Billionaire Charlie Munger On How To Get Rich Through Investing 1

One of my favourite investment thinker and theorist is Charlie Munger. And if you have read any of his investment pieces or listened to any of his interviews, you would understand why. Mr Munger is a stern believer that an investor would be better served by focusing on better quality businesses, even if the price were higher, because those businesses could be held for decades, continually churning out cash and profits for the owners. This level of thinking rubbed off on his long-time business partner, none other than the legendary Warren Buffet, and led to Buffet acquiring stakes in quality companies such as Coca Cola and shunning the “cigar butt” […]


Staying The Course Is Harder Then It Sounds – A Real Life Account

One of the most common mantras is stay the course. When everyone is panicking and selling out of their positions, you should hold firm and wait for a businesses performance and/stock price to rebound. After all you should never sell at the bottom – investing is all about buying low and selling high. Whist staying the course may sound like a simple thing to do in theory – especially in hindsight when you get to look at the recovery of shares that got pummelled by the financial crises – it is much harder to do in practice. When you actually have your hard earnt money in the markets and you […]


October Stock Market – Imperial Shire Hikma Buying Value

It seems for most of this year, many investors have waited for a stock market correction in order to be able to buy the dip. But unfortunately no correction has appeared and the global markets are in turbo charge mode hitting record high after record high. As an investor still in the asset accumulation phase of his life cycle record stock price levels are not good for me. I am in need of a correction in order to buy ownership stakes in a great companies at a cheaper price. Nonetheless, as I cannot tell when the next correction will appear, I continue to drip money into the markets by way […]


A Letter From Warren Buffets Grandfather – The Importance Of An Emergency Fund

In personal finance circles, one of the most important actions an individuals should take is to build an emergency fund. This is the money set aside for a rainy day. In is good practice to build an emergency fund before you even start to think about investing. Read the below letter from Ernest Buffet – Warren Buffets grandfather – to see how important an emergency fund is to your financial and psychological wellbeing. Dear Fred & Catherine:   Over a period of a good many years I have known a great many people who at some time or another have suffered in various ways simply because they did not have […]


Invest In World Dominating Dividend Paying Stocks 3

One of the simplest ways to make money on the stock exchange is to invest in world dominating businesses. Companies that are the worlds strongest and safest. Companies that are generally the largest and most powerful company in its industry. Company’s like Wal-Mart, the largest retailer, or Nestle the largest packaged food company or Nike the largest sports apparel company. And although this strategy might sound too simple and straightforward, it is important to remember that some of the world’s greatest investors like Warren Buffet (owning shares in Coca Cola and American Express for instance) made close to 20% p.a. returns for decades using this method. As I have mentioned […]


The Secret Coca Cola Millionaires Of Quincy Florida.

At first glance, the town of Quincy in Florida has nothing special about it. It seems like any other town found across southern America. But dig a little deeper and you will find that Quincy was once the richest town per capita in the United States. This was all thanks to the beverage giant that is Coca Cola. In the midst of the Great Depression of the ’20s and ’30s, a banker named Pat Munroe noticed that even during the depths of the Great Depression, otherwise impoverished people would spend their last nickel to buy a glass of Coca-Cola. At the time, the Coca-Cola company was trading for less than […]


Third Quarter Dividend Income 1

The months of July, August and September have been good to me. The companies I am an owner in have continued to shower me in cash. In total, I received £578 in dividend income over the past quarter. Considering I only received £195 , this increase of £383 shows that I am headed in the right direction in terms of wanting my passive income cover all my expenses. A good chunk of the increase came from me putting more money into the markets but the amount of organic dividend increases from shares in companies I already owned should not be underestimated. Companies like Unilever, Shire and Ag Barr have risen […]


September Monthly Stock Purchase – Fidessa DMGT Advantages Of Technology Stocks

Technology has been the driving force behind the progress made in he 21st century. So in this regard, it is really strange that the London market has barely any world leading technology companies listed on it. And the few that are listed, they are normally undervalued compared to peers worldwide – just look a ARM and Aveva for examples of this and they have duly undergone a takeover and a merger. Fidessa is one of the only truly global technology companies we have left on our main UK market and I believe its valuation at 20x earnings is cheap for a company of its quality. If Fidessa was trading on […]


A Masterclass In Capital Allocation – Imperial Brands Case Study

Investors in Imperial Brands have done extremely well over the years. If you had purchased 1000 shares in the company at the turn of the century for £3,820, your holdings would be worth £32,000 today – This is without accounting for the £13,330 in dividend you received along the way. This is a compounded annual return of 14.7%. Amazing! One of the reason the company has done so well is because the underlying economic engine of the business is a great one. I have mentioned many times before that the economics of the tobacco industry are simply wonderful. But apart from Imperial Brands being in a fantastic industry economically, investors […]


The Death Of Brands – What Investors Need To Know

One of the common investment mantras is to buy companies with strong brands. The reason being a strong brand name will insulate a product from competitors causing the company that owns the brand to charge higher prices and earn above average returns. Whilst I am a fan of brands as an economic moat (Competitive advantage), I am unsure many people know what a strong brand actually means. Furthermore investors today are pacing too high a value on brands without understanding the consumer landscape has changed. History Of Brands Going back in time – say the 1800s – it is fair to say life was local. You didn’t experience a world […]