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 […]


What I Have Been Reading – February 2019

Reading Is A Cheat Code Improving what you consume is the fastest way to accelerate your pace of progress. Time is scarce, so you can’t read everything. You have to make tradeoffs. As you choose what to read, you walk a balance between thinking differently and knowing more than others.  Perrell.com A Hack For Selective Reading “Any headline that ends in a question mark can be answered by the word no.” “Did Last.fm Just Hand Over User Listening Data to the RIAA?” This story is a great demonstration of my maxim that any headline which ends in a question mark can be answered by the word “no.” The reason why journalists use that style […]


Herbert Wertheim – Secret Buy & Hold Dividend Billionaire

Herbert Wertheim. Does the name ring a bell? I bet not. Up until a Forbes piece a few days ago, the Philadelphia native was mostly anonymous. Heck, if you had to walk past him on a street, you would think he was just another pensioner. You cannot tell it by his appearance or lack of media attention but Herbert Wertheim is a billionaire! To get to the ten figure mark, Herbert invested in companies such as Apple, Alphabet (Google), BP, Heico and Microsoft. He bought many companies at IPO and still holds them today. This is the story of how Herbert Wertheim made him money. Herbert Wertheim was not like […]


Not All Money Is Made Equal

When I started my career, I was focussed on active income. Income that I had to work day after day for. I only got paid if I put in the effort by going to work day after day. I was pulling in £27,000 a year from my day job. In order to attain this, I worked very hard. I often worked 45+ hours a week and was exhausted by the end of it. Having no time during the week, I did most of my chores and shopping on Saturdays and Sundays. The became had barely enough time for me to recharge in order to do it all again. This is […]


Tom Gayner (Markel) – 14 Golden Investing Rules

Tom Gayner is co-CEO and chief investment officer at Markel Corporation, a holding company for insurance, reinsurance, and investment operations around the world. The company has often been compared to Berkshire Hathaway in the way it operates. Gayner is an excellent investor and one of the best in the modern era. Just go and look at his performance at Markel for proof of this. Gayner gave a talk at google a couple of year’s back which was a masterclass. That talk had a number of golden nuggets. Here are 14 of them which every investor can learn from. Enjoy! Invest in profitable businesses. Focus on those that have good returns […]


Saving Is More Important Than Investment Returns Early On

I can summarise this post in one sentence. When Starting out, your savings rate is more important than your the rate of return on your investments – but later on when your pile of money is bigger, your investment returns matter far more. That is it. If you truly understand this statement, you can rapidly build your net worth over time. You can now close this article and be on your merry way. But for those of you who want to understand more and want they dynamics of how this works, read on. To understand this concept, have a look at the following: A 8% return on £1,000 is £80. […]


Charlie Munger On Why Warren Buffet and Berkshire Hathaway Are So Successful.

The name Warren Buffet is synonymous with success. His success in the investment world has led him to become the richest person in the world. His company, Berkshire Hathaway, has grown its book value per share from $19 to $300,000 – a compounded annual rate of 19.1%. The results Warren Buffet has achieved are phenomenal. No other investor comes close to him over that time frame. So what has been Warren Buffets success? There is no better person to answer this than his business partner, Charlie Munger. Munger answered the question on why Berkshire Hathaway was so successful during the 2007 DJCO meeting. Read, reread, and reflect on Munger’s response. […]


January Stock Market Purchase – Patience and Time In The Market

We are already a month into 2019! Can you believe it? Time seems to be flying by. I don’t even know where the last 30 days have gone. When we left the markets last year, stock prices were falling across the board as recessionary and trade fears kicked in. But much of that has been abated for now. And with the US federal reserve chairman, Jerome Powell, coming out and saying that he won’t raise interest rates as fast as many expect, stock prices began to rally. Whilst the markets have moved up this month, there were still many attractively priced stocks. Not as many as December but there are […]


Everybody Starts Small

It is common knowledge that you need money to make more money. At the beginning, when most people look at the paltry sums they have to invest, they ask themselves what’s the point. This is the biggest mistakes most people make. They do not think small amounts can make a difference. But a change in mindset is required. For everybody starts small. When it comes to saving and investing, even the smallest of amounts can make a difference. The biggest misconception people have is that they think they have to start with an entire Napoleon-like army. They suffer from the “not enough” mentality; namely that if they aren’t making £1,000 […]


What I have Been Reading January 2019

A few weeks ago, I published a post titled ‘What I learnt in 2018’. It was a collection of articles and stories I found interesting over the course of last year. Subsequent to this post, a number of readers emailed me to request doing a similar style of post on a regular basis. As such I have decided to do monthly posts on what I have been reading. Find below extracts from posts I have read in January 2019. Enjoy.  People Don’t Buy Products. They Buy Better Versions Of Themselves. “People don’t buy products because of what those products do, they buy products because of what they imagine they can […]