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 […]


DMGT Stock Purchase – A Media Company With Hidden Technology Assets 1

Daily Mail Group Trust (DMGT) is best known for its ownership of its media assets, namely The Daily Mail, Mail on Sunday, Ireland on Sunday, Metro and the worlds number 1 online newspaper MailOnline. But from an investors point of view DMGT is known for its immense success. Since listing in 1932 it has never asked investors for an additional penny of capital – meaning the current market capitalisation of £2.2bn and the exemplary dividend growth record (8%pa compound over the last 20 years for instance) have been funded solely by the smart reinvestment of retained earnings and prudent use of debt. Looking at the historic performance of the shares […]


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 […]


Second Quarter Dividend Income 2

The months of April, May and June have been great to me. I saw dividend after dividend hit my account. In total I received £423.80 in pure passive income from 29 different companies. That’s £423.80 for doing absolutely nothing but owning stakes in wonderful companies. The dividends I received in this quarter have essentially paid for my recent purchases in GSK and Shire and these will in turn churn out their own dividends. My dividends are producing their own dividends. This is a real life snowball in action. When averaged out, I received £141 a month during the past quarters. If you would have told me a couple of years […]


Why Do Stocks That Have Been Dropped By Index Funds Outperform The Newer Stocks Added.

According to research from the great Dr. Jeremy Siegel, 82% of stocks that are removed from the S&P 500 go on to outperform the stock that replaced them in the index during the subsequent three-years.  This finding seems counterintuitive. If a stock gets added to the S&P 500,the FTSE 100 or any other major index for that matter it must be riding a momentum wave that has seen its valuation increase. Likewise, a stock that is removed from the S&P 500 must have been riding a wave of sluggish performance that warranted its exclusion from the index. So what’s the reasoning? To understand the mechanics of Dr Siegel’s finding, contemplate […]


Oil Investing – The Need To Think Long Term 4

As someone who is invested in the oil space via ownership stakes in BP, Exxon Mobil and Royal Dutch Shell, I am not too concerned with the price of oil dipping below $50 in recent weeks. When I took stakes in these companies, I realised that the price of oil will not double overnight. I knew that it will take a considerable amount of time for oil prices to recover. But when the recovery starts, I expect prices to shoot higher and that is why I am optimistic about the oil industry long-term. Oil has a huge tailwind in the form of the emerging global middle class. Global Prosperity and […]


The Wealthy Do Have A Secret – They Know How Money Works 2

Many Britons – everyday people working to build a comfortable life – assume the “rich” have a magic formula or some sort of secret. It seems they know something about “how the world works” that the rest of us don’t. If the average person could just figure it out, they’d be wealthy, too. They’d live with less stress, more time, and more money. And money, after all, gives you the freedom to do what you’d like to do. Money allows you to buy your freedom form the rat race. What I found out from reading hundreds of books, studying countless articles and listening to numerous podcasts is that the rich […]


Shire Stock Purchase – The Importance Of Low Dividend Yield and Fast Growth In A Portfolio

Regular readers will know that I have been a big fan of Shire as of late. The company has fantastic growth, a pipeline that is envied by other biotech’s and a management team that is astute and rational. The best part about Shire is the valuation with shares trading hands at a P/E of less than 13. When a company looks attractive, I always ask myself ‘is there something I am missing? Is there something that I am not seeing that is making investors trade the stock at such a cheap valuation relative to its peers.’ With Shire, I think the answer is that investors are overlooking this stock due […]