WorldWide Markets with Simon Brown

Download the audio file here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes Simon Shares JSE Direct is ten years old. Started 8 July 2008 on Classic FM. Aton out smartens Aveng (JSE code: AEG) and Murray and Roberts (JSE code: MUR) with a 25.4% in Aveng that can effectively block any special resolutions such as a take over. Alternative if the deal between MUR and AEG goes ahead, Aton will get MUR shares as a AEG shareholder which should ensure they end up with 50% +1 and in complete control at MUR. Torre (JSE code: TOR) is maybe delisting. There will be a shareholder vote and if it passes you'll either get the money or remain a shareholder but in an unlisted company. The later is a horrid idea as liquidity and price discovery is typically zero. I Also think we'll likely see more small cap stocks delisting. What can you do? Vote. There will be a vote by shareholders and you have every right to vote against it and as a delisting requires a special resolution 75% +1 is the required minimum to pass. Organise. Find other small shareholders (easier said than done) and get them to vote against. Talk to management and large shareholders. You may be a small shareholder but you have your rights and potential influence. Fight against interested parties voting. Using above also try and get the price raised. At the end of the day, if you're in the minority you lose. That's how voting works. OUTstanding money: Saving tax-free Upcoming events; Investing in BEE Inside Easy Equity users Easy Equity recently did a user survey with over 6,000 responses and I sat down with Charles Savage (CEO of Purple Group & Easy Equities) to chat around he main findings. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited

Subscriber to our feed here Subscribe or review us in iTunes Simon Shares Steinhoff (JSE code: SNH) results = nasty. Aveng (JSE code: AEG) get their money and price falls to 9c. Top40 vs. Rafi. The most tax efficient entities Upcoming events; Investing in BEE Inside the robo advisor Robo advisors are all the rage these days but I wanted to know what's inside the robo so I sat down with Grant Locke, head of OutVest for a geeky understanding about how it all works. SE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited

Subscriber to our feed here Subscribe or review us in iTunes. Simon Shares Markets have been falling, and the world has not been ending. Long4Life* (JSE code: L4L) has announced a purchase of Rage for R3.915billion with EBITDA of R360million. That's expensive and as they're issuing new shares for much of the payment also a chunky dilution. Management say the deal is not yet a done deal. Steinhoff (JSE code: SNH) results are due on Friday. They may not arrive and if they do they're going to create all sorts of excitement. But don't get sucked in, SNH remains a trading stock and nothing more. Reports I am hearing from VBE is that they consider the company bankrupt, and that's before the billions VBE hope to secure for shareholders. The Tekkie Town sellers continue their fight with Steinhoff Retail Africa (JSE code: SRR) and it's messy and it also suggests that maybe Markus Jooste wasn't the only problem at Steinhoff? BusinessDay is reporting that Christo Wiese has sold another chunk of his Shoprite* (JSE code: SHP) shares. This time via a book build to institutions, not via open market and leaving him with about 14% of the company. OUTstanding money: Getting rich takes time, not money Year-to-date going nowhere Debt in high-income households When to sell long-term investments Upcoming events; Investing in BEE * I hold ungeared positions. Pricing power Some industries have zero pricing power such as the mining industry who are price takers - a horrid space to be as your costs rise and you have zero control over income. Sure you can increase production to try manage income, but that often impacts supply driving prices lower as we see in the platinum industry. Construction also has very little pricing power when building something is now pretty much just a commodity with stiff competition all competing for the same contract with price being the only key difference. Telcos have little real pricing power as data is data so they are trying to make it all about the added extras. I like to invest in industries that can determine their own prices to varying degrees. Luxury cars are priced more on what the market will bear rather then actual cost of manufacturing. This is great for margins and profits but tough to sustain. Luxury jewelry is the same, price is more about status and looks then cost to produce. Burgers for example have pricing power but it is limited by two factors. What the customer can pay and what the other burger seller is charging. But you do have a fair degree of power ~ just be careful of UK gourmet burgers:). Retail also has fair pricing power albeit to different degrees. Luxury certainly has more power than consumer staples, but the later has power in that they are staples. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited

Subscriber to our feed here Subscribe or review us in iTunes. Simon Shares Basil Read (JSE code: BSR) has filed for business rescue and nobody should be surprised. Blaming government and labour is also weak, construction is a weak industry and only really boomed in the lead up to the world cup in 2010 (not forgetting the price fixing). Of concern was that the stock was not suspended until Monday lunch time and it turns out it a settlement issue. Apparently "Someone bought BSR at 1c in on Friday now it turns out the seller does not have the stock. JSE trying to reverse." Liberty (JSE code: LBH) got hacked. Exact details are scarce as I record, the company is saying it was "largely emails and possible attachments" and that no clients have lost money. Well maybe not yet. But you email all sorts of personally stuff to a long-term insurer; bank details, residential address, medical, etc. That frankly puts clients at risk. Bigger picture is that our future unfortunately includes us being hacked sooner or later. PPC (JSE code: PPC) results were not exciting and they have challenges. Local is weak, DRC is having issues already. Not a stock I would want to be holding. I honestly am not sure what the deal is with trade wars. Not in the sense of if Trump is serious or when they'll happen nor to who or what. But if they do happen they are bad - end of story. The Rand is under all sorts of pressure and the hysteria is out in force. So to clear some of it. We're not at risk of an emergency rate hike. This is not because of local protests, land expropriation, it is a general Emerging Market (EM) rout right now. But it is looking ugly for EMs with currencies and markets under pressure as investors flee. Will this get worse, a little or a lot? No idea. So as always here's what we do; as a trader - obey your stops. As an investor - don't panic and buy quality and great prices, but no rush. A question on investment club tax OUTstanding money: What is investing? Tech ETFs by a tech guru Upcoming events; JSE Power Hour: When to sell long-term investments The smart money myth I hear it all the time - the smart money which typically seems to translate into somebody with lots of money. A big trade goes through the market and everybody is talking about smart money? There is no smart money. Money does not talk and having lots of it doesn't make somebody smarter than anybody with less. So why did Christo Wieses money warn him? Also witness Steinhoff (JSE code: SNH). Including preference shares total value was some R300billion now a few million and the smart money all owned it up at the lofty levels. When the story broke Coronation (JSE code: CML) wrote a long letter saying they were holding on as all will be fine. Yet news last week is that they have bailed. They did the same with African Bank (JSE code: bankrupt) Read Fooled by Randomness by Nassim Taleb. We ascribe behaviours to money and people with lots of it that is simple seldom true. There is no smart money, just money. You can of course make smart money decisions and that would include not blindly following anybody. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited

