Shares in FTSE 100 budget airline easyJet (LSE: EZJ) are down 17% from their 10 April 12-month traded high of £5.90.

Such a drop may signal a bargain to be had. So I took a closer look to ascertain whether it is.

Are the shares undervalued?

On the price-to-book ratio, easy Jet currently trades at just 1.3 against a peer average of 2.9. These comprise Jet2 and Southwest Airlines at 1.8, International Consolidated Airlines Group at 3.9, and Wizz Air at 4.

So easyJet looks very undervalued on this key measure that I have trusted for over 35 years of private investment.

The same is true on the price-to-sales ratio, with easyJet at 0.4 compared to its competitor average of 0.5.

However, it looks overvalued on the price-to-earnings ratio at 8.4 against a 6.1 peer average.

To get to the bottom of the valuation, I ran a discounted cash flow analysis using other analysts’ figures and my own. This examines whether a share seems undervalued compared to where it should be, based on future cash flow forecasts.

This analysis shows easyJet shares are technically 63% undervalued at their current £4.88 level. So the fair value for the stock is £13.19, although market unpredictability may push it lower or higher than that.

What are the higher valuation catalysts?

I see the key risk to its valuation being the intense competition in the airline sector that may squeeze its earnings.

That said, analysts’ forecast easyJet’s earnings will increase by 9.3% each year to the end of 2027. And it is this growth that ultimately powers a firm’s share price higher over time.

In easyJet’s case, such bullishness looks well founded in its full-year 2024 results. Profit before tax soared 34% to £610m from £455m for the UK’s biggest budget airline. And headline profit before tax per seat jumped 24% to £6.08 from £4.91.

The airline forecasts capacity growth for full-year 2025 of around 3%. And it projects about 25% growth in holiday customer numbers over the year, from a base of 2.5m.

I think an additional boost for its earnings should come from a significant increase in its presence in Italy. On 11 December, the European Commission granted easyJet five additional planes at Milan’s Linate airport and three at Rome’s Fiumicino. This will take the airline’s country total to 38, making Italy its second-largest market after the UK.

Will I buy the shares?

A key to investing in my experience is to realise where one is in the investment cycle and to buy stocks appropriate to that.

I am aged over 50 now, so am at the later part of my investment cycle. Consequently, I am focused on shares that generate a very high dividend income for me. This should allow me to continue to reduce my working commitments.

EasyJet currently delivers an annual yield of 2.4% compared to the near-9% I get from my dividend income stocks. So it is not for me at my point in the cycle.

However, if I were even 10 years younger, I would be strongly tempted to buy it based on its strong earnings growth potential. This should drive its share price (and dividend) much higher in the coming years, in my view.

The companies known as the Magnificent Seven make up over 20% of the global stock market. And a lot of this is based on their perceived advantage when it comes to artificial intelligence (AI). 

The big US tech firms hold all the aces when it comes to cash and computing power. But Deepseek – a Chinese AI lab – seems to be showing this isn’t the advantage investors once thought it was.

What is DeepSeek?

DeepSeek doesn’t have access to the most advanced chips from Nvidia (NASDAQ:NVDA). Despite this, it has built a reasoning model that is outperforming its US counterparts – at a fraction of the cost. 

Investors might be wondering about how seriously to take this. But Microsoft (NASDAQ:MSFT) CEO Satya Nadella is treating DeepSeek as the real deal at the World Economic Forum in Davos:

“It’s super impressive how effectively they’ve built a compute-efficient, open-source model. Developments like DeepSeek’s should be taken very seriously.”

Whatever happens with share prices, I think investors should take one thing away from the emergence of DeepSeek. When it comes to AI, competitive advantages just aren’t as robust as they might initially look.

US AI

Microsoft is set to spend $80bn on AI in 2025. Very few other companies are able to do anything like this and that gives the company a huge advantage — at least, at first sight.

Investors should be careful though, in thinking about what that means. While it puts the firm in a strong position against its competitors, DeepSeek’s latest model indicates it’s not insurmountable.

Equally, Nvidia is the leader when it comes to AI chips. But while the threat from a rival catching up might be limited, the risk of demand falling as customers do more with its earlier products also needs considering.

The emergence of DeepSeek has highlighted both of these challenges. And for the biggest US tech stocks trading at high prices, I expect this to have a meaningful impact on share prices sooner or later.

Is this an opportunity?

