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.


Are People Buying The Wrong Coke – COKE VS KO

Coca Cola. Probably the most ubiquitous brand in the world. The iconic company is so unique that it is almost impossible for the company to be mistaken for another. Yet a case of mistaken identity is what appears to be happening – at least in the stock market. A very strange thing has been happing in the markets recently. The share price of Coca-Cola Consolidated (COKE) has rocketed from $180 at the start of the year to close to $400 today. This is an astonishing rise of 122% in under 5 months. Naturally, curiosity got the better of me and I went to look at the accounts for COKE. What […]


Understand Accounting To Be A Better Investor – Earnings Vs Free Cash Flow

One of the mantras I keep iterating on this site is that for you to be a successful investor, you need to understand accounting. I wrote about this in a post titled ‘Investors Need To Understand Accounting’. Reading and understanding an annual report will give you the clearest picture of a business and where it is headed. The accounts can show you whether a companies earnings are real or if they are just being magicked up. Conversely, knowing accounting and its intricate rules can help you understand a balance sheet and find hidden value in companies. As I have mentioned before, for those that don’t understand accounting or don’t have […]


Charlie Munger – 10 Rules For Investment Success

Charlie Munger – famed for being the other half of Berkshire Hathaway – has a low of wit and wisdom. His business partner, Warren Buffet, has attributed much of his success to Charlie Munger. In his must-read book, Poor Charlie’s Almanac, Munger puts forth a 10-step checklist that even the most inexperienced investors could benefit from. 1. Measure risk All investment evaluations should begin by measuring risk, especially reputational. As an investor, you need to be aware that from time to time, your investments won’t turn out the way you wanted. Mistakes are always inevitable. By realising this, position yourself in a way where you have a large margin of […]


FTSE 100 Index – Invest In 100 Companies At Once

The FTSE 100. You have probably heard of it. But do you know what it is? Contrary to popular belief, the FTSE 100 is not a fund. It is simply a stock market index. Though there are many funds (index funds) that track the performance of the FTSE 100. This article aims to answer any questions you have on the FTSE 100 and will look at the cheapest ways to invest in a FTSE 100 tracker fund. What is the FTSE 100 index? The Financial Times Stock Market 100 or the the FTSE 100 is a share index of the 100  largest companies by market capitalisation listed on the London Stock Exchange. The […]


Blue Whale Growth Fund Full Portfolio Breakdown

Since its inception in September 2017, the Blue Whale Growth Fund has been one of the best performing funds in the IA Global category. It is currently ranked 4th in the sector for performance and had produced annual returns of approx 9%. The funds manager Stephen Yiu is charismatic and has made the claim that Fundsmith and Lindsell Train Global Equity Fund are the only true competitors to Blue Whale in the IA Global category. A very bold statement to make. As an investor, I like to do research on funds that have an exceptional track record. Whilst the Blue Whale Growth fund is certainly young and does not have […]


Investing Requires Patience and A Long Term Mindset

There is only one way for individual investors to win – to increase our time horizons. I have written about this before here and here. Go have a read of these posts to understand why. The underlying reason is that most professional money managers have short term targets. If they don’t show good performance on a quarter by quarter basis, money leaves their funds and they no longer collect their juicy performance fees. That is why many ‘professional investors’ buy stocks that will do well for the next quarter but not necessarily ones that will do well over the next 12-24 month. That is why active management gets outperformed by […]


Tom Gayner (Markel) – 14 Golden Investing Rules

Tom Gayner is co-CEO and chief investment officer at Markel Corporation, a holding company for insurance, reinsurance, and investment operations around the world. The company has often been compared to Berkshire Hathaway in the way it operates. Gayner is an excellent investor and one of the best in the modern era. Just go and look at his performance at Markel for proof of this. Gayner gave a talk at google a couple of year’s back which was a masterclass. That talk had a number of golden nuggets. Here are 14 of them which every investor can learn from. Enjoy! Invest in profitable businesses. Focus on those that have good returns […]


Saving Is More Important Than Investment Returns Early On

I can summarise this post in one sentence. When Starting out, your savings rate is more important than your the rate of return on your investments – but later on when your pile of money is bigger, your investment returns matter far more. That is it. If you truly understand this statement, you can rapidly build your net worth over time. You can now close this article and be on your merry way. But for those of you who want to understand more and want they dynamics of how this works, read on. To understand this concept, have a look at the following: A 8% return on £1,000 is £80. […]


Charlie Munger On Why Warren Buffet and Berkshire Hathaway Are So Successful.

The name Warren Buffet is synonymous with success. His success in the investment world has led him to become the richest person in the world. His company, Berkshire Hathaway, has grown its book value per share from $19 to $300,000 – a compounded annual rate of 19.1%. The results Warren Buffet has achieved are phenomenal. No other investor comes close to him over that time frame. So what has been Warren Buffets success? There is no better person to answer this than his business partner, Charlie Munger. Munger answered the question on why Berkshire Hathaway was so successful during the 2007 DJCO meeting. Read, reread, and reflect on Munger’s response. […]


Everybody Starts Small

It is common knowledge that you need money to make more money. At the beginning, when most people look at the paltry sums they have to invest, they ask themselves what’s the point. This is the biggest mistakes most people make. They do not think small amounts can make a difference. But a change in mindset is required. For everybody starts small. When it comes to saving and investing, even the smallest of amounts can make a difference. The biggest misconception people have is that they think they have to start with an entire Napoleon-like army. They suffer from the “not enough” mentality; namely that if they aren’t making £1,000 […]