Why do I invest in the stock market?

I like a challenge.  If you speak to my wife, Emma, you’ll also learn I’m quite competitive.  I tend not to act on impulse, and I tend to consider my options before making a decision (it took me three months to decide what TV to buy.  Emma was not happy).  I also invest in the stock market.

You may well be thinking “hey, they sound like good traits for someone who wants to manage their own money”.  I think the thoughts you think are right.  If you can identify with some or all of these traits, managing your own money might just be right for you too.  So keep reading!

Continue reading “Why do I invest in the stock market?”

Playtech – Continued growth & a special dividend

In Brief: Playtech is a market leader in the gambling and financial trading industries.  Revenues & net profit up strongly on a constant currency basis.  Positive acquisitions will further accelerate growth and a special dividend as the icing on the cake!

Playtech PLC announced their Half Year 2016 results yesterday, highlighting the continued growth and profitability we’ve come to expect. Adjusted net profit and adjusted EPS up 54% and 40% respectively on constant currency basis.  There is a lot of positivity in the report, which I’ll attempt to break down. Continue reading “Playtech – Continued growth & a special dividend”

Persimmon PLC Half Year Results 2016

  --   Profit before tax increased 29% to GBP352.3m 
        (2015: GBP272.8m) 
  --   Revenue up 12% to GBP1.49bn (2015: GBP1.33bn) 
  --   Legal completions increased 6% to 7,238 new homes 
        sold (2015: 6,855) - an additional 383 new homes 
        delivered  
  --   Further expansion of underlying operating margin* 
        to 23.8% (2015: 20.5%), an increase of 330bps 
  --   Return on average capital employed** increased 
        by 29% to 35.6% (2015: 27.5%) 
  --   Net free cash generation*** of GBP229.9m in the 
        period (2015: GBP190.7m) 
  --   Basic earnings per share increased 19% to 92.0p 
        (2015: 77.3p)

In Brief: A strong set of results from the company, who appear to have allayed initial fears surrounding the referendum.  Excellent free cash generation and a positive outlook going forward.

Persimmon PLC today announced their half-year results to June 30th 2016 with strong figures across the board.  Profit before tax increased 29%, revenue increased 12%, operating margins up to 23.8% and return on capital employed up to 35.6%, resulting in free cash flow of £229.9m. Continue reading “Persimmon PLC Half Year Results 2016”

Where we are today

To begin this blog I thought it appropriate to talk about where we stand, with regard both to the market overall as well as the performance of the portfolio to date.

As a largely UK-invested portfolio my obvious focus is on the current state of the UK economy and the stock market overall.  On June 23rd of this year the UK overall voted to leave the EU, causing short-term chaos in both the FTSE 100 and FTSE 250 markets, as well as a host of markets around the world.  It took just a week for the FTSE 100 to recover, and a little longer for the FTSE 250 (August 5th) reflecting the realisation that Brexit will not happen overnight.  The damage to the portfolio was painful, largely due to exposure to house-builders (Persimmon & Berkeley) who were hit hard.

So lesson #1: If you can’t stand to see a company in your portfolio drop 20% plus in one day, you’re probably not suited to individual stock investing! Continue reading “Where we are today”