magazine archive


magazine archive

Education

Discover a great tool for valuing high growth companies

Thursday 14 Nov 2019

The ‘Rule of 40’ is increasingly being adopted by high growth company executives as an important metric to help measure the trade-offs of balancing growth and profitability. Most retail investors may be unfamiliar with the term yet it is simple to understand and easy to apply. It can help you...

What are consensus earnings forecasts and why do they matter?

Thursday 07 Nov 2019

The term ‘consensus’ is usually used to describe a broadly-accepted opinion or decision among a group of people. When applied to company earnings, it refers to the average of a collection of analysts’ forecasts. According to the efficient market hypothesis theory, made popular in the 1970s by...

What to expect from investing in different assets over the long-term

Thursday 31 Oct 2019

Before embarking on a journey it is important to have a realistic expectation of how long it will take, how bumpy or smooth it will be and the likelihood of reaching the final destination. Likewise there are many types of asset to choose from in the capital markets which will be appropriate for...

When to use price-to-book value

Thursday 17 Oct 2019

It has long been a vital tool in helping investors to value shares but price-to-book value (PBV) has fallen out of favour in recent years. For most of the past decade investors have been drawn to growth stocks because that’s where the best returns have been earned. The PBV value tool is not always...

What does a good and bad portfolio look like?

Thursday 03 Oct 2019

Portfolio construction has an important part to play in the investment world, but receives very little attention. It’s a shame because it can make a huge difference to long-term performance as well as reduce stress to help investors stay the course. This article looks at the benefits of building a...

What are dividends and when do they get paid?

Thursday 08 Aug 2019

Dividends are rewards paid by companies to their shareholders, typically in cash or sometimes as shares. These payments tend to be distributed twice a year for individual company shares. Many investment funds and exchange-traded funds (ETFs) also pay dividends to their investors and distributions...

What are adjusted earnings and why do companies use them?

Thursday 01 Aug 2019

When companies report their financial figures, often the final figure they want you to see is not the one that simply represents all of their incomings minus their outgoings. A growing number of firms think if you just take the statutory figures they provide, which usually stick rigidly to industry...

Understanding the different investment fund charges

Thursday 06 Jun 2019

Funds are obliged by the regulator to display their ongoing charges figure (OCF) to give investors a clear picture of the total costs they will pay for buying, selling and holding units in a fund. The lion’s share of the OCF is related to fees paid to the fund manager. This is to compensate the...

Can you give shares as a present to family or friends?

Thursday 11 Apr 2019

When you are thinking of potential gifts for someone, chocolates or a good book are more likely to be at the top of your list rather than shares, although the latter is possible. Everyone has an annual gift allowance of up to £3,000, which can be carried forward only to the next financial year,...

Why do share prices change overnight?

Thursday 21 Mar 2019

Relative newcomers to investing may be confused by the fact share prices can move between days, apparently without any trading taking place. Even more experienced investors often grumble darkly about these moves and in some cases the difficulty in buying as much as they want of a stock when it is...

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