Author Archives : MG


Third Quarter Dividend Income

The months of July, August and September have been good to me. The companies I am an owner in have continued to shower me in cash. In total, I received £578 in dividend income over the past quarter. Considering I only received £195 , this increase of £383 shows that I am headed in the right direction in terms of wanting my passive income cover all my expenses. A good chunk of the increase came from me putting more money into the markets but the amount of organic dividend increases from shares in companies I already owned should not be underestimated. Companies like Unilever, Shire and Ag Barr have risen […]


September Monthly Stock Purchase – Fidessa DMGT Advantages Of Technology Stocks

Technology has been the driving force behind the progress made in he 21st century. So in this regard, it is really strange that the London market has barely any world leading technology companies listed on it. And the few that are listed, they are normally undervalued compared to peers worldwide – just look a ARM and Aveva for examples of this and they have duly undergone a takeover and a merger. Fidessa is one of the only truly global technology companies we have left on our main UK market and I believe its valuation at 20x earnings is cheap for a company of its quality. If Fidessa was trading on […]


A Masterclass In Capital Allocation – Imperial Brands Case Study

Investors in Imperial Brands have done extremely well over the years. If you had purchased 1000 shares in the company at the turn of the century for £3,820, your holdings would be worth £32,000 today – This is without accounting for the £13,330 in dividend you received along the way. This is a compounded annual return of 14.7%. Amazing! One of the reason the company has done so well is because the underlying economic engine of the business is a great one. I have mentioned many times before that the economics of the tobacco industry are simply wonderful. But apart from Imperial Brands being in a fantastic industry economically, investors […]


The Death Of Brands – What Investors Need To Know

One of the common investment mantras is to buy companies with strong brands. The reason being a strong brand name will insulate a product from competitors causing the company that owns the brand to charge higher prices and earn above average returns. Whilst I am a fan of brands as an economic moat (Competitive advantage), I am unsure many people know what a strong brand actually means. Furthermore investors today are pacing too high a value on brands without understanding the consumer landscape has changed. History Of Brands Going back in time – say the 1800s – it is fair to say life was local. You didn’t experience a world […]


Share Price Charts Can Be Misleading – GSK And The Power Of Dividends

Most people look at the GSK stock price over the last 10 years and think it’s been dead money. The share chart will show that GSK shares were trading hands for £13.40 in 2007 and are trading for £14.80 in 2017. A lot of people have become disheartened by this abysmal share price performance. But it is important to note that great companies do go through extended periods of share price stagnation. And just because a company’s share price has stagnated does not mean wealth is not being created. GlaxoSmithKline is a classical example of this phenomenon. The persistent negative news-flow the company has faced over the past 10 years […]


Freetrade – A Look At The Fee Free Share Dealing Platform 5

Rip-off Britain. Nowhere is this statement more true than in the world of finance and investing. We as the public are getting fleeced by the stock-broking world. The average price we pay per deal is £10 which is crazy. For a buy and hold investor like me who only makes about 15 trades a year, dealing fees add up to £150 per annum. And considering I have a good 40 years of being an investor ahead of me, total dealing fees balloon to £6,000. And if you think that is bad, have a look at this. If all I did was put the £150 a year spent on fees in […]


Naspers and Tencent – A Great Arbitrage Opportunity 3

It is common knowledge that big companies don’t have fast growth. This has become so ingrained in investor minds that many growth investors do not go anywhere near big blue chip companies. But with most theoretical concepts, there is an anomaly to the rule. The anomaly in this case is a $400 billion company growing at 40% a year. The company is Chinese and goes by the name of Tencent. Now I know what you are thinking when you hear where this company is based. But I urge you to read on and understand why I rate Tencent so highly and consider it one of the best companies in the […]


August Monthly Stock Purchase – Imperial Brands, Shire

August has continued to see markets at record highs. Ever since the trump bump of November last year, many investors anticipated a correction – a 10% drop in market prices – to occur but there has been no sign of this yet. It appears as though the market keeps powering upwards regardless of valuation, regulatory and political risks. And this has got me nervous. It has become exceedingly hard to find investments that will produce double digit annualised returns. And it is for this reason the cash portion of my portfolio sits at 30%. It is important to note that cash is not held as a hedge. It is also […]


Investors Need To Be Patient To Outperform Markets

One of the investment mantras we constantly hear about is the need for us as investors to be patient and think long-term. Whilst many of us know this principle, few really follow it in real life – it is akin to the statement of eating well and exercising more. But in this post today I will explain why patience is essential to earning above average returns. I will try to approach it based on logic and not because the gurus of investing have been preaching it. In order to understand the importance of being patience, let’s take a series of logical steps: Research by way of the Efficient Market Hypothesis […]


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 […]