Tag Archives : Portfolio Management


My Strategy For The New Stocks and Shares ISA 4

When it comes to Investing and Saving, I cannot believe how lucky we are in the UK. We have an account that lets you invest and save money completely tax free. And unlike a pension, you can withdraw the money at any age you like. Yes, I am talking about the Investment and Saving Account (ISA). I do most of my investing these days using an ISA account. No capital gains tax to pay and no dividends tax to pay. Without these expenses I can let more of my money compound for longer. Every year, each individual can put a set amount into an ISA account. Over the past few […]


What Stocks and Shares Should Beginner Investors Buy – 8 Factors To Look At 2

When it comes to modern day investing advice, the majority of newbie investors are given the advice of sticking their money into a low cost index fund such as the FTSE100 or S&P500. THE rise of passive investing has been great for the individual investor as it means they can get wide diversification for low cost with a single purchase. The low cost is the key part and that is why passive indexes have outperformed the more actively managed and more expensive mutual funds. If you are an investor with no time, can’t tell the difference between a balance sheet and profit and loss account and don’t want to do […]


Two Year Self Invested Stocks ISA Account Performance Review – Still Beating The Market 1

How time floes. In two weeks time, I will be celebrating my 2nd anniversary of my active stocks and shares ISA portfolio. Over this time, we have had the Greek Crises, the oil crises, the commodities crises, the Chinese crises, rate increases, emerging market slowdowns, Brexit, populism and the trump bump. Yet it still feels like its only yesterday that I took charge of my own money and bought my first stock. With my portfolio and tax year ends quickly approaching, now seems a good time to analyse my performance over this period. I need to know if actively investing by picking my own stocks has been a good choice […]


Burberry (LON:BRBY) Shares Sale : When A Stock Is Overvalued Sell

Having gone years without selling out of a position, it feels odd writing about my second share sale so quick after my first one. Making my second stock sale all the more remarkable is I didn’t think it would be Burberry. Since initiating my position in Burberry back in July 2016, I imagined that I would be holding these shares for years and years – even though I didn’t see it as a legacy position. Whenever I make a stock purchase, the company I am investing in either has to be a serial compounder of wealth or it is fundamentally undervalued. The biggest opportunities for large returns are by buying […]


February Stock Purchase – GSK, Experian, Sage, Shire, Fundsmith, Free Cash Flow

The big news over the last month was Kraft-Heinz failed takeover bid of Unilever. I remember Krafts initial approach and its subsequent quick abandonment vividly. On 17 February when the approach made by kraft was leaked to the media, I remember thinking that I hope management does not engage with Kraft at any level. Thankfully, that is what happened and the news of the deserted takeover on 19the February was music to my ears. When it comes to investing, I do not look for quick gains. I don’t want to sell the wonderful companies I own for a quick buck. I don’t want to sell the golden goose for an […]


Merchants Investment Trust – When Reasons For Owning A Stock Change Time To Sell 2

My very first stock sale. It feels really weird considering I made my first stock purchase in 2015. I’m glad to say I have remained inactive over the past 2 years amidst all the investing volatility. But alas I had to act. Just because i am a buy and hold investor doesn’t mean i should sit on my hands when my investment thesis changes. I sold my shares in Merchants for a profit of just over 6%. As I have only held the stock for 4 months, the annualised return for my purchase is 18%. Not bad id I say so myself. To put it simply, I sold Merchants Trust […]


Estee Lauder (EL) Share Purchase – Wonderful Companies Deserve High Valuation Multiples

Those familiar with my investment approach know that one of my key philosophies is to buy shares trading at a Price to Earnings ratio of under 20. Simply put, I do not like to overpay for stocks. It may thus come as a surprise that I purchased shares in the Estee Lauder company (NYSE:EL) whose shares trade at a P/E ratio of 24. No, I have not lost my mind! Neither have I thrown my investment thesis out f the window. Rather, I have bought shares in Estee Lauder due to its high returns on equity (ROE). To understand the concept of Return on Equity, have a look at the […]


To Be a Successful Stock Market Investor Think Like a Business Owner

Modern day stock picking is akin to gambling money in a casino, you place money on a particular ticker symbol and hope that it goes up. How many times have you read an article on that ‘one magic stock’ or seen people speculate on a single stock based on an online forum. The majority of people think that the stock market is a route to overnight millionaire status. The mass media has led people to believe this as they selectively run stories on people who have become millionaires overnight based on a single stock pick whilst sunning the countless others who have lost it all by placing everything, including their […]


Active Investing is Better Than Passive Investing In Overvalued Markets 2

Regularly readers of my blog will know that I recently moved some money out of a bunch of index funds and into my more actively managed portfolio. I can already here huge ‘sighs’ from the efficient market hypothesis faithful. Investors who religiously believe in index investing will tell you that it is impossible to beat an index fund over a considerable period of time. Whilst I agree with this statement, I also think that you need to use your brain at times and shouldn’t blindly follow any research. You need to be able to critically analyse the results of the research to see in what market environments the thesis or […]


Foreign Investors Should Prefer Share Buybacks Over Dividends

The two main ways companies reward shareholders is via dividends or buybacks. There has long been a debate about which of the two is better. Both have there advantages and disadvantages and that is why many blue chip companies use a combination of the two. Buybacks Vs Dividends Dividends – When a company pays a dividend, it is essentially giving a share of its profits to its owners/shareholders. Dividends are usually paid at regular intervals and the best blue chip companies grow their dividend over time. Buybacks – A share buyback refers to the purchase by a company of its shares from the marketplace. As a result of a buyback […]