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
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.
... ››› 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
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
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
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
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
Even though President Trump hasn't slowed down on his “Trade War” rhetoric, indicating he would levy tariffs against another $500 billion of Chinese goods, global markets are pushing higher. It's doing this on the back of positive earnings releases. We're almost a fifth of the way through Q2 earnings season and so far, 87% of US companies are beating analyst's forecasts.
When considering a... ››› more
After a wild two weeks, the Top40 is quickly approaching a key resistance level as the US dollar softens. This is on the back of US Jobs data that signals the Fed will hike gradually and that “Trade War” fears have subsided.
This risk on sentiment has seen investors buying the dip and remaining bullish. Last night we had the Dow up almost 1% and the S&P up 0.70%. This will provide some sup... ››› more
The JSE finished the month and quarter with a very strong rally of 3.3% on Friday.
Never the less, that rally was not enough to close the All Share Index in the black for the year-to-date.
Financials, Small and Mid-cap shares are down while resources are up 11.2% year to date.
The market still faces strong headwinds with the US instigated Trade War becoming more hostile, rising yields ... ››› more
Mention Coca-Cola, Wal-Mart and Johnson & Johnson and the first thing that might come to mind is…
They're some of the biggest and leading companies in the world.
They're popular brands around most parts of the world.
And they've made plenty of savvy investors very wealthy.
For example, A R10,000 investment into J&J shares in 1970 would be worth in the millions today.
And if y... ››› more
Now that July's wrapped up, this year's second to last ‘earnings season' has come to an end.
Considering the South African economy is teetering on the edge of a recession, results haven't been as great as investors would've liked.
In fact, 14 out of the last 25 companies to publish results have been negative growth.
Nearly two out of every three companies are seeing shrinking profits or... ››› more
There's a scary word floating around the investment world right now.
It's hanging over your portfolio like a black cloud. It's threatening your income, your investments and your financial future.
The frightening thing is many investors don't even know that their money is in danger. They're ambling along blind to the fact that they're about to lose a large portion of their investments.
... ››› more
Even though South Africa managed to dodge the downgrade bullet last week, the risk of recession, higher interest rates and a lack of foreign funding still plagues the South African banking industry.
But larger fund managers like PSG Asset Management have recently been adding banks to their portfolios. Surely this is a mistake under the current challenging market environment.
Well, let's ta... ››› more
The one question I always get asked when I meet new investors is, “How do I know what shares to buy?”
It's a legitimate question.
After all, if you pick the wrong share, you could lose out on potential profits. But, if you pick the right share, you could be smiling all the way to the bank.
If I'm honest, finding the right share is not easy. It's an art that the analysts at FSPInvest... ››› more
With nearly 400 listings, it's not easy trying to find the best investment opportunities on the Johannesburg Stock Exchange.
So how can you whittle down through all the listings to find the stocks with the best future potential, the best chance of gains and know what price you should buy at?
It's easier than you may think…
An investment strategy that works
Joshua Benton is an inve... ››› more
The last few weeks have seen extreme volatility on global markets. It's been hard work for both investors and traders to cope with what's been going on.
The Volatility Index hit levels not seen in six years.
So what are the risks facing your portfolio at the moment? And how can you deal with them?
Read on to find out…
Investment risk #1: China
In June, the Chinese stock market ... ››› more
Investing is the stock market is one of the best ways to grow your wealth over the long-term.
The secret is picking shares that stand the best chance of future success.
So how can you find the best shares to buy on the stock market?
Read on to uncover three tips to help you do it…
Tip #1: Always take fundamentals into account when buying shares
Technical analysis does have its... ››› 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.
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.