The FTSE 100 looked set for its first positive day of 2024 on Thursday as firmer oil prices provided support for the index.

BP and Shell helped offset sharp declines in JD Sports after the sports retailer issued a shock profit warning following a slower festive trading period.

“The FTSE 100 started Thursday on the front foot despite selling in Asia and the US overnight,” said AJ Bell investment director Russ Mould.

“There were decent gains for BP and Shell as oil prices extended their recent upwards movement on concerns over Middle Eastern supply. The region remains a tinder box due to the Israel-Gaza war, and disruption to shipping routes through the Red Sea is also a key factor behind the surge in crude.

“A big drawdown in US crude supplies – robust North American production played a key part in keeping a lid on prices in 2023 – is also a contributing factor.”

The FTSE 100 was trading up 0.35% at the time of writing.

Next

Next was the FTSE 100’s top gainer after the retailer again produced a sterling trading update and upgraded their guidance for the year.

Next shares were over 4% higher at the time of writing as the group said it was increasing full-year profit before tax guidance by £20m to £905m.

While Next provided a reason for investors to be cheerful, FTSE 100 retailing peer JD Sports’ shock profit warning would have been a major disappointment for shareholders used to positive updates.

Earlier in 2023, JD Sports had guided for pre-tax profits in excess of £1 billion. This guidance was rolled back today after the group said margins were pressured by increased promotional activity.

JD Sports said they now expected profit for the year to be £915m and £935m, the lowest profit since 2021.

“When one of the biggest names in retail issues a profit warning, you know life is hard for the sector,” said Russ Mould.

“For JD, issuing a profit warning is a terrible start to the new year. It will put pressure on management to up their game and find innovative ways to shift more stock without sacrificing too much margin. Any interest rate cuts from the Bank of England will be a gift to the consumer and therefore to companies like JD, but there is no guarantee that will happen any time soon.”

JD Sports shares were down 22.9% on Thursday.

JD Sports plunged on Thursday after the sports and pleasure retailer said it would miss its profit guidance as promotional activity hit margins.

JD Sports shares were down 22% at the time of writing on Thursday.

“When one of the biggest names in retail issues a profit warning, you know life is hard for the sector,” said AJ Bell investment director Russ Mould.

Alongside Next, JD Sports is one of the first FTSE 350 retailers to report festive trading updates. JD Sports has previously defied economic concerns making today’s announcement even more concerning for investors.

The company had been targeting record pre-tax for the full of over £1 billion.

“News from JD Sports that full-year pre-tax profit will be up to 12% below the £1.04 billion guidance given last September has disappointed the market. Sales growth has been softer than expected and margins have been squeezed by high levels of promotional activity,” said Russ Mould.

“For JD, issuing a profit warning is a terrible start to the new year. It will put pressure on management to up their game and find innovative ways to shift more stock without sacrificing too much margin. Any interest rate cuts from the Bank of England will be a gift to the consumer and therefore to companies like JD, but there is no guarantee that will happen any time soon.”

JD Sport has traditionally been a retailing powerhouse and the strength of its brand and the resilience of its customer base will prevent any major sales drop-off.

A possible buying opportunity for JD Sports shares.

Canadian Overseas Petroleum’s death spiral continued on Thursday after the stricken oil and gas explorer issued shares to satisfy the conversion of bond payments.

COPL shares fell 8% on the news and are down 99% over the past year.

Canadian Overseas Petroleum issued 305,598,679 common shares. This issuance is a result of the share settlement option being exercised by a Bondholder for the settlement of $1.1 million in Conversion Payment amounts, along with related accrued interest, as per the terms of previously converted 2027 Bonds and 2028 Bonds.

The issue represents around 22% of the shares outstanding following the issuance.

Today’s news follows the cataclysmic deterioration of COPL’s finances. Investors had been hoping for a joint venture agreement to develop US assets, but COPL’s dire situation hit home after discussions were terminated.

The company recently announced its US affiliate has defaulted on its obligations and entered a Forbearance Agreement with senior creditors. COPL agreed to highly dilutive terms and ravaged shareholder value.

The CEO resigned shortly after Christmas.

The company has backed itself into a corner, and shareholders will likely be left with very little.

Elon Musk’s Tesla shares dipped as it was dethroned by the Chinese automaker BYD in electric vehicle (EV) sales in the fourth quarter of 2023.

While Tesla remains the global EV leader on an annual basis, BYD is emerging as a strong competitor in the race to become the world’s largest seller of electric vehicles.

Beyond surpassing Tesla in all-electric sales, BYD achieved sales of over 400,000 plug-in hybrid electric vehicles in the fourth quarter, contributing to a total of more than three million passenger vehicles sold last year.

Now, “the next twelve months look like they could be challenging for the company that had been streets ahead in the EV race up until now,” said Danni Hewson, head of financial analysis at AJ Bell.

Tesla’s shares were down by almost 1% in the US premarket, while BYD’s were up by almost 0.50% at the time of writing on Wednesday.

BYD’s achievement comes on the back of six consecutive months of setting new records in monthly sales.

The positive results and the rise in the brand’s global market share have propelled BYD to become the world’s top seller of plug-in cars and the fifth best-selling car brand globally.

The Shenzhen-based automaker operates in 59 countries, including major markets such as China, the European Union, the United Kingdom, Japan, and Korea.

However, it does not currently sell in the US due to the high import tariffs.

Furthermore, in September 2023, the European Commission initiated a probe to consider the imposition of punitive tariffs with the aim of safeguarding European Union producers from the influx of inexpensive Chinese EV imports. 

