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Investors with a more conservative desire might find the Ice style appealing. By focusing on businesses that have shown consistent financial performance and growing dividends, we seek to beat the market with a mix of income and steadily rising share prices. We consider this to be a lower-risk investing strategy than Fire, but company and industry specific risks mean diversification remains important.
Ice investing can generate large, short-term gains on occasion, but weâre primarily seeking steady gains over time, and shallower declines during wider stock market falls. These qualities are most commonly found in established firms, but the Ice approach does not focus exclusively on large companies. We often see ample opportunity to invest in medium-sized companies, with strong niche positions in their industry and the ability to grow their dividends for years to come.
“Considering the long-term growth potential of the business, the valuation of around 14.7x expected earnings seems modest to me, while the rebased dividend offers a still significant 4.7% prospective yield.”
Mark Stones, Share Advisor
September’s Ice recommendation:
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