Simon Shares Stor-age (JSE code: SSS) results were totally solid and in a very niche property space that is doing very well. When they listed a few people recommended them to me and I wasn't convinced. Well I was wrong. Sasol* (JSE code: SOL) was one of the first stocks I ever bought and my longest holding in my 'til death do us part' portfolio having first bought it around 1994. A few years ago I gave serious thought to exiting, but held on albeit deciding not to add any more to my portfolio. But I have been thinking and digging and frankly it is a change company and looking good. The Lake Charles project has been a mess in terms of cost over runs, but it is now nearing completion and that means two important points. Firstly, no more spend on the development and secondly in a few years the profits will start to flow from the project (even if they're not as great as promised). So I am starting to buy again, however my usual pricing methodology doesn't work here for two reasons. Massively cyclical always breaks my method and Lake Charles changes things. So asking around the view seems to be that HEPS of some R60 is possible for 2021 and if we apply the average PE of 9.3 that equals a price of R558, so that's my fair value and I am happy to buy at the current R488. Help, I've lost money! OUTstanding Money: Types of savings * I hold ungeared positions. I don't own offshore In the last few weeks a number of people have asked me about what offshore shares I own. The answer is simple, none. I do own a small holding in VOO which I bought in 2002 with some offshore money I earned, but that's it. Here's the thing, I know a lot about the local market and a little about even the smallest shares on the JSE. I have spent literally decades investing and trading on the JSE and hence decades building my knowledge of our market. Further it certainly helps that it is a small market, so it makes life easier and let's not forget that watching and studying the JSE is in part my job. But as soon as I step offshore the size and complexity of the market is frankly over whelming. The NYSE has three times more ETFs then the JSE has stocks. Globally there are some 100,000 stocks. How does one select which are the best of the best? This is more than a full time job, this is a full time job for a full sized team. Chatting to somebody recently they mentioned they wanted to buy Honda. I have no idea if it is a good stock or not. But what of the other US motor companies (Fiat Chrysler, Ford, General Motors, Tesla, Toyota) and then what of those listed in Europe where there are even more listed? Does Japan have any listed? Suddenly you have to be an expert on dozens of motor stocks to decide if the one you want is the out and out global winner. Now I know the response. In the above example we don't have a single motor company we can invest in. Our Tech stocks are frankly wildly boring and disappointing, Naspers (JSE code: NPN) the exception, a lucky exception. Our market is small in more than just number of stocks, it is also small in terms of industries. But we can buy a tech ETF, and yes we can't buy a motor company ETF. But I am comfortable with that because frankly the risk is I buy the wrong motor company anyway. Am I being lazy? Maybe. Or maybe I am being realistic abut my abilities and time available to become an expert. These days I get offshore exposure via dual listed and global companies and locally listed offshore ETFs, keeping it nice and simple. Another issue with offshore is costs, it is a lot cheaper investing offshore then it has ever been for South Africans. But it is still not cheap and with offshore assets you now also need a second will in the country in which those assets are held. More costs and more complexity. Here's a random stat to show how little we know. Google (Alphabet) and Dominos Pizza both listed in 2004. Which has a better return since listing? Two revolutionary companies went public in the summer of 2004. These are their returns... Google (Alphabet): +2,020% Domino's Pizza: +3,607% pic.twitter.com/SOtqOHjM4a — Charlie Bilello (@charliebilello) May 29, 2018

