FTSE is BAD! 7 better UK STOCKS!!!

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[@txn4yt7mc5]

Not using a total return index when the FTSE 100 is known for paying high dividends is a rookie mistake and leads to completely wrong conclusions

[@skipx98]

Thanks Sven! Belgian 'REITS' are also down up to 50%. Starting to see opportunities in some of them!

[@cpt_awesome1562]

Thanks for education, waiting for new videos

[@ChrisE1415]

Some I have from London Stock Exchange are Big Yellow Group (BYG): Self Storage REIT, B&M (BME): Growing discount retailer

[@FukenRonald]

Hi Sven. Thank you again for a great video! I was wondering if you could review the TSX when you get the chance. I feel like there might be more value there vs. NYSE/NASDAQ! But, again, there is more then meets the eye...

[@johnristheanswer]

Dr Martens quality has gone down the toilet. Ask any young person. They are now fashion items. Cracking ' leather ' , soles don't last and stitching not doubled up. Nowhere near the boots we wore 20 years ago.

[@ivanpotkrajcic7340]

Sven, since you are from Eastern Europe maybe you should do analysis of Slovenia, Croatia and Romania indexes. These are not overpriced, and offer good value for money under normal P/E. I understand that you cover only greatest world markets, but conidering crazy valuations, maybe is time to show something else to your viewers😊

[@Pizza-gb1ch]

Those stocks don't receive enough interest. He needs the clicks to make it worth his while. It's a trade-off for him.

[@skyeye101]

Thanks for sharing ❤ you work!

[@Value-Investing]

Thanks for watching!

[@alireza2295]

Thanks, Sven. as always. very informative. Curious about your opinion with regard situation in the middle east and its impact on the market.

[@mathewwilson9776]

JD is down another 5% pre-market on Friday after sinking 9% yesterday on heavy volume for no reason whatsoever As usual, after the plunge every shop is now downgrading the stock and cutting price targets on no new developmemts, basically advising clients to sell out. This lunacy is sickening: fundamentals don't matter in this shthole country. Thank you for your efforts covering it this past few months...

[@Value-Investing]

Thanks for sharing

[@paulevans2246]

Thanks Sven. Any view on L&G?

[@angelsancheese]

Thank you for the video

[@user-es8uj9wk1g]

a huge amount of work here, thanks very much. I think AAF is worth another look. There are currency risks, but growth is very good and much more potential and routes to growth. Any thoughts on that one?

[@victormartinez-dr4zp]

Hi Sven, I would add Thomas Burberry.

[@speijertom]

Thanks for another great video Sven. What do you think about Lithium miners now that the lithium prices has come down 75% from its peak? Albermarle or SQM bought by Ken Griffin, Jeremy Grantham, Howard Marks in Q2 at prices above the current price.

[@maximussympatico8787]

I would be also interested in that segment, Sven. But i assume the risk is too high for value investors.? 🤔

[@TheBuckonator]

Thanks for sharing so much work. Curious why CBOX & VTY not mentioned. Good businesses at low prices

[@Eline_Meijer]

thx sven

[@mattinterweb]

The FTSE is a dividend index with big safe institutions. I think this is being missed here. It can be a conservative part of the portfolio.

[@happya8199]

Conservative way to not make money in long term

[@rejsn]

@@happya8199 If you buy shares in a company that pays 10% dividend yield (assuming the dividend is reasonably safe and covered by FCF) then in 10 years you get all your money back and you still have the shares of the company. So even if the stock price hasn't moved (much) you still made a good investment (if the stock price stayed the same, you made 10% a year).

[@mattinterweb]

@@happya8199 If you had invested in CTY City investment Trust (picks only the best high dividend stocks) from the FTSE 10 years ago, you would have made sleep easy at night returns. Sure you will over the next 10 years too...

[@Pizza-gb1ch]

@@happya8199 Make money sliwly. The same argument Sven is making about REITs. PotAYto - Potahto.

[@chrisf1600]

​@@happya8199I'm not sure the facts bear that out. Value stocks have soundly beaten growth over the long term. Of course, you might win big if you happen to pick the right growth stock (Amazon etc). But there are thousands of potential winners to choose from and no reliable way to choose the right one. Unfortunately, many investors keep on chasing "lottery ticket" growth stocks and in doing so they end up disappointed. It's basically the story of the tortoise and the hare. The "low vol anomaly" is another example of how fickle growth-chasing investors miss out on long-term gains.

