Category Archives : Practical Advice on Investing

Articles on the practical aspects of investing. Articles show where to put your money. If you want to know how to invest, look at the Investing Theory sub menu

The Best Tips To Teach Your Kids About Investing

We all know that the easiest way to get rich is to start investing early and let your returns compound over time. The only problem is that it is hard getting the youth interested enough to get started on their wealth building journey. They are more likely to watch the news than actually learn about investing and the benefits it brings.   In my experience, the best ways to teach kids about investing is to make it relevant and fun.   A good example for this is having a discussion with them on whether they would buy Sony which makes PlayStation or Microsoft which makes the Xbox. Ask them about […]

Sylvia Bloom – Secret Secretarial Stock Market Millionaire

The secret stock market dividend millionaires I have written about all seem to share similar characteristics. Firstly, they were all ordinary people. None were highly paid or were entrepreneurs themselves. But they did know and understand the wealth generating power of business and thus aimed to be partial owners in big blue chip companies via stock ownership. Secondly they had high savings rates ensuring they could sock away every dime they had in to the stock market. And thirdly, they had patience. A lot of it. They did not trade in and out of stocks. Instead, they were mainly buy and hold investors who understood the power of compounding. They […]

Pat Dorsey – The Little Book That Builds Wealth Moats Review and Examples

For investors that buy stocks in quality companies, Pat Dorsey is the go to man. He was the Director of Equity Research for Morningstar and was instrumental in the development of Morningstar’s economic moat ratings, as well as the methodology behind Morningstar’s framework for analysing competitive advantage.   Most people associate Warren Buffet with economic moats. Buffett popularised investing in high quality companies. But if you want to understand what a high quality company is, you need to read the work of Pat Dorsey. He is simply brilliant!   This post is dedicated to Pat Dorsey. Below, I have mapped out 4 different types of Moats Pat Dorsey talks about […]

When To Sell A Stock A Quality Stock

Selling your stocks at the right time is arguably the most challenging part of investing.
There are times when we are wrong and we must exit at a loss – that is hard and emotionally challenging!   
There are times when we buy strong stocks that perform very well. We tend to sell these too prematurely because we doubt that the strength can last. And we miss out on the long term compounding effect of that stock.   
Then there is the pain of watching a winning trade turn into a loser because we fail to exit at all!   
Knowing when to sell a stock is an interesting predicament. But […]

Buy Stocks Online

With the current lockdown in place, it seems many people have taken up trading and investing on the stock market. Articles from retuers and altifi are claiming mobile trading apps are enjoying a huge boom in activity.   Freetrade, a new challenger stock broker with a slick mobile trading app, has described March as being an insanely good month as they have seen record account openings, with almost every day setting a new all-time record over the month.   And Freetrade is not alone. A number of London-listed retail brokers have reported a jump in new clients opening financial market trading accounts.    I don’t know what is driving all these new […]

Grace Goner – Secret Stocks And Shares Dividend Millionaire

Stop me if you’ve heard this one before: Twenty years ago, if you’d bought $5,000 worth of Amazon stock and held it, you’d be sitting on more than $2.4 million today.   Or if you bought $5,000 worth of Microsoft stock over thirty year ago and reinvested the dividends, you’d be sitting on more than $8 million today.   You might be thinking this is absurd, but I’m simply pointing you to the facts.   You might be thinking these numbers are unachievable but they are stories of normal everyday people out there who prove the contrary.   Let’s look at the example of Grace Goner.   Grace Goner had […]

My Ghost Ship Pension Portfolio – Coffee Can SIPP

In early 2017, I moved an old pension scheme from an underperforming high fee company to a platform where I could invest the money myself. The idea was that I would be able to outperform the high fee company by producing superior returns and letting my money compound at higher rates in order to have a higher pension value when I retire.   Since the move, I have been patiently buying up high quality companies. I can happily say that this past week I was able to deploy the full amount of money I was transferred. Yes it has taken me two and a half years to do this! There […]

Kenny G – Secret Buy & Hold Dividend Millionaire

If you had to do a double take of the title, I wouldn’t blame you. But Kenny G is in fact a secret buy and hold dividend millionaire. Yes the same Kenny G who rose in stardom during the 80’s and 90’s with hits such as Duotones, Going Home, Forever in Love and Sentimental. So how exactly did this world renowned saxophonist become a stock market millionaire? Kenny G invested in Starbucks in the 1980’s. Here is a video of him taking about this investment. Kenny G met Howard Schultz, the founder of Starbucks, after a recommendation from his uncle (Harold Gorlick), one of the first investors in Starbucks. Harold […]

Stewart Horejsi – Secret Buy And Hold Billionaire Berkshire Hathaway

We all know Berkshire Hathaway as the vehicle that made Warren Buffet the richest man in the world. But what most people don’t realise is that due to Berkshire’s fantastic annual compounded returns, it minted a number of millionaires and billionaires along the way. Today we focus on Stewart Horejsi, a billionaire born through Berkshire Hathaway.  Stewart Horejsi ran his family’s welding business. The business was struggling to fight off competition and Stewart was having doubts that his business would survive. He thus looked to the stock market in order to grow his wealth. In 1980 Stewart bought 40 shares in Berkshire for $265 each – an initial investment of […]

Herbert Wertheim – Secret Buy & Hold Dividend Billionaire

Herbert Wertheim. Does the name ring a bell? I bet not. Up until a Forbes piece a few days ago, the Philadelphia native was mostly anonymous. Heck, if you had to walk past him on a street, you would think he was just another pensioner. You cannot tell it by his appearance or lack of media attention but Herbert Wertheim is a billionaire! To get to the ten figure mark, Herbert invested in companies such as Apple, Alphabet (Google), BP, Heico and Microsoft. He bought many companies at IPO and still holds them today. This is the story of how Herbert Wertheim made him money. Herbert Wertheim was not like […]