123 Download the audio file here Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. Simon Shares Wildest story of the year. Imbalie (JSE code: ILE) is ditching beauty to become a miner via a reverse listing! Local GDP for Q1 2018 was a shocker at -2.2%. Expected was -0.5% and the number is usually shifted higher over time, but wowzer. That all said, this was mostly driven by agriculture and frankly turning a country around is a slow process. Delta Properties (JSE code: DLT) has me perplexed. On a dividend yield of around 15% and trading at around 30% discount to net asset value (NAV) it seems a screaming buy - but that assumes the market is wrong and I never want to be the one telling the market that. They mostly have government as a tenant and a lot of their leases are on a month-to-month basis. But government isn't going to suddenly move out but they may put pressure on rent increases. The company says there is a process recently put in place by government to start signing leases and this should reduce the month-to-month leases and lower lending costs. Am I missing a trick or is the market, as always, right? Anthony Clark was at the Curro (JSE code: COH) annual general meeting (AGM) and tweeted that the company said with utilisation of 90% from the current +/-53% HEPS would be around 201c. So we have a marker for future earnings albeit no time line. That said even at 201c HEPS and a current price of 3000c that would put the stock on a PE of around 15x which to my mind is a fair valuation. Curro AGM; titbit. At 53% current capacity utilisation COH made 49cps in FY17. With NO NEW SPEND CEO says if it was at 90% utilisation FY17 earnings would have been 201cps showing how growing into latent built capacity can now power Curro's earnings growth ahead — Small Talk Daily (@SmallTalkDaily) June 4, 2018 OUTstanding money: Choosing between saving and investing Upcoming events; JSE Power Hour: When to sell long-term investments Stale bulls In a recent Fat Wallet podcast Kristia commented again how her investments have done pretty much nothing over the last few years. Now there is only one reason we buy any share, ETF or even derivative - too make money. But what happens if we don't make money or worse the price falls and we're losing money. Now it depends in part what we bought. A derivative trader will stop out and indidiual share buyer may hold as they consider it quality and in time it will start moving while an ETF should in theory not worry about the short term and just continue holding. That's the theory. But we get a phenomenon called stake bulls, especially with individual shares. Lets take Aspen (JSE code: APN) as an example. It hit a price of almost R450 in January 2015 after trading at R100 for the first time just three years earlier and 1000c was hit for the first time in 2003. If you missed the initial run from 2003 you'd have felt aggrieved at missing out and you may have jumped in at R100. But many would have said no they'll wait for the pull back, a pull back that never really happened. Then after a price of almost R450 there is a serious pull back to almost R250 and many jumped in during that pull back. That was followed by another rally but only to R350 and now we're back at R250. So having watched Aspen be one of the best stocks on the JSE you're now holding it and your price is under water. You're not happy and frankly you want shot of the share - but ideally at as small a loss as possible - you're a stale bull. So now every time it rallies the stale bulls are ready to sell essentially capping the price. We see this with a number of local shares and to a lesser degree with ETFs (lesser here as we're too small to really influence an entire index). So what do we do? Firstly, recognise yourself as a stale bull if you are one, set your exit price and act accordingly. The new bulls are not your problem. Secondly, understand that if you are a new bull to a stock there may well be a lot of stake bulls lurking and this will make the rise higher a slow drawn out affair. That's fine, investing is about the long-term and if you hold quality it will in time preform. If you're trading the share understand the going may be slow and sticky as stale bulls keep exiting. Lastly if you're holding ETFs don't stress it. Sure over the last 3-5 years money in the bank has potentially beaten your ETF return. But again this is a long-term game and given time you'll make handsome profits. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. OUTstanding money: Saving and investing are not the same How to be financially independent with Patrick McKay Finding dividend superstars Upcoming events; JSE Power Hour: How to identify quality stocks How to choose a stock broker First off understand the difference between a stock broker and an FSP. The former is an exchange member and gets protection and regulations from the exchange. An FSP is regulated by the FSCA (formerly the FSB) interview with Charles Savage on how this works. It is very important that they are registered with a regulatory body. Even an offshore regulatory body is fine, but only if it is in a country in which you trust the laws. Avoid fly-by-nights registered in some second rate dodge country. Also understand potential fees. Brokerage. What you pay when you transact, also check if there is a minimum brokerage rate. Admin fee charged monthly, quarterly or annually. Some brokers will waive this fee if certain number or value of trades is meet. Live prices / charts. Some brokers give limited live prices and above that you'll pay. Charting package. Many will have a 'lite' version included in admin fee with more advanced at additional cost. Then what services do you want from your broker (using broker as generic term)? No or very few frills. Just buying and selling functionality. No; stop loss facility, live prices, data, detailed research etc. Should be cheapest. Frills for which you will incur higher fees (transaction and admin). Here's you'll likely get limited live prices, limit and @market orders, online charting, event invites, research and share data. This is the space most online brokers sit and the range of fees is wide so shop around. Trading broker. Offering derivatives (CFD, futures & FX), live charts (at an extra fee). These are often stand along brokers but in some cases coupled with traditional online brokers. Full service. This will include 'help' from the broker as to what you're buying selling. Here they'll usually want a large portfolio to make it worth their time. Managed portfolio which the broker manages your portfolio within the mandate you set for them. They have full discretion as to what to buy or sell and again they'll want a large portfolio to make it worth their time. Collective investment such as ETF or unit trust. You buy into the fund and they manage the money within the mandate, active (with different methodologies) or passive (again with different methodologies). Do your research. Google the broker for reviews, check online forums and social media for complaints or praise. Ask others who they use and what they like / dislike about the broker. Take a trail to check out the user interface (if offered). And before you all ask me, I use Standard OST and have done for almost 15 years. Not the cheapest but they meet all my needs. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Subscriber to our feed here Subscribe or review us in iTunes. Simon Shares I am traveling again this week so recording on Monday. Consolidated Infrastructure Group (JSE code: CIL) seems to have a life line albeit existing shareholders will be diluted by some 50%. With the issue at 400c and the share below that price no need to follow your rights, just buy in the open market if you want. Upcoming events; JSE Power Hour: How to profit from SA mining JSE Power Hour: How to identify quality stocks Make trading asymmetrical I have spoken often before about how one of the huge benefits of investing is that a diversified portfolio is asymmetrical. You may have held some horrid share and lost 100% of its value. But 100% is the most you can lose and your winners can exceed 100%. In fact a true long-term portfolio will most definitely have many +100% winners so if you do get caught in a 100% loser - you're fine. The important point is that you need to be diverse and have more than one share and ideally a core of ETFs surrounded by a selection of 10-12 quality shares. Now as a trader of leveraged products such as FX, CFDs or futures your potential loss in any trade can exceed 100%. The warning that loses can exceed your deposits is absolutely true and as such trading is symmetrical. Your winners can be offset by losers and you can end up going nowhere, or truthfully you end up losing money. But a trading portfolio can be asymmetrical, if we have a strict stop loss we adhere to every time. EVERY time. Couple that with the 2% risk rule (never lose more than 2% of your capital in any one trade) and bingo - you have asymmetry in your trading portfolio as well. This is the whole point of trading. We'll have a random dispersement of small losers and winners. A lot of break even trades with the occasional large winner but also the occasional large loser. Without the silent killers of; spread, slippage and costs, that portfolio would go sideways. All we have to do is ensure we NEVER have a large loser and boom, we're making money. This points to the tree critical aspects of trading. Position size (2% rule), stop loss and capital. Capital is important because if you have only a few thousand rands to trade with you cannot do proper position size hence ensuring you'll go broke. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. Would you buy it again? Would you buy that share today if you didn't already own it? If not, why not? I'm talking about those dog shares again because we all have them. This week I pose a simple question to solve the problem. Sometimes tech fails. This was one of those weeks, so a short show. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. Simon Shares So a friend has a business that has been beset by fraud and is now bankrupt and is trying to find some new investors. They have no financial statements to show you and no real idea how bankrupt the company is or how bad the fraud was. Do you invest? So why scramble for busted JSE stocks? Thanks to Kristia van Heerden for the analogy. Libstar (JSE code: LBR) has listed on the JSE. The listing price was right at the bottom of the range at 1250c and opening trade was around 1200c and expensive. Historic PE is apparently around 26x and sub 20x is the maximum to pay, so 900c - 950c. Personally I am not looking to buy. Long4Life* (JSE code: L4L) publish their first results and pay a dividend. The dividend is odd as they on a buying spree so why pay out cash? R1,7bn cash = about third market cap, HEPS 30c so on non cash market cap = PE of some 12x which is fair (compared to some it frankly deeply cheap). Decent Santova* (JSE code: SNV) trading update, especially considering stronger Rand hurting with majority of earnings from offshore. Back in March Naspers (JSE code NPN) sold US$9.8billion worth on Tencent shares and has now sold its Flipcart stake for US$2.2billion. That's a US$12billion (R150billion) pile of cash. Trader1137 on Twitter suggests maybe they'll use it to buy back some shares, would be about 10% of market cap. The Berkshire Hathaway AGM was on Saturday and the audio is here. Upcoming events; Fat Wallet 100th celebration JSE Power Hour: How to profit from SA mining JSE Power Hour: How to identify quality stocks * I hold ungeared positions. Fight the FOMO Fear of missing out. Man this used to kill me when I started out in markets. It's a true killer as it makes us do irrational things. Pause for a moment, we have say 400 stocks listed on the JSE, your odds of picking the top performer over the next ten years is 0.25%. You're pretty much guaranteed to miss out. Globally 100,000 stocks so 0.001% chance. Thing is hype and higher prices make us scared. Scared we picked the wrong stock. Scared we're missing out of becoming fabulously wealthy. We need the courage of our convictions and perhaps more importantly the courage to be wrong, often. FOMO will make us do stupid things. We'll jump in with no real research. We'll jump in with no exit plan. We'll jump in at far to rich valuations. Forgot about the flyers and focus on your plan. What are you investing for and how long is your investment horizon. Find quality stocks at good prices that meet your requirements. And if you find yourself suffering from FOMO remove yourself from the market (like over a weekend or on a internet free holiday) do solid research on the stock. Find the nay sayers and see what the counter argument is and try construct a real evidence based plan and a price you think is a fair one to pay. There is another angle of FOMO I want to touch on as well. When you're in the stock (or crypto or whatever) and now feel you need to convince everybody else that they're missing out. Sure they may be, but truthfully they may have done their own research and decided it is not for them and you could both be right (different strokes for different folks). Not everything is for everybody. But more importantly is that assets need people to be missing out, that's how they go higher. For example Buffett was very late to Apple (Nasdaq code: AAPL) only building a stake in the last 18 months, a stake that is now over 5% of the company. If he'd bought back in say 2008 or 1998 he would not have been a large buyer over the last 18 months and make no mistake, his large buying, and the news of his stake, has sent the price higher. You need late comers. If everybody is in on day one then who pushes the price higher on day two? Taking it a step further, the market needs disagreement otherwise nothing would happen. So don't hate on people who don't love your investments. See them as potential future price drivers. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Apple (Nasdaq code: AAPL) results show a maturing company as iPhone sales have decidedly slow. But they're far from down and out with app store sales, accessories etc. doing great and they still have a monster cash pile. Rand under serious pressure trading out at R12.60/US$ after R11.50/US$ in late February. This is in large part due to US$ strength and it does not make me panic and change my long-term view of Rand strength. Steinhoff (JSE code: SNH) below 200c. In the 6 years to 2018, Barclays (LSE code: BARC) paid out £35.6billion for litigation, misconduct charges, bank levies, losses from asset sales etc. This is £1billion more than operating profit during the period! Pembury (JSE code: PEM) has been suspended for late results as they struggle with some IFRS issues. I like the retirement idea, but the rush to list as a schools company was concerning and the share has been under pressure. Further the inability to publish what must be fairly simple results is more concern. Let them prove themselves before even bothering with the stock. The Mouton family has just bought some R90million of PSG shares, I mentioned in my SA Inc video that they are the best indicator of value in the stock. Six questions to ask before buying an ETF. Foreign dividends. Responsibility of knowledge Knowledge is power but only if you share it. Every year since 2007 I have been a speaker at the annual JSE Schools challenge prize giving in October and a key theme has always been - the responsibility of knowledge. This talk is aimed at school kids but it occurred to me that actually this part of the speech is actually relevant to everybody. Actually all the parts are but they're another podcast for another time. As investors or traders or even if only a novice our knowledge on markets and investing is way more than the vast majority of people and that puts a responsibility on us - we need to share this knowledge. This is less about hot tips, in fact leave the hot tips out of the equation. it is more about helping other people understand the market, ETFs and how it really can create wealth with no rocket science required. Remember the average South African knows nothing about the market and is generally fearful of it and we can help change that and help create smarter and ultimately richer South Africans. Tell them about tax-free. About ETFs, about fees killing returns. Tell them. And even if you think you have no knowledge to share as you're still learning - wrong. You have way more than the average person. So get talking. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. Simon Shares Libstar listing is proceeding and I am not taking part. I do think the market will love it but Google the private equity sellers (Abraaj) lots bad happening their and the company has declared a R800million pre listing dividend - while raising R1.5billion? Consol has pulled their JSE listing citing "challenging market conditions". Have the market conditions really changed that much in the last few weeks or was the market just not excited by the listing? Auditing - it's complicated The local auditing profession is having a tough time of it with the Auditor General (Thembekile Makwetu) commenting on The Money Show with Bruce Whitfield he said that that the professions reputation was "in the gutter". I wanted to understand what we as investor really can expect from an auditor? Are they to blame for Steinhoff (JSE code: SNH) and other recent collapses or is that beyond their scope? Keith McLachlan, fund manager at Alpha Wealth, studied as an auditor and is now a fund manager so decided to have a short chat with him to get some perspective. The short chat ended up being a long chat and I suspect we missed a number of angles but one thing did stand out for me, the word "material". JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

