Procter & Gamble (NYSE:P&G) – Will Its Brands Continue To Outperform?

Old economy stocks appear to be out of fashion. I wrote about this recently in an article outlining my PepsiCo share purchase. Investors seem to have ditched consumer staple stocks in the first half of 2018 for racier growth stocks. This seems to have left many stellar companies on valuation levels not seen for a number of years. Whilst stocks in the consumer staple segment have gone down as whole due to treasury yields hitting 3% and yield hungry investors rotating out of bond proxies, some names have been hit harder than others. Take Procter & Gamble for instance, it has dropped to $93 from its recent peak of $73 […]


Imperial Brands (LON:IMB) Pays Me £1 A Day – Power Of Dividend Growth

A few month ago, I wrote that my shares in Royal Dutch Shell (LON:RDSB) pay me an annual dividend income of £367 or £1 a day. I am excited to exclaim that a second portfolio holding of mine has joined the pound a day club, Imperial Brands.  The company, which I have been regularly buying shares in over the last year, announced a 10% hike of its interim dividend from 51.70p to 56.87p. This has brought its total annual dividend to £1.76 a share. As I hold 211 shares in the company, my annual dividend has gone up from £360 to £371 and in the process it has crossed the […]


PepsiCo Share Purchase– Big brands Are Still In Fashion

The current market environment has taken me by surprise. At the beginning of the year, if you had told me that the consumer staple stocks sector would fall by 20%, I would simply have laughed at you. But this is the position we find ourselves in today. After years of ‘dull’ and ‘boring’ companies being in fashion, it appears that the trend has turned. It seems that investors are no longer willing to bid up prices of stable companies when they can achieve a decent 3% risk free income via treasure bonds. As a result, many companies with strong franchises and stable performances are reaching fair value. RB, British American […]


April Stock Purchase – Sage Experian RelX Benefits Of Scalable Businesses With Economic Moats

In a recent article, I wrote that the stock market has become fickle. There are too many traders as opposed to investors. There are too many people that sell on news not pertinent to a company’s financial health. April was the perfect characterisation of this. Just look at the share price fall in Sag. Just look at the volatility of Facebook shares. Talking of the latter I can’t believe people actually sold their shares in Facebook in the $150s. The Cambridge Analytica scandal caused shares FB to plunge 15% from their February highs – resulting in the company losing roughly $100 billion in market value in the process. This plunge left […]


The Obvious Conglomerate Value In The UK Stock Market

Last week’s announcement of a split of Costa from the rest of the Whitbread business has got me thinking, there is a lot of untapped value to be found in UK stocks. Just take Whitbread for instance. The sum of parts value per share is estimated to be about £50 as seen by this FT piece (https://ftalphaville.ft.com….. Yet Whitbread is still trading in the low £40s and was trading in the £30s for most of last year and the year before when I initiated my position. It was clear to see Whitbread offered much more than its share price suggested but most investors didn’t want to look past the top […]


BAT Stock Purchase – Why Sin Stocks Outperform The Markets Over The Long Term


Sin stocks are profitable for investors. There is no two ways about it. Whether you are talking tobacco, alcohol, sugar, gambling or defence, all these categories have comfortably outperformed markets over the long term. Just look at the most profitable stock over the past 50 years, Phillip Morris, a Tobacco stock. The top 3 sectors over the past 82 years were cigarettes at 8.34% real annualised return, beer at 7.51%, and oil at 6.84%. Investors in “ethical” funds that avoid these sectors are virtually guaranteeing drastic underperformance. It is no surprise to see Tobacco topping the list. I have already written about the fantastic economics around cigarette manufactures so I […]


How To Build Wealth When You Have An Inconsistent and Fluctuating Income

If you’re an entrepreneur, freelancer, contractor or seasonal worker, the task of managing your finances may be tricky due to having an inconsistent income. Many self-employed or seasonal workers take great pride in themselves for having hacked a system that lets them get by without too much financial inconvenience in the months they earn less or don’t earn at all. However, very few actually make progress on their long-term financial goals. This article looks at the different ways people with inconsistent incomes can adapt to their situation and build wealth as a result. Don’t JUST Survive If you work for 5 months and earn £15,000, then don’t work for the […]


Investors Are Fickle As Seen By Sages Share Price Volatility

The more I learn, understand and partake in the markets, the more I realise that many investors should not be investing in the stock market. Don’t get me wrong, I do believe that the stock market is the greatest wealth generating tool ever created but I just feel too many people don’t use it correctly. Most people treat the stock market like a casino as opposed to it allowing them the chance to buy ownership stakes in wonderful enterprises. Most don’t have the mental aptitude and calm persona to withstand short term volatility. They do the most wealth destructive thing by selling out low when a stock price moves downwards. […]


A Second And Third Takeover Bid For Fidessa Finally Sees It Leave My Portfolio – 2 Alternative Companies

I recently wrote a piece on Fidessa saying that I was not happy the company has been approached for a takeover. In the piece I mentioned that Fidessas earnings are currently suppressed meaning that the takeover bid was too low for my liking. Furthermore, I mentioned that Elliot was building a stake meaning the activist investor would certainly push the Fidessa board to negotiate a higher takeover price. This finally seems to have played out as Fidessa received two new bids with the higher one worth £37.50. This lead to the share price jumping to £41 – above the highest takeover approach price – due to speculation of a biding […]


ISA 2018/2019 – Strategy, Saving The Full Amount and The End Game

It’s the 6th of April which means only one thing, the beginning of the new tax year. This makes me excited as it means that I now get another £20,000 to add to my stocks and shares ISA. And if you are not excited about this it’s because you do not fully understand the concept and the great benefits that an ISA possesses. 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 dividends […]