Each section of the Guide explains the key points and includes relevant practical examples. We also include references and links to sources of information and data for more detailed research and access to additional information for better investment decision-making. If you wish you can download the entire document by clicking the button on the right, but be warned that it’s a large file (1.4MB). Alternatively you can download it section by section; here’s a summary of what each section covers:

Each section of the Guide explains the key points and includes relevant practical examples. We also include references and links to sources of information and data for more detailed research and access to additional information for better investment decision-making. If you wish you can download the entire document by clicking the button below, but be warned that it’s a large file (1.4MB).

Alternatively you can download it section by section; here’s a summary of what each section covers:

Introductory Notes

Okay, there are lots of investment guides around. So, why are we producing yet another one? We believe this one is different because it’s a collaborative effort between the well-established United Kingdom Shareholders’ Association (UKSA) and John Mulligan, an economist and former professional investment manager, who has developed and published his share screening methods every month for more than 30 years.

Why Invest in Equities?

We look at the reasons for investing in shares; the advantages and disadvantages of being a part owner of an active business and the substantial profits that can be made, while also drawing attention to the need to minimise risk and avoid losses.

The Investosphere

We coin the term Investosphere to encapsulate some of the major forces influencing equity markets.

Alternative Equity Options for Private Investors in the UK

The options available to private investors have expanded hugely during the last thirty years, from fully outsourced to total personal control.

Lessons from the Maestros

This section outlines a range of share selection methods used by well-known professional investors that have proved successful in the past.

Sources of Data and Information

We list useful data sources and ways of dealing with data problems and errors.

How to Develop Your Own Share Selection System

Basic introduction to the use of spreadsheets and screens to select shares and build portfolios using STAR as a practical example.

Two Stage Screening in Detail

This section delves more deeply into the actual methods employed by the STAR screens.

ESG Investment Screening

How to incorporate ESG criteria into the screening process.

Monitoring and Evaluation

This section demonstrates how to monitor and update your screens and share selection performance on a regular basis.

Jargon Buster

Explains some of the terms used in the guide.

The STAR User Guide

The key elements of the User Guide supplied to subscribers to the STAR newsletter.

Warning – The Limitations of The STAR Guide to Equity Investment

We should warn you that building a successful share portfolio is not the same as developing a long-term strategy for your total wealth. Most financial advisers explain that share investments should make up no more than a limited part of an individual’s total investment planning process. Furthermore, it is not the purpose of the Guide to advise on any aspects of investment planning, tax planning and overall wealth management. For those aspects you should always seek advice from qualified professionals. However, when formulating the share investing portion of your investment strategy it is advisable to take account of the following aspects:

Your Attitude to Risk

You must assess how comfortable you are with risk. How would you feel should your carefully chosen investments fall in value? We have known many people who are unable to sleep at night, or wake in a cold sweat, when their shares suddenly start collapsing and their total wealth reduces significantly. If this is you, it is probably better not to become a direct shareholder.

Time Available

Successful direct share investment, where you own shares directly as opposed to getting a fund manager to do it for you, repays time spent on researching specific companies and the sectors in which they operate. If you don’t have much time available or have little interest in the businesses concerned, it is probably better to direct your money to collective investments whose managers have the time and resources to do the investigative work for you.

Diversification

Whatever methods you choose it is advisable to diversify your investments between sectors and businesses in order to reduce the chance of losing your money through the failure or weaknesses of business sectors and individual companies.

The STAR Guide to Equity Investment

Contents