Tag Archives : stock selection


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 […]


Snapchat IPO, Millennials and the Investing Lessons Learnt

It is common knowledge that millennial’s don’t invest as much as previous generations. There is a plethora of reasons for this with the most common being debt (student loans), stagnant wage growth and fear of another 2008 style crash. But this all seemed to change two month ago with the Snapchat IPO – millennials got excited about investing in the stock market for the first time in a long time. The following comes from the USA Today just a few days after the company went public in early-March: “Millennials have largely stayed out of the stock market, held back by student loans, recent memories of the last crash and financial […]


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 […]


April Stock Purchase – GSK, ABF, PZC, SGE, INF

There is only one place to start this post and that is the snap general election called by Teresa May. What surprised me the most was a lack of volatility in the wake of the announcement. Sure the pound surged to a yearly high and stock prices in overseas earning companies dropped, but besides that, markets were relatively calm. It appears as though the markets like a political shock for once. But this may be because everything points to the conservatives being elected with a substantially increased majority – which will give the government a firm mandate and put it on a steadier, more solid grounding as it begins the […]


SSE Stock Purchase: Utility Shares Are For Yield and Inflation

Inflation has been non-existent over the past few years. As recently as 18 months ago, the inflation rate was 0%. But this is all changing and inflation over the past few months has jumped to 2.3%. And it is set to rise further as the weak pound, following the Brexit vote, makes imports more expensive for us to buy. With inflation returning, now is a good time to start thinking about buying into assets that will protect the value of money as the cost of living increases. Utility companies are a great way to protect against inflation as the prices they charge are regulated and linked to the Retail Price […]


March Stock Purchase: GSK, Shire, NCC, Stagecoach 2

March saw the FTSE 100 hit a record high. London’s main index is now trading at an astonishing P/E of 38 when looking at trailing earnings. On a forward earnings basis, the FTSE only trades at a P/E of 14.67. Much better! The vast disparity between the two is because the heaviest components of the FTSE 100 are oil and mining related stocks. With commodity prices bouncing back, analysts expect these companies to produce much higher earnings over the year and that is why the forward P/E is more than twice as low as the trailing P/E. Personally, I think analysts are being too kind with earnings here but if […]


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 […]


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 […]