Worst & Best Performers, Share Buyback, 1 New Stock, Libra, Gold, Imperial Brands, Q&A [Ep.15]

Worst & Best Performers, Share Buyback, 1 New Stock, Libra, Gold, Imperial Brands, Q&A [Ep.15]



yo was really good people is kaya is back with another portfolio update it's been an eventful week since the last update so I thought to give you a quick rundown on some of the key headlines what's been going on in the market and what I have been doing and what I also planned to do over the next couple of weeks also before I get into that Joshua from the Graham big shout out to Joshua mentioned I should do a Q&A and answer any of you guys questions live on a video so I plan to do that so if you have any questions please hit me up on Twitter or Instagram the handle is infinite investors or put it in the comments of this video and then what I'm gonna do is do another video just answering all of those questions so you can ask me whatever you want and then obviously I'll try and answer them as best as I possibly can but let's get into this video please like please comment please subscribe if you're new to the channel we shall crack on first of all David Marcus I don't know if you guys know the name but David Marcus is the VP of messaging products at Facebook and he's also on the coinbase board of directors and this week he sat in front of Congress and and was having to ask or was sorry he was being asked multitude of questions about Libra it was all about Libra and he was just basically getting hammered from this senator to dis congressman to dis congresswoman etc etc and the biggest thing that saw of became very very apparent and clear to me was just the ineptitude of the vast majority of Congress people I mean some of them refer to Bitcoin as a website one of them called Nigeria in Nigeria I mean just shocking basically there was like one or two good points I think the one good point that I sort of took away from it was someone mention in there their what they kind of put him in a in in a very awkward position where he answered that three questions which he answered truthfully and then she said based off those questions it means that you're not doing the mission which so basically to cut ashore Facebook is to serve the unbanked which basically means there's a whole bunch of people also a Facebook Libre there's a whole bunch of people and a whole bunch of countries that don't have bank accounts that useful Western Union and other money transfer services so Facebook is apparently trying to help them but in fact if it's not a bank in itself and it doesn't operate as a bank and you don't actually earn any interest and having money in Libre then you're not really helping the unbanked all you're really doing is just exploiting them the same way those other brands are but maybe at a cheaper rate effectively so there was a little bit of an important point that came out of it but ultimately what that kind of resulted in is it is a tanking share price not a tank a full in share price for Facebook because I think anytime anyone goes in front of Congress and is getting grilled even if some of the things don't make sense it just never really looks good on the business and I actually think he did a pretty good job if I'm if I'm honest but obviously with their previous privacy scandals and and all of the other uncertainty that surrounds Facebook there was a bit of a drop in share price so I think there's been about three and a half percent drop I bought another share in facebook as you can see so I bought another share but I did it a little bit too late however I will probably add to it again at the end of the month and I think it's still probably gonna keep on falling for a little while and I'll just sort of take advantage of that because I still think long-term it's probably a good stock to continue to hold what what the finally thing that came out of this is that this Facebook Libre issue had a positive impact on Bitcoin which is which is interesting it's like you know they fought Bitcoin was an evil but not a facebook Libre is a big evil they want to then say that bitcoins actually good so it's a bit of an interesting one next is Imperial brands so as you can see Imperial brands for me now is sitting at only a 35-pound loss only at a three point three percent loss now that is a mixture of two key things the first is Imperial brand announced share buyback now for those of you that don't know what a share buyback a share buyback is when a company so in this case Imperial Brands decides to buy back a number of shares for themselves so because they can't own any shares what they do they've reduced the number of outstanding shares that's available by effectively buying them so that obviously comes out of their cash balance what that then means is that the number of outstanding shares that are in the market generally reduce which then means the value for each of the shares that people do whole tends to rise so will will rise so there's a number of reasons why a company does it most people are most analysts Inc is done with negative intention so it's done to kind of cook the books and improve financial ratio so as an example return on assets will improve because cash is an asset and if they're spending 200 million buying back their own shares they have 200 million pounds less cash but by by having 200 million pounds less cash whatever return they were getting on the money before in that seems like a higher return because there's less cash that it's based off and simply return on equity also improves because now there's less outstanding equity so obviously shares being equity if the shares reduced because they've bought some of it back then whatever return they were had before is now over a smaller amount of shares than it was a larger amount of shares so in that case it makes their return on assets their return on equity look good it also companies also do if they feel that this stock has been disproportionately affected by market conditions and been discounted too heavily now this can happen just from you know particularly just the market or it can happen from say their last earnings and I think that is the case of Imperial brands you guys know their last earnings report wasn't good and their shares took a hammer in you know we went from seeing share prices at 26 27 so you know they're losing 25% and their value in the last three months etc so maybe just less but because it was such a significant amount they obviously wanted to use some of that earnings some of that cash flow they had to to buy some of their shares back anyway the net result of that is that my share price has increased the share price has increased and obviously the profitability for existing shareholders has increased so if anyone's holding Imperial Brands you may have seen an increase and that is pretty much the majority of the reason the second part of the reason for my increases that I did another round of investing of my interim vesting so I bought nine more shares and just because it's been so undervalued and been so low I decided just to average it down so I was planning to do that anyway they share buyback was just in an additional perk and so that means my overall increase was