"Brought to you by Absa ETFs" Simon Shares EOH (JSE code: EOH) under pressure again trading at 5 year lows. The company claims it is because of false allegations published on some news website. CPI in March was 3.8%, a great number but April has both VAT and petrol tax increases so we may have seen a low in CPI for a while. Pallinghurst (JSE code: PGL) issue audited results but they use an auditor not accredited by the JSE so they don't count. Mediclinic (JSE code: MEI) issued a solid trading update and the share is responding (they also got upgraded by Barclays over the weekend). I now expect the usual flurry of emails abut how I am missing out by not investing in healthcare stocks. I am indeed, but I am also missing out on the other 450 stocks I do not own. The stock market is no place for FOMO - it'll kill you. Finding winning SA Inc. stocks. Tax-free and saving for your child. Price leads narrative I heard this on a podcast I listen to, or maybe somebody tweeted it. Hugely important. Those commenting on price action (myself included) are always doing so after the fact and most times trying to find a narrative that fits the price move. As humans we believe in order and we have an expectation that things happen for a reason. Now sure prices move for a reason, but there is every chance we're not privy to the reason. The short answer is that prices go up when there are more buyers than sellers, anything beyond that is trying to fit a narrative to a move. As a trader we frankly don't care why they move. We simple wait for our entry and obey our stops. As an investor price only matters when we're buying as this is all we control. Other than that it is results that matter. So the narrative around price is fun, but it is not very useful. We Get Mail Brian Is there a way I can find the names of ETFs that hold Santam? Reino You state that one can open an TFIA account for anybody from day one of birth, but only with an FSP. This TFIA you speak of will it be just an normal account at the bank like a cheque/savings account or will I be able to open one to trade ETF's through for my children? Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