[@make725daily1]

Your impact is far-reaching! 🌏 - "Success is not about being the best. It's about always getting better."

[@kilbill5979]

Bunzl that I've been watching as well. Stable business at an unattractive price for now. Thank you for your thorough research as always Sven!

[@Pizza-gb1ch]

At what price would u be interested?

[@ValueHurts]

Worst analysis I have ever seen. Need to factor in total return of the index which is vastly higher. FTSE 100 is mostly financials and commodities which haven’t done well over the last decade but now have enormous cash flows. FTSE 250 over the long term has been a star index to own and is now extremely cheap. You think you can just convert student property to homes? Chinese students will pay extremely high prices for accommodation you could in no way generate the same income from such a small footprint converting to homes.

[@chrisf1600]

Agreed, it's embarrassing to show a chart of price gains and totally ignore the dividends

[@tc9634]

Not mostly, more like 31.5% (banks, oil & gas, miners) vs about 15.5% for VWRL. It's not as extreme a concentration as Asia Pacific for example. Agree re the FTSE 250, outrageously cheap.

[@Time2Pretend90]

Dr. Martens looks amazing to me. Have been slowly DCA'ing in but it's a great brand name for a good price with a dividend and buyback as a bonus. Only stock I own on the London stock exchange

[@johnristheanswer]

But the product is poor.

[@covidpro6102]

@@johnristheanswer Is it? I have noticed that these shoes are quite popular and it seems that these are built like tanks and last forever. Could it be that the quality is too good and you need to buy next pair after 10years or something. I think same happened to gopro stock, too good product and you dont need to buy a new camera so often.

[@Pizza-gb1ch]

Doc Martens aren't what they used to be. The word on the street. I'd be careful.

[@johanfilip6805]

Hi Sven, a big part of the returns on the FTSE100 is in the form of dividends - does the long term performance of the index change if you include dividends in the assessment?

[@SlobberySlob]

Good point. Even the dire ftse 100 - many companies are over 100 years old like BATS, RIO, SHELL etc... and they are big dividend payers - and rather then dismiss the 40% closed end inverstent funds - many closed end investment funds are pretty good value in realty as they are at a discount. Much better value than the SP500? at 5%+ yield maybe...

[@chrisf1600]

It absolutely does, this video is rubbish

[@tc9634]

​@@SlobberySlobBATS is dire? Even in its current cheap state it's still been the best performer of the original FTSE 100 lineup in 1984...

[@Hyper1555]

Most European reits have too much debt compared to American reits and I could not easily find good reits with a stable and safe dividend without much debt. American reits have been getting better balance sheets due to the financial crisis, so I have been loading up on some of the best reits (5-6% dividend, 5-7% eps growth and possibly 30% upside if interest rates drop in the future), and I will certainly look on the ones you mentioned!

[@Adam-uz3hj]

American reits just dilute more. Reits grow through debt or dilution, they have no choice, as by law they have to distribute nearly all their earnings to shareholders, and so very little is left for growth. Look at the shares outstanding for Realty Income, it has less debt yes but that doesn't mean it's positive for the shareholder being diluted massively every year.

[@in5minutes556]

fun fact Sven, the Romanian word for "f**king" sounds very similar to the way you pronounce FTSE, so your comment about "people who are invested in FTSE will see their money FTSE away makes a lot of sense" :D

[@robertdagge200]

Interesting thanks. A 20% WHT is charged on UK reits. I am never sure if the yield quoted publically by reits is net or gross of this WHT.

[@Value-Investing]

taxes come after!

[@robertdagge200]

@@Value-Investing yeah, I assumed so. Makes the actual (net) yield considerably less attractive.

[@jenskellmann]

I have Hilton Food with around 5% in my portfolio. I have held shares in this company for a longer time and increased my shares significantly in the last big downturn near the low point. I also at least have Smurfit on my watch list. Another very interesting share from the FTSE sector is Airtel Africa.

[@Value-Investing]

thanks for sharing! Airtel is interesting, but a bit expensive in my opinion for Africa

[@jenskellmann]

@@Value-Investing I definitely see some uncertainty factors, e.g. Exchange rates to African currencies, political stability in Africa, ... but in my opinion the share is not expensive, this year we are at a P/E ratio of around 10-11. However, profits should grow properly and the P/E ratio will fall accordingly. OK, the free cash flow looks a little worse, but I don't see how this is an expensive stock (even if the company is active in Africa and is not valued like a US company).

