Featured and Latest Posts
Property or Investment Portfolio? A Deep Dive into UK Buy-to-Let vs Stocks and Bonds
‘If I won the lottery, I’d spend a bit and invest the rest in property.’ That was a friend of mine recently—and it’s a mindset shared by many in the UK. Property feels safe, tangible, and tried-and-true. But is it actually the best place for long-term wealth?
In this post, I break down the reality of buy-to-let investing: the true returns after costs, the friction involved, and how it stacks up against a globally diversified stock and bond portfolio. We crunch the numbers, compare outcomes for a £500,000 investment, and explore why property feels safer—even if it isn’t.
Whether you’re a seasoned landlord or simply wondering what to do with a hypothetical windfall, this deep dive might change how you see the choices.
Is Day Trading Stocks a Viable Strategy?
Day trading is often seen as a fast-paced path to financial freedom, but the reality is far more challenging—especially when factoring in trading costs. In the UK, the absence of a pattern day trader rule makes entry easier, yet most traders still lose money over time. Drawing on studies from the US, UK, and Taiwan, this post explores why only a small fraction of day traders manage to stay profitable after costs. Discover the skills, risks, and psychological resilience required to beat the odds, and why the allure of quick profits often masks a grueling reality.
How Often Should You Rebalance Your Portfolio?
How often should you rebalance your portfolio? While many investors treat rebalancing as routine, research by Jeremy Siegel suggests that leaving portfolios untouched—particularly when it comes to broad indices like the S&P 500—can actually lead to superior long-term returns. This post explores the trade-off between managing risk and letting winners run, and asks whether doing less might sometimes achieve more.
The Hidden Costs of Indexing: What Investors Should Understand
Index funds like Vanguard’s VTI are often praised for their low fees, transparency, and diversification — and for good reason. But beneath the surface of these low-cost strategies lie hidden frictions that can quietly erode investor returns. This article explores the lesser-known costs of index investing: from forced trading and front-running to adverse selection and sector concentration. It also highlights how Dimensional Fund Advisors (DFA) takes a smarter, more flexible approach — using patient, systematic trading to avoid these inefficiencies and deliver more cost-effective exposure to the market. For investors who want to stay passive but get more from their portfolios, understanding these hidden costs is key.
Good financial decisions aren’t about predicting the future, they’re about following a sound process today.
In investing, outcomes are noisy. Short-term performance often reflects randomness, not skill. Yet fund managers continue to pitch five-year track records as if they prove anything. They don’t.
As Ken French puts it, a five-year chart ‘tells you nothing’. The real skill lies in filtering out the noise, evaluating strategy, incentives, costs, and behavioural fit.
Don’t chase what worked recently. Stick with what works reliably.