Britain is very much a country on the rise. With the recession still having a stranglehold over international business, it is refreshing to see Britain, alongside America, edge closer to economic good health.
Whereas the rest of the European Union is dealing with the mess that Greece currently finds itself in – Greece have recently renegotiated their bailout deal with the Eurozone members – Britain has managed to circumvent a monetary crisis thanks to the fact that it is not tied into a monetary union like the majority of EU members.
by Iker Merodio | Photography
At this year's Sohn Investment Conference, Dan Sundheim, the founder and CIO of D1 Capital Partners, spoke with John Collison, the co-founder of Stripe. Q1 2021 hedge fund letters, conferences and more D1 manages $20 billion. Of this, $10 billion is invested in fast-growing private businesses such as Stripe. Stripe is currently valued at around Read More
Taking a leaf out of the United States’ book, the UK government are seriously starting to roll out fracking sites. Right now there are just a select few sites in the country. Fracking will help the country stock up on shale gas, something which has revolutionised the American industry.
Yasminah Beebeejaun has written rather extensively on the subject. She states that in the U.S. gas prices have fallen from $12 to $3 per million British units. Savings like that are astronomical and part of the reason why America can play hardball with natural gas powerhouses Russia, whose role as the world’s energy provider is rapidly diminishing as countries strive to achieve energy security. If Britain do press ahead with fracking – it would be extremely surprising if they did not – then they will be able to reduce energy costs and in the modern world cheaper energy is far more important than cheaper labour.
Britain are at the forefront of the European fracking revolution. Germany put a moratorium on fracking last year but it looks like they are acquiescing to the idea of shale as tensions with Russia continue to heighten.
Fracking, which should lead to lower energy costs, combined with the fast growing major economy of 2014 and one of the sharpest falling unemployment rates makes it apparent that the UK market is the envy of all Europe. Therefore, it would be nonsensical to think of investing anywhere else. Below are just some of the sectors that you should be looking at.
A slightly left-field industry to start off with, but considering the money involved in British sport you will soon come round to this way of thinking. Soccer is the biggest sport in the UK. In attendance figures alone it attracts more than 40 million fans a season. However, while essential to the day-to-day running of a soccer club, no savvy investor would be too perturbed by low attendance figures. With the right marketing campaign, you can quite easily drive up attendances. What should be interesting every investor with an eye for the British market is the current television deal, which is simply staggering.
by Corey-Adam Crowley Graphics – Sergio Aguero of Man City, Premier League champions.
The Premier League – the top soccer division in England – is the most popular soccer league in the world. Wherever you are in the world you will be able to find a channel showing some sort of Premier League action, even here in the States. Recently, the television rights for the league came up for grabs. After a bidding war between BSkyB and BT the rights were eventually sold for an eye-watering £5.1 billion. Unlike La Liga, the Spanish top division, the money is distributed equally between the 20 clubs in the division. In Spain, by contrast, clubs can negotiate their own TV deals. That is why Real Madrid and Barcelona have the funds to usually price everyone else out of challenging for the title, although Atletico Madrid did win the title last season. The Premier League deal equates to £10 million a match and it is only a three-year deal.
Once 2019 comes around the deal would have already been renewed, which, considering the price jumped up by £2.1 billion since the last deal in 2012, should see even more money chucked at Premier League soccer clubs. If the Premier League has piqued your interest, it really should have, then you are in luck as Aston Villa are up for sale. The club, who are currently owned by notable American businessman Randy Lerner, is available to a good home for the price of £150 million. That is a steal when considering the TV deal.
by Harry Vale – Villa Park, home of Aston Villa
If that is too steep then you can buy shares in clubs that float on the Stock Exchange like Manchester United, who are owned by the Glazer family. Or you can look in the lower divisions and buy a club you believe capable of getting to the Promised Land of the Premier League.
Soccer is not the only sport that is big business in the UK. Horse racing, which is the second most attended British sport, is making numerous investors a mint. The “Sport of Kings” is about to head into its busiest season, which for investors signifies pay day. In the months following you have the iconic Cheltenham Festival and the Grand National. Victory at either should see your horse sit out the rest of its days as a stud, which is without question the easiest money you could ever imagine making.
by Paolo Camera
While it is great to see your horse named as favourite in the Cheltenham betting, your ulterior motive is to put it out to stud. Frankel, a horse that rode on the flat circuits, is expected to make £100 million in his stud career.