The biggest question for investors is whether a drop in share prices is a buying opportunity. From my own perspective, I think it’s reason to be careful, but I’m also wary about overreacting. 

If there’s one thing I think investors should take from the emergence of DeepSeek, it’s that a competitive advantage in this area is harder to maintain than it might initially seem. And that cuts both ways. 

The US hyperscalers might have just seen their lead cut — or even eliminated entirely — by DeepSeek. But I think counting them out when it’s just been shown how hard it is to stay ahead in this industry is very reckless.

I don’t expect them to stay behind for long, but the question is whether they can ever establish a long-term lead. Apparently, big advantages in cash and computing power don’t guarantee this.

Warren Buffett 

Warren Buffett has been staying away from AI – and tech in general – following his misjudged investment in IBM. And I think a lot of investors would be wise to consider following his example. 

It turns out, assessing who has a durable edge when it comes to AI is harder than it looks. So even if the Magnificent Seven pulls the stock market lower, investors should be careful.

Warren Buffett has often shared advice about managing finances and building wealth. When it comes to handling a paycheck, his guidance emphasises the importance of prioritising savings, avoiding unnecessary debt, and making informed financial decisions.

When it comes to the paycheque, Buffett recommends saving a portion of income before spending on anything else. As he famously said, “Do not save what is left after spending, but spend what is left after saving”.

Putting this into practice

So, how can good investors put this into practice? Well, quite simply by committing to contribute a fixed amount to our investment portfolios, preferably through a direct debit-type arrangement. This approach ensures consistency and can remove the temptation to try to time the market, as the investment is made regardless of market conditions. Over time, this strategy leverages the power of compounding and reduces the emotional biases that can hinder long-term financial success.

Now, don’t lose it

The next important piece of advice is Warren Buffett’s first rule of investing: “Don’t lose money.” This simple yet profound rule emphasises the importance of preserving capital and avoiding unnecessary risks. Successful investing isn’t just about making gains but also about protecting against losses that can significantly erode wealth over time. As I often note, if you lose 50% on an investment, you’ve got to make 100% to get back to where you started. That’s tough.

Instead, Buffett advises investors to adopt an approach that allows for a margin of safety. This can mean different things to different investors. As a growth-focused investor, I often see the price-to-earnings-to-growth (PEG) ratio as a good starting point. If the PEG ratio is significantly discounted versus the sector average, I will then take more time to evaluate the opportunity.

One investment to consider

While there are plenty of stocks on my radar, one that I find particularly interesting is Standard Chartered (LSE:STAN). I actually had to sell my shares in the growth market focused bank before buying a house, but it’s a UK-based investment that I’m once again considering.

So, why is this? Well, the FTSE 100 stock is trading around 8.1 times forward earnings. That’s a significant 35% discount to its global finance peers. However, the bank is actually expected to register industry-leading earnings growth over the medium term. I’ve seen forecasts close to 20% growth, but my calculations suggest that earnings will growth by an average of 12.1% annually over the next three to five years. In turn, this leads us to a PEG ratio of 0.67.

Not only is a PEG ratio of 0.67 cheap — traditionally anything below one is considered discounted — but it’s very unusual for a dividend-paying bank. The current dividend is 2.5% and this is expected to grow to 3.1% by 2026.

However, it’s important to note that with substantial operations in Asia, Africa, and the Middle East, Standard Chartered is susceptible to geopolitical tensions, such as US-China trade disputes and regional instabilities, which can impact its performance. It’s a stock I’m keeping a close eye on.

Searching for stocks to buy for substantial capital gains this year? Here are a couple of brilliant bargains I think savvy investors should seriously consider.

Begbies Traynor

These are tough times for British business as costs rise and consumer spending slumps. In this climate, Begbies Traynor (LSE:BEG) could experience strong and sustained demand for its services, driving its share price higher.

This AIM company provides insolvency services and other support for troubled companies. Its latest research released on Friday (24 January) showed “[an] historic jump in the number of firms in critical financial distress“.

According to Begbies, the number of UK firms in ‘critical’ financial distress leapt 50.2% between quarters three and four, to 46,853.

The £146m cap firm has proved itself adept at capturing business in difficult climates like this. Half-year financials released last month showed revenues up 16% year on year between April and September, at £76.3m, and pre-tax profit 57% higher at £4.7m.

