Tag Archives : Portfolio Management


May Stock Purchase – GSK, SHP and The Importance of Income 4

The month of May continued to see markets at record highs. For someone like me who is in the asset accumulation phase of their life cycle, this is terrible news. This is because I don’t like paying top price for ownership stakes in companies. I or anyone else for that matter who has a long time horizon in front of them should wish for languishing markets so that we get the most bang for our back – we get more shares for the same amount spent. Unfortunately the persistence of low interest rates by various central banks has meant stocks are at record highs and I need to pay up […]


Imperial Brands (IMB) Stock Purchase – Topping Up On an Existing Position By Exiting Dunedin Income Growth Trust

Imperial Brands (IMB) is a company I talked about glowingly a few months ago when I first purchased shares in it. It is easy to see why. The company has strong free cash flows, a recession resistant business model, a disciplined capital strategy and a history of double digit dividend increases which look like they are only going to continue. But for all this blue chip’s strength it is often overlooked by many an individual investor. This is because Imperial’s biggest money spinner is tobacco and people are averse to owning tobacco-related shares for obvious ethical reasons (I have written about ethics and investing before so have a look there […]


GlaxoSmithKline (GSK) Stock Purchases – Pound Cost Averaging My Way In To This Healthcare Giant 1

When I first decided to become a dividend growth investor, GSK is one of the first stocks I looked at. The company met the criteria beginner investors should look for. Namely, GSK has strong Free Cash Flow, a bullet proof balance sheet, good returns on capital (12%), strong returns on equity (15%) is an easy to understand business,has stable and predictable growth, has economic moats in its consumer business and it pays a hefty dividend. What also swung me to looking at GSK was the number of income fund managers holding this stock in their portfolio thus showing that the company is highly regarded in the wealth management world. The […]


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 […]