Image source: Getty Images Investing in cheap stocks is a proven strategy for generating substantial returns. And those who spotted the enormous growth opportunity for Nvidia ahead of the wave of AI-related spending in early 2023 were able to snap up shares in the world’s largest company at a massive 92% discount compared to today. However, after a stunning 1,177% return in just under three years, this growth looks like it’s already fully realised in Nvidia’s share price. Yet the same isn’t true for other AI-related stocks. In fact, while most investors are being distracted by semiconductor manufacturers and software…
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Image source: Getty Images It’s no secret that the UK State Pension falls firmly short of what’s needed to live a comfortable retirement in the UK. With just £230.25 per week, or £11,973 a year, this income stream alone isn’t enough to meet even the bare minimum of £13,400 needed to survive retirement, let alone enjoy it. Instead, for those who want to live in comfort, a retirement income of £43,900 is needed, according to Pensions UK. And with inflation still ravaging household finances, this figure will undoubtedly increase. Yet given the dire state of public sector finances, I doubt…
Image source: Getty Images Investing in an ISA is arguably one of the easiest ways to start earning a second income. Apart from all the tax advantages, owning stocks is a far more hands-off method to building wealth and earning extra income compared to starting a business or buying rental property. And while it can take a little while to get the ball rolling, the results can be extraordinary. With that in mind, here’s how an investor can aim to unlock a £56,719 passive income starting with just £20,000. Please note that tax treatment depends on the individual circumstances of…
Image source: Getty Images Investors looking for exposure to the booming GLP-1 weight-loss drugs market don’t have many options in the FTSE 100. There’s AstraZeneca — which has attempted to muscle in on the action without success — but not much else. However, there are FTSE 100 firms that should be second-order beneficiaries of the powerful GLP-1 megatrend. For example, consider comments made recently by Sean Dixon, co-founder of Savile Row tailor Richard James. He said customers are losing huge amounts of weight in an incredibly short time. It’s not just half an inch here, maybe an inch there, it’s…
Image source: Getty Images Nvidia (NASDAQ:NVDA) has done incredibly well for me since I rebought it for my Stocks and Shares ISA in April. Back then, President Trump gave long-term investors like myself an incredible gift/dip-buying opportunity. Thanks, Donald! However, with everyone and their dog now talking about an AI bubble, what should I do with this stock? Let’s discuss. Reasons I might sell There are a number of reasons I would normally consider selling out of a stock. These include a weakening competitive positioning, low growth, and what I consider to be a riskily high valuation. Sometimes I also…
Image source: Getty Images Growth stocks have had a tricky few months, with many falling 20% or more as fears of an AI bubble grow. However, for those with the nerve to invest through volatility, I think the following pair of growth stocks are worth digging into. On First up is On Holding (NYSE:ONON), the Swiss firm behind the premium sportswear brand. The stock’s down 33% since January due to tariff uncertainty and weak consumer spending. Both these challenges are obviously not ideal for the business. Yet, they haven’t held back the brand’s impressive growth trajectory. In the first nine…
Image source: Getty Images Whenever I write about passive income, the 1985 Dire Straits song ‘Money for Nothing’ pops into my head. Although the track was referring to getting paid for playing music, I think it applies to dividend shares too. The regular dividends paid out to shareholders for owning shares are kind of like money for nothing. And when I think about retiring on just a basic State Pension, money for nothing sounds pretty good! But how much would I need to be comfortable – and how many dividend shares could deliver those returns? Calculating returns Taking into account…
Image source: Getty Images Passive income hunters often look to the FTSE 100 for reliable dividends – but could ChatGPT actually build a better passive income ISA portfolio than a human? I decided to put it to the test. Selection criteria ChatGPT began by laying out a set of sensible principles for building a passive income portfolio. These included: Sustainable payout ratios At least a decade of consistent dividends Strong free cash flow generation Defensive, resilient business models Meaningful global revenue exposure It also warned against relying on highly cyclical companies with stop-start dividend histories. To be fair, that’s a…
Image source: Getty Images The idea of selling shares in Lloyds Banking Group (LSE:LLOY) for almost £1 a go must have felt strange to investors when the stock was at 35p in 2020. But it’s close to a reality now. With the stock down this week, investors might be wondering whether it’s a good idea to take profits and redeploy them elsewhere. And I don’t think that’s a bad thing to consider. Cyclicality As a retail bank, Lloyds is a pretty cyclical business. Its fortunes are closely tied to interest rates and the strength of the underlying economy – specifically,…
Image source: Getty Images Investing in income stocks that pay regular dividends remains one of the most popular ways to earn a second income from the stock market. With high-priced tech and growth stocks experiencing skyrocketing valuations, dividend stocks could be worth considering in 2026. For example, consider how this method of using the £20,000 annual ISA limit could target a regular income of £15,000 a year. Optimising gains By investing via a Stocks and Shares ISA, UK residents can reduce their tax outgoings significantly. Current ISA rules allow up to £20,000 invested per year with no tax levied on…