Tag Archives : Financial Improvement


Why Stocks Are The Best Asset Class To Own

There has long been a debate about which asset class is the best to own. The discussion around property vs equities is particularly interesting. But in my opinion, there should be no discussion for long term investors as equities (stocks) are the best hands down. Looking at historic returns, equities have historically outperformed all other asset classes returning 9% per annum whereas property only returned 5.7% per annum. So why do equities outperform all other asset classes? The main reason why equities produce higher returns is due to equities having the unique ability to compound in value in a way that investments in other asset classes cannot. The explanation for […]


Investors Need To Understand Accounting – Warren Buffets 1982 Shareholder Letter

It seems that most investors today are oblivious as to the language of accounting. They would rather look at headline figures presented in financial media than actually dig through an annual report. Even famed investor Terry Smith once mentioned that analyst – the people that are paid to scrutinise a companies performance – don’t usually read a full set of accounts. But if you want to be an investor in individual stocks, it imperative that you learn the language of accounting. The accounts give you the clearest picture of a business and where it is headed. The accounts can show you weather a companies earnings are real or if they […]


The Wealthy Do Have A Secret – They Know How Money Works 2

Many Britons – everyday people working to build a comfortable life – assume the “rich” have a magic formula or some sort of secret. It seems they know something about “how the world works” that the rest of us don’t. If the average person could just figure it out, they’d be wealthy, too. They’d live with less stress, more time, and more money. And money, after all, gives you the freedom to do what you’d like to do. Money allows you to buy your freedom form the rat race. What I found out from reading hundreds of books, studying countless articles and listening to numerous podcasts is that the rich […]


Take These Steps To Enjoy A Tax-Free Retirement

The thought of being hit with hefty taxes when you enter you reach retirement is a bitter pill to swallow. But there are ways to legally reduce taxes in your golden years. You can actually generate a six figure tax free income if you start planning early and make use of the tax wrappers and allowances that are available. Here are a 5 steps to consider if you want to have a tax-free retirement. Step 1: Personal Allowance The first allowance to make use of is the Personal Allowance. Anyone earning less than £100,000 a year can earn £11,500 tax-free. In essence this means that the first £11,500 you receive […]


Best way to Teach Kids about Money, Business and Personal Finance Using Videos Made By Warren Buffet

Every responsible parent knows the importance of teaching their children about personal finance. If kids can learn about the importance of budgeting, how money can make even more money, the power of passive income and the power of compounded returns at a young age, they are sure to go through life on a steady financial grounding. The problem is most children are not interested in the finance related topics at a young age. They hardly like maths and english at school and I don’t think the subject of personal finance would be any different. The Best Way To Teach Your Children About Money – Secret Millionaires Club The best way […]


What Different Jobs Can Teach You About Investing

As investors, we often make the mistake of only concentrating our reading towards the fields of finance, business and economics. This is a huge mistake as it is more productive to read around one’s field than in one’s field. By learning about different fields of work, you increase your worldly wisdom as well as look at the bigger picture. With this in mind, these are some things you can learn from others professions. Biologist: All environments change, and the best protection against those changes is the ability to adapt. Gambler: Bet when others think the odds of success are low (that’s where there’s big payoffs) but be able to survive […]


Women Should Control Investing and Savings Decisions In a Relationship 2

Traditionally men have looked after a family’s saving and investment decisions. But in recent times, this has changed with women becoming more financially savvy. And the is great news for household finances. There is a good reason why women should control a households savings and investment accounts; they live longer and provide better returns. Women Live Longer Than Men Studies have been conclusive in showing that women on average live longer than men. And because of this, the majority of assets in retirement accounts are going to be controlled by women who outlive their husbands.. The trouble currently is many women who are approaching or currently in retirement have no […]


Fear Of Missing Out – Investors Worst Nightmare

One of the biggest detractors to investment performance is FOMO or Fear Of Missing Out syndrome. This is when you make an investment, whether it be stocks or any other asset, simply because you do not want to miss out on the possible gains it makes. You do not want to miss out on the gains therefore you buy something out of fear of missing out as opposed to being rational and looking at the numbers. Buying assets just because you fear missing out on the gains does sound stupid but it occurs more often than people like to admit. It happened in the dot-com bubble where people were investing […]


The 5 Models To Know If You Want General Worldly Wisdom – A list by Charlie Munger 1

Charlie Mungers philosophy on worldy wisdom is one of the best articles I have ever read. For anyone looking to be better than average, both in a stock picking sense and a wordly intellectual sense, I urge you to read the full article below. I would even go as far as bookmarking this page and having a re-read of the article every once in a while. It is that good. Below is a summary of the piece but do read it in its entirety to appreciate the full wisdom Charlie Munger imparts. Models to to learn for general worldy widsom: Mathematics – basic arithmetic and algebra, decision trees and the […]


Let Capitalism Set You Free – Move from Employee to Owner

There seems to be an ever increasing tide of bias against capitalism. People are increasingly becoming of the view that capitalism doesn’t work. But what they don’t realise is capitalism has allowed people on benefits today to have a better quality of life than the richest man on earth 100 years ago. Think about this for a second. When capitalism took over communism as the default world economic mechanism we saw an unprecedented amount of technological and productivity improvement. Without capitalism we probably wouldn’t have cars, planes, mobile phones, the internet, costa coffee or much else that we love. When people talk against capitalism, they don’t mention the benefits it […]