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.


I Bought More BT Shares – Averaging Down On Your Existing Stock Position

BT threw investors a curveball this past month by stating that its Italian business is facing an accounting scandal which has caused the company to write off £530million. Whilst the headlines around the company were focusses around the Italian scandal, BT also reported a deterioration in the outlook for UK public sector and international corporate markets. This has sent shares crashing from 380p to 300p; a drop of over 20%. Readers of this website will know that I first initiated a position in BT in the summer of 2016 for a price of 397p. I subsequently topped up my stake through my monthly stock programme which brought my overall holding […]


January Stock Purchase – Buying Stocks When Markets Are High

It seems that my monthly stock purchase posts are becoming a little too predictable. I tend to always start by saying that the market seems overvalued right now. The reason is because I really believe it is so. Having said this, I need to constantly remind myself that just because the market is high does not necessarily mean that I should stop investing. I need to remind myself that I am not investing in the market, but rather in individuals businesses. Making money in inflated markets The S&P 500’s “CAPE” ratio (a stock valuation measure designed to smooth out earnings volatility) has only been this high or higher three times […]


I made £1500 in Passive Income last year – This is how I did it 2

One of my new years resolutions for 2016 was to build a stream of Passive Income. Unlike most resolutions which are easily forgotten once the first week of January comes to an end, this was one I was determined to follow on. I needed to stop being broke and start being flush with cash. I knew that I had to buy more money. The reasons for wanting to get started on the passive income journey are simple. I wanted to earn continuous streams of money without having to do any work. I wanted to earn money whilst I slept, ate, socialised and played football. I wanted my bank account to […]


Estee Lauder (EL) Share Purchase – Wonderful Companies Deserve High Valuation Multiples

Those familiar with my investment approach know that one of my key philosophies is to buy shares trading at a Price to Earnings ratio of under 20. Simply put, I do not like to overpay for stocks. It may thus come as a surprise that I purchased shares in the Estee Lauder company (NYSE:EL) whose shares trade at a P/E ratio of 24. No, I have not lost my mind! Neither have I thrown my investment thesis out f the window. Rather, I have bought shares in Estee Lauder due to its high returns on equity (ROE). To understand the concept of Return on Equity, have a look at the […]


To Be a Successful Stock Market Investor Think Like a Business Owner

Modern day stock picking is akin to gambling money in a casino, you place money on a particular ticker symbol and hope that it goes up. How many times have you read an article on that ‘one magic stock’ or seen people speculate on a single stock based on an online forum. The majority of people think that the stock market is a route to overnight millionaire status. The mass media has led people to believe this as they selectively run stories on people who have become millionaires overnight based on a single stock pick whilst sunning the countless others who have lost it all by placing everything, including their […]


Imperial Brands (IMB) Stock Purchase – The Value of Sin Stocks 1

The value of owning sin stocks cannot be denied – research has shown that investing in sin stocks generate higher returns. From 1900 through 2012, tobacco stocks delivered annual returns of 19.7%. From the end of WWII through 2012, alcohol stocks delivered returns of 11.5%. Since the creation of The Standard Oil Trust in 1882, the average integrated oil company has delivered 12% annual returns. If you remove tobacco, alcohol, and energy from the U.S. stock market from 1926 through 2012, those 10% annual average returns that you hear about become 7% annual returns instead. Over a half-century long investing life, the difference between 7% and 10% is the difference […]


December Monthly Stock Purchase – GSK, ULVR, PZC, VOD, CAPITA

December was a month of two halves. The first half so a continuation of the sector rotation seen in November as the market sold off defensive stocks in favour of growth stocks. The second part of December saw the santa rally come to town and it was a case of a rising tide lifts all boats. Most stocks ended December higher even those that got sold off in the first two weeks. Luckily for me, my monthly stock purchase programme occurs in the first half of the month and so I was able to buy shares at decent valuations before they rose. The stocks I purchased in december were PZ […]


Why I Buy Stocks Every Month And Do Not Care What The Market Is Doing 1

I have had a few readers in the past few weeks email me asking why I continue conduct a monthly stock purchase programme with my broker seeing as though markets are terribly high as present. In the post, I will explain why it is prudent for individual investors to ignore market fluctuations and invest money every month. Market Timing Is Impossible Throughout the current bull market and especially in the last few years, many have predicted that the market will come crashing down due to highly elevated and over inflated share prices. But time and time again, the market has proven them wrong. Just look at the past 12 month, […]


December Dividend Income – How to go about building a dividend machine as a beginner 6

If 2016 has taught me anything, it would be that dividends are king. Throughout the volatility, political shocks and market turbulence, one thing has remained certain – great companies that I have shares in have paid me an increasing stream of dividends. Make no mistake, this is no accident. The truly great companies make profits no matter the market environment Take Royal Dutch Shell (RDSB) for instance. It has paid out an ever increasing dividend for over 60 years now. This means that it has not cut its dividends during times of war, political upheavals, recessions, revolutions, oil embargoes, financial crises all that has happened in between. It is a […]


National Grid Share Purchase – The Ultimate Blue Chip Bond Proxy

In the current low interest rate world, investors have had to bend the rule book. Whereas in the years gone by, you could get a safe and stable income via a portfolio of bonds, it is no more the case. Investors have had to turn to stocks (equities) of companies who produce predictable cash flows year after year in order to get their required level of income. They have had to turn to dividends from bond proxies. What are Bond Proxies? Bond Proxies are shares of companies whose cash flows and profits are very consistent – like coupons paid on a bond – and they also pay out a large […]