Dear Financial Voice Reader,

I know many of you want me to look at your portfolios for you. That’s not what I do. As an asset manager, I don’t advise. My hedge fund and my private equity fund manage, not advise. However, in this column, I can talk about the things that interest you.
The first place I always start in answering what are good stocks is my own investment algorithms in my own software. I created this over 12 years ago and commercialised it and it has outperformed every fund manager investing in UK companies over that period. I should have billions managing peoples money right? I agree. I agree.
Want proof? www.sharescope.co.uk/alpesh
Anyway, for now, you get my views from my software. The algorithms I ran for this article are based on a 12 month outlook examining the companies’ data on profits, growth, share price among many other data points.
Of the 350 largest UK companies the ones highest rated at DS Smith, Smurfit, 888, Bellway, Booker, Greggs, SuperGroup. Notice how I look at the data. I do not care what the companies do. You can make your reasons up why those companies will do well, but I let the accounts do the talking.
I use my algorithms and software robots deep dive into every part of the accounts to find, measure, weigh, analyse, calculate and compute the likely future for the companies.
What about the stinkers? Balfour Beatty, Centrica, Mitie, Nostrum Oil and Gas, AA, Coca Cola, Serco.
I am sure I will have upset a few people. Sorry. This doesn’t mean I am always correct. Let me explain how trading works. I am not saying the poorest companies will not turnaround, after all, they could. In one sense I am playing the odds, the trends. Equally the good companies could become complacent. However, it’s just that this does not tend to happen.
Equally I am not saying all the companies I have mentioned will be the best performers. It’s just that as a collective, the highest rated ones tend to outperform all fund managers – and have done so for over a decade now. So I am fairly confident they will do it again.
You see people wrongly think trading is about insider tips. It is not, it is about a sound process. They wrongly think it is about picking the very best companies. It is not. A group of mediocre returns outperforms the promising one that burns out and crashes.
People also think that investing is about constantly finding the most innovative companies. It is not. It is about finding undervalued companies delivering growth in sales, dividends, profits.
Sure, there are many loss making shooting stars. That is not our approach. It is too hit and miss.
Alpesh Patel
Alpesh Patel and Juventus Football Club are Official Partners of 24Option.com brokers.