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
Here's a simple question…
What do you think is the best investment to own during and after a market crash?
Well, logic will tell you that safe haven assets like gold and silver should be number one on your list, as investors flee to protect their portfolios.
Even government bonds will spring to mind as investors seek guaranteed income.
But this is far from the truth.
In fact,... ››› more
Mention Coca-Cola, Wal-Mart and Johnson & Johnson and the first thing that might come to mind is…
They're some of the biggest and leading companies in the world.
They're popular brands around most parts of the world.
And they've made plenty of savvy investors very wealthy.
For example, A R10,000 investment into J&J shares in 1970 would be worth in the millions today.
And if y... ››› more
Most types of risks for investors are almost impossible control.
Take politics for example - You have no control over what the Government says or does that could affect the markets.
But there's one type of risk an investor can control - The risk of paying too much for a stock.
Let me explain…
------- Special Announcement -------
This ... ››› more
Since the start of 2016, Silver rose from $13.82 an ounce to a high of $20.63 - an incredible 49% return!
Compare that to gold which is up around 25% and the JSE All Share which has returned just over 6% for the year.
So it's no secret that silver is one of the best performing assets in 2016. But recently, silver took a knock and it's sitting around $18.85 today.
The main factor that c... ››› more
When you think of Europe's fastest growing economies, who comes to mind?
Switzerland?, Germany?, maybe Netherlands?
No it's none of them.
The fastest growing economies in Europe consist of countries you don't hear much about in the news. I'm talking about Malta, Luxembourg, Romania and Poland.
These countries' economies are expected to grow more than double the Eurozone's in 2016 and b... ››› more
With a booming population and an ever growing investment market, China overtook the US as the world's largest recipient of foreign capital investments. Official statistics from China's Ministry of Commerce (MOFCOM) show foreign direct investment (FDI) into China reaching $35.4 billion in the first quarter of 2016. That's a 4.5% increase from the same period in 2015. The US economy fell from its po... ››› more
Today I want to explain one of the biggest mistakes investor's make.
It has nothing to do with what you invest in, where you invest or how much you invest. It goes much deeper than that.
It's got to do with your emotions and behaviour.
The fact is, every investor experiences it at some point. And if you keep doing it, you're guaranteed to lose a fortune.
Let me explain…
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Investors will search high and low to discover the real secret to what generates wealth in the long term.
Today I'm going to tell you the answer is simple.
Professor of Finance at the University of Pennsylvania and well-known market commentator, Jeremy Siegel did a comprehensive study to discover the best investments over 188 years.
And what he found proved, that one particular asset outp... ››› more
Before you even part with your money, the very first thing to do is to understand what makes this business tick.
It sounds simple but it's not. It takes time, effort and unfortunately there are no shortcuts.
Michael Shearn, author of The Investment Checklist: The Art of In-Depth Research, once said: "Many professional investors believe that in- depth research is a waste of time. To them, ... ››› 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.