TheMotorcycleBoy wrote:Dod101 wrote:Maybe a bit like the tobaccos, Burford was subject to irrational exuberance and to that extent MuddyWaters has done everyone a good turn. The current PE ratio according to AJ Bell is only about 6 with a very modest yield. I really do not know a lot about them having never followed them but these do not look very inspiring do they?
I will leave them to others I think.
Dod
The lesson I have hopefully learnt is not to invest into firms whose businesses I don't really understand too well.
I've invested for around 40 years and never understood the businesses I've invested in, nor their accounts!
Anyone who tells me that they understand the accounts and the businesses of Glaxo, AstraZeneca, BP, IG etc is either a genius or somewhat mistaken.
Over the last few years I have a big investment in Fundsmith and even Terry sometimes gets it wrong! And Warren with his investment in Tesco.
So the moral may be to have a flutter in something fashionable but opaque like Burford but to have a well-diversified portfolio.
Regards
Howard