If you’ve been following global financial news, you’ll have noticed the increasing wave of emerging market crises that are spreading around the globe. From South Africa to Turkey, Argentina and Venezuela, emerging markets are facing a torrid time. Add Indonesia, Saudi Arabia and China to the list, and what started out as a currency crisis […]
When it comes to investment assets there are lots of ways to categorise them. You can categorise by asset type, geography, sector, and so on. One of the most commonly overlooked is liquidity. Generally speaking, assets fall somewhere on a spectrum of liquidity, which refers to how easily convertible they are into cash. Large, listed
Does your portfolio contain sufficient liquidity? Read More »
Earlier this month I was speaking to an old colleague who had discovered my blog and wanted to know about the biggest hurdles that I faced when building my portfolio. Truthfully, the biggest challenges I’ve faced are ones which I’ve only partially overcome and I’m pretty sure I’ll always face them. Building capital. When I
Three things that people won’t tell you about building your portfolio Read More »
Not all that long ago, Neil Woodford was slated as one of the UK’s leading investment success stories. Featured by multiple press publications as ‘one to watch’, retail investors flocked to him as he made generous returns at investment house Invesco Perpetual. When he moved to establish his own funds in 2014, hundreds of investors
The danger of not understanding your investments Read More »
Any savvy investor worth their salt is aware that diversifying your portfolio is a key way to reduce your risk. You might have also heard of the concept of ‘hedging’ your investments, which is a method of reducing the risk of declining prices in an investment. A ‘hedge’ position usually refers to an something which
Last week I was speaking to a colleague who was reviewing their pension and had seen the term ‘convertible security’ but didn’t know what it meant. A convertible security is essentially just a type of investment that can be ‘converted’ into another. For example, a convertible bond paying 5% could come with an option to
Reader Question: What are convertible securities? Read More »
A friend of mine was recently contacted by a fine wine salesman. The pitch was fairly straight forward. In addition to buying wine to drink, individuals can also create investment portfolio of fine vintages. Wine is a finite product for which demand is currently outstripping supply. The great chateaus of the world only produce so many
Reader Question: Should I consider investing in fine wine? Read More »
Cash flow, or the ability of a business to generate cash, is one of the most important factors for success in business. With interest rates at rock bottom levels, access to cheap capital has rarely been more available, but successfully deploying that capital to generate cash is the real measure of a business’s success. A
The markets have been increasingly volatile over the last few months. After an extended period of low volatility, this has caught some investors off-guard, with many piling into ’tipped’ stocks without examining the fundamentals of the company and consequently being surprised when they suffered a sudden drop in value as volatility picked up. Being a
A few weeks ago, I wrote an article about an on-going crisis in business that is being caused by the Big Four accountancy firms. Recent failures of auditors in the UK have left investors like myself with an increasingly strong feeling that the reports we receive are of no real value in determining how a
The Big Four accountancy firms; KPMG, Deloitte, EY and PwC are the four largest auditors of modern businesses. They also happen to have overseen the major corporate disasters experienced by Tesco and Carillion whilst declaring these companies to be fit to trade and properly financed. Sadly, despite these disasters, there seems to be a closed
In addition to monthly and quarterly financial reviews, once a year, I take the opportunity to conduct an annual ‘super report’ on my finances, covering everything from account balances to performance against benchmarks and my financial forecasts to setting my strategy for the next twelve months. As part of this exercise, I measure a number
Reader Question: How much of my assets should I keep in cash? Read More »
As an investor who is primarily focused on receiving income from my investments, I am aware of the dangers of falling into a ‘yield trap’. After several years of actively managing a portfolio of investments, I have become better versed with looking beyond the initial headline yield of an investment and learning to assess the
International Women’s Day on the 8th March was an opportunity to raise the profile of women’s issues and celebrate the contribution they make to society. Since a fairly young age, I’ve been interested in personal finance; in a recent survey, I rated my financial knowledge as 8 out of 10, indicating a high level of
Earlier this month, I was talking to a friend about financial literacy and they were telling me that they felt ignorant of so much of what was available to them regarding their finances. They’d set themselves some basic goals – they want enough money to be able to provide a good education for their (as
