magazine archive


magazine archive

Feature

Investing in family-run businesses can help you beat the market

Thursday 22 Oct 2020

Some of the most respected investors including Fundsmith manager Terry Smith and asset manager Stewart Investors hold the view that family-controlled businesses can be good investments. The logic is fairly simple – the people running family-controlled companies will have its interests at heart,...

Beyond Brexit: the outlook for UK stocks and the pound

Thursday 22 Oct 2020

While the coronavirus pandemic has been the dominant story of 2020 for global markets, ever-present in the background for UK investors has been the long and torturous road to Brexit, which is rapidly coming to a head with the UK needing to strike a trade deal with the European Union (EU) before 1...

Why investors need to do their homework on rivals and suppliers

Thursday 15 Oct 2020

Whenever a fund manager considers making a new investment, as well as thoroughly analysing the target company’s returns, its finances, the valuation of its shares and so on, they typically take a good look at its rivals to understand the dynamics of the market. In a global sector like oil,...

Shuffling the pack: How income funds are turning to different stocks for dividends

Thursday 15 Oct 2020

It’s been a tough year for people who rely on their investments for income thanks to widespread dividend cuts. Income fund managers have now rejigged their portfolios to names which they believe will be dependable source of dividends or bond coupons going forward. Their changes make for interesting...

Why do shares sometimes react so differently to positive news updates?

Thursday 08 Oct 2020

It’s fair to say that more often than not as human beings we overreact to information, which in turn can lead share prices to overreact in the short term. Yet, as our recent article on momentum showed, if a stock is in a clear trend – positive or negative – it can experience a lot of short-term...

Low growth, recovery or second wave: the investments to own in each scenario

Thursday 08 Oct 2020

We see three different scenarios for markets going into 2021 and inflation will play a key role. First is strong economic recovery with rising inflation and this scenario favours cyclical stocks. For example, this might be commodity producers who would sell their metals for higher prices. Banks...

The FTSE 100 firms which have delivered a decade of negative returns

Thursday 01 Oct 2020

Thirteen companies in the FTSE 100 have lost money for investors who have held the shares over the past decade, based on share price performance and dividends reinvested for the 10 years to 24 September 2020. In comparison over the same timeframe, the 10-year total return for the index stands at 52...

Momentum investing: when to buy a winning stock

Thursday 01 Oct 2020

One of the oldest sayings in the stock market is ‘the trend is your friend’, which means if a share price has been rising for some time, all else being equal, it’s likely to continue rising for the foreseeable future. Likewise, if it’s been falling for some time, it will likely keep falling until...

Tech and gold: is Warren Buffett stepping back at Berkshire Hathaway?

Thursday 01 Oct 2020

Cloud-based data warehousing technology firm Snowflake listed in the US on 16 September in the biggest ever software initial public offering ( IPO ), with its shares up 111% on the first day of trading, valuing the company at £96 billion. Given investor appetite for cloud-based businesses, perhaps...

Growth investing: how to find good companies and avoid bad ones

Thursday 24 Sep 2020

The appeal of a growth company is easy to understand – when we put our money into a business which we expect to grow rapidly we can imagine the worth of our investment growing fast too. Many of today’s largest companies were once small or medium-sized operations which have expanded their business...

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