I don’t currently think this reflected in the company’s valuation, which leaves scope for substantial share price gains in my view. It trades on a forward price-to-earnings (P/E) ratio of just 8.8 times.

Begbies’ share price could head in the opposite direction if Britain’s economy perks up. But on balance, I think the profits outlook here is pretty robust, helped by the company’s ongoing commitment to acquisitions.

Warehouse REIT

Property stocks like Warehouse REIT (LSE:WHR) have slumped in this era of higher-than-normal interest rates. There’s a danger, too, that this may persist into 2025 and beyond if inflationary pressures remain stubborn.

Greater interest rates are problematic by raising firms’ borrowing costs and depressing their net asset values (NAVs).

Yet I believe this threat is more than baked into the ultra-low valuations of many of these stocks. In the case of Warehouse REIT, the trust’s share price, at 78.2p, sits at a near-40% discount to a NAV per share of 127.6p.

Besides, the prospect of multiple interest rate reductions in the current economic and inflationary landscape remains a very realistic one. On Friday, Lloyds Bank chief executive Charlie Nunn told Sky News he expects as many as three Bank of England rate cuts this year.

There are about 50 real estate investment trusts (REITs) listed in the UK. I like Warehouse REIT because it has multiple growth opportunities to exploit, like the steady rise of e-commerce, increasing onshoring, and the evolution of supply chain management.

With around 450 tenants on its books, its rental income should remain robust too even if one or two companies struggle in the current climate. This means shareholders can look forward to more market-beating dividends.

REIT rules state that at least 90% of annual rental profits must be distributed through dividends. As a result, the forward dividend yield at Warehouse REIT is a robust 8.1%.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Nvidia (NASDAQ:NVDA) stock’s up 145% over 12 months. That means £5,000 invested one year ago would now be worth £12,250, plus a little bit extra to account for the depreciation of the pound and a very small dividend yield. It goes without saying this is a very strong investment in everyone’s book.

It’s simply central to AI

Nvidia’s shares have skyrocketed, driven by its pivotal role in the artificial intelligence (AI) revolution. The company’s consistently outperformed expectations with multiple earnings beats highlighting its dominance in the graphics processing unit (GPU) market (GPUs, originally built for gaming, have paralleling processing capabilities that are ideally suited to AI workloads).

Moreover, Nvidia’s success stems from its holistic approach. It’s combined cutting-edge hardware like the Hopper and Blackwell architectures with a robust software ecosystem. This software advantage creates significant switching costs for clients, setting Nvidia apart from competitors such as AMD and Intel, who are also playing catch up on hardware. 

The surge in demand for AI infrastructure has propelled Nvidia’s data centre revenue to new heights. Despite a roaring performance in 2023, the division saw sales rise 112% in Q3 2024. And as AI continues to transform industries globally, Nvidia’s earnings are going through roof. It’s truly the kingpin of AI, and Q4 sales are expected to top $38bn… that’s just one quarter.

How much longer can this continue?

The consensus among analysts is that Nvidia will grow earnings by 38% annually over the next three to five years. And given that the stock’s currently trading at 48 times forward earnings, this leads us a price-to-earnings-to-growth (PEG) ratio of 1.31. That’s above the traditional benchmark ratio of one — which suggests overvaluation — but it’s a 32% discount to the information technology sector average. Coupled with incredibly strong profitability grades, including a gross profit margin of 76%, the data suggests this stock will push higher. It’s also worth noting that Nvidia keeps beating expectations.

However, there are risks to bear in mind. As of January, the vast majority of Nvidia’s advanced AI chips are still manufactured in Taiwan by TSMC (Taiwan Semiconductor Manufacturing Company). Investors won’t need reminding that the island nation is at the epicentre of two great powers colliding, and geopolitical developments could therefore harm Nvidia’s supply. This is even more apparent as Donald Trump takes office.

Hard to bet against it

Nvidia currently has a market-cap of $3.6trn and $38bn in cash. This capital strength, combined with its technological leadership in AI hardware and software, puts the company in an incredible position to dominate the new developments in the sector.

One of those developments is in robotics and specifically humanoid robotics, a segment of AI. In short, Nvidia offers the perfect ecosystem for robotics development and it has chosen a collaborative approach, partnering with multiple robotics firms, leveraging its hardware/software synergy efficiently. The upcoming ‘Jetson Thor’ computing platform, set to launch in early 2025, will provide the processing power needed for advanced humanoid robots, positioning Nvidia at the forefront of the rapidly approaching future of robotics.

