In just a couple of days, around R183 billion was wiped off Steinhoff's market cap. The company's shares have lost over 80%. CEO Markus Jooste resigned with immediate effect.
Investors, asset managers and fund managers lost a fortune!
So what exactly happened?
"Steinhoff has involved itself in some shady dealings which involves accounting irregularities and overstating profits.”
... ››› more
Did you know that the story of money is older than civilisation itself?
That's right. Money is an “innovation” that's older than the wheel and, as old as fire.
Originally when humans wanted to trade outside their tribe or villages, they needed something that everyone agreed had value. Something that was accessible.
Enter “commodity money”.
There were many kinds of commodity... ››› more
Last week, cryptocurrency expert Sam Volkering shared how international companies are investing in blockchain technology.
Companies like financial technology provider Novatti Group.
“Novatti signed an MOU (memorandum of understanding) with Lightyear.io, an organisation that works with the Stellar Development Foundation. Stellar has developed a blockchain, but instead of providing pure pe... ››› more
The cryptocurrency I want to tell you about today was founded in 2014 under the development of a team of Japanese developers.
This year, this cryptocurrency has seen incredible growth.
My colleague and cryptocurrencies guru, Sam Volkering explains why…
“The reason is that the Japanese crypto market continues to see money flow out of the “traditional” banking and finance system,... ››› more
Today I'm going to explain why using one of the most popular investment strategies to make money is a bad idea.
This strategy is probably used by almost every financial advisor out there.
Worse off, some even advise using this strategy to build wealth for your retirement.
The problem is, it simply won't make you rich. Or even grow your wealth quickly.
Let me explain…
Editor&... ››› more
Have you ever heard of overtrading?
Overtrading is when an investor jumps from one stock to the next trying to make as much profit as possible.
The thing is, overtrading can damage your portfolio.
You are trying to time minor daily fluctuations that are harder to read than long-term trends. And the more you do this, the more you're likely to bank losers.
So how do you avoi... ››› more
On 1 January 2017, this cryptocurrency's price stood at around $8.24.
At that time, its market cap was around $720 million.
Fast-forward to today, its market cap has grown past $30 billion. But even better, its price has soared to around $322 - which is a 3,807% return compared to Bitcoin's 453% return this year.
In other words, a R120 investment into this cryptocurrency on 1 January 2... ››› more
A decade ago, Zimbabwe experienced one of, if not, the worst inflation crises.
Hyperinflation wiped out Zimbabweans' personal savings.
It left shops empty.
And it became almost impossible for people to buy a tank of petrol or daily groceries.
There's no accurate number that shows how much Zimbabwe's inflation actually rose, but some estimated as high as 500 billion percent!
To ... ››› more
“The state has grown used to treating its taxpayers as a farmer treats his cows, keeping them in a field to be milked. Soon, the cows will have wings.”
- The Sovereign Individual, James Dale Davidson & Lord William Rees-Mogg
The Sovereign Individual was written in the mid-90s, and predicted a future where computers and the internet would ultimately kill nation states, ushering in a new... ››› more
Think Berkshire Hathaway and the first person that comes to mind is Warren Buffett.
But did you know much of Buffett's and Berkshire's success was down to his partner?
His name is Charlie Munger and he's the Vice-Chairman of Berkshire & Hathaway.
Before Munger partnered with Buffett, he managed his own investment partnership, which averaged returns of 19.8% a year from 1962 to 1975 beatin... ››› more
There are many widely available tools, tricks and techniques that will help you spot good businesses that are likely to increase in value.
But do you know how to spot companies that are going bust?
Well if there's one person who does, it's Scott Fearon.
An extremely successful money manager, Scott Fearon has shorted more than 200 companies that eventually ended up at zero. And spotting th... ››› more
No one can accurately predict where the markets will go in 2017.
The fact is, the markets become volatile in times of uncertainty.
And when the markets become volatile, there's a good chance your investments could decrease in value. This is simply known as market risk.
The main causes of market risk are recessions, political turmoil, natural disasters and terrorist attacks. Or even sm... ››› more
Over the past 10 years, the South African listed property sector has easily outperformed its peers.
Investors who've jumped on this rally early, would have made a fortune investing in JSE property companies.
But the smooth-sailing returns delivered by the commercial property market are coming to an end.
You see, listed property returns have halved for the last three years - 25.1% in 2... ››› more
Since 28 December 2016, the JSE has rallied around 6%.
Some investors or analysts will say it's just erased the losses from last year.
But many will say the strong rally will continue delivering even more returns.
Whether or not that's true, it would be no surprise to now see investors pile money into the stock market.
And if you're one of those investors, that have been waiting pa... ››› more
When I began investing, I used to buy and sell shares without even knowing exactly what the company did.
And my game plan couldn't have been more straightforward: If the share was moving higher, I bought it. If the share was falling, I sold it. I simply didn't care about the economics of a company.
This wasn't much of a strategy though. In some cases, it would work but it certainly never g... ››› more
These days, investing for attractive income returns is extremely hard to come by.
Money market funds at most pay you 7.3%.
The average share on the JSE is only paying investors around 2.9% in dividends per year.
And once you factor in inflation, you're basically getting nothing!
But there is a way, you can invest for income and receive a return…
That beats every money market ... ››› more
What do you believe an investor's greatest asset is?
A high IQ?
A stack of degrees behind their name?
A workable investment strategy?
Not at all.
In fact, the answer has nothing to do with money or personal success.
But it's something every potential investor can achieve.
Let me explain…
The world’s most famous investor confirms this... ››› more
One of the best parts about working for Fleet Street is being able to connect and build relationships with top global investment experts.
These are some of the brightest financial minds who help hundreds of thousands of readers from all over the world build wealth on a consistent basis.
And every single day, I'm fortunate to receive all their best inside information from Agora Financial, M... ››› more
The great Albert Einstein once defined insanity as “doing the same thing over and over again and expecting different results.”
I'm sure on a personal level, you've experienced this insanity.
The fact is, we continually make the same mistakes in all areas of life. And when it comes to investing, this is especially true.
That's why today I'm going to explain the two most common inves... ››› more
When you buy a stock and it doubles, what do you do?
Many investors would sell, feeling like they've made a good profit. Then, they sit on the sidelines and watch as their stock goes higher and higher - cursing that they've sold too soon.
Founder of Agora Publishing, Bill Bonner gives a great example of this:
Financial writer Richard Russell of the Dow Theory Letters invested in Warren... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.