BAT Stock Purchase – Why Sin Stocks Outperform The Markets Over The Long Term


Sin stocks are profitable for investors. There is no two ways about it. Whether you are talking tobacco, alcohol, sugar, gambling or defence, all these categories have comfortably outperformed markets over the long term. Just look at the most profitable stock over the past 50 years, Phillip Morris, a Tobacco stock. The top 3 sectors over the past 82 years were cigarettes at 8.34% real annualised return, beer at 7.51%, and oil at 6.84%. Investors in “ethical” funds that avoid these sectors are virtually guaranteeing drastic underperformance. It is no surprise to see Tobacco topping the list. I have already written about the fantastic economics around cigarette manufactures so I […]


How To Build Wealth When You Have An Inconsistent and Fluctuating Income

If you’re an entrepreneur, freelancer, contractor or seasonal worker, the task of managing your finances may be tricky due to having an inconsistent income. Many self-employed or seasonal workers take great pride in themselves for having hacked a system that lets them get by without too much financial inconvenience in the months they earn less or don’t earn at all. However, very few actually make progress on their long-term financial goals. This article looks at the different ways people with inconsistent incomes can adapt to their situation and build wealth as a result. Don’t JUST Survive If you work for 5 months and earn £15,000, then don’t work for the […]


Investors Are Fickle As Seen By Sages Share Price Volatility

The more I learn, understand and partake in the markets, the more I realise that many investors should not be investing in the stock market. Don’t get me wrong, I do believe that the stock market is the greatest wealth generating tool ever created but I just feel too many people don’t use it correctly. Most people treat the stock market like a casino as opposed to it allowing them the chance to buy ownership stakes in wonderful enterprises. Most don’t have the mental aptitude and calm persona to withstand short term volatility. They do the most wealth destructive thing by selling out low when a stock price moves downwards. […]


A Second And Third Takeover Bid For Fidessa Finally Sees It Leave My Portfolio – 2 Alternative Companies

I recently wrote a piece on Fidessa saying that I was not happy the company has been approached for a takeover. In the piece I mentioned that Fidessas earnings are currently suppressed meaning that the takeover bid was too low for my liking. Furthermore, I mentioned that Elliot was building a stake meaning the activist investor would certainly push the Fidessa board to negotiate a higher takeover price. This finally seems to have played out as Fidessa received two new bids with the higher one worth £37.50. This lead to the share price jumping to £41 – above the highest takeover approach price – due to speculation of a biding […]


ISA 2018/2019 – Strategy, Saving The Full Amount and The End Game

It’s the 6th of April which means only one thing, the beginning of the new tax year. This makes me excited as it means that I now get another £20,000 to add to my stocks and shares ISA. And if you are not excited about this it’s because you do not fully understand the concept and the great benefits that an ISA possesses. If you are someone like me who wants to achieve financial freedom at a relatively young age, an ISA is the way to go. In essence, an ISA is a legalised tax heaven for the average person like you and me. You are able to earn dividends […]


The Mutual Fund Game Is Rigged In The Managers Favour

I have alluded to fees being an antithesis to performance many times over the past few years. Fees are the main reason why index funds outperforms actively managed funds. The following from famed venture capitalist Chris Sacca further cements why fees are an investors worse nightmare and that mutual funds are rigged in the managers favour. Although the comments below are to do with venture capital but it could as well be applied to mutual funds. Have a read and see whether or not you are still comfortable holding your money in a mutual fund. Chris Sacca on Fees: “This is a rigged game, right? And I’m just looking to […]


January February March Dividend Income

The first quarter of 2018 has absolutely flown by. It doesn’t feel that long ago that I was ringing in the new year in style but it’s been three months already. And with the end of the first quarter of 2018, it’s dividend income update time. This is one of my favourite times of the quarter as I get to review my previous three months worth of passive income from my dividend income portfolio. Without repeating the wild ride we experienced in the market last quarter, I could find comfort in one thing, my dividends. As we all know, the market may move up and down irrationally and seemingly on […]


March Monthly Stock Purchase – Perseverance and Temperament are Key To Investing Successfully

2018 has so far been a dreadful year for the UK market with prices dropping 7.2% year to date. This UK has been the worst performing developed market in 2018. Whist they have been several profit warnings for London listed companies, part of the fall in UK shares has been due to a market de-rating. Many companies in the UK market are trading at discounts when compared to global peers of similar quality. Just look at Royal Dutch Shell trading at a discount to Exxon Mobil, BAT trading at a discount to Altria and RB trading at a discount to Church and Dwight. This is why it is an important […]


How Long Will It Take To Double My Money Through Investing In The Stock Market

One of the questions I get consistently asked is ‘how long it will take to double my money on the stock market or with any other investment?’ The answer depends on the rate of return. If you have a high rate of return, it will take a shorter period to double your money and if you have a lower rate of return it will take longer. Have a look at the below table to see how long it will take to double your money. As a reference, the historical average return of stocks is approx 7%-8% so you would double your money every 10 years via stock market investing. Besides […]


Do You Pay Tax On Accumulation Fund Units

One often questions I get asked a lot is ‘do you pay tax on accumulation funds?’ The simple answer is yes, you need to pay tax on accumulation funds if they are held outside an ISA or SIPP (Pension) wrapper. You will need to pay income tax on any distributions and capital gains tax on any capital appreciation. What are Accumulation Funds Accumulation funds are funds whose income is automatically reinvested in the fund. An accumulation unit is designed to offer you growth in the fund rather than income, so any income generated will be reinvested within the fund. Income funds on the other hand distribute any interest or dividend […]