This week, Tesco released its annual profits. The announcement itself didn’t make me rush to buy Tesco shares but revealed two lessons that are fundamental to investing. Lesson 1: Understand the REAL inflation rate Long-standing followers of my commentary will...
Taxes are one of three major leakages from our wealth – the other two being fees and inflation. Read my piece on how to reduce fees and this one on turning inflation to our advantage. Any time we allow a leakage to persist, we’re actively allowing money...
The Rule of 100 is widely used by IFAs or Wealth Managers (WM) as a way to invest your money. As illustrated in the graphic below, it goes like this … Subtract your age from 100 That gives the % of your portfolio to have in Stocks (shares) The remaining %...
I always aim to demystify investing. If some of my messages have managed to do that, half my work is done. I look forward to creating more insights and tools next year to clarify and, perhaps, inspire your investment strategy. Holiday Reads, Listens and Viewings...
The chart below caught my eye this week. It summarises why you need to own REAL assets (defined below) … It shows that over 30 years, the real value of cash declined by 52%, whilst the real value of stocks appreciated 681%. The chart uses US data (US dollar...
