The Importance Of Doubling Up On Your Winners

Every investor wants to emulate Warren Buffet. That is why there is so much written on the oracle of Omaha’s strategies and stock picks. You don’t have to search far for articles on how Warren Buffet buys excellent businesses at depressed share prices. But one often overlooked aspect of Buffets success is how the great man doubles up on his winners. How he buys more shares of a winning stock as it moves higher. Just look at Warren Buffets recent trades in Apple through his holding company Berkshire Hathaway for an example of this. He first bought AAPL nearly two years ago at a price of about $110 a share. […]


Top 25 Global Brands – The Returns They Provide For Investors

Anyone who has been following this site knows that I invest in high quality companies that possess a sustainable economic moat. One of the economic moats that I have explored extensively on this site is brands. Companies that possess high quality brands have earnt above average returns for longer than normal periods of time and in the process have created enormous wealth for their owners. Whilst brands have done well historically, the consumer landscape is changing quickly. Many brands have lost their appeal and only a handful are worth their elevated price today. I have written articles regarding this titled ‘The Death Of Brands – What Investors Need To Know’ […]


A High Share Price Does Not Mean A Company Is Expensive

One statement I often see in my inbox is ‘ I will not buy company X stock because it has a high price and is too expensive. I would rather buy Company Y as the share price is lower.’ This is a common misconception many first time investors have. Just because the price of a stock is high does not mean it is expensive. And just because a company has a low stock price does not mean it is cheap. You need to look at more than just the ticker price to identify an expensive or cheap stock. Have a look at the following example. Company A and Company B […]


Procter & Gamble (NYSE:P&G) – Will Its Brands Continue To Outperform?

Old economy stocks appear to be out of fashion. I wrote about this recently in an article outlining my PepsiCo share purchase. Investors seem to have ditched consumer staple stocks in the first half of 2018 for racier growth stocks. This seems to have left many stellar companies on valuation levels not seen for a number of years. Whilst stocks in the consumer staple segment have gone down as whole due to treasury yields hitting 3% and yield hungry investors rotating out of bond proxies, some names have been hit harder than others. Take Procter & Gamble for instance, it has dropped to $73 from its recent peak of $93 […]


Imperial Brands (LON:IMB) Pays Me £1 A Day – Power Of Dividend Growth

A few month ago, I wrote that my shares in Royal Dutch Shell (LON:RDSB) pay me an annual dividend income of £367 or £1 a day. I am excited to exclaim that a second portfolio holding of mine has joined the pound a day club, Imperial Brands.  The company, which I have been regularly buying shares in over the last year, announced a 10% hike of its interim dividend from 51.70p to 56.87p. This has brought its total annual dividend to £1.76 a share. As I hold 211 shares in the company, my annual dividend has gone up from £360 to £371 and in the process it has crossed the […]


PepsiCo Share Purchase– Big brands Are Still In Fashion

The current market environment has taken me by surprise. At the beginning of the year, if you had told me that the consumer staple stocks sector would fall by 20%, I would simply have laughed at you. But this is the position we find ourselves in today. After years of ‘dull’ and ‘boring’ companies being in fashion, it appears that the trend has turned. It seems that investors are no longer willing to bid up prices of stable companies when they can achieve a decent 3% risk free income via treasure bonds. As a result, many companies with strong franchises and stable performances are reaching fair value. RB, British American […]


April Stock Purchase – Sage Experian RelX Benefits Of Scalable Businesses With Economic Moats

In a recent article, I wrote that the stock market has become fickle. There are too many traders as opposed to investors. There are too many people that sell on news not pertinent to a company’s financial health. April was the perfect characterisation of this. Just look at the share price fall in Sag. Just look at the volatility of Facebook shares. Talking of the latter I can’t believe people actually sold their shares in Facebook in the $150s. The Cambridge Analytica scandal caused shares FB to plunge 15% from their February highs – resulting in the company losing roughly $100 billion in market value in the process. This plunge left […]


The Obvious Conglomerate Value In The UK Stock Market

Last week’s announcement of a split of Costa from the rest of the Whitbread business has got me thinking, there is a lot of untapped value to be found in UK stocks. Just take Whitbread for instance. The sum of parts value per share is estimated to be about £50 as seen by this FT piece (https://ftalphaville.ft.com….. Yet Whitbread is still trading in the low £40s and was trading in the £30s for most of last year and the year before when I initiated my position. It was clear to see Whitbread offered much more than its share price suggested but most investors didn’t want to look past the top […]


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 […]