Averaging Down On A Stock Requires Mental Strength And Conviction 


I have made it no secret that I like to buy shares when prices go down. Just like you would get excited for when those trainers you were admiring go on sale, I feel the same when it comes to shares in quality comes. When prices go down, I am able to buy more shares for the same amount of money. And more shares mean more dividend income. If prices go down further from the point at which I made my investment, I would be inclined to add to this position. Just look at my investment in Shire PLC. I first initiated a position at £44 a share. After my […]


Who Does The Money In Your Investment Account Belong To – Beaufort Securities

In private investor circles, the main talking point this year has been the scandal surrounding Beaufort Securities. It has left many investors asking the question “who does the money in my investment account really belong to?” Background to the Beaufort Securities Scandal On 2 March 2018, the Financial Conduct Authority (FCA) declared Beaufort Securities Limited (BSL) and sister company Beaufort Asset Clearing Services Limited (BACSL) insolvent. Following this, PricewaterhouseCoopers (PwC) were appointed as administrators. PwC have estimated that it’s fees for administration would be in the region of £50million to £100 million. This amount is truly astonishing. But that is not the scandal here. The scandal is that PwC want […]


June Stock Purchases – Market Timing Is Impossible

I often get asked the question, “ why do you keep buying shares every month despite knowing the markets are looking toppy and valued highly? Why don’t you simply just sell your stocks and wait for the markets to crash and buy in at a cheaper price.” I am sure the above line of thinking resonates with the majority of you. I am not afraid to admit that I used to follow that way of thinking before. Whilst simply sitting on cash and waiting for the markets to crash in order to buy shares more cheaply sounds good in practice, it is an extremely hard thing to do in the […]


Second Quarter Dividend Income Update

We are already mid-way through the year. Where has all the time gone? It feels like just yesterday that I was bringing in the new year in style. Yet six month have flown by. The year so far has brought a lot of change. But the one constant is my dividend income – it just keeps pouring in. The amounts of dividends that hit my account in the months of April, May and June was £538. This averages out to £179 a month in pure passive income. Comparing this figure to the amount I received in the same period last year – £423 – shows an increase of 27%! This […]


A £450,000 Unilever Stock Portfolio

One of my favourite times of the week is to read emails sent in via the contact form. Yes, I do read each and every email even though it may take me a few days to reply. One of the emails I received recently was from Thomas C who mentioned that he was a long time reader of this site. Tom’s letter was particularly interesting as he wrote in to tell me that he had built a six figure Unilever position over the years to the point where he is now able to withdraw dividends to fund his needs. In his letter to me, Tom mentioned that he had managed […]


Vodafone PLC Stock (VOD) – What A High Yield Stock Can Do For You.

The past week has seen Vodafone PLC trade at a 7% dividend yield. For every £1.83 share you purchase, you get £0.14 in annual income. Put another way, if you buy £1,830 worth of shares, your annual income is expected to be £140. Although the dividend is expected to to rise in the next year, let’s assume that the annual dividend income remains at last years level of £0.15 (in the interest of conservatism). Provided the dividend remains steady, each share of Vodafone purchased today stands to collect £0.28 in total, cumulative dividends over the next two years. Why is that important from a principal protection standpoint? Because it only takes […]


The Secret Magic Money Box

What if I were to give you a box. A box that magically doubles your money the instant you put money in it. And it doubles again thereafter at each 10 year interval that your money is in the box. How much money would you put in the box? I’m guessing a whole lot. After all, we all love free money. 
Let me let you in on a bit of a secret. We all have that magic money box. It’s called a pension.
Whenever most people pay money into a pension pot, your employer matches that contribution (up to a certain amount). For instance, whenever I put £1,000 into my pension, […]


May Stock Purchase – Volatility Induced Markets

The stock market has been volatile this year. But volatility is normal. Last year was simply an anomaly an the market has reverted to the norms. The major reason for the current bout of volatility can be ascribed to fears of possible rapidly rising inflation and therefore rapidly rising interest rates. This coupled with the fears of other cost increases such as oil and wages (due to low unemployment) have left investors fearful. But volatility is not something to be afraid of. It should be embraced and taken advantage of. You should learn to live with volatility because it is a fact of the markets. The greatest investors and for […]


The Importance Of Doubling Up On Your Winners

Every investor wants to emulate Warren Buffet. That is why there is so much written on the oracle of Omaha’s strategies and stock picks. You don’t have to search far for articles on how Warren Buffet buys excellent businesses at depressed share prices. But one often overlooked aspect of Buffets success is how the great man doubles up on his winners. How he buys more shares of a winning stock as it moves higher. Just look at Warren Buffets recent trades in Apple through his holding company Berkshire Hathaway for an example of this. He first bought AAPL nearly two years ago at a price of about $110 a share. […]


Top 25 Global Brands – The Returns They Provide For Investors

Anyone who has been following this site knows that I invest in high quality companies that possess a sustainable economic moat. One of the economic moats that I have explored extensively on this site is brands. Companies that possess high quality brands have earnt above average returns for longer than normal periods of time and in the process have created enormous wealth for their owners. Whilst brands have done well historically, the consumer landscape is changing quickly. Many brands have lost their appeal and only a handful are worth their elevated price today. I have written articles regarding this titled ‘The Death Of Brands – What Investors Need To Know’ […]