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app-based stockbrokers dabbl review the weekend press and provide their take on some of the biggest stories set to impact the self-directed investor. 

Listed companies to detail net zero plans

The Sunday Telegraph reports on what it deems as the forthcoming carbon crash as shares listed on the London Stock Exchange will, by 2023, be required to detail how they will help the UK reach its net zero target by 2050. The article notes retail investors’ heavy exposure to the giant oil stocks, which have found favour by paying steady dividends. The article suggests that whilst the likes of Shell and BP may be committed to change, the better stance may be to invest in those companies who are spearheading the transition to green energy themselves, although ongoing scrutiny of exactly what these firms – and accompanying funds – are doing needs to be exercised carefully.

Diligent savers are actually losing ground

Saturday’s edition of The Times revisits the corrosive effect of inflation in a low interest rate environment, something that has surfaced again after last week’s decision by the Bank of England note to increase borrowing costs. The article notes that the best savings rate on offer right now is just 1.2%, but with inflation forecast to run above 4% in the coming months, diligent savers are actually losing ground. Whilst there’s no solution proposed, the long term performance of stocks should always be taken into account. Reinvesting dividends, if the plan is to hold that money for at least ten years, then equities deserve some proper consideration.

Optimal number of companies to hold in a fund

The Financial Mail on Sunday runs an interesting piece on what the optimal number of companies is to hold in a fund. Perhaps unsurprisingly there’s no clear answer here, but something that many smaller investors may find encouraging is that – at least when it comes to investing in the UK market – a number of the most successful fund managers have less than 30 stocks in there. Now even that’s a lot for a retail investor to keep across, but it shows that whilst diversification is important, you don’t always need to be thinking about hundreds of stocks to make this work in your favour.

Prized British companies to be snapped up

A handful of stories appeared on the Daily Mail website at the end of last week, suggesting that the prospect of some prized British assets being snapped up remains very much in play. Following the sale of supermarket group Morrison to a private equity business, BT is set to be defending itself against such a move as well – the first step to sweeten investors has been reinstating the dividends – whilst Metro Bank has also notified the market that it has been approached by the US buyout giant Carlyle. Before investors get too excited however, it’s worth bearing in mind that these acquisition processes are protracted affairs that typically take many months to complete and can be a minefield for the uninitiated to navigate. If it happens to a stock you’re holding, probably best to thank your good fortune and move on, rather than trying to develop an investment strategy designed to find the next businesses to be bought out.

This article has been published in conjunction with dabbl. dabbl is a simple, intuitive app, designed to make share ownership more accessible than ever before. Connecting consumers with the brands they love, know and trust, dabbl is embracing the growing demand from the next generation of investor to have more control over how their money works for them.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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