Investing

Why companies that demonstrate a “Value Chain” are more likely to generate you big profits
Have you ever heard of the “Value Chain”? Well, it's an old concept developed in the early 1980s by Harvard Professor Michael Porter. Porter spent much of his career devoted to analysing competitive strategies. In his 1985 best-seller book, "Competitive Advantage”, Porter discussed the power of the “Value Chain” and why companies that get this concept right are more likely to... ››› more
[22 September 2017]

Cabinet reshuffle announced - Two to buy and one to sell
Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case. When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
[22 September 2017]

The one number that matters when it comes to share price direction
Today I'm going to explain why you don't ALWAYS need to follow… Market forecasts Hot tips in the media “Sure-fire” speculations… to know where share prices will go. In fact, you only need to know one number to see if a company's shares will go up or down. And the best part, every investor can use it! Although successful investors like Warren Buffett, Peter Lynch and John Temp... ››› more
[22 September 2017]

Moving swiftly along - Three to buy
A week of heightened protests has ended and the ANC Cadre are holding the fort, for now. Their confidence masks the growing dissension from all sides, including members of its own party, eventually pressure will come to bear. Fitch followed S&P in downgrading SA, but again the reaction was relatively muted. Clearly the market had been preparing for this eventuality. Of more concern is that som... ››› more
[22 September 2017]

Use the Rule of Four to keep your portfolio in the green in ANY market
How you can diversify yourself to safety with the ‘Rule of Four' What do you do with your money in a crisis? Do you sell your share portfolio? Do you stick everything in a bank account, in property or in gold? That's the question that popped up around a campfire I had going with friends over the weekend. Considering South Africa's junk status, state capture and political unrest that'... ››› more
[22 September 2017]

How “going electric” could cause the next oil crisis
In 1973, Egypt and Syria launched an attack on Israel. During this war, Israel was supported by its close ally, the US. In response to US support, the Organisation of Arab Petroleum Exporting Countries (OPEC), who control much of the world's oil market, implemented an oil embargo against the US and its allies. Consequently, the price of oil soared from $3 a barrel to $12 a barrel. ... ››› more
[22 September 2017]

If you bought Lifecare Health two weeks ago, you'd be up 27% - Two to buy and one to sell
Global markets are watching developments around the French elections for direction. Once again, a far-right candidate, with radical views is the underdog and has the potential to create a shock to the status quo. Emmanuel Marcon is leading Marine Le Pen after the first round, both candidates have offered to hold referendums on remaining part of the European Union. The US earnings season k... ››› more
[22 September 2017]

Why I'm not hot on the South African retail sector
The Foschini Group is down 10.54% in the last month, Mr Price 10.40%, Truworths 6.33%. And Lewis crashed a whopping 16.70%. If you're invested in retail, it's been a bad month for you. But before you start buying into the sector because it ‘shows value' I want to warn you… South African retail sales are dropping and you need to watch out for the fallout In its m... ››› more
[22 September 2017]

The proven secrets to master the “buy high and sell higher” strategy
We've all heard the expression to make money in the market you need to, “Buy low and sell high.” Well today, I'm going to shatter that conventional wisdom and introduce you to one investor who managed to master the art of “buy high and sell higher”. And in doing so, become one of the world's greatest investors. It was so effective, that his stock recommendation publication returned... ››› more
[22 September 2017]

Macron wins French election, settles markets - Two to buy and one to sell
US markets closed at record highs on Friday, helped by technology stocks like Apple, Facebook and Google. The strength of the US markets is filtering through to other developed markets and the victory by Emmanuel Macron in the French elections eliminates one more hurdle. Improving global sentiment bodes well for the weeks ahead. The rise in technology stocks is playing out nicely for our inve... ››› more
[22 September 2017]

The investment concept that's “100 times more important than any stock pick”
If it all hits the fan and the market goes downhill, does your investment portfolio have enough protection? Most people can't give a confident straight answer of “yes”. And this is a big problem. But relax, because you can kick this problem to the curb. How? By using a concept that is described by Editor at Stansberry & Associate, Dr David Eifrig Jr as, “100 times more imp... ››› more
[22 September 2017]

SA firmer, US softer, OPEC may curb production further - Three JSE stocks to buy with updates
Local markets were slightly firmer across the board last week, assisted by some Rand weakness and better commodity prices. US markets were slightly softer, the UK rallied 1,8% while Europe was flat. US economic data did not meet expectations, which has called the pace of continued rate hikes into question. The US dollar gave up ground against most major currency pairs. Political uncertainty re... ››› more
[22 September 2017]

Are you ready for a South African Wealth Tax? You've likely never seen anything like this before…
The Davis Tax Committee (DTC) has issued an invitation for submission, by the public, on a proposed South African wealth tax. You are likely familiar with taxes on income (PAYE) or even spending (VAT), but you have likely never encountered a true wealth tax. A wealth tax, as the name suggests, is a tax on your wealth. There are three basic forms discussed in South Africa. The first two, de... ››› more
[22 September 2017]

Should you sell in May and go away…?
News flow seems to have subsided for now, markets continue to grind gradually higher. The JSE added 1% last week on the back of stronger commodity prices; Brent recovered 3,4% after trading softer for several weeks. Internationally, markets continue in a holding pattern; testing new highs. Commodities are responding to a weaker dollar and US Markets stumbled for the second time on new challen... ››› more
[22 September 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.” A reminder… “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
[22 September 2017]

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