29 Aug 2011
Market Mayhem or Golden Opportunity?
The FTSE 100 closed last Friday at 5,129, about 13% down from when the carnage began in early August. At that level it has a PE10 of about 12 (PE10 is the 10 year average real price to earnings ratio) while the PE10 average is around 17.6. PE10 has been a pretty good indicator of future returns over the last century and it’s a favourite of mine for checking what sort of returns might be possible in the next few years.
25 Aug 2011
Balfour Beatty - The Construction Industry Is Only Sleeping
The model portfolio is filling up nicely (12 out of 20 slots taken) and now it's time to buy another company. I've scoured the market for the best high quality, high value shares and top of the pile for now is Balfour Beatty, the diversified engineering, construction and infrastructure services company.
16 Aug 2011
When Not to Invest in Shares
Most of the academic research out there suggests that shares are the best investment vehicle. They have produced the biggest returns for a given amount of risk; so does this means it always makes sense to invest all your savings in the stock market?
11 Aug 2011
BAE Systems - It's Time to Get Defensive
Big dividends. That's what I want. Big dividends that only get bigger. And in the world of big, growing dividends, they don't get much bigger than BAE Systems. This giant defence contractor really fits the bill when it comes to a big, solid income that's likely to just get bigger (have I used the word 'big' enough yet?). It's big (okay, okay, I won't do it again), financially robust, has a long history, a steadily growing dividend and is internationally diverse. What more could you want? Oh, and thanks to Mr Market's panic it's currently yielding over 7%. I'll wait while you get up off the floor.
4 Aug 2011
How to Find the Right Kind of Growth
Microsoft style growth
When I talk to people who 'dabble' in the stock market, one of the thing that almost always comes up is growth. The general idea seems to be that if you want a reasonable investment then put your money into Tesco, Marks & Spencer or RBS, but if you really want to get rich then the only way is to find some small company that's about to be the Next Big Thing.
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