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
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
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
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
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
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
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
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
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
Do you know the difference between minimum investing and low-cost investing?
Well, most investors would usually say they're the same thing. But this is far from the truth.
Low-cost investing deals with the investments associated with investing your money, while minimum investing implies the least amount of money you can invest.
In fact, failure to understand this can actually lead to... ››› more
From 2013 to 2015, South Africa's listed property sector has achieved a 17% annual average return.
Over the same period, that's:
Five times more than what SA bonds returned
Three times more than what SA cash returned
3% better return than what SA equities has achieved
But the many investors who allocated a large portion of their wealth into listed property in 201... ››› 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
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
Put yourself in this situation…
You have R20,000 to invest. You decide to buy a stable growth company and an undervalued share with explosive potential.
In six months' time, the stable growth company is up 50%, while your bargain buy is down 20%.
Now a 50% return in 6 months' from just one stock sounds incredible - That's R5,000 in your pocket for doing nothing. You decide you don't wan... ››› more
23 years ago, two brothers, David and Tom Gardner, founded and built one of the world's greatest investment communities - The Motley Fool.
Reaching millions of people every month through a website, books and the newspaper, they give independent financial and investment ideas to help ordinary investors make a lot of money.
But these brothers are more than this.
They've published best-selli... ››› more
You have to go back more than 400 years where the first major “asset bubble” happened.
Between November 1636 and May 1637, tulip prices soared 20-fold, before plunging 99%.
Then from January 1720 to June, the second major asset bubble occurred also known as the South Sea Bubble.
Shares from UK-based South Sea company surged more than eight-fold from £128 to £1,050, before collapsing... ››› more
On most days, you read the financial news and more than likely, you'll read negative headlines.
Maybe it's a new crisis in the Eurozone; an “imminent bond crash”; or maybe it's the Rand crashing again.
Whatever it may be, it's no surprise to hear many investors keeping their cash away from the markets right now.
But as the saying goes, “out of crisis comes opportunity”. And today ... ››› more
Do you know that one of the strongest and largest banks in Europe is in big trouble?
Yes, Deutsche Bank struggles go way back to last year, when the company reported a loss of €6.8 billion.
And just recently, news came out that the bank faces a $14bn charge over mis-selling mortgage securities in the US.
But if you don't own Deutsche Bank's shares, why should you care?
Well, South Af... ››› more
Over 400 years ago in 1593, tulips were brought in from Turkey and introduced to the Dutch.
Because they were unique, tulips were desired by the Dutch people, which made them fairly expensive.
One day, the flower contracted a non-fatal virus called mosaic. Mosaic didn't kill the tulips but caused different colours to appear on the petals, which increased their rarity and value.
Because of... ››› more
What if I told you NOT all companies that appear undervalued will make you money?
This is one of the biggest challenges investors face.
In fact, professional investors refer to such undervalued companies as “value traps”
Typically, a “value trap” is a stock that seems cheap because it's trading at a massive discount to its sector, peers or net asset value for a period of time.
... ››› 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.
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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.