Understand Accounting To Be A Better Investor – Earnings Vs Free Cash Flow

One of the mantras I keep iterating on this site is that for you to be a successful investor, you need to understand accounting. I wrote about this in a post titled ‘Investors Need To Understand Accounting’. Reading and understanding an annual report will give you the clearest picture of a business and where it is headed. The accounts can show you whether a companies earnings are real or if they are just being magicked up. Conversely, knowing accounting and its intricate rules can help you understand a balance sheet and find hidden value in companies. As I have mentioned before, for those that don’t understand accounting or don’t have […]


Charlie Munger – 10 Rules For Investment Success

Charlie Munger – famed for being the other half of Berkshire Hathaway – has a low of wit and wisdom. His business partner, Warren Buffet, has attributed much of his success to Charlie Munger. In his must-read book, Poor Charlie’s Almanac, Munger puts forth a 10-step checklist that even the most inexperienced investors could benefit from. 1. Measure risk All investment evaluations should begin by measuring risk, especially reputational. As an investor, you need to be aware that from time to time, your investments won’t turn out the way you wanted. Mistakes are always inevitable. By realising this, position yourself in a way where you have a large margin of […]


Articles On Time, Money, Happiness and Freedom!

Investors who read this site know that I am obsessed with Time, Freedom and Happiness. I believe that in order for one to be happy, one needs to be autonomous and in control of their time. Money is just a tool to get you there. Money is just part of the equation. It helps you achieve financial freedom which then free’s up your time to do as you please as you no more have to actively work for money. Yet many people mistakenly think money in itself leads to happiness. They just want to accumulate more and more of it. They don’t understand that money is a means to an […]


ISA 2019/2020 – How I Will Be Investing and Plan To Save The Full Amount

It’s the 6th of April! Call me crazy but I look forward to this date every year. Why? Because it is the new tax year. And a new tax year means I get a fresh allowance of £20,000 that I can invest completely tax free in my ISA account. As a finance geek, if this doesn’t get you excited, I don’t know what will. If you are someone like me who wants to achieve financial freedom at a relatively young age, an ISA is the way to go. In essence, an ISA is a legalised tax heaven for the average person like you and me. You are able to earn […]


FTSE 100 Index – Invest In 100 Companies At Once

The FTSE 100. You have probably heard of it. But do you know what it is? Contrary to popular belief, the FTSE 100 is not a fund. It is simply a stock market index. Though there are many funds (index funds) that track the performance of the FTSE 100. This article aims to answer any questions you have on the FTSE 100 and will look at the cheapest ways to invest in a FTSE 100 tracker fund. What is the FTSE 100 index? The Financial Times Stock Market 100 or the the FTSE 100 is a share index of the 100  largest companies by market capitalisation listed on the London Stock Exchange. The […]


First Quarter 2019 Dividend Income

It’s dividend income update time. One of my favourite times of the quarter as I get to review my previous three months worth of passive income received from my ISA portfolio. Given my strategy of wanting to acquire enough dividends in order to cover my costs and be able to retire, it is really the dividend payouts that I care about. For each of the companies I invest in, I like to see a steady and growing stream of dividend payouts.
 

My dividends really do provide me with a comfort blanket during times of market turbulence as we have experienced over the last quarter. The market can be irrational at times as it seems to […]


What I Have Been Reading – March 2019

A collection of articles and things I have learnt over the course of March 2019. Luxuries Become Necessities One of history’s few iron laws is that luxuries tend to become necessities and to spawn new obligations. Once people get used to a certain luxury, they take it for granted. Then they begin to count on it. Finally they reach a point where they can’t live without it. Medium.com   Great Companies Create Markets According to Uber’s first pitch deck, their total addressable market was 4.2B. Last year they made 11.3B in revenue.  The Lesson: Great companies don’t capture total addressable market. They create it.  As Uber’s CEO Dara Khosrowshahi said: “Cars are to us […]


March Stock Market Purchase – XPP ABF

Ahhh Brexit. The dreaded B word. It appears like things are finally starting to progress. To where exactly? Nobody knows. As an investor, your portfolio needs to be positioned to insulate yourself from political and economic uncertainty. By this I mean investing in high quality companies that are swimming in free cash flow and are are well diversified by sector and geography. Yes, the majority of the companies I own are listed on the London Stock Exchange, but by scrutinising their accounts you will see that they produce the vast majority of their revenues outside these shores. On the aggregate, the UK does not account for much of the profits […]


Blue Whale Growth Fund Full Portfolio Breakdown

Since its inception in September 2017, the Blue Whale Growth Fund has been one of the best performing funds in the IA Global category. It is currently ranked 4th in the sector for performance and had produced annual returns of approx 9%. The funds manager Stephen Yiu is charismatic and has made the claim that Fundsmith and Lindsell Train Global Equity Fund are the only true competitors to Blue Whale in the IA Global category. A very bold statement to make. As an investor, I like to do research on funds that have an exceptional track record. Whilst the Blue Whale Growth fund is certainly young and does not have […]


Investing Requires Patience and A Long Term Mindset

There is only one way for individual investors to win – to increase our time horizons. I have written about this before here and here. Go have a read of these posts to understand why. The underlying reason is that most professional money managers have short term targets. If they don’t show good performance on a quarter by quarter basis, money leaves their funds and they no longer collect their juicy performance fees. That is why many ‘professional investors’ buy stocks that will do well for the next quarter but not necessarily ones that will do well over the next 12-24 month. That is why active management gets outperformed by […]