As an advisor to the South African Investor board I deal with investors that are looking for long term returns that'll help them live, and retire securely.
That means we typically look at companies like Vodacom, Naspers, Bidvest and the like.
Large blue-chip shares that have been around for years, and will continue to be there for years to come.
Recommending these large companies is th... ››› more
The biggest lie you'll ever hear in the stock market is that: “As a private investor you're not smart enough, and you lack the information to invest and make money on the stock market.”
It's a lie presented by fund managers, personal financial advisers and media analysts alike.
Obviously, they don't say it quite like this, but it's what they mean.
The essence behind their big lie i... ››› more
Over the past three years the JSE has gone nowhere!
On 4 July, 2014 the JSE All-Share Index stood at 52,060 points.
By the end of 3 July 2016 the same index stood at 52,164.
And yet it's PE is near an all time high of 19.94.
This makes the index ridiculously ‘expensive' and the average investor extremely despondent, crying where's the value.
But I'm hear to tell you, there's ... ››› more
Penny shares are the black sheep of the investment market. Most investors ignore these shares because they simply don't know how to deal with them.
Penny shares are volatile - They'll be up one day and down the next. Their share prices tend to swing around violently leaving investors that are unprepared for this activity nervous and afraid of what the share price will do next.
But there ar... ››› more
Last week, I sat down with Francois Joubert, the editor of Red Hot Penny Shares. I wanted to find out what makes his penny share selection techniques so successful.
After all, he's the expert that delivered exceptional investment returns like these five Penny Share recommendations that could have made you a fortune in almost no time:
• Transport Company SantovaLogistics (SNV:JSE) rose 221... ››› more
I love being a member of The South African Investor. Every month, the panel of investment experts reveal their favourite wealth building properties to grow and protect your hard-earned wealth.
Last month's issue of the South African Investor was truly something phenomenal. You see, Francois Joubert revealed four of his favourite undervalued investment opportunities in the market right now.
F... ››› more
Have you ever been warned by a friend or relative to stay away from the stock market?
Or, has a broker warned you that “those penny shares are incredibly dangerous”?
Have you been told to rather invest in an ETF or a unit trust because it's “much safer”?
Well, don’t listen to any of that rubbish!
Small cap shares can easily move 5%, 10% or even 20% on a single day. That’s ... ››› more
I get it… This has been a tough start to 2016.
Between 28 December 2015 and 21 January 2016 the JSE handed you a ‘New Year's' gift of -11% and the market is still down year to date.
And when you look at the largest companies on the JSE, the concerns don't magically disappear…
Intu Properties reported a 10.6% decrease in earnings for the year, Liberty Holdings profit dropped about... ››› more
Yeah, yeah, we all know the story of how Shoprite was a R1 share in 1994 and shot up to R200 in 2012. Or how Capitec was 91c in 2002 and today it is trading at R430.
You might have even heard me speak about how I first invested in Adapt IT at R1.30 and today it is at R13.
But that's not what I want to tell you about today.
I want to tell you why you shouldn't invest in small cap shares…... ››› more
Over the last three decades, the small-cap sector (which houses ‘penny shares') outperformed nearly every other market by a landslide.
In fact, if you had spread R10,000 across the entire small-cap universe in 1996, you would have turned it into R171,021.60 by 2015.
And since 1929, the average annual return on small-cap stocks has been 11.9%, according to Morningstar Ibbotson data on inter... ››› more
Right now, you're facing an incredible opportunity.
You've got the chance to buy a handful of top quality, penny shares on the JSE right now, all at a steal.
These companies are so cheap, they're selling at multiple times the average dividend yield of the average JSE share.
But it won't be that way for long. So listen up. This is what you need to do…
The JSEs smallest companies are of... ››› more
One successful investor's opinion might be just that - an opinion. I would not ignore the irrefutable evidence though, and that's what I bring you today.
Whenever I meet someone new the question invariably comes up, “So, what do you do?”
“Well, I am an investment analyst covering ‘penny shares' or JSE listed Small Cap Shares.”
I usually get the question, ... ››› 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
There's a new stock exchange in the process of starting up in South Africa.
It's the first exchange that's applied that's got as far as the public comment stage.
And if this application is successful it'll be the first new exchange in South Africa in the last 120 years.
The reason why I'm so excited about this new exchange is its target market. Is aim is to give a home to small, agile companies... ››› more
Small cap shares have a reputation for being tough to predict. They can easily move 5%, 10% or even 20% on a single day.
That means big fund managers and brokers don't like them. It makes them nervous, as they're looking for steady, predictable gains for their clients.
But not investing in small cap shares is probably the biggest mistake an investor could make…
The biggest mistake you co... ››› more
Crack addicts have constant mood swings, their weight fluctuates between overweight and underweight, and they often lose all interest in life.
I've met a couple of investors that I'm certain are crack addicts…
They buy a share today - with a high conviction that it's going up only to swing to the complete opposite three weeks later, certain the share will crash.
Their investment portfol... ››› more
“Francois, I'm no investment expert, but I immerse myself in economic and household data everyday. And I just can't see what it is that's pushing growth for companies any further. Where is the stock market going to from here?”
That's the gist of a discussion I had with a Coca-Cola executive at a wine tasting last night. He's in charge of South Africa's strategy and planning - And he's really... ››› more
I get scores of emails from people telling me how badly they want to make lots of money investing. But the problem is, many of these people confess that they're literally just getting started.
That's why today I'm starting at the beginning - and I'll show you how to make money in the markets from square one.
You need to understand investing from square one
The words "stocks" and "shares" c... ››› more
They're not easy to find...
The JSE Top 40 is up 16% for the year so far and 40% since the start of 2012. The growth is about 50% higher than the average growth of 11.5% annually the JSE has done since 1994.
After all these big gains, finding truly cheap opportunities is getting harder. However, there is one place that hasn't run away from us yet... The JSEs fastest growing companies are sel... ››› more
If you're an investor by nature who likes to take a little bit of risk on the stock market, then it's your lucky day! The JSE has a baby sister called the Alt-X market.
It consists of plenty of the small cap shares which each share has a market cap of under R1.5 billion.
There are shares within this index which are set to become the next blue chip companies of the future.
Since 2007, the ... ››› more