"Brought to you by Absa ETFs" Simon Shares SARS announces tax must be paid on Bitcoin profits - why is anybody surprised? Sagarmatha (JSE code: SGT) listing on Friday, if they tick all the boxes. Some saying they should not be allowed to list but this fails to understand the role the JSE plays. They are regulatory gate keepers, not quality of profitability gate keepers. Steinhoff (JSE code: SNH) now under 300c at 226c, well below late 1998 listing - all-time-low and the bad news just continues to drip out. ETFs and the cost of the spread. Living vs guaranteed annuities. Upcoming events; JSE Power Hour: Investing in the best of SA Inc. Liquidity risk Homechoice (JSE code: HIL) keeps on putting out great results and cash generation but has almost zero liquidity (30 trades since 6 March and currently no offers to sell on market with last trade at 4700c and buyers at 1226c! This makes it uninvestable in my world as we'd essentially be buying into a quasi private equity arrangement as exiting would be almost (absolutely) impossible. But they did announce in the latest results they plan to improve liquidity and I'll keep an eye on this. In the excitement of finding a great share we'll often over look the liquidity issue but I remember getting very badly caught in an illiquid stock way back in the day and while I could have held on I panicked and exited at a nasty loss. Liquidity is not just the spread, which is a cost. But also the amount of volume being traded and we also have to remember that liquidity can disappear very quickly. So two things to look for. What size spread are you having to cross to buy. A 1100c / 1500c is 400c and over 30%. I want spreads as tight as possible and certainly not more than 5% at worse. I want average daily value traded to be at least 30x the size I am buying so even if it dries up I can still get out without too much pain. For traders liquidity even more important an I want spreads less than 1% and value traded 100x my trade size. This is because I want to have no impact when buying or selling (or as small as possible because there is never no impact) and I need the liquidity for very quick and efficient exits. Last important point. Liquidity in terms of volume is not an issue for ETFs as the market maker ensures that they will have a bid and offer either side of fair value at all times. So while the ETF may not be trading it has the capacity to trade in larger volumes if required. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

