by The Investor
on September 4, 2009
This is part of a series on why borrowing to invest is rarely worthwhile.
Let’s imagine you remortgage your home to release £100,000 that you can repay over 20 years.
- You borrow at a great rate of 6%
- The loan is fixed for 20 years
- You invest in the index for its average 10% a year long-term returns
… and then you pocket the 4% difference, right?
Not so fast.
[continue reading…]
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by The Investor
on September 3, 2009
It’s fair to say Mike Piper has made oblivious investing his own over on his Oblivious Investor blog.
Having coined the phrase, he had a head start, of course!
And with the publication of his new book Oblivious Investing: Building Wealth by Ignoring the Noise
– available in all good bookshops called Amazon.com
today – Mike can rightfully boast he wrote the book on the subject, too.
[continue reading…]
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by The Investor
on September 2, 2009
The Alternative Investment Market (AIM for short) was set-up in 1995 as a sub-market of the London Stock Exchange.
AIM enables smaller companies to obtain a public listing for their shares at a fraction of the cost and with less regulation than on the main market.
Over 3,000 companies have been listed on AIM since it opened.
AIM can be a rich hunting ground for private UK investors looking for bargains, since shares listed on AIM are less well researched than on the main market, and many are too small for fund managers to bother with.
[continue reading…]
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by The Investor
on September 1, 2009
This is part of a series on why borrowing to invest isn’t really a great idea.
The first article in this series saw me admitting that even though I hate debt, it isn’t hard to see the apparent attraction of:
- Borrowing a suitcase stuffed with money
- Sticking it in the stock market for 20 years for the historical average annual rate of return of 10%, then…
- Spending the rest of your life telling people around a pool in the Virgin Islands how clever you were 20 years ago.
The rest of these articles are going to pop that balloon.
Firstly, let’s start with the cost of your debt.
[continue reading…]
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