Tag Archives : stock selection


September Monthly Stock Purchase – Emerging Market Contagion

High yielding British blue chip companies were on sale during the month of September. This was particularly true for companies with deep entrenched roots in emerging markets. Emerging markets have faced a torrid time of late with countries such as Turkey, India, Brazil, Indonesia, Argentina and South Africa seeing their currencies drop more than 10% against the dollar. The expectations are that further currency falls are expected in these nations as the US Dollar continues its powerful surge upwards – investors are flocking to the US Dollar and pulling out of assets denominated in emerging market currencies. So what does a drop in emerging market currencies have to do with […]


Phillip Morris (PM) Stock Purchase – The Best Performer Over The Past 100 Years

It’s a well known secret that one of the single best investments you could have made over the past fifty or sixty years was to buy and hold Philip Morris stock (LINK) . Had you invested $1,000 in the late 1960s, and continually reinvested the dividends along the way, then your holding would be worth roughly $7,000,000 + today. The sheer scope of those returns – compounding at a rate of about 20% a year – is unmatched by any other stock in the S&P 500. (Check the stock return calculator here – please note Phillip Morris was part of Altria (MO) before the 2008 spinoff). Credit Suisse published a report in 2015 […]


Patience in Public Markets Is Key – Creighton’s and RWS Holdings PLC

A few month ago, I bought shares in both Creightons and RWS Holdings PLC. I bought shares in Creightons for 29.5p a piece and RWS for 374p a piece. Subsequent to my purchase, the shares prices of both companies fell due to poorly received trading statements. But I was calm. I knew the market had overreacted as it has done many times over the past 2 years. Creightons fell to19p. RWS fell to 350p The fall in share price for Creightons in particular baffled me. Creightons trading statement indicated that margins might be lower than expected due to having to outsource production due to business being better than expected. Yes […]


July Stock Purchase – ABF, PZC, SGE

The month of July saw the market continue its relentless march upwards. It seems that not even the threat of a trade war has been enough to dislodge the current market trajectory. Many analysts point towards the strong global economy for the positive market backdrop currently being experienced. At present multinational companies are seeing better growth return in many emerging markets, whilst industrial production markets and other more economically sensitive sectors are enjoying notably more buoyant conditions than those that prevailed a couple of years ago. This has caused the stock market to remain buoyant. Whilst the market as whole is at the top end of the valuation spectrum, a number […]


Vodafone PLC Stock (VOD) – What A High Yield Stock Can Do For You.

The past week has seen Vodafone PLC trade at a 7% dividend yield. For every £1.83 share you purchase, you get £0.14 in annual income. Put another way, if you buy £1,830 worth of shares, your annual income is expected to be £140. Although the dividend is expected to to rise in the next year, let’s assume that the annual dividend income remains at last years level of £0.15 (in the interest of conservatism). Provided the dividend remains steady, each share of Vodafone purchased today stands to collect £0.28 in total, cumulative dividends over the next two years. Why is that important from a principal protection standpoint? Because it only takes […]


PepsiCo Share Purchase– Big brands Are Still In Fashion

The current market environment has taken me by surprise. At the beginning of the year, if you had told me that the consumer staple stocks sector would fall by 20%, I would simply have laughed at you. But this is the position we find ourselves in today. After years of ‘dull’ and ‘boring’ companies being in fashion, it appears that the trend has turned. It seems that investors are no longer willing to bid up prices of stable companies when they can achieve a decent 3% risk free income via treasure bonds. As a result, many companies with strong franchises and stable performances are reaching fair value. RB, British American […]


A Second And Third Takeover Bid For Fidessa Finally Sees It Leave My Portfolio – 2 Alternative Companies

I recently wrote a piece on Fidessa saying that I was not happy the company has been approached for a takeover. In the piece I mentioned that Fidessas earnings are currently suppressed meaning that the takeover bid was too low for my liking. Furthermore, I mentioned that Elliot was building a stake meaning the activist investor would certainly push the Fidessa board to negotiate a higher takeover price. This finally seems to have played out as Fidessa received two new bids with the higher one worth £37.50. This lead to the share price jumping to £41 – above the highest takeover approach price – due to speculation of a biding […]


March Monthly Stock Purchase – Perseverance and Temperament are Key To Investing Successfully

2018 has so far been a dreadful year for the UK market with prices dropping 7.2% year to date. This UK has been the worst performing developed market in 2018. Whist they have been several profit warnings for London listed companies, part of the fall in UK shares has been due to a market de-rating. Many companies in the UK market are trading at discounts when compared to global peers of similar quality. Just look at Royal Dutch Shell trading at a discount to Exxon Mobil, BAT trading at a discount to Altria and RB trading at a discount to Church and Dwight. This is why it is an important […]


Terry Smith Fundsmith Equity Fund Buys Facebook Shares In Its Portfolio 3

Terry Smith, the founder of Fundsmith, is a man I greatly admire. He is an anomaly in the world of investing and finance due to his his straight talking nature. He is a breath of fresh air as he is one of the only fund managers to eschew fees, invest his own money in the funds he runs and doesn’t performance chase for short term gains. His flagship funds performance has been exceptional since its inception with cumulative returns of 260.9% or 19.1% per annum. For reference, the MSCI world index generated returns of 133.3% or 12.3% per annum over the same period. Terry Smith is one of those active […]


February Stock Purchases – Be Cheerful Of Falling Stock Prices 2

February has seen shares in London listed companies finally experience some volatility and drop a notch. There was a combination of reasons for this; weakness in US shares, the rising value of the pound and the fear that interest rates may be increased faster than expected. This latter point is the most pronounced with the result being that solid defensive companies have seen their share prices drop more than the wider market. As someone still in the wealth accumulation stage of their life, I cherish lower stock prices as it gives me the opportunity to buy the stocks I like on the cheap. The only people who should wish for […]