Warren Buffett is a renowned American billionaire and one of the most successful investors in the world. He is often reffered to as ‘the Oracle of Omaha‘. He was the favourite student of Benjamin Graham, the father of value investing. In plain terms, Graham’s method involves spotting good, undervalued companies, buying them, and holding them forever.

What do I mean by ‘good‘ companies? Well, most importantly, they have to be profitable. This doesn’t just mean having high net profit margins. It also means a company should have a good track record of rising profits. Of course, this doesn’t guarantee the firm’s profitability will keep rising in the future. But at least it makes investing in such a company somewhat safer. Of course, dividend-paying companies have a big advantage over their peers that don’t pay dividends.

Then, a great business should also have a sound financial … Read more

Snowflake (NYSE: SNOW) shares were listed on the New York Stock Exchange this week. On its first day of trading, the share price popped higher to more than double. The cloud data warehousing firm had the largest software initial public offering (IPO) on record, valuing it at around $70bn – more than five times the private market valuation it reached in February.

Snowflake shares were priced at $120, after being revised higher twice this month. On the first day of trading, the share price climbed to over $300, and finished the day up 112% at $255.

Early investors of Snowflake shares include Salesforce and Berkshire Hathaway. The investment by the conglomerate run by Warren Buffett is interesting. Buffett rarely gets interested in technology startups that are not yet profitable, and tends to opt for more mature companies.

Snowflake’s IPO comes at a similar time to several technology IPOs. It … Read more

On August 25th, nearly a month before the official first day of the new season, Starbucks declared it fall. 

It didn’t matter that it was still reaching record high temperatures; it didn’t matter that leaves wouldn’t start falling for weeks or even months; it didn’t matter that the corn mazes were still only knee high.  

All that mattered was that Starbucks fans wanted it to be fall. They desperately wanted an escape from the hellish summer than most of us have been experiencing.

So Starbucks crafted the perfect autumnal alternate universe, where you could wear a scarf and look at the leaves and drink a PSL without sweating through your facemask. 

And if you think that campaign was met with a raised eyebrow and a glance at the calendar, then you clearly underestimate the power of telling your customers the story they want to hear.

See, good marketing sells the … Read more

The demand for pharmaceutical companies’ stocks has surged dramatically. AstraZeneca (LSE:AZN) shares have been no exception. Investor enthusiasm was fuelled by hopes of a new Covid-19 vaccine. But isn’t the AstraZeneca share price already too high? 

Why did the AstraZeneca share price rally?

On Monday, the pharma giant resumed phase 3 vaccine trials. As we all know, the company’s stock has been surging in recent months. That’s because people expect AstraZeneca to develop a Covid-19 vaccine. But is the future so bright for AstraZeneca and its vaccine?

Quite recently the FDA said AstraZeneca’s coronavirus vaccine trial in the US is still pending. That’s because the FDA is unsure if there is a big safety issue or not. So, many questions remain. Phase 3 vaccine trials don’t mean the vaccine will be available tomorrow. What’s more, the FDA’s investigation also suggests there are still many regulatory hurdles. That’s why the AstraZeneca … Read more

Due to the Covid-19 pandemic and government lockdowns, aircraft have been grounded for many months. Although restrictions have eased and flights have resumed, airlines are still not utilising their full fleets. With that in mind, it’s not surprising that aviation stocks on the FTSE have taken a huge hit. However, with the beginning of a recovery finally in sight, I’m starting to look at interesting opportunities in the aviation industry.

One stock I like the look of is Meggitt Group (LSE:MGGT).

FTSE 250 opportunity

Meggitt Group is an engineering firm that operates in three divisions: civil aerospace, defence, and energy. Aerospace produces core components that many aircraft rely on. MGGT’s markets for aerospace include civil aircraft, helicopters, engines, and business jets. Over 50% of the group’s revenue comes from its aerospace division. Defence is the second biggest revenue generator for MGGT, with over 30% from military aircraft, vehicles, naval, … Read more