I’m bullish on Nvidia but I’m probably not buying anymore stock as my holding is already quite large, relative to my portfolio. However, it’s hard to bet against this tech supergiant.

Apple (NASDAQ: AAPL) stock has marched 71% higher in a little over over two years, giving the iPhone maker a mammoth $3.35trn market cap. With the US bull market in full swing, it seems just a matter of time before it becomes a $4trn business. So, should I add Apple to my Stock and Shares ISA? Let’s dig in.

A bruised Apple in China

Weighing up the investment case, I have a few concerns. The first is that the iPhone is rapidly losing traction in China, its biggest market outside the US. According to data from Counterpoint Research, sales there were down 18.2% in the December quarter.

Now, we know that China’s economy is struggling and consumer spending is weak. So falling sales aren’t too much of a surprise. However, the report says that China’s Huawei was the number one smartphone seller last year, pushing Apple down to third place. 

Why might that be? Well, beyond generally charging higher prices, the US firm has been late to the party when it comes to rolling out artificial intelligence (AI) features in China. It’s still in talks with Tencent, Baidu, and TikTok owner ByteDance about integrating their AI models — already approved by regulators — into iPhones.

But Apple will need to get its skates on. Consumers in the world’s second-largest economy are unlikely to opt for one of its new phones when domestic rivals are already offering the latest AI-powered features.

In the West, there’s also evidence that consumers haven’t been wowed by its recent ChatGPT-powered offerings. Therefore, the massive AI-driven smartphone upgrade cycle that many analysts were predicting hasn’t started yet.

Meanwhile, some continue to question Apple’s record on product innovation.

[Apple hasn’t] invented anything great in a while. It’s like Steve Jobs invented the iPhone, and now they’re just kind of sitting on it 20 years later.”

Meta Platforms CEO Mark Zuckerberg on the Joe Rogan podcast, January 2025.

High valuation

Another concern I have is slowing revenue growth. Again, this is hardly surprising given Apple’s colossal size. But in its fiscal 2024 period, which ended in September, revenue only grew 2% year on year.

And while adjusted earnings rose faster, the firm’s growth is still noticeably slower than Big Tech peers like Amazon, Microsoft, and Google parent Alphabet.

Yet Apple stock is trading for a high price-to-earnings (P/E) multiple of 33. That valuation doesn’t strike me as attractive.

The world’s best investors are jumping ship

The final worry I have here is that top investors have been selling the stock. The highest-profile of these is Warren Buffett, who has cut his gigantic Apple stake by around two-thirds over the past year.

Other notable sellers lately include billionaire fund managers Steven Cohen, Israel Englander, and Terry Smith. Slowing growth and a high valuation could be factors that influenced their decisions.

My move

Of course, it goes without saying that this is a wonderful company. There are around 2.2bn active Apple devices worldwide, and its services division that houses the App store, iCloud, Apple Music, Apple Pay, and more is growing double digits.

Personally, I can’t ever imagine switching from an iPhone, while I’m also now an Apple Music subscriber. However, despite being a very satisfied long-term customer, I’m not interested in investing in the shares right now.

Greggs‘ (LSE:GRG) shares are in an interesting position at the moment. The FTSE 250 stock’s made a bad start to 2025, falling 27% since the start of the year, but there’s more to the story than this.  

The firm’s growth prospects aren’t what they used to be and this is why the share price is down. But while that’s true, the stock’s trading at its lowest price-to-earnings (P/E) multiple in a decade and I think it’s well worth considering right now.

Growth

Theoretically, Greggs has two ways of growing its revenues. The first is by opening more stores and the second is by generating higher sales from the outlets it currently operates. 

Most of the firm’s recent growth has come from increasing its store count, which isn’t a problem by itself. But the trouble is, it isn’t going to be able to keep doing this indefinitely.

Greggs estimates that it can maintain around 3,000 venues, but that’s only 15% higher than the current number. So scope for further sales increases on this front is limited.

The other strategy involves generating higher sales from its existing outlets. And the most obvious way of doing this is by increasing prices, which should also boost margins.

This however, is risky for a business with a brand based on customer value. The company announced a couple of weeks ago that it was raising prices and its customers didn’t react well. 

Whether they will actually look elsewhere – Greggs still offers the best value on the high street – remains to be seen. But it’s a risk that investors need to consider carefully. 

