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News & Politics

MoneyWeek Issue 1013

There's a reason MoneyWeek is Britain's best-selling financial magazine. We exist to help you ground your portfolio so that it keeps your money safe during rough patches and growing in the good times. We don't just look at how to maximise your returns and limit your losses, we also like to look at how you can keep more of the money you've made. Week-in, week-out we'll guide you through the financial world as it changes, alerting you to all the opportunities to profit and dangers to avoid, as they appear. Income strategies, rising-star companies, the best funds and trusts, clever ways to preserve your wealth during market turmoil... you will get the best ideas from the sharpest financial minds and investing professionals in Britain.

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United Kingdom
Dennis Publishing UK
51 Issues

in this issue

3 min.
from the editor...

I’ve never had much luck with metals. On my seventh birthday I was given a small gold krugerrand, with the strict instruction not to spend it on chocolate. After looking up the gold price for several days in a row and seeing it fall, Ilost interest, put the krugerrand in a drawer and forgot all about it. It was just as well: it later transpired that my seventh birthday practically coincided with the peak of the 1970s gold bull market. Then in 2013, about to invest in a wedding ring, I decided Ifancied a platinum one. The price quoted was beyond unaffordable, so I opted for a palladium one instead. Note to self: next time, don’t get married too soon after the peak of a commodities supercycle. The good news, however,…

1 min.
brand-builder of the week

Ben Francis, the owner of luxury sportswear brand Gymshark, has become the UK’s richest self-made person under 30, says The Times. The 28-year-old’s recent sale of 20% of his stake in the company means his net worth is now valued at over £650m, with the business itself being valued at over £1bn. Gymshark was founded when Francis was only 19 and manufacturing clothing out of his mum’s garage, but has grown to become a titan of the fitness industry. Following a unique social-media strategy using online influencers on Facebook and Instagram, the business now has offices from Denver to Hong Kong, and made an £18.6m profit on sales of £176.2m last year. Francis now hopes that Gymshark can rival the likes of Nike and Adidas in the coming years. Coverillustration: Howard…

1 min.
good week for:

Dwayne “The Rock” Johnson is Hollywood’s best-paid actor for the second year running, reports Forbes. As streaming services such as Netflix look to capitalise on actors’ star power, Johnson has pulled ahead of the pack, being paid $87.5m for his work last year. Over a quarter of that was guaranteed by featuring in a single Netflix film. The net worth of Apple CEO Tim Cook has just eclipsed $1bn, says The Verge. Cook is not a founder of his company, which is unusual among billionaire corporate executives, but he has grown the tech giant into the highest-valued publicly traded company in the world since he took over from its late founder Steve Jobs in 2011. Since then, Apple’s revenue and profit have doubled and it recently reached a market capitalisation of…

2 min.
stocks ignore us-china split at their peril

“I had a great relationship with President Xi,” US president Donald Trump told Fox Sports Radio. “I like him, but I don’t feel the same way now.” Washington and Beijing’s troubled relationship has taken a turn for the worse recently, with the two sides clashing over everything from stockmarket listings and tech to Hong Kong. Consulates have been closed and credit cards blocked. Hong Kong’s leader Carrie Lam admitted this week that she has struggled to pay with plastic since she was targeted by US financial sanctions. Ironically, trade is one of the few areas where the two countries still seem able to engage constructively, says Laura He for CNN Business. A cautious truce in January drew a line under a bitter two-year trade war. Scarred by recession, neither side appears…

1 min.
why warren buffett now likes gold

Warren Buffett has long ridiculed gold as a nonproductive asset that is no match for the dynamism of American stocks. Yet now it seems he thinks gold is set to shine. Buffett’s Berkshire Hathaway took a $565m stake in Barrick Gold, the world’s second-biggest gold miner, in the second quarter. Gold has rallied strongly this year, reaching new all-time dollar highs thanks to fears about inflation, dollar weakness and tumbling bond yields. Yet after peaking at $2,070 an ounce on 6 August the yellow metal tumbled by 9% over the following week. It remains up roughly 30% this year, but the pullback was a reminder that gains can quickly turn into losses in this volatile market. The gold miners are “riding high” this year, but extracting the metal is becoming more…

1 min.
a record year for esg funds

Environmental, social and governance (ESG) funds are coming of age. Fund network Calastone says that UK-based ESG funds saw £362m of inflows in July, a new monthly record. Investors have added £1.2bn to ESG investments since April, a figure “greater than all the previous five years combined”. One concern about ESG investing is that by excluding parts of the investment universe (such as tobacco stocks) investors are impairing their returns. Yet S&P Global Market Intelligence found that of 17 American ESG-orientated exchange traded and mutual funds, 14 enjoyed higher returns than the S&P 500 in the first seven months of 2020. Low exposure to energy stocks, hit hard by crashing oil prices, helps explain why. ESG returns have also been driven by the outperformance of big tech stocks, says Camilla Hodgson in…