Warren Buffett has many great investment quotes, but perhaps my favourite is “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1”. This has never been more applicable than now. The world is about to become a far more uncertain place for investors as a series of political and economic events threaten to derail the global economy.
Number one on the list of threats is the US-Ch... ››› more
The Steinhoff debacle hurt a lot of investors.
If you held Steinhoff shares before the crash - you'd be down around 97% on your money today.
And the chances of ever recovering all the losses are close to zero…
But what you should know is that situations like this can be avoided.
There are at least four clues to follow that are warnings signs of an impending disaster like that of ... ››› more
Imagine investing R100,000 in a company and receiving over R600,000 in dividends alone…
Or investing the same amount and getting back nearly R200,000 just in dividends…
Now that's serious income that could guarantee a comfortable retirement. Now imagine owning six of these shares right now…
I'd call that the ‘Ultimate Paycheque' retirement.
And as I said, I've identified si... ››› more
Dear Trading Tips reader,
I recently wrote an article on how to analyse a boxer’s fighting style.
But this is only the beginning.
You see, with boxing being such a high-level sport, there are a few other aspects to consider to make accurate predictions.
Things like how much a weight a boxer must lose, to make the correct weight category.
Or bettin... ››› more
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
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
The JSE All Share Index is up 1% for the year so far.
The Top 40 index, representative of the most ‘stable' shares on our market is down a miserable 2.25% since 29 December 2015.
And our economy is struggling.
It's fair to say that 2016's been a tough year. Many companies are losing money (or at least making smaller profits), and very few shares are up.
But there are a select gro... ››› more
On my trip to London last year, my international colleagues from the MoneyWeek offices discussed an interesting concept that was secretly emerging throughout the world.
They called it “The War on Cash”. Simply, it's a sinister scheme already being actioned throughout the global financial system, which allows governments and Central Banks to keep borrowing, and transfer your wealth into the... ››› more
If you've been holding Redefine Properties (RDF) shares, you have an important decision to make. You see, the company is paying a dividend of 41.70 cents for the six months ended 29 February 2016.
You need to choose if you want to receive the cash dividend or use the dividend to reinvest to buy more shares.
The biggest advantage of reinvesting your dividends is compounding
You accumulate... ››› more
No one can predict which way the stock market is going to go. One year, we're in a bull market, the next year, we're in a bear market.
But currently, there's more fear in the markets today than there was a year ago. Stock have fallen tremendously and more investors have become bearish.
And if you're one of these investors, you probably looking for a way to reduce the risks that could hurt y... ››› more
Cashbuild is a retailer of building materials and related products. The company has a listing on the Johannesburg Stock Exchange…
Full name: Cashbuild Limited
Short name: Cashbil
Sector: Retail – general retailers
Five top facts about Cashbuild
Cashbuild employs around 4,700 people across its operations in southern Africa`
Cashbuild has a listi... ››› more
It's easy to see why many investors don't like cash.
It earns poor returns in the bank. Putting your cash to work in investments means it's actually doing something for you.
But this shouldn't deter you from holding cash. In fact, it reduces your risk…
When it makes sense to hold cash
Holding cash instead of investing it makes perfect sense when stocks are expensive. When there s... ››› more
If you're looking to put your money to work on the stock market, it pays to find discounted stocks.
By buying discounted stocks, you're paying less for a company that has the potential to soar into the future, giving you scope to make more money.
So how can you find discounted stocks?
Read on to find out how to do it…
Finding discounted stocks comes from taking out cash
By inv... ››› more
It's prudent to have a cash emergency fund to tide you over if something unexpected happens. It's also a good idea to hold some cash as part of your investment portfolio.
So where should you keep your cash?
You need to weigh up the returns…
Keeping your cash in the bank
Keeping your cash in the bank is one of the safest ways to store it, but it’s also likely to give you the poo... ››› more
One of the main reasons why you choose to invest a stock is that you believe it'll go up in price over time.
If you're an income investor, another factor you may consider is the dividend the stock pays.
That's why, if a company cuts its dividend, you can be sure its share price will drop. Investors that were in the stock for the dividends will sell their shares.
For example: Take commodi... ››› more
If you're an income seeker, you're looking to invest in companies paying out solid dividends.
You don't want to invest in a company for its dividends, only for it to cut or suspend its dividend payment entirely.
So how can you increase the odds of buying a solid dividend payer?
Read on to find out…
How to work out a company’s cash flow
Looking at how much spare cash a compan... ››› more
When you're looking to invest in shares, you'll look for certain factors that indicate the share price will rise in the future, making you money.
Cash is one thing you should pay attention to. Cash helps you to weigh up the quality and the value of a business before you buy shares.
Read on to find out more…
Why you should check out a company’s cash position before investing
One ... ››› more
By using a straightforward way to value stocks, you can uncover the companies trading at a discount to the market or their competitors.
This way of stock valuation concentrates on cash.
Let's take a closer look…
One way to value stocks
What a company does with its cash is more important than just having cash alone. This is because cash is non-productive.
So when companies have a ... ››› more
Over the long-term, it's almost a certainty that cash will underperform stocks and bonds.
But that doesn't mean you shouldn't keep some cash.
You should have cash to cover emergencies and to use when opportunities arise in the stock and bond markets.
Read on to find out more…
How much spare cash should you hold?
For prudent financial planning reasons, it makes sense to hold eno... ››› more
When building an investment portfolio, you put cash you've built up to work on the market.
But how much cash should you keep?
Read on to find out what you should do…
The best known asset class: Cash
When it comes to the different types of assets available, everyone knows about cash.
Cash is the most risk-free form of investing there is. And because of this, it gives the poores... ››› 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.