We live in truly unprecedented times, and it remains unclear when, or how, we will return to what will be the new normality. 2020 marks the 41st year of my career in the stock market. I have seen several meltdowns during that time (I am one of the few people still working who lived through Big Bang in 1986), but even I have never experienced such a comprehensive market collapse caused by a pandemic, accompanied by such a virtually total shutdown of economies across the world. I have learnt, however, that it is especially important at times of crisis to avoid being sucked into short-termism, to which the sheer onslaught of news lures investors.
Many people have a little more time on their hands now to reflect, and we thought it might be useful to collate some of the papers we have published in the past year that have a long shelf life. This compendium covers a variety of issues from a number of authors, ranging from the disappearance of a market consensus to understanding the biggest discounts in the investment company sector.
Please keep in mind that, when the articles mention a share price, it will be the price at the time of publication. We have not revised the prices to today’s date. Similarly, the price-related ratios, such as dividend yield, price/earnings or discount to net asset value, have not been adjusted.
We will return to normality one day, although it may look different from the past. These articles should help you take a longer view of events – never a bad thing for investors! In the meantime, I wish all our readers, and their families and colleagues, all the best health, and I hope you enjoy this collection.
Keith Hiscock
Chief Executive Officer
