Author Archives : MG


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 […]


Accrol Holdings Stock Purchase (LON: ACRL) – Boring Is Beautiful 1

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 […]