I don't often make predictions.
And, I simply don't like being wrong…
But every once in a while, the evidence is so conclusive … I simply cannot ignore it.
You see, some four years ago, I uncovered a report which indicated the coalmines that supply Eskom would reach the end of their lives between 2010 and 2020.
And I told investors:
In the next three years, w... ››› more
There is only one way to profit from Eskom's Coal Cliff - and SA's energy revolution and that is to invest in these Three Penny Stock Eruptors:
HERE'S HOW TO CLAIM YOUR COPY TODAY Read it and you will discover:
Penny Stock Eruptor #1:
A coal miner that's set to quadruple production and come to Eskom's rescue
Penny Stock Eruptor #2:
The only such business in Africa, with th... ››› more
There are two approaches to making money from the markets.
The well-trodden path. The path almost everyone seems to take. The one that grinds out a decent return over the course of a life. Safety first.
If you're patient, if you're willing to wait 30 or 40 years for a meaningful return on your capital… that is the path for you. Go out today, buy an ETF and never look at an individual sha... ››› more
There's an old saying on Wall Street that says, "Profits are a matter of opinion, but dividends are a matter of fact."
And simply put - I believe too few investors are giving sufficient attention to many of the incredible dividend paying stocks on the JSE…
If you're like me, into fast moving high return shares, you know its even more difficult finding small cap companies that pay a divid... ››› more
Whether you've been an investor for years, or you've just decided you want to start investing money, you need to know what kind of an investor you are.
The reason is, if you understand what kind of investor you are, you can understand what your risk profile is.
That matters, because - there's no use in investing in bonds if you are an aggressive investor looking to double your money in a y... ››› more
I received a letter from Louis recently:
I have saved R6,000 in the last six months, and while I want to continue this savings I want my money to start growing as well.
I realise I won’t necessarily make thousands from the get-go, but I want to become more knowledgeable about investing, and start making money for my retirement one day.
I want... ››› more
In the past month or two, I've realized a worrying trend on the JSE.
This trend has been behind Sibanye Gold's 58% drop in the past year.
It's also been behind Woolies losing 25% of its value since 2016, and Brait dropping 41%.
What is this trend? Well, it's “making offshore acquisitions at ALL costs”…
And Warren Buffett has just warned investors against the trend.
Let me... ››› more
It's a new year and, as customary, I'm sharing a couple of insights that I believe will shape the stock market, our economy, and the world we see around us every day.
2017 was a year dominated by two themes.
The first one being, politics, drove the South African economy, investor sentiment and our currency.
The second was probably a symptom of the first. Because politics dominated ever... ››› more
In the race to the world's first public company worth a Trillion Dollars, Apple is closer than ever!
Between November and December 2017, the company hit $900 billion - nearing the Trillion dollar mark…
With the IPhone, IPod and IPad - Apple has managed to become the largest company in the world!
But new, research points to the EV revolution being MUCH bigger!
The fact is, Electri... ››› more
I can remember my honeymoon like yesterday.
We were crazy in love.
And for months afterward this euphoric phase continued.
I could make no mistake in her eyes, nor she in mine. Everything was perfect.
Then suddenly reality struck. Our first big fight after getting married.
And suddenly we realized being married is tough, and the good times go hand in hand with the tough ones…... ››› more
During its December conference the ANC vowed that, it would expropriate land and put it in the hands of the people.
The news is full of headlines like:
ANC NEC wants land expropriation 'urgently'
The ANC is making false promises of land expropriation
#Ramaphosa says ruling party is committed to land expropriation
And I can already see the pictures ... ››› more
If there's no cash in a business, it's dead. The most recent spectacular crash in Steinhoff shares is proof of that.
It is no different for property.
If your property doesn't generate a positive cash flow - the investment is dead in the water.
Choosing to lose money isn't a valid investment strategy
It's all too often that I hear investors say “I'm not making money on the property ... ››› more
I've been looking at ways to reduce my donations to the Nkandla Fund (SARS income tax)…
I have no objection to pay tax - when the government that receives that money makes use of it responsibly. But that's not the case at this stage.
And by putting off paying tax (legally) I can get my money to work for me faster than when I give nearly half of that away to the tax man.
Now instead o... ››› more
The mainstream media will only tell you about the biggest of the big shares. You'll often hear about Naspers, Richemont and BHP Billiton.
And fund managers will make these big shares the centre points of their investment funds. That is - the Balanced Fund your advisor will suggest you invest in for retirement so you don't need to take much risk.
But that means you can expect 9%, 10% and if... ››› more
Lonmin has been one of the great stories of value destruction for investors.
Since my first warning about the company in 2012, it has lost 96% of its value.
Simply put - it's been a big one to avoid.
Crypto Revolution: How the rise of bitcoin and cryptocurrencies could turn every R2,000 you stake into R980k
My warnings on Lonmin since 2012
... ››› more
The rand started out 2017 at 13.78, and quickly strengthened to R12.42 in mid-March.
This would've negated strengthening commodity prices world-wide.
The price of copper, ferrochrome, gold and aluminium all rose during 2017.
But - fortunately for South African producers of these commodities the rand weakened yet again, now trading in the R14 range.
And that means all of these commo... ››› more
When you invest in shares there are two things that can make you money - capital appreciation as the share price rises. And dividends putting hard cash in your pocket.
Most investors focus mostly on capital appreciation.
But the fact is dividends can make you massive returns.
If for instance you bought Adapt IT in 2009, you'd have paid 44c per share. Since then the company has paid out... ››› more
What if I told you there's a way to find shares that consistently outperform the market?
Sounds too good to be true.
But the fact is, fourteen shares I invested in between 2010 and 2016 provided me with returns outstripping 100% each….
In their 2013 paper titled “Fundamental Based Market Strategies”, Dr Angelo Aspris (research leader), Sean Foley, (researcher), Nigel Finch, and Z... ››› more
In the past six months, a little known JSE listed company, Insimbi, is up nearly 50%.
And on 26 September 2017, it announced its revenue increased 247%, and earnings per share increased 142%.
Growing profits by as much as 142% in an economy that's in recession is nearly impossible.
But Insimbi achieved this - how you ask?
Well, the company made a smart acquisition at the end of... ››› more
Throughout 2016 and early 2017 Rolfes had a great run, up from R2.76 to a high of R5.
But the share has suddenly dropped in the past two weeks.
A number of investors and analysts attribute this to the fact that the company hasn't released a trading statement.
So what does a trading statement have to do with share price?
The JSE requires companies to release trading statemen... ››› 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.