Monthly Archives: June 2017


Second Quarter Dividend Income 5

The months of April, May and June have been great to me. I saw dividend after dividend hit my account. In total I received £423.80 in pure passive income from 29 different companies. That’s £423.80 for doing absolutely nothing but owning stakes in wonderful companies. The dividends I received in this quarter have essentially paid for my recent purchases in GSK and Shire and these will in turn churn out their own dividends. My dividends are producing their own dividends. This is a real life snowball in action. When averaged out, I received £141 a month during the past quarters. If you would have told me a couple of years […]


Why Do Stocks That Have Been Dropped By Index Funds Outperform The Newer Stocks Added.

According to research from the great Dr. Jeremy Siegel, 82% of stocks that are removed from the S&P 500 go on to outperform the stock that replaced them in the index during the subsequent three-years.  This finding seems counterintuitive. If a stock gets added to the S&P 500,the FTSE 100 or any other major index for that matter it must be riding a momentum wave that has seen its valuation increase. Likewise, a stock that is removed from the S&P 500 must have been riding a wave of sluggish performance that warranted its exclusion from the index. So what’s the reasoning? To understand the mechanics of Dr Siegel’s finding, contemplate […]


Oil Investing – The Need To Think Long Term 4

As someone who is invested in the oil space via ownership stakes in BP, Exxon Mobil and Royal Dutch Shell, I am not too concerned with the price of oil dipping below $50 in recent weeks. When I took stakes in these companies, I realised that the price of oil will not double overnight. I knew that it will take a considerable amount of time for oil prices to recover. But when the recovery starts, I expect prices to shoot higher and that is why I am optimistic about the oil industry long-term. Oil has a huge tailwind in the form of the emerging global middle class. Global Prosperity and […]


The Wealthy Do Have A Secret – They Know How Money Works 3

Many Britons – everyday people working to build a comfortable life – assume the “rich” have a magic formula or some sort of secret. It seems they know something about “how the world works” that the rest of us don’t. If the average person could just figure it out, they’d be wealthy, too. They’d live with less stress, more time, and more money. And money, after all, gives you the freedom to do what you’d like to do. Money allows you to buy your freedom form the rat race. What I found out from reading hundreds of books, studying countless articles and listening to numerous podcasts is that the rich […]


Shire Stock Purchase – The Importance Of Low Dividend Yield and Fast Growth In A Portfolio 2

Regular readers will know that I have been a big fan of Shire as of late. The company has fantastic growth, a pipeline that is envied by other biotech’s and a management team that is astute and rational. The best part about Shire is the valuation with shares trading hands at a P/E of less than 13. When a company looks attractive, I always ask myself ‘is there something I am missing? Is there something that I am not seeing that is making investors trade the stock at such a cheap valuation relative to its peers.’ With Shire, I think the answer is that investors are overlooking this stock due […]


Corporations Don’t Pay Corporate Tax – Individual Consumers Do

Having worked in the finance department of a multinational organisation,I assumed that it was common knowledge that individuals as opposed to companies foot the bill for Corporation Tax. But judging by my social media accounts over the past weeks, it seems that most of the public fail to realise this. I have heard arguments that increasing corporation tax will benefit society as companies will have to pay more. Yes, the government will collect higher taxes from a higher corporation tax but the ones who be paying this higher bill is people like you and I as opposed to companies. To put it in the simplest of terms, any company that […]


What The Election Means For Your Personal Finance And Investments – Conservatives, Labour, LibDems

The election is finally upon us. Truth be told, I can’t wait for the vote to be over. I have had enough of political ramblings, back and fourth verbal assaults by parties and everyone on my social feed thinking they are political experts. The aim of this post is to give a quick rundown of the personal finance changes each party is proposing. Whilst different parties have put forward different proposals, what I will say is no political party is going to change your personal circumstance or your position in life. Only you have the ability to make your life better. It always annoys me when people blame their struggles […]


May Stock Purchase – GSK, SHP and The Importance of Income 4

The month of May continued to see markets at record highs. For someone like me who is in the asset accumulation phase of their life cycle, this is terrible news. This is because I don’t like paying top price for ownership stakes in companies. I or anyone else for that matter who has a long time horizon in front of them should wish for languishing markets so that we get the most bang for our back – we get more shares for the same amount spent. Unfortunately the persistence of low interest rates by various central banks has meant stocks are at record highs and I need to pay up […]