about 5% increase in Imperial brands which is good which is just leaving me a much minor lost and what it was before because I don't really like to sell in the red especially for a long-term play so I will rather average it down and then breakeven or I will just you know hold it until it does improve such as I did we have say sentiment acceptor so look out for share buybacks with any of your particular stocks and that you might hold if there's any news or announcements because it generally can have a good impact on your performance speaking of performance the performance of gold has just continued to increase we're a record-high why well the Fed interest rate cuts is being is seeing investors put money into gold for a return and as I mentioned in the last video last week there is a halo effect that is having on gold miners and sent him in rows again for me another three and a half percent this week which you can kind of see from this graph but you know I've calculated the actual figures I have no plans to sell I think quote-unquote I hope really but I do think that this will continue well into the year generally with these fed talks they just linger for so long like it's not something that happens overnight so I think just a speculation alone will increase the share price and then if it does actually happen then you will see a further further bumps so yeah think um I'm definitely gonna continue how to sentiment it's been doing doing really well for me and it's continued to increase so I'm really really happy with the return to be honest I never added any money to send him in because I thought it was too high at the moment but what it did remind me is how I should have added when prices were sitting around the 85 P mark so there was times when I had the stock you know back in February or January or March whatever and a.cian around 85 p mark and I was sweating like a policeman in Peckham but I didn't add any more money at that time and I should have done because it was dirt cheap and now I kinda feel was a little bit too high to add a bit much money it bit that bit a bit too hard to add more money although I do think is going to increase so I'll just add in my normal round of investing at the end of the month but I'm not gonna kind of do another whole big round specifically for sent him into China and take advantage of it but yeah we'll see how that that goes over the course of the year I did buy a new stock which is snapchat snapchat did have a quite a big correction as you can kind of see from the graph so I did buy too high I kind of bought at that sort of high bump that you can kind of see well yeah you could see in just sort of adjacent to the one year icon there that sort of bummed is where I sort of bought and it started to drop the technical analysis actually told me that I shouldn't have bought but I think just the phone mode that I had previously of planning to buy snapchat and kind of kicked in and to be honest because I didn't put that much into it as you can see like it's a 7 pound loss which is in the worst thing so I'm not too fast I didn't buy that many shares and so when it does look like it's consolidating and bottoming out then I will decide to add a bit more shares just so that you know it benefits that are in the long run so yeah I'm not too fast but yes snapchat so now I hold 20 different stocks in ETS that's kind of the how the portfolio is looking at the moment I also added money this week into first solar we just also continue to rise as well so I'm really happy but as you can see the percentage has dropped to six points everyone just because obviously I've bought more shares but the share price is still continuing to rise which is good I also bought into Barclays and – Lloyd so Barclays and Lloyds have been to stocks that I've been avoiding putting money into just because their performers have been just quite dire to be honest however why I decided to do in this round is this interim RAM is add money to them while they're sort of low and try and take advantage of that I also added money into Vodafone just because it's been performing poorly so similar to the Imperial brands situation while it's performing poorly it is obviously undervalued it is very very cheap so it is an opportunity to buy and load up on shares so that you know not only obviously when the share price rises I'd get that capital gain appreciation but also when it comes around to next dividend payments and dividend seasoned and I've also got a lot more shares and wherever the dividend per share is will mean that I'll get a better return which will be positive so at the moment I'm sitting at just under a 5% return it was five and a half percent before I did the round Bob viously the interim round would bring the percentage down so I'll send out about five and a half percent it's now about five percent I think the market average at the moment is five point nine six percent according to simply watery so it's getting better at the portfolio's getting better I think we can thank Imperial brands for that to be honest and we can also thank symptom in pretty much for that and we can also think Barrett Barrett has gone up as well continue to rise I didn't add any money to Barrett but Barrett since the last time I invested a week ago that's gone up like another 1.5 percent so again you know some stocks that just performing really really well and Barrett's Barrett's outlook in terms of their earners is going to be really really strong I think they've even given guidance to say that they they're hitting all of their targets the surpass in it to be honest so I'm expecting there and to be to be gone as you may believe done yeah anyway there tends to be good so yeah that's basically what's really been happening in the world of the stock market in the last week generally I don't do weekly before portfolio updates just because I think sometimes not enough happens for it to be a meaningful video but I think enough has happened this week for for me to sort of produced this video so I hope you guys found it interesting if there's anything you want me to cover off in these weekly updates that I don't cover off then please let me know I mean I won't talk about stocks that I don't hold unless I'm planning to buy them or I've just sold them so it will be either about these stocks or something affecting them in general but yeah there's only think you were to cover off leave in the comments but don't forget to put anything in the comments tweet me your questions send me your questions via Instagram where is DM or under the comments or belief under this video and then I will do a Q&A video answering all of your questions also you can add the questions to the community the link will be in the description for you to be able to do that other than that the next set of videos you will see come and I've got a few videos on some of these stocks but I'll also have some videos on investment strategies which I know you guys have been waiting for and so that's gonna come jump during the course of this week so look out for that other than that take care have a great weekend be safe and last but not least happy investing peace

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