FTSE 100 Index – Invest In 100 Companies At Once

The FTSE 100. You have probably heard of it. But do you know what it is? Contrary to popular belief, the FTSE 100 is not a fund. It is simply a stock market index. Though there are many funds (index funds) that track the performance of the FTSE 100. This article aims to answer any questions you have on the FTSE 100 and will look at the cheapest ways to invest in a FTSE 100 tracker fund. What is the FTSE 100 index? The Financial Times Stock Market 100 or the the FTSE 100 is a share index of the 100  largest companies by market capitalisation listed on the London Stock Exchange. The […]


First Quarter 2019 Dividend Income

It’s dividend income update time. One of my favourite times of the quarter as I get to review my previous three months worth of passive income received from my ISA portfolio. Given my strategy of wanting to acquire enough dividends in order to cover my costs and be able to retire, it is really the dividend payouts that I care about. For each of the companies I invest in, I like to see a steady and growing stream of dividend payouts.
 

My dividends really do provide me with a comfort blanket during times of market turbulence as we have experienced over the last quarter. The market can be irrational at times as it seems to […]


What I Have Been Reading – March 2019

A collection of articles and things I have learnt over the course of March 2019. Luxuries Become Necessities One of history’s few iron laws is that luxuries tend to become necessities and to spawn new obligations. Once people get used to a certain luxury, they take it for granted. Then they begin to count on it. Finally they reach a point where they can’t live without it. Medium.com   Great Companies Create Markets According to Uber’s first pitch deck, their total addressable market was 4.2B. Last year they made 11.3B in revenue.  The Lesson: Great companies don’t capture total addressable market. They create it.  As Uber’s CEO Dara Khosrowshahi said: “Cars are to us […]


March Stock Market Purchase – XPP ABF

Ahhh Brexit. The dreaded B word. It appears like things are finally starting to progress. To where exactly? Nobody knows. As an investor, your portfolio needs to be positioned to insulate yourself from political and economic uncertainty. By this I mean investing in high quality companies that are swimming in free cash flow and are are well diversified by sector and geography. Yes, the majority of the companies I own are listed on the London Stock Exchange, but by scrutinising their accounts you will see that they produce the vast majority of their revenues outside these shores. On the aggregate, the UK does not account for much of the profits […]


Blue Whale Growth Fund Full Portfolio Breakdown

Since its inception in September 2017, the Blue Whale Growth Fund has been one of the best performing funds in the IA Global category. It is currently ranked 4th in the sector for performance and had produced annual returns of approx 9%. The funds manager Stephen Yiu is charismatic and has made the claim that Fundsmith and Lindsell Train Global Equity Fund are the only true competitors to Blue Whale in the IA Global category. A very bold statement to make. As an investor, I like to do research on funds that have an exceptional track record. Whilst the Blue Whale Growth fund is certainly young and does not have […]


Investing Requires Patience and A Long Term Mindset

There is only one way for individual investors to win – to increase our time horizons. I have written about this before here and here. Go have a read of these posts to understand why. The underlying reason is that most professional money managers have short term targets. If they don’t show good performance on a quarter by quarter basis, money leaves their funds and they no longer collect their juicy performance fees. That is why many ‘professional investors’ buy stocks that will do well for the next quarter but not necessarily ones that will do well over the next 12-24 month. That is why active management gets outperformed by […]


Stewart Horejsi – Secret Buy And Hold Billionaire Berkshire Hathaway

We all know Berkshire Hathaway as the vehicle that made Warren Buffet the richest man in the world. But what most people don’t realise is that due to Berkshire’s fantastic annual compounded returns, it minted a number of millionaires and billionaires along the way. Today we focus on Stewart Horejsi, a billionaire born through Berkshire Hathaway.  Stewart Horejsi ran his family’s welding business. The business was struggling to fight off competition and Stewart was having doubts that his business would survive. He thus looked to the stock market in order to grow his wealth. In 1980 Stewart bought 40 shares in Berkshire for $265 each – an initial investment of […]


Get Rich Without being Lucky – Naval Thread

Twitter if used correctly, can provide you with a treasure trove of information. One person who keeps putting out gems is Naval Ravikant. If you do not follow him yet, I urge that you do. One of his recent threads that has gone viral is on “How to Get Rich (without getting lucky)”. With the man himself permission, I copy the thread below for your enjoyment. Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.   Understand that ethical wealth creation is possible. If you secretly despise wealth, […]


The House That Vanderbilt – How To Destroy Wealth

This may seem like a strange title. Why would anybody want to destroy wealth? But if legendary investor and Warren Buffets business partners – Carlie Munger – has taught us anything, it is always to invert. Inverting a problem is to solve it backwards rather than forwards.  Rather than asking, “What’s the best way to keep wealth?”, we should ask ourselves , “What’s the best way to lose wealth?” That way we can we can avoid all the things that lose us money. The Vanderbilt’s provide a classic example of how fortunes can be lost. The book written on them, Fortune’s Children: The Fall of House Vanderbilt, is well worth […]


February Stock Market Purchase – Dividend Growth Stocks Outperform

Hartford Funds recently published a piece on the power of dividends. Now there is nothing groundbreaking about this piece. It simply shows what many a research article has shown over the course of history – dividend growth stocks outperform. The main talking point of the article can be found half way down the page. It shows the average annual return for different kinds of stock groups between 1972 and 2017. They are as follows: Dividend Payers and Initiators: 10.07% Dividend Payers: 9.25% No Change in Dividend Policy: 7.47% Dividend Non-Payers: 2.61% Dividend Cutters and Eliminators: -0.35% S&P 500: 7.70% As seen from the above, the key takeaway is that dividend […]