South African Investor
- The biggest mistake you can make when building an offshore portfolio
- I call it the “offshore investment conundrum”. Investors have no clue where to invest or what to invest in, leaving their cash exposed to unpredictable economic and political events. Investing in just any old offshore product will cost you time and more importantly, money.
While I admire the ambition of investors to identify opportunities elsewhere, the fact of the matter is, over half of ... ››› more
- [24 July 2017]
- I hope you don't get this phone call!
- There are a few things with trading that worry me.
The first is when the internet connection cuts out when I'm trying to get into a trade or when I modify my trading levels.
Second, is when the market environment goes into a sideways range where no matter whether we buy or sell - we lose either way.
And third, is when my subscribers write to me and tell me about the worst possible trading... ››› more
- [18 July 2017]
- Where else can you get a 35% return a year on your money?
- About 10 years ago, I gave up with investing. The returns were just too slow for my liking.
And so, trading took over a big portion of my life.
Now as you know by now I'm a trader by heart. But I also understand that I need to diversify my money for the future. Why? Well, it's better to grow my retirement kitty with multiple streams of income, rather than with just one or two.
With the st... ››› more
- [08 June 2017]
- The perfect example of why you must avoid “Unicorn” stocks
- Last year in MoneyMorning, I wrote about “How unicorns” are the next “Tulip Bubble crisis.”
“Unicorns” are the name given by Silicon Valley to private start-up tech companies that have valuations of $1 billion or more. They're usually categorised as innovative, high growth companies.
But as I explained last year, many institutional investors pile cash into “... ››› more
- [29 May 2017]
- The 3 most troubling takeaways from SONA
- The State of the Nation Address (SONA) was certainly a spectacle, unfortunately mainly for the wrong reasons. However, as South Africans, it's essential to analyse the SONA - especially as it could have a significant impact on our lives.
Personally, I found three aspects of SONA particularly troubling…
Why investors should be worried about SONA 2017 #1: The violence
In hi... ››› more
- [16 February 2017]
- How to shield your portfolio against this one type of risk
- 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
- [23 January 2017]
- If you make one investing New Year's resolution, make it this…
- Consider this…
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
- [11 January 2017]
- The 6th major asset bubble crash is coming in 2017…
- 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
- [16 November 2016]
- 14 mistakes you make with your money but refuse to admit
- Ah South Africans! Blinded by politics, multicultural in every way, revered by the world... But man, do we suck when it comes to money?
We're a country of proud people. We've survived some of the most severe political turbulences the world has ever seen. We beat it all. Despite all the challenges our country still faces, we have a proud heritage.
Maybe that's why so many of us refuse to adm... ››› more
- [18 July 2016]
- Why you should re-fall-in-love with these spurned market darlings
- Last year was a rough year for markets. The All Share Index only managed to eke out a measly 5.22%, almost a third of its long-term average return. It was also a year in which we witnessed the spectacular fall from grace of two the JSE's former market “darlings”.
MTN which delivered 136.23% between 2010 and 2015, ended the year down -36%, after getting smashed on the news of its Nigerian ... ››› more
- [08 July 2016]
- Warning: You could be overpaying your fund manager for little or no returns
- It's a global argument that continues to gain traction and plague most fund managers. Crucially, today this argument is becoming more prevalent in the South African financial industry.
I'm talking about performance fees.
Should they be removed? Are investors getting their money's worth when investing in a fund?
There's a growing consensus that performance fees only benefit the fund man... ››› more
- [08 July 2016]
- 7 reasons why I look to the South African Investor to build and protect my wealth
- Investing in South Africa today is proving to be a challenge for even the best investors. We have to deal with constant attacks to our investment capital.
Scam artists, investment fees, taxes, increasing cost of living as well as political decisions both local and internationally all seem to be aligned to do one thing, eat away at the wealth we are trying so hard to build.
The current situ... ››› more
- [06 July 2016]
- MTN's executive team is undergoing massive changes - Should I buy more MTN shares?
- IT seems that Africa's largest cellular network provider, MTN is in for a few more changes to its executive structure.
MTN released a statement to its shareholders informing them that Brett Goschen, the company's Chief Financial Officer is leaving the company on 30 September 2016. Goschen will also be stepping down for MTN Group's board of directors.
In the meantime, CEO of MTN Rwanda, Gunt... ››› more
- [06 July 2016]
- 3 “Crisis” Stocks to Beat the Brexit Blues
- So unless you've been living under a rock for the last week you'll have noticed that the UK scored a massive own goal by voting to leave the European Union last Friday.
What a mess!
All those South African's now “safely” living in the UK and no doubt looking down their snooty noses at our own Nene-gate scandal (and the subsequent rand devaluation) are now facing the same sort of curren... ››› more
- [01 July 2016]
- Here's how to avoid the worst dividend paying shares on the market
- Companies that pay huge dividends give your portfolio a certain level of protection and a steady flow of passive income.
This extra income stream is perfect for investors nearing retirement because it relieves some of the financial pressure and grows your retirement savings with very little effort. With a powerful dividend packed portfolio, you don't have to tap into your capital or savings... ››› more
- [01 July 2016]
- Dealing with the Brexit aftermath... Stop panicking
- When I heard the results of the Brexit vote last Friday, I was watching TV, clutching a cup of coffee and snuggling under a blanket with my sons in the diamond city, Kimberley.
As soon as the news bulletin ended, my phone started to buzz uncontrollably.
First, a message from my brother asking, “Did you see the Brexit result?” I ignored it. Then, a message from a colleague, “How could... ››› more
- [27 June 2016]
- Bidvest's Food Service unbundling was a huge success… But should you still be holding Bidcorp shares?
- The Bidvest group recently unbundled its Food Service business and listed it separately on the JSE as Bid Corporation (Bidcorp) - share code (JSE: BID). Bidcorp received a warm welcome on its debut, kicking off the day at R270 a share and closing well up at R304 (giving it a massive market capitalisation of R102bn).
But let's recap quickly…
The reason for this unbundling was to create a ... ››› more
- [23 June 2016]
- One man pockets R21.8 million for Vodacom's decent performance
- Since the markets opened on 4 January 2016, Vodacom's share price has increased nearly 6%.
Its closest rival, MTN's share price fell nearly 5% since the markets opened.
Telkom on the other hand has proved that it's less than worthy down nearly 11% over the same time frame.
But there's one man that's smiling all the way to the bank. That's Vodacom's CEO Shameel Joosub...
Vodacom pa... ››› more
- [21 June 2016]
- Gold mining companies' broken promises results in unprecedented legal action
- Every year, between 1,500 and 2,000 miners apply for compensation from mining companies for lung diseases like silicosis and tuberculosis.
These diseases are direct a result of the mine workers coming into contact with dangerous chemicals in the mines.
In 2003, the gold mining industry promised that by 2013, there would be no new cases of silicosis among workers exposed for the first time ... ››› more
- [16 June 2016]
- Amazon hits all-time highs and we're buying: 6 facts you need to know
- You're probably familiar with SA's successful emerging market tech and media giant: Naspers.
'But as a South African you might not have considered skipping across the water and putting some money to work by investing in its fast growing US eCommerce rival: Amazon.
This US retail behemoth is often overlooked in offshore portfolios, but, I believe, should be a vital inclusion for any investor... ››› more
- [09 June 2016]
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