[@framedaglia5709]

What's your short thesis for Hilton? As an external viewer I'm a bit concerned about shares dilution, not so much worried about the margin problem i think it's normal in this period for consumer defensive, staple, discretionary ecc. and there are also the acquisitions.

[@jenskellmann]

@@framedaglia5709 Hilton Food won't be a tenbagger, but they are definitely good for a 7-10% return p.a. The dilution is almost entirely due to the acquisition of other companies. And in my opinion these are pretty good purchases. I don't see any problem here. Yes, the margin has come under some pressure. That's just how it is when raw material prices rise. But there are also price increases, so I'm quite optimistic. Sales development is good. Basically, Hilton Food is a solid company, quite good growth, currently fairly valued and good dividend (free of withholding tax). You certainly won't get rich with it, you can't expect the price to multiply, but it is a pretty solid investment.

[@thomashelveg7563]

Very good video

[@framedaglia5709]

I would suggest you the stock "Nichols plc"

[@jonnes__4657]

🗽 I agree, in the FTSE is too much financial crap included. .

[@SlobberySlob]

Much financial crap - but still would have outperformed cash savings.

[@jonnes__4657]

@@SlobberySlob Now you can buy short-term bonds. .

[@gabrielflaim9984]

Sven you are the best

[@davidariasmaestre715]

Sven, Great video as always. What do you think about Kainos Group. They have grow the FCF from 16M in 2020 to 59M this year. Market cap of 1.4B (Price/FCF ~24), and planning to growth the FCF in the next 5 years by 17% per year. No debt

[@conlethkennedy2713]

Can you bring back the risk reward graph

[@iwanmuzaki8049]

Sven, as a value investor you need to make a review of Kelly services stock

[@PonderDuke]

Hope you get well soon, I thought I heard a cold or something in your voice.

[@rc-boy11]

Do a video on KLG new Kellogg's company for cereals only.

[@Value-Investing]

Thanks for suggesting!

[@adicurrant]

can you do a research on BVB ?

[@DaThrawn]

Hi Sven, since you are analysing UK Stocks, what is your opinion on GOOD Energy?

[@kripto2734]

Excellent balance sheet!

[@theo9771]

Wow! A P/E ratio of under 2! And their H1 profit is almost half their market cap😮

[@danielegianetti5599]

That is FTSE 100, but things are pretty different for FTSE 250. At the end of 2022, the FTSE 250's CAPE ratio was 18.7. Over the last 30 years, CAPE has had an average value of 25. It has lost a bit YTD so likely even lower in CAPE, and all time returns of 300% plus dividends (currently ~3.3%). I think FTSE 250 is a good buy at these prices

[@jabberwockytdi8901]

It would be if UK business wasn't going to continue to get trashed by Brexit. FTSE250 has effectivly flatlined since 2013 and as an index is going nowhere, 3.3% dividend and no growth? no thanks

[@SlobberySlob]

Hard to argue against the 250. Aim is another matter.

[@tc9634]

The yield is actually more like 3.8%, a full percentage point above its long term average. Plus there's about £30bn of discount available among investment trusts, the PE is close to 10 on the non investment trusts and the average PB is around 1.2-1.3. It's outrageously cheap.

[@tc9634]

​@@jabberwockytdi8901eh? The 250 opened 2013 at 13k and is now over 17k, that's nearly 3% growth, not bad considering this is UK equities worst period since the 1970s.

[@dieterfrommunich758]

Great

[@paultweedley2026]

Dr Martin, you never mentioned that price to free cash flow ratio for ttm is 28, that's put me off investing now, if the market cap was to get to 800 million then in my opinion there's a margin of safety and l will be then jumping in.

[@donkalzone6671]

Hello Sven, could you give an example for a financial parasite?

[@Value-Investing]

someone that charges fees for no value added!

[@jeroen7356]

Very interesting video. Only why do you equate dividends with interest?

[@Value-Investing]

It is all about interest rates! If you can get 5% from your bank, you want at least 7 from your dividend investment for the risk taken

[@jeroen7356]

That is true, but in the end a dividend is not like interest. You get paid out of your own money because the stock price is cut by the amount of the dividend.

