Warren Buffett has a famous quote: “Be fearful when others are greedy and greedy when others are fearful.” As with many great quotes, there's a great deal of wisdom packed into those few words.
And today, I've found the opportunity that perfectly puts Buffett's quote into practice.
Here are its features:
1- Your capital is tied up for a maximum of just three years
2- You stan... ››› more
Today will mark the end of the worst quarter for SA shares, having suffered the global fall out of the coronavirus.
This is after years of under performance relative to global indices.
And even though it looks like you can go out and buy anything and hold on for certain profits we could still see more selling pressure.
The SA lock down could be extended, and small business owners and ... ››› more
Lots of people think of gold as a hedge against uncertainty. And that's usually the case.
But over the past two weeks, something odd happened in the gold market…
From 9 March to 19 March, the dollar gold price fell from $1,679 to $1,472.
If gold is the ultimate hedge against uncertainty, why then, did it fall double digits (over 12%) in less than two weeks?
... ››› more
Winston Churchill famously said:
“A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty.”
I love that saying. Except today I'm changing it just a little:
“A pessimist sees the difficulty in every opportunity, an investor sees the opportunity in every difficulty.”
And that's what my piece is about this week.
Br... ››› more
The JSE All Share Index is down 28.95% since the start of 2020.
The effect of the Corona Virus and its panic has been huge on our, and other markets around the world.
Due to these events you might be wondering “what are the stocks that have dropped the most, and are any of them buys right now?”
Three Penny Superstar Stocks... ››› more
Albert Einstein is merited with saying that compounding ‘is the most powerful force in the world' or the ‘eighth wonder of the world'.
When you apply this to reinvesting your dividends, you'll see why compounding is so powerful.
Compounding or compound interest is basically earning interest on interest that you've already received.
When it comes to dividends, it means instead of ta... ››› more
The average investor sells his winners and holds his losers believing they will turn around!
This phenomenon even has a name
It's called the disposition effect.
And they even conducted a study to prove it…
In 1998, two US Finance Professors Brad Barber and Terrance O'Dean conducted a study called The Behaviour of Individual Investors.
They analysed the trading ... ››› more
Since 2018 I've been telling investors that this company is in trouble.
When I wrote about it in 2019, calling it Steinhoff 2.0, the share price was 862c. This week it was 59% lower at 352c.
But instead of fixing its problems this company has kicked up its ‘dodgy' dealings by a BIG notch…
Let's have a look.
Three Penny Super... ››› more
Have you ever experienced a flat tyre while driving? You can feel the car lose balance on the side of the flat tyre.
To fix it, you would replace the flat with a spare. And doing this, brings back the balance of car.
Well just how you would rebalance your car by replacing the flat tyre, you do exactly the same with your investment portfolio.
Rebalancing in investment terms is the proce... ››› more
Bitcoin's entered 2020 just like it finished 2019 - rising up!
After soaring 100% last year alone, the largest crypto has continued its upward trend rising 35% this year.
Because of this, Bitcoin's received a fair amount of attention in the financial media.
However, what you probably haven't seen in the media is the gains “alt-coins” have generated in 2020.
I'm talking about 50... ››› more
Q. "I want to make the most out of Red Hot Storm Trader and Pickpocket Trader this year. Could you guide me as to what exactly I should whenever you send out a new trade signal?"
A. I have a very simple four step process, you can follow, when you receive a new trading signal through either Red Hot Storm Trader or Pickpocket Trader.
Go through this checklist and you'll find you'll be able t... ››› more
Yesterday saw global stock markets retreat, sending the JSE and other emerging markets into a tailspin. This is on the back of the Coronavirus and a missile attack on the US embassy in Bagdad.
But if it wasn't for this, it would have been something else… Investor sentiment has been high, pushing major US indices to all-time highs and others including the JSE to recent highs.
... ››› more
Mark Twain wasn't wrong when he said:
“History doesn't repeat itself, but it often rhymes.”
The more things change, the more they stay the same - this is true when it comes to the fear, greed and herd mentality in the markets... If you've been investing long enough you will see the same patterns on repeat.
Just think back to the 2007/2008 financial crisis…
I remember buying ... ››› more
2020 has barely begun yet we're already set to be flooded by hundreds of companies set to report financial results between February and March.
Results releases are even more important for small-cap and penny stocks.
That's because these companies don't have as much interest from institutional analysts - so results announcements are the main way for news about these companies' potential to ... ››› more
So, you want to invest in JSE-listed penny stocks….
But you don't know where to start?
There are hundreds of stocks out there, and so little freely available information.
Today I'm going to run you through four crucial questions you should ask yourself before making any penny stock investment.
Think of it as the first cut - the criteria with which you can start looking at the pen... ››› more
In November's issue of the South African Investor, I warned readers about two types of “danger” shares lurking on the JSE.
One of these types is called the “High-Yielder”.
Simply these are shares that sit on suspiciously high dividend yields.
You've probably heard me speak about these “income-traps” before, but in the South African Investor, I went further and reveale... ››› more
It's that time of year again…
Just like children eagerly wait in anticipation for Santa to deliver presents to them, so do investors.
Investors are waiting for the arrival of stock market profits during Christmas time as well.
This is all because of the Santa Claus rally which is, right now, flooding the mainstream media.
Go to Google, Bloomberg, Business Times and you'll see big ... ››› more
For almost 130 years the JSE was the only stock exchange in South Africa.
But as of a couple of years ago that changed when three new exchanges were given stock exchange licences.
In 2019 the JSE has seen 21 companies de-list. Digging a little deeper, it's important to take note of what's been happening with the competition…
All three of these JSE competitors are growing
... ››› more
In April 2019, I warned investors about Rebosis - A JSE listed property company that had a dividend yield of 57%.
You see, at the time, a yield this high was very unusual for a company listed in SA. So I warned investors not to fall for this “high yield investment trap”
And, since then, the company cut its dividend completely and its shares have plummeted from 162c to 32c - around an ... ››› more
“I have started with the MATI Trader System Programme to help me with my trading anxiety.
I just don't know what to do about it. When I take a trade, I am scared of losing money, I lose trust in the system I'm following and I don't trust myself as a trader…
Are there any pointers you have to help with my trading anxiety?”
A. In lesson 4 of the MATI Trader System programme, I go in... ››› 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.
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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.
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