Investment in a horse has no guarantees. If your horse turns out to be lame, then that is sadly your fault. For those who have been tempted by the untold riches of British racing, make sure that you do your homework. Speak to fellow owners, trainers, and jockeys, some of whom may be open to the idea of investment while others will be happy to point you in the right direction.
Unlike the States where you have four economically sporting domains to work in, Football, Ice Hockey, Baseball, and Basketball, Britain only really has two profitable sports in the form of the two mentioned above. Rugby union is well followed at the grass root level but there is no money to be made in it. Neither is there any money to be made in Britain’s other staple sport of cricket.
There is money to be made in British sport, but it does take a lot of determination and an eye for potential.
For those looking for a long-term investment that will not depreciate in price over the coming years, look towards the British property market, which is one of the most attractive in the world. Last year homeowners saw the value of their property increase on average by 8.5%. Meanwhile, those in the Greater London area increased by 15.4%.
by Lars Plougmann
Property is very much booming and a sign of a country on the mend. Now really is the best time to get into the British property market. Next year analysts are forecasting a slowdown in rising prices, but even then it is still a healthy 3.5%. Now that may not sound too enticing, but how about a predicted 30% rise in prices from the 2014 average by 2019? Yeah, that caught your attention. Intellects from Oxford University, in tandem with Rightmove, suggests that property found in London will increase by 33% while even those at the opposite end of the spectrum should see a 24% rise.
The market is not just calling out for would-be-home owners, but it is also screaming for developers. Experts believe that the UK needs 240,000 new homes to be built every year if the country is to avoid this “chronic” housing shortage. To deal with this potential endemic the government are trying to make it as attractive as possible for developers to decide to break ground. So, if you are in construction and fancy a change of scene, look to your cousins.
In the UK, two banks fall under the government jurisdictions. These are The Royal Bank of Scotland and Lloyds. The British government is trying to move Lloyds back into the private sector, a move which George Osborne, Chancellor of the Exchequer, said has already netted the British taxpayer £500 million.
by The Word Factory Ltd
Although banks are currently dragging themselves up from their lowest ebb, you cannot argue with the fact that they will make money, a lot of money. Lloyds’ market value right now is criminally low, thanks in no small part to the loss of confidence in the institute by the British public. It is down but it is not out and this should alert anyone with sound business acumen. It may take some time but Lloyds will start generating profit again at some point, by which time it could be too late to invest.
British supermarket Tesco has taken a battering this past year. The company, which was once a bastion of British industry, over-estimated their profits to be £250 million more than what they transpired to be. This naturally saw the share value plummet, whilst the attack from below by Lidl and Aldi has also caused the supermarket great discomfort.
Luckily for Tesco they appointed Dave Lewis as their CEO this summer and he seems very much capable of getting the company back on track. The enigmatic CEO has already taken the bold step to slash prices to stave off the threat of budget supermarkets Aldi and Lidl, and has announced the closure of 43 stores. This may sound drastic but the general consensus is that Lewis is doing it right. He seems like a safe pair of hands with a forward-thinking mind.
Tesco, who have a near 30% market share, is already a sound investment, but with share prices lower than what they once were, right now getting in there is like daylight robbery.
As aforementioned, it seems increasingly likely that Britain is heading towards shale gas. The company at the forefront of this fracking revolution is Cuadrilla, who have already started lobbying the receptive government. The company are readying themselves to start extracting in Lancashire, a county that is believed to be rich in the natural gas. Once they get permission, which should be no later than the end of the year, they will be drilling whether the locals like it or not.
by SFU – University Communications
Put simply, there is money to be made in gas, especially shale. Buying shares now and selling them in 12 months should see most investors make a very tidy sum.
With China slowing down, India lacking the essential infrastructure to really benefit investment, Europe locked in crisis, America being too expensive, and Russia feeling the force of being solely dependent on a few exports that are currently being undercut by Opec and America, there is nowhere on the planet that can currently offer what Britain has.
What’s more, for those investors in Britain, the tax rate in the country is among the best in Europe, meaning you will get more for your money.
Of course, with investment it is hugely important that you think it through very hard because it is an expensive risk. The best investors should never really invest in a product that they do not understand. That is why you do not see Warren Buffett rushing towards tech start-ups. However, if you think you know the company and are confident that it will do well, then go for it.