If you secretly hate us but haven't been able to find a different source of financial information, I have some great news! I found a Freakonomics Radio episode that summed up exactly the principles we champion on this show. In this episode, Simon and I take the financial literacy survey. It's only three questions, but understanding their answers will enable you to make great financial decisions. If this sounds vaguely familiar, you might be thinking of this podcast we did last year. Here are the questions: Suppose you have R100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? More than R102 Exactly R102 Less than R102 Imagine that the interest rate on your savings account was 5% per year and inflation was 6% per year. After one year, how much would you be able to buy with the money in this account? More than today. Exactly the same as today. Less than today. Do you think the following statement is true or false: buying a single company stock usually provides a safer return than a collective investment scheme like an ETF or unit trust. Win of the week: Rob has been coming to our events for ages. He has some ETF investments, but he's been wanting to trade since the day I met him. This week, he sent this email: Yes I have done my first trade and bought my first bunch of shares (7 shares in total - some bits and bobs) (as oppose to ETFs) I am not sure how I am supposed to feel! Its bit like sex for the first time - did not know what to expect! Frederick My world has been turned upside down! I started listening to your podcast a week or so ago, and fok... my google is broken!! From googling sport all day I now spend endless nights and have sleepless nights on where to put my money and avoid tax as much as possible! I use to think money is money and my RA is perfect and that life is sorted! I was wrong! I have an RA (diversified wealth builder) with Sanlam. Any thoughts here please? My FEES (to my knowledge) is 0.65%. It says "management fee at benchmark %". I put some money in monthly with a 10% annual increase. By retirement I should be paid out R11,5m. Let's say you live another lifetime after your working life, how much will you need? It's possible to retire at 60 and live to 100. https://justonelap.com/podcast-much-money-need/ Frank is trading Simon's Lazy system and wants to know if he can park his money somewhere while he waits for entries. He's not earning interest on the money that he's allocated for this trade. Shamona wants to know if timeshare is worth it. What are the pros and cons? What should I look out for when buying? Entries to win Manage Your Money Like a Fucking Grownup. We want you to share the financial fact that blew your mind. We'll be running this competition for one more week. I asked author Sam Beckbessinger hers and she said on R10k per month, you'll earn R19m in your working life. Mine is that a low cost of living is basically the answer to all your problems. Lesigisha wrote back after we sent him a shout-out last week. Thank you so much for the great affirmation I received from the submission of my email, it really really went a long way in validating what I'm doing. It's hard to start on this journey, but after doing it for a while one does sometimes get despondent and wonder if this is worth it. Your affirmation has helped reinvigorate me and I go back to it every time someone says they're waiting until they have a bigger shoe size before they can start making "real money decisions". Khuliso's mind-blowing fact is that you don't need huge amounts of money to invest. As a result of his mail I spent a lot of time thinking about kotas this morning. The most mind-blowing fact was finding out that if I can afford to buy a kota (R23.00) or street wise 2 I can afford to invest in the JSE and create wealth. Even though it's little money, over the long term it makes a difference. In my case the problem was lack of information rather than a lack of money to invest. I am now very conscious about my spending habits. Whenever I buy takeaways in the back of my mind I keep on thinking of ETFs that I could be buying. When I look back, I see missed opportunities where I could have invested and build wealth. Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Sign up here to receive an email every time a new show goes live.

"Brought to you by Absa ETFs" Simon Shares I mentioned last week it had been a negative first quarter for the Top40 and it just continues weaker with the current theory being trade wars. Looking at the charts of the main indices it looks ugly and we're now some 15% off the all-time highs of November. A proper correction that may still go lower and my sense is we're close to the end of the sell off. I also asked last week how we could select winning fund managers. The answer I got back was mostly that you can't. A few gave very detailed answers mostly revolving around finding the best managers - but scant details on how we spotted these quality managers. Total return ETFs and CGT. Complicated. Win a book with The Fat Wallet Show. Upcoming events; JSE Power Hour: Investing in the best of SA Inc. Spot the losers Steinhoff (JSE code: SNH) announces that their property portfolio is only worth half what they thought. Boom there goes another R16billion. I cautioned when this story broke that bad news would be dripping out for a while, and so it continues with the immediate question being hat about their other property assets? Grand Parade (JSE code: GPL) CEO has quit exiting immediately. Ms. Tasneem Karriem joined the company in 2015 and was made CEO last June. This is not good news and the stock is off 4% and trading at 2010 levels. Nampak (JSE code: NPK) is selling their glass business after spending R938m to buy the 50% of the glass business it did not own. It has also spent billions on capital expenditure and now we wait to see what price it sells for. But an absolute disaster for the company and the share is back at 2010 levels. NetCare (JSE code: NTC) is to exiting its UK operations after twelve years of absolute disaster and the share is trading at 2010 levels. Ascendis Health (JSE code: ASC) is trading below its 2013 listing price and just off all-time lows at 938c. You spot the problem? Middling quality companies expanding and the wheels come off. Now sure there are likely many examples of other companies that did not lose their wheels. But as investors we have to make sure we own the right ones. It is also worth noting that as a small investor we can place a core of ETFs (+50%) for diversification and then we need only own 10-12 individual stocks in the 'til death do us part' portfolio. This gives us a huge edge on fund managers who typically need to own 30-50 stocks. We can focus like a laser on quality and spend most of our time finding reasons NOT to invest in a stock. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

