Category Archives : My Journey

This section of the website will aim to depict my journey to Financial Freedom.
Any stocks I buy are not recommendations and you will need to do your own research to ensure that they are right for your own personal circumstance.


us-company-map

Purchasing Shares In Great US Companies – Cisco, Exxon Mobil, Intel, Nike and Procter & Gamble.

A couple of weeks ago, my online stock broker was offering free trades for stocks listed on the Dow Jones Index. As a frugal investor who is savvy with costs, I decided to dip my toe into the US market and buy an ownership stake in some of the best companies in the world. Although the Dow Jones has 30 great companies, I only bought shares in Coca Cola, Visa, Cisco, Exxon Mobil, Intel, Nike and Procter & Gamble. I feel that these are the only companies at present in the Dow that are trading at reasonable valuations. In this post, I concentrate on my purchases on the latter five […]


coca-cola

Coca Cola (KO) Stock Purchase – Keep It Simple When Investing

Keeping it simple. That’s how investing legend Warren Buffett became one of the world’s richest men. The oracle of Omaha built his fortune by buying businesses that are easy to understand. Today, his stock portfolio contains some of the best businesses in the world like Coca Cola, IBM and American Express. Meanwhile, he famously avoided Internet stocks during the 1990s dot-com bubble because he didn’t understand them. As an investor, you might be afraid of missing out or eager to jump on the latest fad stock. But keeping it simple is how Buffett made his fortune. Over the years, Buffet has made money by investing in the world’s best companies […]


costa-coffee

Whitbread Stock Purchase (LON:WTB) – A Gauge For Global Prosperity

With a collection of hotels, restaurants and coffee chains under it is portfolio, it is easy to see why Whitbread is benefiting from the trend of increasing consumer prosperity. The theory is this, as people get richer, they want to indulge in products offered by the services industry. This means spending more money on travel (hotel accommodation) and eating out. Whitbread has been perfectly placed to capture this megatrend over the past few years and with an international pipeline that is only set to increase, the company is set to reap the rewards of increasing global prosperity. The natural fear for investors when investing in firms that capture the more […]


vodafone

Vodafone Stock Purchase – Buy Shares In A Company Instead Of The Product

When I was growing up, I was fascinated by technology. I just loved gadgets and always wanted the shiny new thing. As I grew older and technology advanced greatly, my fascination only grew and I was caught up by the hype surrounding mobile phones. I remember that from the age of 17 to 22, I had a new smartphone every year. And we all know how expensive the latest versions of I-phones, Galaxy’s or HTC’s can be. Add the cost of a 12 month contract and all of a sudden having a new phone every year becomes an expensive habit. Whilst getting a new phone is fun and exciting, the […]


irn-bru

A.G. Barr (BAG) Stock Purchase – Are Drinks The New Tobacco?

Over the course of history, tobacco stocks have outperformed all others. British American Tobacco, Imperial Tobacco, Phillip Morris (Altria) and Reynolds America have all consistently produced double digit returns over the past 40 years. $10,000 invested in Altria (MO) over 40 years ago would be worth $2,191,990.07 today. Yes, that’s over $2million for a return of 21,819.90%. This is simply phenomenal and far greater than market returns. One of the big returns for Tobacco’s outperformance over the long-term has been regulation. Why the Sugar tax won’t hurt investors and profits To say the tobacco industry has gone through the mill in terms of regulation over the past few decades is […]


coins

Stock Purchase: Merchants Trust and Dunedin Income Trust – Buying Investment Trusts at a Discount. 6

As I write this in October 2016, stock markets are at record highs and the very best businesses are trading at high valuation multiples. The FTSE 100 has crossed the psychological 7000 levels and is trading at a P/E of above 20 and a dividend yield of 4%. This is in stark contrast to the beginning of the year when it was trading at 5800 and the market was yielding 4.9%. For investors that sunk m money into the markets during the lows of Jan/Feb of this year, it has turned out tone an excellent deal as they were able to buy many stocks at a discount of 10% – […]


1000

My Journey to £1000 in Annual Dividend Income 6

Just over a year ago, I bought my very first dividend paying stock in the form of BP. Little did I know that this one little purchase would lead me to become a dividend junkie and scream with excitement every time a dividend cheque hit my account. But that is exactly what has happened and I am sure glad I took that initial first step. I am now elated to say that I am expecting to receive £1000 in dividends over the course of the year. This post is there to discuss how I went from having 0 in dividend income to hitting the 4 figure mark. I will also […]


pearson (p)

October monthly stock purchase – Pennon (PNN) Whitbread (WTB) Centrica (CNA) Barr (BAG) plus more

October has so far seen stock markets reach new highs. The FTSE100 has skyrocketed whilst the FTSE250 has recovered from its Brexit blip. And although I own a portfolio of stocks, I am not happy to see stock markets rise. Higher stock markets mean that I am now buying a lower ownership stake in the businesses I like and that is never a good thing. Higher stock prices also mean that I am able to collect a lower dividend yield on the shares that I buy. I never like it when my favourite bar of chocolate increases in price and when stock prices rise, it has the same effect on […]


capita

Capita Stock Purchase – A risky business at a low enough price (margin of safety).

Capita is a company I have been following for a while now. I was first tempted to purchase the stock in the wake of Brexit where the share price fell over 20%. But even though Capita fell with the broad market to 848p and it did look like a value stock at the time, I was worried that a price of 848p was still too high as it did not factor in all the risks surrounding the company. At the time, I marked down a price of 700p where if the stock were to fall to this price, it would provide a big enough margin of safety for me to […]


money bills

September Dividend Income 4

Another month passes by and another set of dividends have hot my account. Owning shares in companies is really starting to feel wonderful. For September, I have received £236.70 across both my ISA and my high yield dividend portfolio. This is by far the biggest month I have had over my short investing career. I am beginning to love the fact that cash goes straight into my account without me having to do any work or put in any effort besides the initial stock purchase. I could be in in jail but still make money due to having the right collection of cash generating assets. This is the beauty of […]