The JSE is at the whim of global sentiment. And one thing every investor should remember is sentiment drives prices, but company values change much slower.
This provides investors with opportunities to accumulate mispriced shares at much lower prices than they previously did or could.
As the market takes a leg lower, investors should look to accumulate quality companies on the cheap.
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In 1954, 24-year-old Warren Buffett received a phone call that would ultimately change his life.
The person on the other line offered Buffett a job in New York City and he accepted without asking about the salary.
It was arguably the smartest - and most profitable - decision he ever made.
That's because Buffett knew the man who had just employed him. A man he studied under at Columbia Uni... ››› more
AB InBev (ANH:JSE) has steadily fallen from it's R2,000 high in Feb 2016 down below R1,100 today. The fall is as a result of them processing the massive take-over of SAB, the Rand strengthening and the market pricing in a dividend cut in the full-year results to December.
ANH's emerging market exposure will provide it with superior growth over the long-term, and with Trump likely to strike a tr... ››› more
When you've been around the penny stock investing industry as long as I have, you get tired hearing the same old lies about penny stocks over and over.
While these stories don't affect me at all, I am tired of how they discourage investors that are eager to start, and to learn more about the opportunities out there.
So, give me a moment of your time today to tell you about the lies, and myth... ››› more
Last week, Richemont (CFR:JSE) announced its joint venture with Alibaba. An opportunity for mass distribution like this could see Richemont's sales soar over the coming years. Especially in China, where Alibaba has a strong presence and China is expected to account for nearly 50% of the luxury goods market in the next six years.
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If you're looking for the ultimate formula that consistently picks winning investments, I'm sorry to say, there isn't one.
If there was, we'd all be rich.
But there are ways to improve your chances of winning more often…
And that's by knowing these three secrets to picking the right investments
You ma... ››› more
You've probably never heard of Abraham Germansky and Jesse Livermore. Both were investors nearly 100 years ago.
Abraham Germansky was a multimillionaire real estate developer in 1920s. He also loved stocks, investing heavily as the market boomed. But when the crash of 1929 unfolded, he was wiped out.
After that he disappeared.
On the other hand, Jesse Livermore had a very different experi... ››› more
At first glance investing seems inaccessible, confusing and sometimes even scary.
But the concept really is simple - investors (like you) buy small pieces of companies called shares.
The amount of money you make will be based on how well the company's share price does, and whether it gives you any share of the profits it makes (called dividends).
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When the market opens today it will officially be in a bear market as the JSE extends the recent sell-off on overnight weakness offshore.
Most of this sell-off has been driven by global politics and rising interest rates in the US, with other developed markets to follow suit.
Retail investors are yet to “Panic” about the value of their portfolios.
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Volatility provides buying opportunities, as investors panic sell and then buy after the shares inch higher.
Investors were complacent leading up to last week due to low amounts of volatility experienced in the past two months.
The sell-off caught almost everyone by surprise. But this is a normal function of the market. Over the past 90 years, the S&P 500 has had a 5% decline around every 2... ››› more
We bought into Dischem back in May at R30.50 and added to it in July at R28.00 banking us 12.5% when we closed it at our trailed stop loss.
Today, it has fallen again below R30.00 and support should build at R28.00 with any sell-offs below that level being short lived.
Management provided an update to expected earnings for 2019 that will be a tailwind for the share price to move back above... ››› more
Dividends can make you massive returns.
If for instance you bought Adapt IT in 2009, you'd have paid 44c per share. Since then the company has paid out 81.84cps in dividends - a return of 186% from dividends alone.
Based on the latest dividend of 17.1cps, you'd make 38.8% on your original investment THIS YEAR ALONE.
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While October was the month we had Black Tuesday in 1929, Black Monday in 1987 and a big sell off in October 2008 post Lehman's collapse, it generally ends the month up.
Over the past 100 years the Dow and S&P have ended positive 62% of the time with an average gain of 0.4% but with heightened vola... ››› more
“Francois, where should I take my money? ‘They' tell me to take as much as possible offshore right now. Is that the right place to invest?”
With the three year return on the JSE sitting at a grand total of 9.49% many investors are asking me whether it is still relevant investing in the JSE.
Perhaps inve... ››› more
I have a number of interests in private businesses. One startup that I invested money in is about to pay off in a big way.
Suddenly I'm getting calls from investors wanting in on the opportunity….
But mere months ago - when the startup was burning through capital in order to get its products market ready investors didn't even want to give it a second glance.
They were saying that there'... ››› more
Following on the theme of buying shares at a discount, today's company is trading at a discount to its net asset value as well as paying over 6.5% in dividends.
You will get paid to patiently wait for the company's share price to return to a premium to its net asset value (NAV).
The biggest reason for the discount is that it failed to comply with credit regulations in the past. These issues... ››› more
Buying shares at a significant discount provides some downside protection.
Knowing you bought R1 of assets for 79 cents gives you comfort, and one investment holding company is trading at exactly that.
While investment holding companies typical trade at a discount to their some of the parts value, when these companies sell or distribute assets, the benefit is received at full market value.
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I always look for a catalyst that'll send the price of a penny stock flying. Being a good business isn't enough if there isn't something big that'll attract the attention of investors to the stock.
But even better, every once in a while I find a stock that doesn't just have one catalyst but THREE catalysts that are behind it, which will push the share price up.
And today I'd like to share wi... ››› more
On 27 June I told Money Morning readers I expected the oil price to drop.
That week saw the oil price start a slide which has been its longest downturn in three years!
As you can see, the oil price has had seven weeks of downturns following end of June. This past week has seen it halt the decline, but I don't foresee this as a sustained upturn.
Simply put - oil shouldn't trade above $70 a... ››› more
Global markets are riding a rising tide of positivity from hawkish FOMC meeting minutes, US Fed Chair Powell indicating the US economy is strong and a positive US and Mexico trade deal.
Investors shouldn't fear new record highs because historical market data indicates it's a bullish signal. When a new all-time high is achieved, there is a 90% chance of achieving a new all-time high in the four... ››› more
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