Yearly Archives: 2015

What I learnt in 2015

2015 seems to have flown by. I can’t believe that the year has already ended.It’s been quite a year, even though it feels like it flew by in an instant. Here are some of the things I learn in 2015: Scott Redler (T3 Live): Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Ivan the K (Finance Twitter General Manager): Taylor Swift is a more effective corporate activist than most hedge funds. Morgan Housel (Motley Fool): Finance bloggers continue to put out amazing, thought-provoking […]

How To Get Free Alcohol For Life With Diageo (DGE)! 6

If you stumbled upon a magic lamp and the genie inside gave you three wishes, I bet one of those would be free alcohol for life. Alcohol takes up a good chunk of many peoples disposable incomes and this leaves them dreaming about having their own brewery and getting free alcohol for life. I didn’t used to think that ‘free alcohol’ was possible until a friend of mine showed me exactly how he lets his favourite drinks maker get the rounds in. In this article, I will show you how my friend got his favourite drinks company, Diageo, to give him money to buy his favourite bottles of alcohol. Many […]

Shell Stock Purchase (RDSB) – The Best of Big Oil 7

During the recent oil price volatility and subsequent crash in the stock prices of oil companies, I managed to buy some shares of one of the best integrated oil companies in the world, Shell. I purchased 214 shares at an average price of £15.60 thus bagging myself an astonishing dividend yield of 8%. This means that shell will pay me dividends of £66 every quarter or £264 annually. I am gobsmacked by the yield many of the oil majors are currently offering. This 8% dividend yield offered by Shell is unreal. It is rare to see a yield that high which is still being covered by a company’s current profits […]

Where the oil price is headed and why investors shouldn’t care 5

The price of oil has been in a downward spiral over the past 12 month going from $115 to $37. These drop of over 67% took many if not all investors by surprise. No one at the beginning of 2014 could have predicted what the oil price would be today. Oil is a cyclical commodity by its nature. When the price of oil is low, like it is at the moment, people are quick to tell you that oil is abundant and new techniques like fracking are able to tap new ever growing reserves of oil. On the other hand, when oil prices are high, those same people will point […]

My first dividend payment 4

This past Friday, I received a message from my broker saying that dividends from a company that I invested in have been deposited in to my account. To say I was ecstatic when I received this message and subsequently checked my account was an understatement! The dividend payment into my account was made to me by BP. As seen from my journey, I only recently bought BP stock during the September stock market crash of this year. To receive dividends this early is amazing. This is the advantage of a quarterly dividend payer like BP; you are surprised when you get the dividend payment because it comes to you so […]

Goldcorp purchase (G) – The problem with bottom fishing for stocks! 2

Mining companies have been hit really hard this year. If you look across the board, companies that have mining operations have had their stock prices decimated as a result of the commodities rout. With stock prices so low at the moment, it could seduce investors into buying shares of these companies at what they perceive to be a cheap price. It could lead to a situation of a value trap. This is exactly what happened to me. I bought into Goldcorp (G), a gold mining company listed on the Toronto Stock Exchange (TSE) during the middle of this year. The logic was sound. I thought the gold price which had […]

Stock Market Investing is like Farming

When I first started investing, I read an analogy between farming and investing. By comparing the two,  I thought it was a brilliant way to explain the benefits of investing to a newbie as it eliminated the jargon and complexities associated with the workings of the stock exchange. Understanding the stock market and using it to good advantage as an investment vehicle is a bit like understanding farming. Much like Farming, the stock markets High Risk and Potentially Highly Rewarding. The fortunes of a farmer rise and fall in line with variations in the weather and any underlying changes in the climate. This assumes, of course, the proper selection of good high […]

If you want to be rich, spend wisely!

It is easy to spend recklessly. Anyone can pretend to be rich by getting into debt in order to get that dream car, that flashy or home or going on five star holidays. People doing this are called 30k millionaires. They look like millionaires on the outside but this is just fuelled by debt. Look at the following story by Andrew Hallam. When he was living in Singapore in 2004, he was tutoring a boy in English. Every Saturday, the boys mum would drop him to Andrews house for a lesson. The women drove a car worth at least $250,000, wore rolex watches and lived in a big house. After […]

BP stock purchase – First Dividend stock 11

Oil prices have been absolutely crushed this year with the price of the commodity dropping more than 60% over the past 12 month. And as the price of oil goes down, so do the companies that produce the commodity. Investors absolutely hate oil stocks at the moment. This provides a perfect opportunity for small investor to buy into oil companies on the cheap. Baron Rothschild famous stated that the best time to buy was “when there is blood in the streets.” In other words – when everyone is selling, it’s a great time to buy! This appears to be very sound advice at the moment as it is a great […]

The risks of over-taxing the rich in a progressive tax system

“The wealthy get all the tax breaks.” How many times have you heard that saying before? Probably more times than you could care to remember. Many people in today’s society think that the rich get all the tax breaks. But is this really the case? Consider the parable below first devised by Professor David R. Kamerschen of University of Georgia. The bar stool economics piece aims to show that people are too narrow minded when it comes to ‘big picture’ things like Tax breaks, and thus they make assumptions without knowing the true facts. Suppose that every day, ten men go out for beer and the bill for all ten […]