Monthly Archives: April 2017


April Stock Purchase – GSK, ABF, PZC, SGE, INF

There is only one place to start this post and that is the snap general election called by Teresa May. What surprised me the most was a lack of volatility in the wake of the announcement. Sure the pound surged to a yearly high and stock prices in overseas earning companies dropped, but besides that, markets were relatively calm. It appears as though the markets like a political shock for once. But this may be because everything points to the conservatives being elected with a substantially increased majority – which will give the government a firm mandate and put it on a steadier, more solid grounding as it begins the […]


Power Of Compounding Money Illustrated – Best Motivation To Start Saving Money Today 8

Let’s face it, saving money is hard. If it were easy, everyone would be able to do it effortlessly. We are conditioned to spend money today instead of saving and investing it so we can have more money in the future. For many people, savings must be forced. One way of doing this is by automating your savings so that 10% of each paycheque goes directly into your savings account. Whilst this is a great method to build up your savings account, I don’t like saving and investing money to be forced upon someone. I want people to actually want to save money. I believe that if people learn about […]


SSE Stock Purchase: Utility Shares Are For Yield and Inflation

Inflation has been non-existent over the past few years. As recently as 18 months ago, the inflation rate was 0%. But this is all changing and inflation over the past few months has jumped to 2.3%. And it is set to rise further as the weak pound, following the Brexit vote, makes imports more expensive for us to buy. With inflation returning, now is a good time to start thinking about buying into assets that will protect the value of money as the cost of living increases. Utility companies are a great way to protect against inflation as the prices they charge are regulated and linked to the Retail Price […]


Don’t Give Up Being An Entrepreneur – The Monk Moment

Many great entrepreneurs have the Monk Moment – a moment when they have lost everything. Monks create this situation intentionally through “Vairagya” when they give up all money and possessions. Many entrepreneurs end up in the same situation unintentionally. smile emoticon Elon Musk lost $180M and was in debt in 2008. Nine years later, he’s worth $14 billion, but he’d be ready to risk it all again. Steve Jobs lost his entire Apple fortune by 1994, betting it on NeXT and Pixar. In 1995 everything turned around, he sold NeXT to Apple, Pixar to Disney and he passed away an icon. Walt Disney mortgaged away his entire fortune in the 1950s […]


The Future Of Industry And Jobs – Why You Need To Be On The Side Of Capital

Technology is like a double sided coin. On the one hand, it has been fantastic as it has greatly enhanced living standards and brought us products we could only dream of a few decades ago. But the flip side is that technological innovation has a tendency to transform industries and obliterate jobs. Just think of a simple combine harvester. It’s invention meant famers could work more efficiently and produce higher yields of crops. But on the other hand, its introduction led to massive redundancies on farms as one combine harvester could do the job of 20 farm workers. Software will disrupt most traditional industries and jobs in the next 5-10 […]


What Different Jobs Can Teach You About Investing

As investors, we often make the mistake of only concentrating our reading towards the fields of finance, business and economics. This is a huge mistake as it is more productive to read around one’s field than in one’s field. By learning about different fields of work, you increase your worldly wisdom as well as look at the bigger picture. With this in mind, these are some things you can learn from others professions. Biologist: All environments change, and the best protection against those changes is the ability to adapt. Gambler: Bet when others think the odds of success are low (that’s where there’s big payoffs) but be able to survive […]


March Stock Purchase: GSK, Shire, NCC, Stagecoach 3

March saw the FTSE 100 hit a record high. London’s main index is now trading at an astonishing P/E of 38 when looking at trailing earnings. On a forward earnings basis, the FTSE only trades at a P/E of 14.67. Much better! The vast disparity between the two is because the heaviest components of the FTSE 100 are oil and mining related stocks. With commodity prices bouncing back, analysts expect these companies to produce much higher earnings over the year and that is why the forward P/E is more than twice as low as the trailing P/E. Personally, I think analysts are being too kind with earnings here but if […]


The One Reason Why Property Returns More Than Stocks – Asset Classes 1

If you ask people in the UK the following question ‘ would you rather invest in property or stocks?’ I am sure the majority of people will give a resounding vote in favour of property. The reason is because the financial press is littered with stories of how everyday people in the UK have become millionaires via property. On the other hand, you hardly hear any stories about people becoming millionaires through ownership in companies via the stock market. This is rather interesting because if you look at the facts, stocks (equities) have historically outperformed all other asset classes returning 9.9% per annum whereas property only returned 5.7% per annum. […]


My Strategy For The New Stocks and Shares ISA 4

When it comes to Investing and Saving, I cannot believe how lucky we are in the UK. We have an account that lets you invest and save money completely tax free. And unlike a pension, you can withdraw the money at any age you like. Yes, I am talking about the Investment and Saving Account (ISA). I do most of my investing these days using an ISA account. No capital gains tax to pay and no dividends tax to pay. Without these expenses I can let more of my money compound for longer. Every year, each individual can put a set amount into an ISA account. Over the past few […]


First Quarter Dividend Income

£347. That is the amount I received over the first three months of the year. Considering I only received £120 in the same period last year, I can safely say that my dividend strategy is slowly chugging along and proving to be successful. Yes, part of the increase from £120 to £347 is due to adding more money into my portfolio and buying more stocks. But the other part which is much more satisfying is the fact that the companies I own raised their dividends without any effort from me – more money for doing nothing other than holding shares in wonderful businesses. Sure, I’ll take that. So what does […]