Jones falls. I’ve already made a substantial paper gain but will wait sometime before I sell. […]

          Hi Glen Novice investor here with just a couple of general questions I wondered if you help me understand. When the market crashes like this , where does all the money disappear to , surely it must end up somewhere an another asset somewhere. Also is the crash because people […]

The virus’ impact on psychology and social interaction (the diminishing of it) encouraged me sell a couple of companies which were already looking quite high. I’ve sold my Dewhurst “A” shares (non-voting) at about £7.20p. I first bought at just over £3. I’ve also sold my TClarke shares at 112p (bought at 79.16p). I’ll write up why […]

I bought Daejan (LSE:DJAN) on 5th February at £52.90 per share. My expectation was that this property company would continue to increase net asset value over the next five years. I would hold during that time, while the share price discount to net asset value would fall from an exceptional level of 56% when I bought […]

Speaking at last week’s annual meeting of the Daily Journal Charlie Munger invited  shareholders to remain sane and rational, and not only with regard to share selection, but in all aspects of life.           I’ve transcribed his words: Part of the reason that some of the companies I’ve been affiliated with […]

Charlie Munger, the billionaire investor, friend and colleague of Warren Buffett, gave sage advice to help investors, and more normal folk, last week at the 2020 AGM of the Daily Journal Annual Meeting. Here is a some of it: Value investing and fishing Question: In investing, I’m curious to know how you weigh the quality of […]

Charlie Munger, Warren Buffett’s business partner, now aged 96, gave some brilliant advice to investors when speaking last week at the 2020 AGM of the Daily Journal Annual Meeting (he is the chairman).         Don’t play in game where you are stupid Q. How do you research companies? A: Of course, if […]

Daejan (LSE:DJAN) is completely controlled by the Freshwater family who hold 79.5% of the shares. We small shareholders are at their mercy. It is therefore important we consider whether the dominant shareholders tend to treat other shareholders badly. The directors Benzion S E Freshwater, 71, Chairman and Chief Executive Joined the Board in December 1971 […]

Piotroski factors provide some insight into the likelihood of financial distress by examining trends in key accounting metrics over two years. If all nine are in a positive direction then a very low level of distress is indicated. Any score under five out of nine should make us wary. The first factor is profits. Daejan was […]

In the past, when Daejan’s (LSE:DJAN) share price to shareholders’ equity (NAV) ratio fell below 0.6 the subsequent five years gave shareholders a return averaging over 100%. Today Daejan’s shares stand on a ratio of merely £52.90/£120 = 0.44. The make-up of shareholders’ equity Daejan’s balance sheet is really simple: it holds about £2.6bn of […]