Reaching £3500 in Dividend Income

Another milestone hit. Another reason to celebrate.   Eagle eyed readers would have spotted the crossing of this milestone.   In a recent post covering my latest purchase of Imperial Brands, I mentioned that my ISA portfolio has just crossed over the £3,500 mark in dividends.   It is an awesome feeling. To know that I make close to £10 a day for doing absolutely nothing is simply amazing.   Never would I have thought when I made my first dividend purchase that I would reach this milestone so quickly. That purchase only brought in £135 in annual dividend income a year. I could have looked at this paltry amount […]


The Average UK Worker Can Retire With a £1 million Pension Pot

Aviva, the insurer and pensions provider, says that millions of people earning less than £27,500 risk facing retirement on a pension far less than £15,000, which is the equivalent of the national living wage today.   And Aviva isn’t the only insurer and pension provider with this damning statistic. A number of pension companies have warned that millions of people are at risk of retiring on incomes far less than the current national living wage. This is a damning statistic. In short Britain appears to have a retirement crises. The destruction of defined benefit pension plans did nothing to help this.   Yet I still think most people can retire with a […]


The Average UK Worker Should Be Able To Save £10,000 A Year

When it comes to our savings, one thing’s clear – 1 in 3 Brits are living dangerously close to the edge. The Money Advice Service recommends keeping three months’ essential outgoings in savings to cover an emergency or unexpected bill. However, just under a third of people in the UK have less than £1,500 in the bank, and 15% of people have no savings at all.   In fact, there is an even more damning statistic. Over half of Brits do not add to their savings on a monthly basis.   Looking at the above, it may seem impossible for many to save £1,000 a year let alone £10,000.   […]


I Am Bonds – Asset Allocation Is Personal

Personal finance is always personal. It’s in the name. Yet many people forget about this. They want quick fixes by trying to use pre set formulas. Yes these can act as guidelines. But there is no substitute for taking into account ones needs and circumstances. Take asset allocation for instance. We all know the rules. Have X amount in stocks. Have X amount in bonds. Have X amount in commodities.   It’s strange that people follow these rules so rigidly and don’t take into account their own personal situations. The only individualistic factor I would say most people take into account is age – the proportion invested in bonds goes […]


Imperial Brands (IMB) Share Purchase – 10% Dividend Yield Covered By Free Cash Flow

Regular readers of this website will know that I am a huge fan of Imperial Brands. So much so that it is the largest stock position in my portfolio at close to 10%. But the price of IMB has been falling of late. This is in contrast to the underlying business performance where revenues, profits and dividends have been increasing! So why have shares in IMB dropped so much. Below are a few of the reasons I think why. 1.Big money is becoming more ethical. By this I mean that the large pension funds, sovereign wealth funds, insurance companies and fund houses do not want to hold sin stocks such […]


What I Have Been Reading – May 2019

Munger Teaching Buffett About Quality  “At Munger’s 90th birthday party, Buffett pulled out an old, yellowed letter that Munger had written back in the day where Munger actually told Buffett explicitly that he had to change — that the cigar-butt stuff wouldn’t scale, that it was better to buy good businesses even if the price wasn’t dirt cheap marketwatch.com   Comparison According to the survey, three in five Americans pay more attention to how their friends spend compared to how they save, with an equal number saying they’re at a loss to understand how their friends are able to afford the expensive vacations and trendy restaurant meals they portray on […]


Tom Gayner (Markel) – 14 Golden Investing Rules

Tom Gayner is co-CEO and chief investment officer at Markel Corporation, a holding company for insurance, reinsurance, and investment operations around the world. The company has often been compared to Berkshire Hathaway in the way it operates. Gayner is an excellent investor and one of the best in the modern era. Just go and look at his performance at Markel for proof of this. Gayner gave a talk at google a couple of year’s back which was a masterclass. That talk had a number of golden nuggets. Here are 14 of them which every investor can learn from. Enjoy! Invest in profitable businesses. Focus on those that have good returns […]


Kenny G – Secret Buy & Hold Dividend Millionaire

If you had to do a double take of the title, I wouldn’t blame you. But Kenny G is in fact a secret buy and hold dividend millionaire. Yes the same Kenny G who rose in stardom during the 80’s and 90’s with hits such as Duotones, Going Home, Forever in Love and Sentimental. So how exactly did this world renowned saxophonist become a stock market millionaire? Kenny G invested in Starbucks in the 1980’s. Here is a video of him taking about this investment. Kenny G met Howard Schultz, the founder of Starbucks, after a recommendation from his uncle (Harold Gorlick), one of the first investors in Starbucks. Harold […]


Are People Buying The Wrong Coke – COKE VS KO

Coca Cola. Probably the most ubiquitous brand in the world. The iconic company is so unique that it is almost impossible for the company to be mistaken for another. Yet a case of mistaken identity is what appears to be happening – at least in the stock market. A very strange thing has been happing in the markets recently. The share price of Coca-Cola Consolidated (COKE) has rocketed from $180 at the start of the year to close to $400 today. This is an astonishing rise of 122% in under 5 months. Naturally, curiosity got the better of me and I went to look at the accounts for COKE. What […]


How To Create Your Own Universal Basic Income

Universal Basic Income (UBI) seems to be popping up in the news again. It seems that policy makers cannot decide whether the benefits of UBI outweighs the costs. There has been numerous trial UBI projects over the years conducted in countries such as Kenya, India, the United States and Canada but results have so far been inconclusive. In fact, a report by British think-tank the New Economics Foundation (NEF) has found “no evidence that any version of UBI can be affordable, inclusive, sufficient, and sustainable at the same time.” So if you are one of the people sitting around waiting for UBI to be implemented on a large scale, I wouldn’t hold […]