Value

Greggs shares are currently trading at a P/E multiple of 15. And with the exception of the Covid-19 pandemic – when its net income turned negative – this is the cheapest it’s been in a decade. 

Over the last 10 years, the stock’s consistently traded at a P/E ratio of 16.5, or higher. That means if the stock gets back to those levels from today’s prices, the share price could climb by at least 15%.

I think however, that the firm’s limited growth prospects make betting on this risky. Greggs has never had more stores and this means it has never had less scope to grow revenues by opening new outlets.

Instead, I’m looking at the underlying business as an opportunity. At today’s prices, it doesn’t look to me as though much needs to go right for the company to generate good returns for investors.

Even if the store count doesn’t grow beyond 3,000, that’s 15% higher than the current level. And if profits grow at the same rate, the potential for dividends and share buybacks looks attractive to me.

In short, Greggs has gone from being a growth stock to a value stock. Its share price is now largely justified by its existing cash flows, rather than the ones it might generate in the future.

Buying

Greggs might not be able to do much more than offset inflation by increasing prices. But at today’s prices, I don’t think it needs to.

I’m looking to buy the stock next time I have cash available to invest. My hope right now is the stock stays down long enough to give me the opportunity.

When buying and selling UK stocks, I rely on my own research. That said, I’m open to anything, including chatbots.

Artificial intelligence (AI), as ChatGPT humbly admitted, is no substitute for human expertise. When I asked it to name two FTSE 100 shares it would sell in a heartbeat, it replied: “I’m not a financial adviser, so I can’t provide specific stock recommendations”.

It did however, list broad reasons to sell stocks, such as weak fundamentals, falling revenues, high debt, poor management, tough sector conditions, and overvaluation. Fairly obvious, I thought.

Perhaps sensing my disappointment, ChatGPT surprised me by adding: “Companies like Centrica (LSE: CNA) or BT Group (LSE: BT.A) have faced scrutiny due to operational struggles or stagnant growth”.

What’s the Centrica problem?

Curious, I asked why it flagged up Centrica. ChatGPT pointed out that core business British Gas faces intense competition from smaller energy suppliers offering cheaper deals and stealing market share.

Centrica’s board has also spend recent years restructuring, cutting jobs and selling non-core assets, which ChatGPT suggested might “signal instability or difficulty adapting to market conditions”. The company also faces the expensive challenge of transitioning away from fossil fuels, amid falling energy prices and windfall taxes.

Given all that, I was surprised to see that the Centrica share price has actually soared 95% in the past three years. Although it’s dipped 2.5% over the last 12 months.

The shares are dirt cheap, trading at just over four times earnings. While the dividend yields a modest 3%, share buybacks and a £3.2bn net cash pile add appeal.

Yet I share my robot buddy’s scepticism. As an energy explorer and utility owner, it’s an unwieldy hybrid. I already own BP, so don’t need more energy exposure. And I wouldn’t buy British Gas if it was a standalone stock.

Its view on BT

I spent much of 2024 running the rule over BT Group before deciding not to buy it. ChatGPT appeared to share my scepticism. It flagged numerous challenges for the sprawling telecoms giant, namely fierce competition, high debt due to heavy investment in Openreach broadband and 5G, huge pension obligations and missteps like its costly BT Sport venture.

That said, BT’as largely completed its investment in Openreach, so the rewards could soon follow. It has also eased concerns over BT Sport by selling a majority stake to Warner Bros.

Yet declining revenues in traditional areas like fixed-line services remain a concern. ChatGPT aptly described BT as a “classic case of a company trying to modernise while grappling with legacy issues”, with long-term rewards requiring “short-term pain”.

Despite these issues, BT’s shares are up 22% in the past year. They’re also cheap trading at 7.6 times earnings with a tempting 5.7% dividend yield.

Centria and BT Group both look a little messy to me. Too many fingers in different pies. I have considered buying them but ultimately decided to target cleaner, leaner, simpler companies. If I owned these shares, I wouldn’t sell in a heartbeat. But I’m in no rush to buy them either.

Shares in companies that can increase their dividends over time can be great sources of passive income. Especially when they trade at unusually cheap prices. 

That’s the case with Associated British Foods (LSE:ABF) – the stock’s at a 52-week low, the dividend yield’s at a 10-year high, and the growth’s been impressively consistent. So should investors consider it?

