Category Archives : Invest Money

Articles on how to invest money online


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 […]


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 […]


Why stocks fall in August and September and Rise in December

Most people who have been invested in the market for a number of years realise that on average stocks tend to have a negative return during the months of August and September. Looking at data for the S&P500, we can see this phenomenon playing out. In September 2016, the S&P500s return was -0.12%, August 2016 – 0.12%, September 2015 -2.64%, August 2015 -6.26%, September 2014 -1.55%, August 2013 -3.13%. Considering we have been in a bull market over this period, it is peculiar that the average return over August and September for this period is negative. The reason why the US stock markets – and this other markets which are […]


How Not To Check Your Stocks Every Week – Key To Being Patient As An Investor 2

After purchasing my first property earlier this year, I registered with popular real estate site Zoopla in order to keep a track on the value of my property. Initially, this seemed like great idea as I could track my property value and net worth in real time. The first couple of weeks went great. My house was up £300 in the first week and £1000 in the next. I remember thinking at the time that I had certainly got a great deal. But the email I received on the third week ruined my mood. It showed that the value of the property was down £2000. I felt a chill in […]


How Benjamin Graham Valued And Bought Stocks

Ask any professional investor about Benjamin Graham and they will tell you he deserves his place amongst the top 10 greatest investors of all time. Ask Warren Buffet and he’ll certainly place Ben Graham as number 1. Benjamin Graham is the father of value investing and wrote one of the book that shaped many an investors career; investors Security Analysis. The book which is seen as the bible of the value investing world is an essential read for anyone wishing to invest in individual stocks. Benjamin Graham’s value investing strategy was focused on buying stocks with the same discipline as an insurance underwriter, carefully considering the risks, rejecting potential securities […]


What Do The Different Dividend Dates Mean? Declaration, Record, Exdividend and Payment Dates

When it comes to investing for dividends, it is important to familiarise yourself with all the different dates in a companies dividend timetable. The dates are important as it determines who qualifies for a dividend payment and when those payments will reach your bank account. The four key dates any investor needs to be familiar with are the declaration date, the record date, the ex-dividend date and the payment date. Dividend Declaration Date This is the date the company you are invested in announces the details of the dividend. By going to the investor relation section of the companies website on this date, you will be able to see information […]