February Stock Purchases – Be Cheerful Of Falling Stock Prices 2

February has seen shares in London listed companies finally experience some volatility and drop a notch. There was a combination of reasons for this; weakness in US shares, the rising value of the pound and the fear that interest rates may be increased faster than expected. This latter point is the most pronounced with the result being that solid defensive companies have seen their share prices drop more than the wider market. As someone still in the wealth accumulation stage of their life, I cherish lower stock prices as it gives me the opportunity to buy the stocks I like on the cheap. The only people who should wish for […]


Fidessa Plc – A Takeover Approach Of An Increasingly Rare Serial Compounder Of Wealth

This past week Fidessa Plc – a company I have been buying shares in via my monthly stock purchase programme – received a takeover bid from Temenos for a total value of £36.467p a share. The shares in the company consequently shot upas a result of he takeover bid and are now trading at £38; a price above Temenos bid price. The reason for the shares shooting higher than the bid price is due to heavyweight investor Elliot disclosing an increased stake in Fidessa implying that the current takeover price undervalues Fidessa. Elliot normally gets what they want – just look at how Qualcomm increased their bid for NXP semiconductors […]


Why Entrepreneurs Need To Own Shares In Blue Chip Companies – Story Of Miller Gorie And IBM

One of the most important concepts in personal finance is to create a second income stream. Having income flowing into your bank account from alternative sources outside your normal everyday work can help cushion stressful periods such as when you are made redundant. It can also help you escape the rat race by providing you with enough income to cover your expenses and enjoy life. This is is the whole concept behind my dividend growth portfolio. Even Warren Buffet agrees on the importance of this by saying “Never depend on a single income. Make Investments to create a second source.” Whilst many people advocate investing to create an income for […]







RWS Holdings PLC Stock Purchase – Buy Quality Companies During Market Selloffs 1

What just happened this past week? After a year and a half of smooth sailing, volatility reeked havoc in the stock market this past week which resulted in huge fluctuation in stock prices. For investors with cash on the sidelines, it provided a good opportunity to ‘buy the dip’ and buy certain shares at 10 – 15 % off. I do admit that I was a little slow in reacting to the initial sell-off as there were a number of shares offering attractive valuations. But thankfully I was able to pull the trigger and buy myself shares in a company I have been following for a long time now – […]


The Fantastic Economics Of Consumer Staple Stocks Result In Outsized Returns 4

Any regular reader of this site will know that I have a preference for investing in consumer staple stocks. Consumer staple companies sell products that are essential to everyday life, such as food, beverages, tobacco and household items; goods that people are unable or unwilling to cut out of their budgets regardless of their financial situation. My investment portfolio has an outsized position in this industry having bought stocks in Unilever, Procter & Gamble, RB, Estee Lauder, Coca Cola, Britvic, AG Barr, Imperial Brands and PZ Cussons. The consumer staples sector fascinates me because it reveals so much about human nature and the problem of economics versus behavioural economics. Over long periods […]


You Need To Become A Collector Of Cash Generating Assets

If the 1% had a secret it would be this – they focus on collecting assets that generate dividends, interest, rents and royalties. The collect cash generating assets such as patents, movie rights, property ownership, businesses, equities or farmland. On the other hand, the majority of people focus on collecting ‘stuff’. They always buy liabilities instead of assets and wonder why they never get ahead. It’s time to learn the rules of the game. Its time to learn how money works. What you read, watch and fantasise about the rich and what they actually do are two different things. Most people have this erroneous view that the rich splurge without […]


My Dividends Are Producing More Dividends – Dividend Reinvestment Compounding returns 5

Dividend reinvesting is one of the most important concepts when it comes to growing your wealth over time. Research has shown time and again that investors who reinvest their dividends tend to outperform those that don’t over time. The outperformance can be huge and could be in the double to triple digits over the long-term! Have a look at this example on Galxosmithkline (GSK) to see how dividend reinvestment would have boosted returns. What is Dividend Reinvestment? In short, dividend re-investment is a strategy that allows investors to own more shares or units in a fund without putting their hand in their pocket for more cash beyond the original investment. […]


A Share Of Stock Is Just An Ownership Stake In A Business – Unilever Case Study

I recently read a report that the young generation of today are the most adverse to the stock market in recent history. I think a big part of the reason people are scared away from investing is they don’t understand that a share of stock is a piece of ownership. Let’s look at Unilever as an example. When you look at the company, you see a business that sells great products ranging from Lynxs deodorant to Magnum ice cream to Toni & Guy haircare. Last year, it brought in £43,171,950,000 in sales. After paying all of the expenses, salaries, and taxes, the owners were left with £4,245,700,000 in profit. Since […]


4th Quarter Dividend Income + Annual Dividend Summary 2

Another quarter has passed by, and it’s time for me to post the dividends that my ISA portfolio earned in the months of October, November and December. It’s hard to argue about the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering your living expenses. I hope these quarterly dividend income reports provide inspiration for any investors out there that are just starting out. It shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. In total, I […]


Creightons PLC (LON:CRL) Share Purchase – The Opportunity of Investing Small Caps Stocks

Over the past few weeks, I have been increasingly looking into smaller companies as I believe the valuations on offer in this sector are far more favourable than those of larger companies at present. Most big blue chip companies – the ones I prefer to invest in – have seen their valuation stretched as the big institutional investors continue to pour money into them and have largely shunned small-cap stocks. This has provided an opportunity for small investors like myself to exploit. Below is a bit of a background of this opportunity and why it has come about. Over the past couple of decades, economic expansion as a result of […]