The business(es)

Depending on how you look at it, Associated British Foods is either an impressively diversified firm – or a mix of businesses that don’t really make much sense together. It might be a bit of both. 

The company has five divisions. These include sugar, agricultural feeds, and branded groceries, but the largest of these by some margin is Retail – which is value fashion and lifestyle group Primark. 

From an investment perspective, I’m much more positive about Primark than I am about any of the firm’s other units. I think the retail operation is where growth’s likely to come from.

My view with Associated British Foods is that investors should consider it when Primark by itself is worth the share price. And with the stock at a 52-week low, that time might be now.

Valuation

ABF currently has a market-cap of £13.7bn. On top of this, it has about £2bn more in net debt for investors thinking of buying the stock to consider in their calculations. 

Primark however, generated £1.1bn in operating income in 2024. This is just over half the company’s earnings and it might be enough to justify the entire market-cap by itself.

Based on this, the stock trades at an approximate price-to-earnings (P/E) multiple of 14 – including the firm’s debt. I don’t think that’s a lot for a business (Primark) with strong long-term prospects.

The retailer has a business model based on stores rather than e-commerce. This helps reduce the costs of online returns, which I see as a big advantage, but there are some risks to consider.

Risks

Primark’s latest results have been disappointing – and they demonstrate some of the challenges the business faces. Overall sales grew just 2% during the 16 weeks leading to 4 January. This was largely due to a challenging trading environment in the UK and Ireland, which accounts for around 45% of sales. Like-for-like sales fell 6% and the retailer also lost market share. 

That tells investors that growth is in no way guaranteed. But things were much more positive elsewhere – revenues grew 17% in the US and Primark still only has 29 stores across the Atlantic. 

I think that means there’s a lot of scope for expansion. And I expect this to provide a big boost to profits at Associated British Foods as a whole, especially when the short-term issues subside. 

A buying opportunity?

For me, the investment case here is all about Primark. And despite the short-term challenges, I see a margin of safety in the current share price.

I therefore think investors should consider the stock with its potential for both growth and passive income. Despite the challenges, I don’t see that the opportunity has ever been better.

Every April there is a mad rush as people try to beat the annual deadline for ISA contributions.

That can lead to rushed decision-making. When it comes to investing, rushing things can be not only a mistake – it can also be an expensive one.

That is why, now in January, I am thinking about my ISA strategy for 2025 and far beyond (I am a long-term investor, after all).

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Finding the right ISA

Part of that process involves making sure that I have the right Stocks and Shares ISA for my own needs.

Each investor is different and that is one reason why there are so many ISAs available on the market.

While they may seem similar, in fact, they can have significant differences. Even small-seeming differences in fees and costs can add up to a sizeable financial impact over the course of time.

So, my starting point is to review a variety of the Stocks and Shares ISAs that are available to me on the market today (these things change over time).

If I decide that one looks markedly better for me than the one I use at the moment, I would consider transferring my ISA from the current provider to a new one.

Making the best of my allowance

Each year, most investors have an ISA allowance. Different people have different types of ISA, but to keep things simple I will use the example of having a £20K allowance for my ISA in each tax year.

So, between now and the end of the current tax year in April, as I have not made the most of my ISA allowance for this year, I will consider whether I want to (and financially can) maximise the use of my allowance.

That is just a contribution deadline – I can put money into an ISA without needing to invest it straight away (or any time soon, in fact).

I will also think about how much I want to contribute to my ISA in the new tax year that will begin in April. Getting into a regular contribution habit based on a defined plan can be a good discipline to get into, I reckon.

Evaluate my current portfolio

Now is as good a time as any to review the shares I own in my ISA and decide whether any changes are in order.

For example, what should I do with my holding in fashion retailer boohoo (LSE: BOO) (other than weep when thinking about it)?

The clothes are cheap but unfortunately the share has also got cheaper and cheaper. Now three for a pound (with some change too!) the heady days of the boohoo share price topping £4 back in 2020 seem a long time ago now.

I think there is a risk that things keep getting worse. At this point I have lost a lot of confidence in management and rivals like Shein continue to threaten to eat into boohoo’s sales.

Still, boohoo did prove itself and had a good few years. It has a large customer base, some well-known proprietary brands, and has invested heavily in logistics both here and Stateside. For now, I plan to hang onto it in my ISA in the hope of recovery.