Author Archives : MG


Why Stocks Are The Best Asset Class To Own

There has long been a debate about which asset class is the best to own. The discussion around property vs equities is particularly interesting. But in my opinion, there should be no discussion for long term investors as equities (stocks) are the best hands down. Looking at historic returns, equities have historically outperformed all other asset classes returning 9% per annum whereas property only returned 5.7% per annum. So why do equities outperform all other asset classes? The main reason why equities produce higher returns is due to equities having the unique ability to compound in value in a way that investments in other asset classes cannot. The explanation for […]


Accrol Holdings Stock Purchase (LON: ACRL) – Boring Is Beautiful

When it comes to unglamorous and boring industries, tissue paper manufacturing must come high on the list. And it is for this reason Accrol Holdings caught my eye. To me, boring can be beautiful. Many investors frequently make the mistake of chasing fashionable growth shares that are highly priced. They chase the Tesla’s And Twitters of this world and often forget about the mundane but highly cash generative  ‘steady eddies’ of the stock market. There is a strong case to be made that businesses operating in seemingly unglamorous industries are often able to generate strong shareholder returns. Peter Lynch – the famous manager of the Magellan Fund whom compounded money […]


Investors Need To Understand Accounting – Warren Buffets 1982 Shareholder Letter

It seems that most investors today are oblivious as to the language of accounting. They would rather look at headline figures presented in financial media than actually dig through an annual report. Even famed investor Terry Smith once mentioned that analyst – the people that are paid to scrutinise a companies performance – don’t usually read a full set of accounts. But if you want to be an investor in individual stocks, it imperative that you learn the language of accounting. The accounts give you the clearest picture of a business and where it is headed. The accounts can show you weather a companies earnings are real or if they […]


Taking Money Off The Table By Trimming Share Positions

Over the past week, my online broker had technical difficulties with their website which meant that I was unable to deal in certain securities. Rather than sit and do nothing like most customers, I decided to call them up to voice my disappointment at the level of service. As a result, I got two free trades which was a win from my perspective.This provided a great opportunity to clean up my portfolio by selling my Telefonica position and trimming G4S as its share price has run ahead of its valuation. Let’s start with the outright sale first. Telefonica has risen 21% since I bought it one year ago and I […]


Dividend Reinvestment – A Way To Juice Investment Returns + Great candidates 1

Dividend Reinvestment is one of the most important concepts when it comes to investing. It is a way of owning more shares or units in a fund without putting your hand in your pocket for more cash beyond the original investment. It is a way of getting shares for free. To see how dividend re-investment works, take a look at the following. Say you own£10,000 worth of shares in Company A. This pays a 10% dividend each year, equal to £1,00 on your £10,000 investment. If you reinvest that £1000 in more Company A shares, you will have an investment worth £11,000. Fast forward one year and your 10% yield […]


July Stock Purchase – IMB, BT, HIK Power of Small Amounts 4

The stock market continued its unrelenting advance in July led by continued strong performance in tech and commodity focussed stocks. According to market observers, we are now over eight years into what has been the second longest bull market in modern history. Absent yield producing alternatives, enthusiasm for stocks remains extraordinarily high, and as a result valuations are elevated, and bargains around the world are very hard to come by. If I was an index fund investor, I would be very worried at this stage of the bull due to the reasons mentioned above. I would even seriously consider taking some money off the table by reducing my stock market […]


Is Paypoint Worth a Punt? Great Financially But Does It Have A Future.

Whenever I run stock screens to try and find new shares worth investing in, Paypoint always seems to pop-up. The company has great Returns on Capital, strong Free-Cash Flows and a Bullet Proof balance Sheet. But the one thing that has always stopped me from investing in the company is the unknowns about its future i.e. the implications of its business model in a cashless world. Paypoint is retail payment processor that allows customers to pay utility bills, pay council house rents, buy lottery tickets, top up the credit on a mobile phone and send money to other people via its terminals which are found in local shops. The Financials […]


Lindsell Train Investment Trust (LTI) Full Portfolio Breakdown – UK, Global and Japan Equity

The Lindsell Train Investment Trust has had a remarkable run over the last 10 years. Over this time, it has produced gains of just over 400% or 16% per annum. This is simply amazing. It is no wonder the investment trust is trading at a 15% premium to the value of shares it holds. If you think a 15% premium is crazy, just over a year ago it was trading at a 60% premium. The performance of the LindsellTrain Investment Trust and its exceptional returns haven’t gone unnoticed and I have had a number of readers contact me asking what individual stocks the fund holds. As such, I have done […]


Paying Up For Quality Growth Stocks – What Makes A Great Business

Great businesses produce great returns. As Warren Buffet said “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Rather than heading the great porches advice, most investors underestimate business quality which results in unduly low market valuations for the very best companies. As an individual investor, understanding quality and its true value can lead you to craft an investment strategy that exploits market inefficiencies. What Makes an Extraordinary Business So what makes a business extraordinary that deserves a premium rating? A truly great business can come in many guises but by and large there is a need for an […]


Money and Life Lessons For New Graduates

With graduation season upon us, now is a good time for me to impart my wisdom on the personal finance and life lessons I have learnt since my graduation. You may think the good times are over but graduation is just the start and their is a whole world out there in front of you. I know making a living on your own might sound scary, but heck, millions of people have done so in the past, so have some faith. The real world is tough no doubt about it. Student debt it too high, wages are stagnant, the Great Recession made it difficult to find a job and house […]