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Everyone needs a plan

Published

4 years ago

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By Michael O’Connor  

Instead of obsessing over your hypothetical investment misses, put a plan in place to capture future opportunities.

I spoke last week about the abundance of opportunities in the current market. Yet, many investors remain transfixed on the opportunities they have already missed instead of putting the necessary steps in place to ensure they will be in a position to take advantage of the next opportunity.

People look at the run the stock market has been on since the drawdown in March 2020, rue the fact that they didn’t put everything they own into the high-flying tech stocks when they had the chance and then return to their everyday lives as if another opportunity will never arrive. In reality, the next opportunity is always just around the corner.

In the investing world, fortune favours the prepared. Those who know what they want to do and how they plan to do it will be able to strike while the iron is hot.

Here are a few tips to get you started with your investment plan

Know your numbers:

Understand your own investing goals, time horizon and target account size. This information will dictate how your investment plan needs to be structured to reach your goals.

Understand the basics:

Learning basic valuation metrics such as the PEG ratio, Price-to-sales, debt-to-equity, and Free Cash Flow will allow you to compare companies and sectors. You don’t necessarily need to calculate these numbers, as much of the information is readily available. You simply need to understand what they represent and when these figures are above or below expectation. This screening will prevent you from getting caught up in any overhyped growth stories or falling into any value traps.

Narrow your focus:

The investing universe is far too vast to truly be an expert in all areas. Trying to jump on every opportunity without the relevant knowledge is simply gambling. Focus on what you know and seek out opportunities in these areas.

Set up a watchlist:

Familiarise yourself with a chosen list of companies that are of particular interest to you. By closely tracking these preferred names, you will be able to notice and take immediate action when a buying opportunity presents itself.

Implement a rules-driven process:

When investing, your worst enemy tends to be yourself. Your emotions will introduce inherent uncertainty that is notoriously difficult to overcome. The ups and downs of the stock market can stir up costly emotions. Fear and greed.

Disciplined investors actively use a set of proven rules that protect them from themselves.

By implementing a rules-based approach, you can impose discipline on your decision-making by taking it out of your hands entirely. Tools like the humble checklist, Dollar-cost averaging, stock screening and stop-loss orders can help structure and simplify a world that is often overwhelming. The less factors you need to account for before making a decision, the more likely you are to invest when the opportunity presents itself.

By following these simple steps, you’ll be the one who is ready to invest when an opportunity arises while the competition is busy making up more anecdotes about another missed opportunity.

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Cost of agricultural land set to increase by 8% this year

By Ted Healy of DNG TED HEALY The results of a survey on agricultural land values conducted by the Society of Chartered Surveyors Ireland (SCSI) was published earlier this week. […]

Published

3 years ago

on

1 May 2023

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By Ted Healy of DNG TED HEALY

The results of a survey on agricultural land values conducted by the Society of Chartered Surveyors Ireland (SCSI) was published earlier this week.

It predicts an increase in land values by an average of 8% this year and an increase of 14% on average in rental values.

The report titled, ‘SCSI/Teagasc Agricultural Land Market Review & Outlook Report 2023’, analyses the agri sector performance over the past year and projects how it will perform over the next 12 months.

In all 134 agri professionals and valuers were surveyed, who expect the outlook for dairy farmers to ease and a challenging future for sheep and tillage farming.

Rental Land values in Munster increased by an average of 13% in the last year with a 9% increase experienced in Leinster.

The report indicates that the average non-residential farmland prices in 2022 ranged from €5,564 per acre for poor quality land – up five percent from €5,308 in 2021 – to €11,172 per acre for good quality land – up two percent from €10,962 the previous year. Strong demand from dairy farmers for good quality land is driving the market.

The majority of those surveyed believe there is likely to be an increase in demand from dairy farmers to purchase farmland in 2023.

One point to note however, is that changes to the European Nitrates Directive, particularly measures aimed at protecting water quality, may have an impact on land prices, especially rental prices.

In order to maintain current levels of milk production – and to comply with the directive – many dairy farms will need to either increase their land area or reduce milk production.

The Residential Zoned Land Tax (RZLT) is also coming down the line at an alarming rate, farmers have until May 1 to make a written appeal. Under the new legislation farmers owning currently zoned land face an annual tax bill of 3% of the market value of their zoned land.

This will result in countless numbers of landowners facing crippling tax bills from next year on. It is expected that this new tax may bring forward extra land sales later this year before the tax takes hold.

The IFA (Irish Farmers Association) have this week sought a senior counsel review of the legislation governing the Residential Zoned Land Tax.

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What is a Fire Safety Certificate?

By John Healy of Healy Insurances A Fire Safety Certificate is an official document that verifies if a building design submitted as part of an application will, if constructed in […]

Published

3 years ago

on

1 May 2023

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By John Healy of Healy Insurances

A Fire Safety Certificate is an official document that verifies if a building design submitted as part of an application will, if constructed in accordance with the plans and specifications approved by the Building Control Authority, comply with the requirements of the Building Regulations.

Fire Safety Certificates are issued by a Building Control Authority. The certificate confirms that the building has adequate escape facilities and that the building is designed in a way that prevents and limits the spread of fire. While all buildings must comply with the fire regulations, not all buildings will need a Fire Safety Certificate.

Which developments require a Fire Safety Certificate?

The Building Control Act (1990 & 2007) specifies the development types that require Fire Safety Certificates:

· Works in connection with the design and construction of a new building
· Works in connection with the material alteration of a day centre, a building containing a flat, a hotel, hostel or guest building, an institutional building, a place of assembly, a shopping centre
· Works in connection with the material alteration of a shop, office or industrial building where additional floor area is being provided within the existing building or where the building is being sub-divided into a number of units for separate occupancy
· Works in connection with the extension of a building by more than 25 square metres
· A building as regards which a material change of use takes place.

Some developments are exempted from requiring a Fire Certificate and can include:

· Certain single storey agricultural buildings
· A building used as a dwelling (other than a flat)
· A single storey domestic garage
· A single storey building ancillary to a dwelling which is used exclusively for recreational or storage purposes or the keeping of plants, birds or animals for domestic purposes and is not used for any trade or business or for human habitation
· Works in connection with a Garda station, a courthouse, a barracks and certain government buildings.

If a building is inspected by a member of the building control authority and it transpired that no Fire Safety Certificate is in place, the building could be subject to closure. For more information see www.kerrycoco.ie/home3/building-control/firesafetycerts.

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