"Brought to you by Absa ETFs" Simon Shares Back from holiday and with lots of ideas around what you do and don't like for JSE Direct. That said main comment was not to really change except maybe some experts occasionally on broad topics. Markets falling and Top40 is down some 8% for the year so far. End of the world? Not likely. As always, traders know and obey your stops. Investors know your stocks and entry points. Naspers (JSE code: NPN) is under R3k and off some 30% since the November highs and is in large part why our market is under water as it's the largest stock by a mile in the indices. MPC cut repo rate by 0.25%, 4 members voted for the cut and three for no change. No discussion of a 0.5% cut. Interestingly the VAT increase effective on Sunday is expected to temporarily add 0.6% to inflation. Moodys kept us out of junk and improved our outlook to stable from negative. Anchor group (JSE code: ACG) results were bleak but seemingly the bad news is now behind them and the share is responding well, up some 50% since the lows of January and this is a stock pick from Anthony Clark. How to start an investment club. Save interest on your home loan. I was on The Money Show with Bruce Whitfield earlier this week talking about money and selling everything. The interview is here. Upcoming events; JSE Power Hour: Investing in the best of SA Inc. Can you pick a winning fund? The latest SPIVA for SA is out and it is bleak reading for active managers in South Africa. Around 75% are beaten by the benchmark over one, three and five years. Benchmark is Domestic Shareholder Weighted (DSW) capped or normal. This means you have a 1 in 4 chance of picking an out preforming fund - very bleak odds. So here's the question, and it is a real question. How does one pick the winning manager going forward? There most definitely will be those who out preform, some even consistently, but how do we spot them in advance? They themselves will tell you that past performance is no guarantee of future performance, and this is 100% true for a bunch of reasons. Changes in personal. A winning manager leaves, is the replacement as good? They had a few lucky calls or managed to avoid some disaster that beset the market. Skill or luck? As they get larger it becomes harder as your investable universe shrinks. I remember a Morningstar report from a few years ago looking at the US market that said the only reliable predictor of future returns was fees. The lower the fee the more likely the fund will out preform. This makes sense, but it is still not a full proof method. I also know a number of people who chart unit trusts with fairly good success. Either just normal technical analysis or relative performance. Of course tax is an issue here. If you have a method for picking winning funds let us know. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

"Brought to you by Absa ETFs" 300 shows, I haven't been making a fuss because it just feels old, very old. Add to that almost three years as a live radio show on Classic FM, starting from 8 July 2008. It's almost ten years of a weekly (albeit changing) show. We started life focusing outside the Top40 as the other shows seldom ever did anything in the small and mid cap space - then everybody did. So we have evolved over time. The question is where to next? Another ten years (truthfully that scares me). Send me your ideas on what we should or should not be doing. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

"Brought to you by Absa ETFs" Simon Shares 2017 GDP was 1.3%, better than the expected 1% and hopefully means that the treasury 2020 GDP expectation of 2.1% is wildly low. Bleak trading update from Sasfin (JSE code: SFN). But still trading at tangible net asset value (TNAV) levels. MMI drop their dividend in favour of share buy backs and drops cover from 1.5x-1.7x to 2.5x. Considering the dividend yield was some 6% and a good reason to hold this is a major change. Now sure a share buy back is in theory share holder value enhancing and tax efficient but it is also not hard cash in ones hand. Making sense of CGT tax. New Stanlib tech ETF. Upcoming events; ABSA NewFunds ETF seminars (JHB and webcast) JSE Power Hour: Small cap stock picks with Anthony Clark Fallen angels (devils?) When a share is hit by scandal it can take ages to recovery as investors shy away from the stock. Some like Steinhoff (JSE code: SNH) will never recover due to the seemingly rampant fraud hat happened. Others like EOH may but will stay under 'caution' for a while as will the Resilient (JSE code: RES) stable of stocks. Others such as Capitec* (JSE code: CPI) will also struggle for a while but should shrug it off in time. Tiger Brands (JSE code: TBS) has held up fairly well since the Listeriosis story broke on the weekend and is only back to November levels. But it could get real bad with almost 200 dead people, but markets seem to not be so concerned with these sort of issues. I remember Pioneer (JSE code: PFG) righting the bread fixing claims, eventually paying a R1billion fine and the share rocketed. In part it is the known vs. unknown. PFG struggled until the fine was agreed on, and TBS could well see its share price struggle until some sort of finality is reached - and that cold be years. The concern is perception and some potential investors will stay away while existing holders may head for the hills and this means less buyers for the stock so less/slower upside. Your strategy needs to ask if the scandal is terminal, long-term or merely a passing fad? Then remember if it is time to panic, panic quick. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

