It’s only money
The building in the picture is The Public; it’s an art centre in West Bromwich that cost over 70 million pounds. That’s over 100 million dollars for the benefit of my American readers. It costs 30,000 pounds a week to run it. That seems a lot to me, but in the great scheme of things I suppose it’s not that much… It’s only money… (more…)
A lot of shares seem cheap now as we appear to be coming out of a recession. Taylor Wimpey shares have been rising steadily since 2008, but are still a fraction of what they were in 2007. They could return to the highs of over £4.00 a share as the economy recovers. I think there is a housing shortage and they are in a good position to do the building, if the government gets it’s act together.
My first investment blog post was nearly 2 years ago now. I wrote that after buying shares in Premier foods for 4p each. The company was heavily in debt, but the shares went to 18p before a 1 for 10 share swap. They are still at 129.59 at the time of writing. That’s a return of over 220% so far!
If you’re a regular reader then you know I opened an account with Zopa in 2011. It doesn’t make me a fortune, but the return has been more than from the banks. The current return for investing over 3 years is about 4.5% after fees. On the savings the average household in the UK has, that’s about £90 a year.
This week George Osborne told the world that the government wants to sell it’s shares in Royal Bank of Scotland, signalling intent to dump billion of pounds worth on the stock market. This was done to coincide with the bank announcing huge ‘paper’ losses. Not surprisingly the banks share price tanked on the stock market and so did Lloyd’s Banking Group. Well done George…
We all complain about our lives, but we do little to try to change them. I was reminded the other day that there are billions of people worse off than me. Many people my age can’t even switch a computer on, let alone type a blog and run a website. I have known things to be much worse than they are now. 2008 was a bad year and I resolved to make 2009, a lot better. I wrote a novel!
We hear a lot about so called ‘safe havens’ for investment funds. The United States was a ‘safe haven’ for many US investors and the UK has seemed a safe investment for many funds compared to Europe. It’s not just Government bonds that are seen as ‘safe havens’ by investment fund managers, but blue chip shares too.
Buying in a bear market
When there are more sellers than buyers in the market, traders call it a bear market and when the buyers outnumber the sellers, they call it a bull market. This appears to be a bear market; but the government is buying back it’s bonds by ‘printing’ money. What will the financial institutions do with the new money they get from selling bonds? I think they are buying shares in the markets again but being very selective. I have bought shares in another company that is making a loss; the Royal Bank of Scotland Group. (more…)
Wealthy people don’t keep their money in cash; they have it invested in assets that will go up in value. Assets that tend to appreciate are land, property, equities and commodities. You need assets that appreciate quite fast to become a millionaire quickly. If you have a £1,000 or a $1,000 and you invest in something that appreciates in value quickly; perhaps doubling in value every year. You would become a millionaire in just 10 years! Can’t be done right? Maybe it can… (more…)
I bought my car in 2004 and so it’s lasted 8 years without any trouble. That is 12.5% depreciation a year and I expect it to last at least another 2 years so I can get depreciation down to 10% a year. It’s not as fashionable as a new car straight out of the showroom; but cost a lot less. A wealthy American on television advised people to own more appreciating assets than depreciating assets like cars; that was good advice. (more…)