Monthly Archives: January 2017


Estee Lauder (EL) Share Purchase – Wonderful Companies Deserve High Valuation Multiples

Those familiar with my investment approach know that one of my key philosophies is to buy shares trading at a Price to Earnings ratio of under 20. Simply put, I do not like to overpay for stocks. It may thus come as a surprise that I purchased shares in the Estee Lauder company (NYSE:EL) whose shares trade at a P/E ratio of 24. No, I have not lost my mind! Neither have I thrown my investment thesis out f the window. Rather, I have bought shares in Estee Lauder due to its high returns on equity (ROE). To understand the concept of Return on Equity, have a look at the […]


How Do Equity Income and Accumulation Funds Work? Mutual Fund Investing

When it comes to investing in mutual funds or open ended investments companies (OEICS) as they are called in the UK there are many questions that spring to mind. What is the difference between income and accumulation units? how do I know how the fund will perform? Will a fund continue to earn the same returns the future as it did in the past? Hopefully, this post will aim to answer questions you have on mutual funds. Income Unit Funds Vs Accumulation Unit funds With equity income funds, you get the dividend paid to you. With accumulation funds, your dividends get automatically re-invested in said fund. Yes, you are able […]


To Be a Successful Stock Market Investor Think Like a Business Owner

Modern day stock picking is akin to gambling money in a casino, you place money on a particular ticker symbol and hope that it goes up. How many times have you read an article on that ‘one magic stock’ or seen people speculate on a single stock based on an online forum. The majority of people think that the stock market is a route to overnight millionaire status. The mass media has led people to believe this as they selectively run stories on people who have become millionaires overnight based on a single stock pick whilst sunning the countless others who have lost it all by placing everything, including their […]


Transferring My Pension Between Providers – Options, Charges, Length of Time, SIPP 2

One of my new years resolutions has been to give my finances a spring clean. I started by looking at my pensions and found that one of my old stakeholder pensions was charging too high a fee. As readers of this site know, fees are a huge drag on performance and can cost you tens of thousands over time. I thus decided to move this all pension into a lower cost Self Investment Personal Plan (SIPP). In this post, I detail what options people have when transferring pensions, the process of transferring a pension, how long it takes and what assets you can invest in. Old Stakeholder Pension – Scottish […]


Imperial Brands (IMB) Stock Purchase – The Value of Sin Stocks 4

The value of owning sin stocks cannot be denied – research has shown that investing in sin stocks generate higher returns. From 1900 through 2012, tobacco stocks delivered annual returns of 19.7%. From the end of WWII through 2012, alcohol stocks delivered returns of 11.5%. Since the creation of The Standard Oil Trust in 1882, the average integrated oil company has delivered 12% annual returns. If you remove tobacco, alcohol, and energy from the U.S. stock market from 1926 through 2012, those 10% annual average returns that you hear about become 7% annual returns instead. Over a half-century long investing life, the difference between 7% and 10% is the difference […]


Easy Step By Step Guide For Completing Your Self Assessment Tax Return Online

With tax season upon us and the online deadline of 31st January for Self Assessment (SA) returns quickly looming, this seems a good time do a post on how to complete and SA return. Many people who need to submit an SA return and normally left confused about how to go about doing it online. This post will show you how to set up your Self Assessment Tax return Online as well as give key details as to how to actually fill out your SA return. It is important to remember that the deadline of 31 January 2017 is for the 6 April 15 – 6 April 2016 tax year. […]


December Monthly Stock Purchase – GSK, ULVR, PZC, VOD, CAPITA

December was a month of two halves. The first half so a continuation of the sector rotation seen in November as the market sold off defensive stocks in favour of growth stocks. The second part of December saw the santa rally come to town and it was a case of a rising tide lifts all boats. Most stocks ended December higher even those that got sold off in the first two weeks. Luckily for me, my monthly stock purchase programme occurs in the first half of the month and so I was able to buy shares at decent valuations before they rose. The stocks I purchased in december were PZ […]


Why I Buy Stocks Every Month And Do Not Care What The Market Is Doing 10

I have had a few readers in the past few weeks email me asking why I continue conduct a monthly stock purchase programme with my broker seeing as though markets are terribly high as present. In the post, I will explain why it is prudent for individual investors to ignore market fluctuations and invest money every month. Market Timing Is Impossible Throughout the current bull market and especially in the last few years, many have predicted that the market will come crashing down due to highly elevated and over inflated share prices. But time and time again, the market has proven them wrong. Just look at the past 12 month, […]


Active Investing is Better Than Passive Investing In Overvalued Markets 2

Regularly readers of my blog will know that I recently moved some money out of a bunch of index funds and into my more actively managed portfolio. I can already here huge ‘sighs’ from the efficient market hypothesis faithful. Investors who religiously believe in index investing will tell you that it is impossible to beat an index fund over a considerable period of time. Whilst I agree with this statement, I also think that you need to use your brain at times and shouldn’t blindly follow any research. You need to be able to critically analyse the results of the research to see in what market environments the thesis or […]


I Made Over £2,000 From Airbnb Last Year With Little Effort – A Review Of How You Can Too!

A while ago, I wrote an article on how everyday Britons are using Airbnb to pay off their mortgages. And rather than just write about it, I decided to practice what I preach. I decided to rent out my 2 bed flat in Manchester city centre one weekend a month over the last year. Below are my findings from my experience using Airbnb. As you will see, it is simple and easy for anyone to make money from renting out there home using Airbnb. How hard is it to list on Airbnb? Listing your property on Airbnb is a straightforward process and can be done easily. Property Details – There […]