Tag Archives : market stratergy

Paying Up For Quality Growth Stocks – What Makes A Great Business

Great businesses produce great returns. As Warren Buffet said “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Rather than heading the great porches advice, most investors underestimate business quality which results in unduly low market valuations for the very best companies. As an individual investor, understanding quality and its true value can lead you to craft an investment strategy that exploits market inefficiencies. What Makes an Extraordinary Business So what makes a business extraordinary that deserves a premium rating? A truly great business can come in many guises but by and large there is a need for an […]

How Benjamin Graham Valued And Bought Stocks

Ask any professional investor about Benjamin Graham and they will tell you he deserves his place amongst the top 10 greatest investors of all time. Ask Warren Buffet and he’ll certainly place Ben Graham as number 1. Benjamin Graham is the father of value investing and wrote one of the book that shaped many an investors career; investors Security Analysis. The book which is seen as the bible of the value investing world is an essential read for anyone wishing to invest in individual stocks. Benjamin Graham’s value investing strategy was focused on buying stocks with the same discipline as an insurance underwriter, carefully considering the risks, rejecting potential securities […]

Why Do Stocks That Have Been Dropped By Index Funds Outperform The Newer Stocks Added.

According to research from the great Dr. Jeremy Siegel, 82% of stocks that are removed from the S&P 500 go on to outperform the stock that replaced them in the index during the subsequent three-years.  This finding seems counterintuitive. If a stock gets added to the S&P 500,the FTSE 100 or any other major index for that matter it must be riding a momentum wave that has seen its valuation increase. Likewise, a stock that is removed from the S&P 500 must have been riding a wave of sluggish performance that warranted its exclusion from the index. So what’s the reasoning? To understand the mechanics of Dr Siegel’s finding, contemplate […]

What Stage Of The Bull Market Are We Currently In ?

The current bull market has had a barn storming run and is currently in its 8th year. Typically, when bull market runs get this long and have racked up positive returns of over 200% during this time, investors start to question how much longer the bull has to run. I recently came across a great article which aims to show where the markets currently are in terms of the investment cycle. The evidence currently points to the markets being in the latter end of the mid-staged bull market and about to enter the peak of the bull. When markets normally are about to enter its peak stages, we see heavy […]

Early Investment Mistakes – Kim Iskyan Edition

We all know that investing is a tried and tested route to wealth creation. But whilst most people think they will will make great investment decisions from the get go, it is far from the truth. In reality, investors tend to make a disproportional amount of mistakes when they just start. This by no means should put you off. Even the greatest of investors like Warren Buffet and Peter Lynch admit to making huge mistakes in the initial phase of there investment careers. Mistakes can be a good thing if you learn the lessons and carry them on board for the rest of your life. One really good piece I […]

The importance of investing in an ISA at the beginning of the year – Its in the numbers!

As a UK resident, one of the best ways to invest money is via an ISA. This is a tax wrapper that shelters your investments from capital gains tax and tax on dividends. Every year tax year, each individual gets £15,240 they could put in their ISA. Whilst many investors recognise the benefits of investing in an ISA, there are still some misconceptions out there. One of the biggest misconceptions is that the end of the tax year, March, is the best time to invest you money in an ISA. This misconception has arisen due to the the media and brokerage companies refer to March as the ‘ISA season’. But […]

My BG stocks turns in to Shell (RDSB) – Making Money from Merger Abitrage 7

Royal Dutch Shell’s takeover of BG became official today. As an investor, it has been interesting to not only make money from this takeover but to also see how the takeover unfolded from the initial announcement in April last year. There were many sceptics who touted that the deal will not go through and this created a spread between Shells offer price and BG share price. BG has been trading at a discount for the majority of the time since last October and it this provided a great opportunity for many investors to make money via Merger Arbitrage. I too decided that the upside in buying into BG at a […]

10 things books won’t teach you about investing 2

Reading books, publications and annual letters written by investment professionals is a great way to get a better grasp of your subject matter of choice. By reading books such as the Intelligent Investor, One Up On Wall Street (A Fireside book) and the Little Book of Value Investing  you can greatly cut the time required to master investing. By reading these books, you can see what actually works on wall street and you can use these techniques in order to select your own stocks and have a winning run. Whilst reading books can give you a great perspective on how to invest your money, there are a number of things that […]

Quick gains with Woodford Patient Capital Trust (WPCT) – Legal Frontrunning 1

When you are just starting out investing, there is a temptation to make quick gains. You want to boost your portfolio to a sizeable amount so that dividend collecting can be meaningful. For a person in my situation, taking these calculated quick gain ‘risks’ are worth it because I am still young and just starting out with my journey to be financially free. So if I had to lose money at this early stage, it would be an insignificant amount which I can always make up as time is on my side. One strategy I used to make quick gains was Frontrunning. Front running is buying or selling a stock […]