Does it really pay to ‘buy what you know’?
Investment guru Peter Lynch is well-known for his ‘buy what you know’ philosophy, which emphasizes investing in companies within industries that you have expertise or experience in. This approach has proven successful for Lynch, particularly during his time managing the Fidelity Magellan fund. One of Lynch’s most successful investments was in companies like Phillip Morris […]
When to tell your kids about their Jisas
Teaching Financial Literacy Through Junior ISAs As a parent, the decision of how much to contribute to your child’s Junior Individual Savings Account (Jisa) can be a complex one. The Bearbull household is currently grappling with this very dilemma, as their children grow older and the need for financial planning becomes more pressing. For many […]
Don’t panic about the Hargreaves Lansdown takeover
Investors utilizing Hargreaves Lansdown may be curious about the implications of the recent takeover bid on their investment portfolio and experience with the platform. If approved by shareholders, the acquisition by a group of private equity investors, including CVC Capital Partners, will bring significant investment to revamp the platform’s competitiveness. The investors believe that as […]
Why do we keep ignoring the ‘subsidy trap’?
Last week, Kamala Harris unveiled her economic agenda for her upcoming presidency, focusing on assisting low-income families who have been disproportionately impacted by recent spikes in inflation. One key aspect of her plan is to combat price gouging on essential groceries and provide a $25,000 subsidy for first-time homebuyers. While these initiatives may offer immediate […]
Why DIY investors should care about AGMs
Private shareholders often feel frustrated at annual general meetings (AGMs) of publicly listed companies because they know that their votes won’t have much impact. Institutional shareholders, with their dominant stakes, ultimately determine the outcome of the meetings. Despite this, is it still worth participating in the voting process and attending AGMs? Institutions typically vote in […]
The pressure is easing for UK plc
The concept of finding a cheap entry point in the market is a strategic way to invest in good companies. This approach has been evident in the recent global sell-off, where investors quickly took advantage of price dips to buy shares in tech giants. Despite concerns raised by hedge fund Elliott Management about Nvidia being […]
Are we seeing a new type of ‘carbon credit’?
Carbon credits have been a hot topic in recent years, with their issuance surging in 2021/22 before moderating last year. These credits, used by companies to offset carbon dioxide emissions, come in two main types: compliance credits and voluntary offsets. Compliance credits are mandated by regulations, while voluntary offsets are purchased to voluntarily reduce emissions. […]
Time to pay attention to China’s precious metal influence
Investors often pride themselves on being countercyclical, but Chinese conglomerates take this to a whole new level. The current slump in the lithium and nickel markets serves as a testament to their unique approach – while EV demand is on the decline, supply remains high, thanks to Chinese companies’ willingness to invest in less trendy […]