Category Archives : Investing Theory

A list of articles on the theory of investing. Articles that give you the knowledge on how to invest. Looking at the Invest Money tab to find out what to invest in.


The Warren Buffet and Charlie Munger Investment Strategy – 4 rules to follow

Charlie Munger and Warren Buffet are probably the best known investing duo that ever lived. Both of these investors are great in their own right but when they come together, they have leveraged there knowledge and made decisions that have turned Berkshire Hathaway into the colossal conglomerate it is today. Both Buffet and Munger have a great eye for wonderful businesses and this had led them to achieve great returns on their stock market investments over the years. Buffet and Munger stock selection strategy is relatively straightforward and easily implementable by the average investor. In Mungers own words, their stock selection strategy is as follows: We have to deal in […]


You Shouldn’t Care About The Short-Term Oil Price.

“The oil price is falling, should I sell my BP stocks.” This was a question I received via email from a reader of the site. The reader further went to ask “ Where do you think the oil price is headed? I fear that it is going lower and I should sell my BP shares.” My simple answer to this is simple, I don’t care what is happening to the oil price at the moment – even though the price of crude has dropped by about 20%. It might shock you to learn that I am not an avid follower of the oil market even though close to 15% of […]


Warren Buffet Net Worth By Age

Warren Buffet is the most studied investor on the planet. And for good reason too. He is the most successful investor to ever live. There are countless books and articles written about him. One particular article I came across recently from MarketWatch was fascinated me. It contained information on the wealth of Warren Buffet at different ages. Without further ado, here is Warren Buffet’s net worth at different ages Age 14 : $5,000 Age 15 : $6,000 Age 19 : $10,000 Age 21 : $20,000 Age 26 : $140,000 Age 30 : $1,000,000 Age 32 : $1,400,000 Age 33 : $2,400,000 Age 34 : $3,400,000 Age 35 : $7,000,000 Age […]


Don’t Be Afraid Of Investing At Market Tops

With the recent turbulence in the stock market, I have had a number of readers question whether this is the market top. My attitude is so what. Sure losing money by investing at the top of the market is a horrible feeling. But over the long term, staying invested, even at market highs, has produced wonderful returns for investors. Let’s see how investing at a market peak has turned out in reality. John, the world’s worst market timer, started his career in 1970 at the age of 21. He saved £2,000 a year for 3 years before making his first purchase in a plain vanilla S&P 500 index fund in December […]


Making $15 A Second

Amazon is raising its minimum wage for U.S. employees to $15 an hour. This has lead to cheers from employees and critics a like. I think most people would be happy to have a job paying us $15 an hour. But not Warren Buffett. He’s hurdle rate is much higher. When he looks for returns, he wants something closer to $15 a second. To understand how Warren Buffett made $15 a second, we need to delve back in time to 2008. The year 2008 was not a good one for most working in the financial sector. We saw losses, bank runs, liquidity shortages and thousands off layoffs. If there was […]


Should I Hedge Currencies In A Portfolio?

One question I have been receiving regularly is whether investors should hedge currencies in their portfolio. This question has become increasingly important since Brexit as the value of the Pound has seemed to gyrate heavily over the past two years. The simple answer as to whether I hedge currencies is No. If I were to hedge currencies in my portfolio, a question I would ask myself is how would I do so? Should I base it on the currency of the country in which the companies are listed? This obviously would not work. There may be no connection between the country in which a company is listed and its area […]


How Will the Brexit Transition Impact Consumer Staple Stocks?

Experts have varying opinions on how UK stocks are being impacted by the ongoing Brexit transition deal. On the surface, it seems like Brexit isn’t doing the UK stock market any favours. It has under-performed over the past several years, with the gap widening after the historic Brexit vote in 2016. This, in turn, has led to increased volatility for the pound. However, the link between Brexit and the stock market has always been very complicated. Granted, UK stocks had a torrid start this year, as the FTSE 100 became the worst performing major European index in the first quarter of 2018. In June, the FTSE 100 recovered some of […]


The Importance Of Doubling Up On Your Winners

Every investor wants to emulate Warren Buffet. That is why there is so much written on the oracle of Omaha’s strategies and stock picks. You don’t have to search far for articles on how Warren Buffet buys excellent businesses at depressed share prices. But one often overlooked aspect of Buffets success is how the great man doubles up on his winners. How he buys more shares of a winning stock as it moves higher. Just look at Warren Buffets recent trades in Apple through his holding company Berkshire Hathaway for an example of this. He first bought AAPL nearly two years ago at a price of about $110 a share. […]


Top 25 Global Brands – The Returns They Provide For Investors

Anyone who has been following this site knows that I invest in high quality companies that possess a sustainable economic moat. One of the economic moats that I have explored extensively on this site is brands. Companies that possess high quality brands have earnt above average returns for longer than normal periods of time and in the process have created enormous wealth for their owners. Whilst brands have done well historically, the consumer landscape is changing quickly. Many brands have lost their appeal and only a handful are worth their elevated price today. I have written articles regarding this titled ‘The Death Of Brands – What Investors Need To Know’ […]