Today, I'm going to show you one of the most important investment lessons you could ever learn...
Let's start with the big secret... The truth about how the father of value investing, Benjamin Graham, made his millions...
Most people know Graham literally wrote THE book (or books) on how to invest: "The Intelligent Investor" and "Securities Analysis".
L... ››› more
Your go-to guide when trading penny shares.
It is one thing to identify good penny shares but trading them is no less of a challenge.
Let's accept the harsh reality: It's virtually impossible to get into the shares at the lowest price and get out at the very top every time.
But the following ten simple rules can ensur... ››› more
Five things to look out for when buying your first penny shares - Miss these and you could write off your investment account!
You've been looking to invest in penny shares for a while…
You've opened a brokerage account. You've read books on analysing shares and you've done research on a number of shares. You might even have decided on the first share you... ››› more
You may have heard that penny stocks beat the rest of the market's performance. Do you believe it?
Of course, it's not a guarantee that penny stocks always outperform the rest of the market at any given time, but over the long run, they do.
Let's take a closer look…
The outperformance of penny stocks
Research shows that investing in penny stocks, in other words small-caps, beats t... ››› more
There are a lot of penny stocks on the Johannesburg Stock Exchange to pick from. And many of them have the potential to be very profitable investments.
There is one thing that gives you an advantage over professional investors when it comes to investing in penny stocks. This is, you can invest in them and professional investors can't.
So let's look at the penny stocks available to invest in ... ››› more
A penny stock's share price doesn't really tell you anything. It's simply the value of a company divided by the number of shares in circulation.
But one thing is for sure, you want to sell a penny stock for a higher price than you bought it for.
There are factors that impact a company's share price.
Let's take a closer look at the workings of a penny stock's share price…
Penny sto... ››› more
Penny stocks are riskier than larger stocks, but they also have the potential to turbo charge your profits.
So if you want to start investing in penny stocks, how can you begin?
What sort of account do you need with a stock broker?
How much should you invest?
And why are penny stocks worth the extra risk?
To find out the answers to these questions and much more, let's take a clos... ››› more
In South Africa, penny stocks are shares that tend to trade on the Johannesburg Stock Exchange for less than R10.
Penny stocks have the potential to make you a lot of money, but they do come with their risks due to their size.
There are generally two types of penny stocks: Small, young companies with the potential for enormous growth and companies that have low share prices.
Let's take a... ››› more
To buy penny stocks on the stock market, you need to have an account with a stock broker.
There are a number of stock brokers to pick from and there are also different types of accounts.
So what sort of accounts are there? And what's the best option for you?
Let's take a closer look…
The three different types of brokerage account
There are three different types of brokerage acc... ››› more
If you want to start investing in penny stocks, you buy them in just the same way as you would any other share listed on the Johannesburg Stock Exchange.
This means if you don't already have a stock broker, you need to find one. This is your first step to start investing in penny stocks.
So once you have an account with a stock broker sorted, how do you buy penny stocks?
Read on to find o... ››› more
Finding the right penny stocks to buy isn't easy. But if you can uncover the best penny stocks on the stock market, you can look forward to ample profits in the years ahead.
So when it comes to looking through a company's accounts, what should you look at?
Let's see what you should look at in the income statement…
The income statements of penny stocks
As for all listed companies, ... ››› more
If you've decided to invest in penny stock, due to their lower share prices, your investment will buy you a lot more shares than investing in the large-caps on the Johannesburg Stock Exchange.
But you shouldn't take this as a cue to invest tiny amounts into penny stocks. You should stick to a minimum investment of R5,000.
So why is this?
Let's take a closer look…
Investing small a... ››› more
If you want to invest in penny stocks, you need to understand how the pricing of shares works.
There isn't just one price for a penny stock, or any other share on the stock market, there are two.
So what is the difference between these two prices? And what difference does it make to you?
Read on to find out more…
The bid offer spread of penny stocks
If you’re new to investing... ››› more
Irrefutable evidence that penny shares are simply the single best investment class for any South African investor.
There's no doubt I'm a penny share fan.
But just in case you had any doubts at all about the wealth-building potential of penny shares…
Check this out...
Just suppose in 2006 you inherited R15,000...
So you decided to put it to wor... ››› more
Variety in an investment portfolio is important. It allows you to benefit from the different ups and downs of different assets. The overall effect is a better performing portfolio.
You may have considered investing in penny stocks, but worry about the higher risks involved. But you shouldn't let this put you off…
Invest for the long-term with penny stocks
Over the years, stocks have ... ››› 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.