How to Research Share Prices and Company Information

Two hundred years ago, shares were traded between an elite group of wealthy individuals through social groups which often met in coffee houses. How to research share prices back then was to order an espresso and ask the right individual! Now, a small investor only needs a good internet connection to gain access to almost unlimited amounts of information, analysis, …

Passive Funds versus Active Funds

An argument which has long raged in the halls of asset managers is the debate between investing styles. In particular; passive versus active investing. Financial Expert encourages one of these styles – we will use this article to explain which style we prefer, and why it has won our support. An active investor uses discretion to select individual investments that …

How to Spot Investment Scams

Knowing how to spot investment scams is an essential skill for a modern investor. Collectively, investors represent a gold mine for organised crime. Is there an easier target than a group of people who wish to pay £000’s in return for something intangible? The online space, in particular, can be a dangerous place. It is difficult to tell apart an …

How to Build an Investment Portfolio (for Beginners)

Now that you have understood the science of diversification, this article will explain how to put these principles into practice by explaining how to build an investment portfolio. If you have read the previous articles, the following steps should feel like common sense. Indeed this article threads together many of the concepts from the Foundation learning series. Step 1: Understand …

The Science of Diversification

This article will explain how to diversify your investments using the science of diversification. To get there, we will walk through logical steps which build to the conclusion. Therefore you will also be able to explain why sophisticated investors diversify in a specific way. The primary objective of successful investing is to generate high returns while minimising the risk. The …

Investing Risk Appetite Questionnaire

Take our investing risk appetite questionnaire to discover how your attitude towards risk should influence your investing approach. Imagine for a moment: It is 2 am and you cannot get to sleep. You are being kept awake by a stubborn worry that will not leave you alone. You fear that the stock market may fall soon, taking a big portion …

What are Shares and Why do People Invest in Shares?

If you’ve ever wondered ‘What are shares’ or ‘why are shares so popular?’ – this ultimate guide to shares is the right place to begin! What are Shares? You gain partial or full ownership of a company by owning shares, also known as ‘stocks’ in the US. To delve deeper, we need to understand what companies are and why shares …

How to Buy Shares and Invest in the Stock Market

This article will explain how to buy in shares directly through stockbrokers and indirectly through fund managers. By making the right decisions in the right order, you can avoid some common investing mistakes. Investing in individual companies versus funds Before you rush to open an account with a stockbroker, you need to make a choice as to whether you want …

What is an Investment Time Horizon and how does it Impact a Portfolio?

When designing an investment portfolio, one of the factors you must consider is your investment time horizon. The consequence of overlooking your time horizon is discovering that your investments have produced a disappointing return at the point you need to sell your investments and use the funds for their intended purpose. What is my investment time horizon? Your time horizon …

Should I Save or Invest? Why you Deserve Better than a Savings Account

Welcome to the first article in the ‘Foundation level’ learning series. We begin with a huge problem. A problem so frustrating that it drove me to create this entire website! It emerges when we compare saving to investing in bonds or shares. In 2019 the best UK one-year savings account pays an interest rate of 2%. However, the current inflation …