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Directors Pay Up 21%

There can be no clearer indication that the pay of company directors is out of control than the latest figures from Income Data Services (IDS). They have reported that the total remuneration of FTSE-100 company directors went up by 21% last year, based on figures in the annual reports of companies. Although base salaries only rose by 2.5%, the overall increase has been driven by “performance” awards such as bonuses and LTIPs (Long Term Incentive Plans). The 21% increase is of course ...

A Tale of Two Trusts – SLS and BRWM

Yesterday Blackrock World Mining (BRWM) announced they were writing off their investment in London Mining. This was one of their largest holdings and cut the trust's net asset value by almost 8%. The share price promptly fell by 8% on the day and fell further today. Who are London Mining you may ask? This is a small iron ore mining company based in Sierra Leone which has been badly affected by the slump in iron ore prices and the Ebola crisis ...

Tesco and why ShareSoc members should not have been surprised

After we published some previous comments on Tesco, Warren Buffett publicly admitted that his investment was a "huge mistake". He currently has about a 4% stake in the company, and may have lost over $800 million at the current share price after first buying it in 2007. It's perhaps worth reminding ShareSoc members and others of the fact they could have read a report on the Tesco 2013 Annual General Meeting in June 2013 which spelled out some of the problems the ...

Sainsbury and Tesco (do they need a pressure group?)

Following on from the debacle at Tesco, Sainsbury produced some quite awful trading figures yesterday (1/10/2014). Here's a review of some of the news on those and other retailers. Tesco The Financial Conduct Authority (FCA) are undertaking an investigation into Tesco's "overstatement of expected profit". Making misleading statements to the market is potentially a criminal offence. How long that will take to reach any conclusions is anyone's guess. The result of such investigations are often reported to investors so late in the day ...

Inheritance tax giveaway by the Chancellor

The announcement by George Osborne yesterday (29/9/2014), that a tax on pension funds is to be scrapped is a major giveaway for investors. It would seem we are already into the 2015 election campaign. At present anyone holding a SIPP (the most cost effective way to hold your pension fund) or other defined contribution pensions (e.g. personal pensions), faces a hefty tax bill when they die after the age of 75, or earlier if the fund is already in "drawdown", i.e. paying ...