Sunday, 18 December 2011

A Random Walk though 'Income' Portfolios

You may have heard of Burton Malkiel as the author of the best-selling book 'A Random Walk Down Wall Street', popularising the Random Walk theory of the stock market - the basic message being that the markets are (pretty) random and trying to forecast them is pointless. The answer to this randomness lies in diversifying your portfolio between different asset classes.

In a new article in the Wall Street Journal he sets out his thoughts on portfolio mix for the future.

Tuesday, 13 December 2011

Portfolio Buy: Inmarsat (LSE:ISAT)

As always, I continue to be on the lookout for good new dividend-paying shares for my High Yield Portfolio. These high-yield shares form Level 6 on the DIY Income Investor Income Pyramid).

Inmarsat plc is a provider of global mobile satellite communications services, providing data and voice connectivity to end users worldwide.

Canadian 'Do It Yourself' Investing

Here's a short Canadian video discussing DIY Investing with Paul Bates, Dean at the DeGroote School of Business at McMaster University, with Rob Carrick from the Globe and Mail

In particular:
  • What does it take to be a successful do-it-yourself investor?
  • How knowledgable do you have to be to do your own investing?
  • What are some advantages to do-it-yourself investing?
  • What can a discount broker do? (And the cost savings compared to using a 'full service' broker.)

I am not a financial advisor and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.

Thursday, 8 December 2011

10% Yield!

A 10% yield is a big yield for any small investor. It is also too much and indicates that the market perceives significant risk. But locking in a 10% yield for 10 years is an attractive option.

So, how risky is 'risky'?

Wednesday, 7 December 2011

Prepare for Retirement!

Preparing for retirement should be the main long-term goal for the DIY Income Investor - preferably retiring early!

To me, 'retirement' means having the income to do what you want - but also will probably require you to live 'sensibly' (aka modestly).

However - in the UK at least - the trend is going the other way, with retirement becoming more and more fraught with financial difficulties.

Tuesday, 6 December 2011

Portfolio Buy: Morgan Sindall (LSE:MGNS)

In my continuing search for good new dividend-paying shares for my High Yield Portfolio (Level 6 on the DIY Income Investor Income Pyramid), I have recently purchased Morgan Sindall Group. MGNS is in the UK construction sector, specialising in infrastructure, affordable housing, 'fit out' (for offices and shops), urban regeneration and property investments.