“While price is something that is being probed by EU regulators and could create a bit of a speed bump down the road, momentum is currently on BYD’s side. Though Tesla managed to hang onto the EV crown in 2023, it’s coming under increasing pressure from legacy carmakers and Chinese models alike,” Hewson added.

Investing is a complex and ever-evolving field that demands a blend of astute decision-making, comprehensive analysis, and a deep understanding of human behaviour.

The late Charlie Munger, Vice Chairman of Berkshire Hathaway and renowned investing guru, left behind a legacy of wisdom that transcends the mere financial aspects of the market. In this article, we will explore 10 investing phrases coined by Charlie Munger and the valuable lessons they impart to investors.

1. “Invert, always invert”:

Munger’s emphasis on inversion encourages investors to think backwards. Instead of focusing solely on positive outcomes, consider potential pitfalls. By adopting this approach, investors can make more well-informed decisions and better navigate the complexities of the market.

Lesson: Sound decision-making involves a comprehensive evaluation of both positive and negative aspects, offering a more holistic perspective.

2. “It’s not supposed to be easy. Anyone who finds it easy is stupid”:

Munger debunked the myth of easy money in investing. He stressed the importance of hard work, continual learning, and rational decision-making in the face of the market’s inherent complexities.

Lesson: Success in investing demands diligence, continuous learning, and a commitment to making well-informed decisions rather than seeking shortcuts.

3. “Avoiding stupidity is easier than seeking brilliance”:

Munger advocates for steering clear of common pitfalls and mistakes in investing. By sidestepping foolish decisions, investors can often achieve better results than by constantly chasing after brilliant strategies.

Lesson: Minimising errors and avoiding common pitfalls can lead to more consistent and successful investment outcomes.

4. “Circle of competence”:

Munger encourages investors to operate within their circle of competence, investing only in businesses and industries they thoroughly understand. Straying beyond this circle increases the likelihood of making uninformed decisions.

Lesson: Identify your strengths and invest in companies that fall within your circle of competence to enhance the chances of making sound investment choices.

5. “Spend each day trying to be a little wiser than you were when you woke up”:

Munger believed in the importance of continuous learning. He urged investors to strive for incremental improvement each day, accumulating knowledge and wisdom over time.

Lesson: Consistent self-improvement and learning are vital for long-term success in investing. Stay curious and seek opportunities for growth.

6. “The best way to get what you want is to deserve what you want”:

Munger stressed the significance of merit and hard work. Instead of fixating solely on desires, investors should focus on developing the skills and knowledge necessary to achieve their goals.

Lesson: Success in investing comes from deserving success through disciplined research, thoughtful decision-making, and a commitment to personal growth.

7. “It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait”:

Patience is a virtue in investing, according to Munger. Successful investors understand the power of waiting for the right opportunities and avoiding impulsive decisions driven by short-term market fluctuations.

Lesson: Develop the patience to wait for high-quality investment opportunities, and resist the urge to make hasty decisions based on short-term market movements.

8. “A great business at a fair price is superior to a fair business at a great price”:

Munger emphasized the importance of investing in high-quality businesses, even if they come at a higher price. The long-term potential and stability of a great business often outweigh the immediate gains from a cheaper, less promising investment.

Lesson: Prioritise the quality of businesses in your portfolio over their current valuation. A great business can generate sustainable returns over time.

9. “It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent”:

Munger stressed the value of avoiding mistakes rather than focusing solely on being exceptionally intelligent. By minimising errors, investors can create a significant long-term advantage.

Lesson: Consistent, rational decision-making and avoiding common pitfalls can lead to better investment results than attempting to be overly clever.

10. “The big money is not in the buying or selling, but in the waiting”:

Munger underscores the importance of patience and a long-term perspective. Successful investing often involves holding onto quality investments through market ups and downs rather than constantly buying and selling.

Lesson: The real profits come from holding onto solid investments over an extended period. Resist the temptation to engage in frequent trading and focus on the long-term potential of your portfolio.

ANGLE, the London-listed liquid biopsy company specialising in innovative circulating tumor cell (CTC) diagnostic solutions, continued to surge higher on Wednesday after inking a significant deal with global pharmaceutical giant Eisai Inc yesterday.

ANGLE shares were 12% higher at the time of writing on Wednesday.

In a groundbreaking pilot study valued at $250,000, ANGLE is set to provide CTC analysis using its cutting-edge Portrait HER2 assay. The focus of this study is to evaluate the HER2 (human epidermal growth factor receptor 2) status of breast cancer patients participating in a Phase II trial of the HER2 targeting antibody-drug conjugate (ADC) BB-1701.

The success of this pilot study holds the potential for numerous large-scale follow-up investigations, marking a potentially pivotal moment in cancer research and drug development.

ANGLE’s Portrait HER2 assay stands out for its ability to quantitatively assess both HER2 protein expression (via IF) and HER2/neu gene amplification (via FISH).

This dual-pronged approach is crucial in identifying breast cancer patients who could benefit from anti-HER2 ADC treatment. Notably, HER2-low breast cancer, comprising 55% of all breast cancer cases, represents a significant portion of the market.

Analysts predict that the global HER2+ breast cancer ADC market is poised to reach a staggering US $3.3 billion per annum by 2030. With the market expanding into HER2-low patients, ANGLE’s strategic move to develop a quantitative HER2 assay becomes even more pivotal. This assay allows for the precise stratification of patient populations throughout the treatment pathway, considering that HER2 status can dynamically change over time.