[@paddieland]

The most interesting here is Smurfit, but it is trying acquire WestRock for $11 billion.

[@Value-Investing]

thanks for sharing!

[@jovokrneta1412]

Sven, you have traditionally great videos with bad audio.

[@paull3179]

This year I have been sticking to the top 5 US companies only and just monthly selling options on those basically collecting rent. My 2 main accounts are up 25% ytd and smaller retirement account up 37%.

[@frossato]

Hilton Foods issued a profit warning in September 2022

[@Value-Investing]

thanks for sharing!

[@meherharshith8138]

Yay been a while

[@felixlagemann8109]

Shell is expensive? You posted this when it was trading at 7.6x pe. Given it's cyclical you must be on the assumption that oil the last 12 month oil, which averaged price of 80 USD, equals peak oil and that the remaining investments of Shell are wothless(ish). I find it difficult to find it overvalued.

[@felixlagemann8109]

Also weird not show FTSE total return index to make your point about UK returns?

[@Value-Investing]

thanks for sharing!

[@elrevesyelderecho]

16:04 with almost a 7% inflation rate.

[@extramild1]

Is Games Workshop not a great stock? Great dividend, great moat, great margins. I appreciate it is expensive but quality cost.

[@robert435230]

Not in the FTSE 100. But yes agree it's a great business.

[@SlobberySlob]

Looking at the past - a great stock. Looking forwards? Has it ever been at this pe?

[@tc9634]

I just bought a bit. It's a great quality business - margins, capital light, ridiculous ROCE, self-funding, no debt, loyal customer base, plenty of growth opps via new products, licensing, customer base hobby lifetime additional purchases, price increases, and growth of the hobby to new people which its store manager model really supports.

[@runabath]

Is interest rates gravity to our stock price now

[@Value-Investing]

yes, but it seems it doesn't work for all stocks the same :-)

[@Pizza-gb1ch]

ABF like BTI and MO "is going down" from its high in 2017. 💁

[@Pizza-gb1ch]

Same with Dr. Martens.

[@Value-Investing]

thanks for sharing!

[@johnristheanswer]

DOCS down another 15% in the week since video dropped, Sven. Buy , buy , buy ?

[@Value-Investing]

I don't know how it fits you, there is also risk, it depends how it fits your strategy!

[@caracal9458]

thanks Sven, always good to show your mistakes and you remind me and everyone why you have to be very careful buying individual stocks outside your own country. FTSE is full of miners when we are at the start of a commodity supercycle combined with the green revolution and you run from huge copper and lithium miners with big dividends

[@mattinterweb]

You missed RELX, BAE ;)

[@Jauhl1]

He didn't mentioned BAE, Relx he called the superstar of the FTSE, but didn't elaborate why he wasn't interested, high valuation I assume.

[@andrejvangelski4514]

Dr Martens just dropped 30% to an all time low. The company is working a bit more than half a billion. Might be worth checking again:)

[@Value-Investing]

might be, but I am looking for better businesses

[@maximussympatico8787]

Very nice overview! :) Thanks Sven.

[@BreazuBogdan]

Wise analysis. Amazing finds. Thanks Sven for the effort. Will add all of them on my watchlist. Currently I am exploring the German, Swedish and Dutch REITS

[@Hyper1555]

What reits are you considering? I find European not consistent on their dividends and/or levered too heavily. The balance sheet of the best american reits are better, but the valuation is higher.

[@BreazuBogdan]

@@Hyper1555 you are completely true. So far I did some analysis on Xior, Vastned and Vonovia. They have very high leverage but they still borrow money with a 2-3% interest rate. Valuation wise they are still not super cheap, but I might start a small position in each of them if we see more downside. The USD EURO forex exchange keeps me on hold going into USA stocks (I live in the Netherlands). If the FED cuts the rates we might lose 10% just by the forex exchange

[@antoninomontanarella7587]

Dr. Martens looks attractive.

[@SlobberySlob]

value trap - what matters in the long term is consumer demand - which they are destroying. despite an iconic brand

[@lawrenceHart-ys2ct]

Despite the fact that I invest, I am saddened by my inability to evaluate each company's performance and determine whether or not this is the ideal time to purchase stocks. My monetary stockpile is being depleted by inflation. At this stage, I need accurate market trajectory data, but I'm not sure what to do.

