magazine archive
magazine archive
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The secret formulas employed by the experts
Thursday 19 Nov 2020The main reason investors care about valuation is because of the risk of suffering underperformance if they overpay for a stock. There are many different approaches used to value companies ranging from discounted cash flow based measures, relative valuation and multiple based methods. In this...
The lesser-known US stocks which have beaten big tech
Thursday 19 Nov 2020The coronavirus pandemic has provided the world with its toughest stress test in more than 80 years. People across the globe have embraced the promise of a hitherto elusive vaccine, sending stocks around the world racing higher. The victory of Joe Biden in the race to occupy the White House hot...
Unlocking the world: The stocks to buy ahead of a vaccine
Thursday 19 Nov 2020The news on 9 November of successful early trials of a coronavirus vaccine sent global markets soaring with the most beaten-down sectors like travel, leisure and hospitality, energy and banks enjoying their best daily or weekly performance in years. This has been followed by further positive news...
Why acquisitions can be good, bad and ugly
Thursday 12 Nov 2020Companies buying other companies is very common and this is often referred to as pursuing a mergers and acquisitions strategy, or M&A for short. Acquiring businesses can bring numerous benefits for the purchaser, but this strategy is no slam dunk, for where there are opportunities there are...
FTSE income favourites: time for a rethink?
Thursday 12 Nov 2020When we analyse the performance of high-yielding stocks, more often than not investors tend to lose more on the value of their holdings than they receive in dividends, which begs the question why own them in the first place? This is particularly relevant to companies in the FTSE 100 which are...
Amazon: Can it keep winning as lockdown resumes?
Thursday 05 Nov 2020There are not many stocks that can hold a candle to the staggering returns earned from Amazon and we continue to see the business as a long-term winner and a stock worth owning to benefit from the accelerating digitisation of society and the economy. Over the past 10 years it has delivered an...
What investors should do after the latest correction
Thursday 05 Nov 2020October is often referred to as ‘the cruellest month’, as it tends to see more than its fair share of abrupt market sell-offs, including famously 1929 and 1987. A study of the Dow Jones index going back to 1896 shows that volatility, as measured by the standard deviation of daily moves, is...
How paying off debt can transform a company’s share price
Thursday 05 Nov 2020Among the stock market’s most spectacular share price appreciation stories of recent years is Premier Foods ( PFD ) . The cake, gravy and cooking sauces maker known for brands including Mr Kipling , Bisto , Ambrosia, Sharwood’s and Loyd Grossman . Languishing at 19.4p in March, Premier Foods’...
Is the fanfare for Fundsmith justified?
Thursday 29 Oct 2020In typically pugnacious style, when launching Fundsmith (B41YBW7) ten years ago with a personal investment of £25 million of his own cash veteran City dealer Terry Smith called the UK fund management industry ‘broken’, accusing it of over-trading, fund proliferation, closet indexing and over-...
Three indicators that increase the chances of investment success
Thursday 29 Oct 2020In investing, the more positive factors you have working in your favour, the better the likely results. For this reason with every potential investment it is worth totting up winning factors in a checklist. In this article we reveal three fundamental indicators which have proven their worth over...