I was chatting to a reader about share prices and was asked whether I consider a falling share price to be a negative indicator. Surely, if the market is a combination of hundreds of individual investors expressing their opinions then a falling price indicates that more people have found a reason to sell than to […]
Reader question: Is a falling share price a negative indicator? Read More »
Last week, I wrote a post about portfolio management and signalled my intention to cover some of the elements in more detail in further posts. Since then, I’ve been thinking about the psychology of investing – I’ve written fairly extensively about the qualitative and quantitative analysis I do on companies, but relatively little about the
The key building blocks of my approach to portfolio management are to keep risks tightly managed and to develop an easy to follow method of identifying opportunities to buy and sell. I try to keep these goals at the forefront of my thinking to tilt the odds of making money in my favour. When I
The Bank of England is a comparatively modern institution when held against other national banks such as the Bank of Geneva (founded in 1345) or the Bank of Venice (founded in 1157). It was originally conceived by a merchant by the name of William Patterson in 1689 and was incorporated by William the 3rd in
Those of you that used to follow this blog will have noticed that I’ve been somewhat absent over the last few months. It will therefore come as little surprise to hear that I’ve been extraordinarily busy but happily have found some time to sit down and pen another article. When I started this blog in
Around a year ago, I wrote an article on General Electric, the American conglomerate that was once one of the world’s largest and most valuable companies. After slumping revenues and rocketing debts crippled both the company and its share price, the CEO was replaced and the company embarked on an ambitious turnaround plan to pay
Ever since 2008 the global economy has been experiencing an unprecedented period of low interest rates, but in 2016, the US Federal Reserve began to tentatively increase rates with a view to staving off inflation caused by a decade of cheap and plentiful money supply. In addition, in late 2018, the Fed decided to start
The US Federal Reserve reverses their rate hikes policy Read More »
Shares in Centrica have fallen nearly 20% after the company slashed its dividend and announced that their CEO, Iain Conn, is to step down from the role next year. The company has made a loss of nearly £500m in the last six months and has seen its shares decline an eye-watering 70% since Iain took
Surprise, surprise, Centrica has just fallen off another cliff… Read More »
Having written about my painful experience of investing with Carillion I have watched with interest as shares of Kier have followed a similar route. From a peak of over £24 in 2007, the shares collapsed to £6.50 during the financial crisis, never recovering their previous height and now having lost over 90% of their value
Stories have recently started appearing in the media that Italy, the third biggest economy in the Eurozone, has successfully passed initial proposals to create a currency alternative to the Euro, it’s current currency of choice. During last year’s elections, the ruling coalition ran on a platform of policies that toyed with the idea of returning
Italy opens proposals for new alternative currency Read More »
Unless you’ve been living under a rock this week, you’ll have read the extensive coverage of Neil Woodford’s decision to suspend trading in one of his funds. My understanding is that this makes it temporarily impossible for an investor to buy or sell units in the fund, or to transfer units they already own between
I recently read an article from a fellow blogger regarding their portfolio where they looked at their actual behaviour vs their published strategy. In a similar manner to myself, this investor believes in buying long-term value plays, buying for income and holding for the long term. I’ve followed their blog for several years and have
A few months ago I wrote an article about the declining standards of debt in issue and how I believe this is going to impact an awful lot of investors that stick with the received wisdom of ‘bonds are safe, equities are risky’. I was therefore interested to read that 2019 is shaping up to
I forget where I first heard the quote, but several years ago, I was watching a video with Charlie Munger and Warren Buffet where one of them said something to the effect that “Diversification is for people that don’t know what they’re doing”. It was a typically astute observation from the duo, and it made
Your portfolio is about preserving capital in the short-term and achieving capital appreciation in the long-term. In addition to this, you might seek to produce some level of income but these goals can often feel complicated and obscure to achieve. So how do I go about it? When pursuing these goals, I find looking at