[@merlinfitz]

I fully agree, which is why I value delegating decision-making authority to an investment coach. Given their specific experience and education, as well as the fact that each of their skills is concentrated on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain negative events, underperformance is virtually unthinkable. I've made over $1.5 million working with an investment coach for over two years.

[@benjaminsmith3469]

@@merlinfitz I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.

[@merlinfitz]

I have stayed away from all of the issues that the erratic market presents. Today, reading, research, patience, and seeking guidance when necessary are the greatest ways to break into the market. I merely copy *Christine Ann Podgorny* a CFA, whose actions I witnessed on Bloomberg Business News because I am unable to handle my portfolio owing to the nature of my profession. Ever since, everything has been easy.

[@ChristopherHoward-kf7yk]

@@merlinfitz Christine appears to be very knowledgeable. I discovered her online profile and read through her resume, educational background, and qualifications, which were all very impressive. She is a fiduciary, which means she will act in my best interests. So I scheduled a session with her.

[@dogtown1ewok]

See you in 10 years richer 😎

[@BritishwarrenBuffett]

Rookie mistakes

[@Value-Investing]

???

[@paulrobbo321]

I think Sven has a point but he comes across a bit bitter. Didn’t he stop investing last year. Europe isn’t much better. All we hear is don’t time the market but twice Sven mentions a crisis and opportunity to get in for 30% less.

[@kokica007]

He is invested, not in cash.. you missed ballpark

[@Value-Investing]

It is not about the messenger, but about what works for you! Dont be romantic about your money

[@paulrobbo321]

@@Value-InvestingFair enough,

[@37christ37]

Sven I also wanted to mention Brexit and the on going impact that is having on the uk economy. This is still playing out. Hopefully labour get in government in 2024 and start improving this. 👍

[@johnosullivan2197]

The whole of Europe is struggling with inflation ! Labour and the Tories are equally useless

[@vascofraga7367]

You are speaking about FTSE all shares , FTSE all world seems to have had a lot better returns for e.g

[@jabberwockytdi8901]

Don't buy any UK index fund whatever you do, only look for the firms that are Brexit proof. Then filter those for whatever factor floats your boat.

[@mattinterweb]

Most of the FTSE big players are made up of company's who' income is generated all over the world internationally BP, RIO, AZN, GSK. Brexit won't affect them so much.

[@tc9634]

I own the FTSE all share and 250 and I'm doing fine 🤷‍♂️

[@markgriffiths9377]

The FTSE is shit - has been for over 30 years (at least since "Black Wednesday" when we got booted out of the ERM). I only invest in US stocks as the returns in the UK simply aren't there. I mean, we're talking less than 2% so you're losing money when inflation is taken into account :))

[@Value-Investing]

thanks for sharing!

[@tc9634]

Er what?!? The FTSE was on par with the S&P until about 2013. Where did you get 2% from?

[@elrevesyelderecho]

0:10 So, The UK economy sucks.

[@BarsonlineOrg2013]

Not just the economy....UK just sucks! :) Let Scotland and Nor. Ireland be free!

[@robert435230]

The whole country sucks. Nothing works, wages and standards of living going backwards for decades, basically anyone that's not a CEO is poor. Anyone that can is trying to leave the country. This all rubs off on the index. UK investor.

[@chrisf1600]

But that has precisely zero to do with stock returns

[@elrevesyelderecho]

2:15 in summary: stagnation over the last 2 decades...plus Brexit. Here we are!

[@rigeyun]

I feel the same way, FTSE 100 is a shit show, oil and banks, nothing else,

[@tc9634]

Those two sectors make up about 23% of the index?

[@rigeyun]

@@tc9634 you asking or telling? Oil companies dug up nature resources, and selling to you and me, huge profit made, you think that's fair?

[@chrisf1600]

@@rigeyunConsidering the risks they take and the technical challenges they face, yes. You're welcome to set up your own oil company if you think you can do it better :)

[@rigeyun]

@@chrisf1600 feeling the pain of the rich? Yeah, they are so hard making historic profit! Lets keep paying them.

[@bigmuff4839]

Does it matter if you buy DOCS.L or DOCMF?

[@Value-Investing]

check the liquidity on the ADR