According to finance theory there are three components to the total return which an investor can make from a share. Firstly, we have dividends. Often being the most modest source of equity returns, dividends can nevertheless be consistent and provide a useful source of income for investors. Those with shares in dividend paying FTSE 100…
British American Tobacco (LON:BATS) has enjoyed a very successful decade. Its shares have risen by 225%. That’s 11x the capital gain of the FTSE 100, and 3.4x the return on its only UK-listed rival, Imperial Brands. However, I think British American Tobacco will in future enjoy an even more successful decade because it is acquiring…
Following my recommendation 15 months ago, followers saw Berkeley Energia (LON:BKY) nearly treble by January as more and more commentators jumped aboard and as the company issued a stream of bullish news on progress and prospects for uranium. But the shares are now 20% off their top and perhaps the market is satiated with a…
News headlines in the last nine months have been dominated by Brexit and Trump. In my view, that’s understandable given the uncertainty and potential implications for the global economy which those two events have precipitated. However, I also believe investors are failing to give enough attention to an obvious growth opportunity which can easily be…
On 06 March, after weeks of speculation, it was confirmed that General Motors of the USA (NYSE:GM) was selling its European operation – Opel – to France’s Peugeot SA (EPA:UG) for €1.3 billion (plus another €900 million for the finance operation). What was behind the deal? And what does it mean for the UK car…
Master Investor interviews George Frangeskides, Executive Chairman at Alba Mineral Resources Master Investor: Hi George. Thanks for taking the time to speak with Master Investor today. Please give our readers a brief introduction to Alba Mineral Resources (LON:ALBA) and its recent history. George Frangeskides: Alba Minerals was listed on the AIM market more than 10…
A recent poll suggested people in the UK are more worried about inflation than Brexit. That’s understandable, in my view, since Brexit is an event which will not take place for at least two years. Inflation, on the other hand, is rising now. It is forecast to reach 2.7% this year, according to the Bank…
In the last few years, passive index investing has grown significantly, as those involved in the investment business try to capitalise on the growing demand for alternative ways of building investment portfolios that bypass both the high fees incurred in active fund management and the knowledge (and money) required to build a well-diversified portfolio. At…
Although economic data suggests the UK economy has generally not been severely affected by the EU referendum, I expect a ‘restaurant recession’ to take place in 2017/18. The main reason for this is higher inflation caused by Brexit. Already, CPI is 1.8% and is expected to move to 3% or even 4% this year according…
The global oil and gas industry is experiencing one of the most severe downturns in 30 years. A perfect storm of overproduction, geopolitical tensions and the long-term move towards alternative energy sources (renewables) has caused oil prices to fall to levels that are often below the long-term break-even cost of production. Although the oil price…
