Category Archives : Invest Money

Articles on how to invest money online


Why Entrepreneurs Need To Own Shares In Blue Chip Companies – Story Of Miller Gorie And IBM

One of the most important concepts in personal finance is to create a second income stream. Having income flowing into your bank account from alternative sources outside your normal everyday work can help cushion stressful periods such as when you are made redundant. It can also help you escape the rat race by providing you with enough income to cover your expenses and enjoy life. This is is the whole concept behind my dividend growth portfolio. Even Warren Buffet agrees on the importance of this by saying “Never depend on a single income. Make Investments to create a second source.” Whilst many people advocate investing to create an income for […]







RWS Holdings PLC Stock Purchase – Buy Quality Companies During Market Selloffs

What just happened this past week? After a year and a half of smooth sailing, volatility reeked havoc in the stock market this past week which resulted in huge fluctuation in stock prices. For investors with cash on the sidelines, it provided a good opportunity to ‘buy the dip’ and buy certain shares at 10 – 15 % off. I do admit that I was a little slow in reacting to the initial sell-off as there were a number of shares offering attractive valuations. But thankfully I was able to pull the trigger and buy myself shares in a company I have been following for a long time now – […]


The Fantastic Economics Of Consumer Staple Stocks Result In Outsized Returns 3

Any regular reader of this site will know that I have a preference for investing in consumer staple stocks. Consumer staple companies sell products that are essential to everyday life, such as food, beverages, tobacco and household items; goods that people are unable or unwilling to cut out of their budgets regardless of their financial situation. My investment portfolio has an outsized position in this industry having bought stocks in Unilever, Procter & Gamble, RB, Estee Lauder, Coca Cola, Britvic, AG Barr, Imperial Brands and PZ Cussons. The consumer staples sector fascinates me because it reveals so much about human nature and the problem of economics versus behavioural economics. Over long periods […]


You Need To Become A Collector Of Cash Generating Assets

If the 1% had a secret it would be this – they focus on collecting assets that generate dividends, interest, rents and royalties. The collect cash generating assets such as patents, movie rights, property ownership, businesses, equities or farmland. On the other hand, the majority of people focus on collecting ‘stuff’. They always buy liabilities instead of assets and wonder why they never get ahead. It’s time to learn the rules of the game. Its time to learn how money works. What you read, watch and fantasise about the rich and what they actually do are two different things. Most people have this erroneous view that the rich splurge without […]


My Dividends Are Producing More Dividends – Dividend Reinvestment Compounding returns 2

Dividend reinvesting is one of the most important concepts when it comes to growing your wealth over time. Research has shown time and again that investors who reinvest their dividends tend to outperform those that don’t over time. The outperformance can be huge and could be in the double to triple digits over the long-term! Have a look at this example on Galxosmithkline (GSK) to see how dividend reinvestment would have boosted returns. What is Dividend Reinvestment? In short, dividend re-investment is a strategy that allows investors to own more shares or units in a fund without putting their hand in their pocket for more cash beyond the original investment. […]


A Share Of Stock Is Just An Ownership Stake In A Business – Unilever Case Study

I recently read a report that the young generation of today are the most adverse to the stock market in recent history. I think a big part of the reason people are scared away from investing is they don’t understand that a share of stock is a piece of ownership. Let’s look at Unilever as an example. When you look at the company, you see a business that sells great products ranging from Lynxs deodorant to Magnum ice cream to Toni & Guy haircare. Last year, it brought in £43,171,950,000 in sales. After paying all of the expenses, salaries, and taxes, the owners were left with £4,245,700,000 in profit. Since […]


A Year In The Markets And The Path Ahead

What a year it has been in the markets. Neither the vengeance of Mother Nature, North Korea’s threats of nuclear retaliation, an increasingly fractious political environment both at home and abroad, the first year of Donald Trump, a rising terrorism threat, nor the prospects for coordinated monetary tightening by central banks in the US, the UK, and Europe were enough to shake investor conviction over the past year . Global equity markets have roared over the past year and continued their advance unabated. Investors who were waiting for a chance to ‘buy the dip’ have been left on the sidelines still awaiting an opportunity to do so. Such has been […]


4 Factors To Consider Before Investing In A Consumer Staples Company

When Jeremy Siegel and Jeremy Schwartz were doing research for the book The Future for Investors, they wanted to find the best performing stock from the original 1957 version of the S&P 500[i]. What they found wasn’t an exciting technology stock, or a behemoth oil company, but rather a simple consumer stock: cigarette maker Philip Morris (now called Altria Group). What’s more, Siegel and Schwartz found that 11 of the top 20 long-term performers came from the same boring economic sector: consumer staples. And Jeremy Siegels findings were not an outlier. Consumer Staples companies – those that sell essential repeat everyday products such as food, beverages, tobacco and household items […]


Accrol Papers – A Catastrophic Loss From A Small Cap 1

Every Investor, through the course of their investment lifetime, will experience a negative setback in the form of a bad investment decision. No investor has a perfect record. And if any of them were to ever tell you otherwise, you can be sure that they are giving you ‘alternative facts.’ Even the greatest investor of all time, Warren Buffet, has made bad decisions. Most notably of these was the purchase of Dexter Shoes which has cost Berkshire Hathaway an estimated £7.2 billion and growing to date – as the purchase was made using Berkshire Hathaway shares! Ever since I launched my income focussed portfolio over two years ago, it has […]


Billionaire Charlie Munger On How To Get Rich Through Investing 1

One of my favourite investment thinker and theorist is Charlie Munger. And if you have read any of his investment pieces or listened to any of his interviews, you would understand why. Mr Munger is a stern believer that an investor would be better served by focusing on better quality businesses, even if the price were higher, because those businesses could be held for decades, continually churning out cash and profits for the owners. This level of thinking rubbed off on his long-time business partner, none other than the legendary Warren Buffet, and led to Buffet acquiring stakes in quality companies such as Coca Cola and shunning the “cigar butt” […]