"Brought to you by Absa ETFs" Simon Shares The new cabinet is of course a compromise, that's the nature of our political system. But the important departments are markedly better hands (SOEs, treasury & mining). New tax-free year kicks off today. R33,000 per year and transfer are now also possible. Up coming events; ABSA NewFunds ETF seminars (DBN, CPT, JHB and webcast) Leverage your investment portfolio Borrowing money to increase your portfolio is something most investors ponder at some point, but two questions come up. How and what are the risks? The theory is easy, over the long-term equity markets do better than the cost of borrowing, but there is more to leverage then just that. So here are some options, with the risks involved. Derivatives such as CFDs; Easy enough. But costs and margin calls are real issues. Keep it small. Home loan Clean and simple if you can afford the repayments remembering that when markets collapse interest rates typically rise. Make sure you can make the repayments with higher interest rates and what if your income drops? Personal loan Banks don't like lending against shares and again can you afford the repayments? Also unsecured loans typically attract higher interest rates meaning the numbers no longer add up. Margin Some brokers will lend against a portfolio with the amounts varying depending on the shares being used as collateral. The risk here is that loan amounts may be adjusted and you may be squeezed out. Personally I have leveraged my portfolio once. In 2008 I maxed out my bond to add to my portfolio. It worked and I slept well enough but I have no plans to do so again. On page 10 of his latest annual letter Warren Buffett writes "This table offers the strongest argument I can muster against ever using borrowed money to own stocks. There is simply no telling how far stocks can fall in a short period. Even if your borrowings are small and your positions aren't immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions." Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

"Brought to you by Absa ETFs" Simon Shares Discovery* (JSE code: DSY) results were top notch and complicated as they always are. I own this stock as the business model really works, but as I have mentioned before the complexity adds risk. Risk I am happy with as most stocks I own have real simple business models. JSE (JSE code: JSE) results show HEPS down 6%. But look at value being traded these days. R25billion a day has become a regular feature, last year average was around R15billion. That equals lots of extra revenue in this financial year. Mining charter back to the drawing board. Good for local miners (of which we have very few). January CPI dropped to 4.4%, interest cuts coming to a prime rate near you? But budget may add to inflation (fuel being the one, not directly but will increase transport costs so food inflation). Up coming events; ABSA NewFunds ETF seminars (DBN, CPT, JHB and webcast) * I Hold ungeared positions #Budget2018 Firstly I think Cyril Ramaphosa may have played it real smart by letting Malusi Gigaba deliver the budget. He can now spend the next year claiming it was not his budget but a Zuma legacy budget. Overall not the train smash expected but still lots of tax increases with R36billion of extra tax. Lots of cuts to spending, R86billion over three years and which has to actually happen. VAT increased to 15% (first change since 1993), with 19 basic food items being zero-rated. Cue everybody suddenly caring about how this will hurt the poor. "Wealthiest 30% of household contribute 85% of VAT revenue". "The Old age, disability and care dependency grants will increase on 1 April 2018 from the existing R1600 by R90 to R1690 and by a further R10 to R1700 on 1st October 2018." GDP growth 1.5% in 2018 and rising to 2.1% in 2020. I hope they are very wrong on this. No changes to; Dividend withholding tax (DWT) CGT (40% inclusion rate with first R40k exempt) Tax-free limits (annual or life time) No Nuclear. Retirement funds will be allowed to invest up to 40% outside of SA - 30% "offshore" and another 10% elsewhere in Africa. JSE added 1.25% during the speech, USDZAR 8c and government bonds back at 8%, bond levels last seen three years ago. For our investments. Consumers being taxed, no surprise. But with inflation dropping leading to prime rate likely heading lower I still like the SA Inc. investment thesis. Overall - a good balancing act albeit still a tough budget. But could have been much worse and I think Moodys will not downgrade us on the back of it. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Market continues to wait for president Zuma to go. It is taking time but ejecting a leader usually does take time and markets are patient and way more interested in what is happen in the US with inflation data out after I have recorded this podcast. This will likely be the driver for now. When Zuma eventually goes, and he will go, then market can move on that info. It is messy (as politics usually is) but it just a matter of when, not if. Oceana (JSE code: OCE) CEO quits to buy their boats? Resilient, Nepi Rockcastle, ForstressB & Greenbay (JSE codes: RES, NRP, FFB & GRB) continue to flounder after 36One report surfaces. Was it leaked? Does that matter? Resilient have responded via SENS and a conference call and a FAQ - now the market gets to vote. http://resilient.co.za/faq.htm New African property ETF. RA, pension or provident fund by Carina Jooste. Up-coming events JSE Power Hour: Kick off 2018 with ETFs and tax-free investing Avoid the big losers or risk your portfolio A -60% return requires a +150% to beak even. A -80% return requires +400% to break even. Think about that. Saving that last 20% on the downside is worth a 250% smaller return on the upside. — Ari Paul (@AriDavidPaul) February 13, 2018 Trading is really probability and all we have to do as traders is enter on time and then ensure no large losses. If we avoid the large losses those small profits and losses will cancel each other out and the occasional large winner will make all the profits. But we have to cut the large losers or else we go bust. So why do we hang onto our losers? Fear of the pain - we want the thrill of winner because then we're winners. Fear of being wrong - measure by what you control (perfect trade challenge). Fear of the money being gone - trade smaller size. We Get Mail Ruan I am new to CFD trading and I see that with CFDs you qualify for dividends. How does it works? Manoj I am considering investing in the new CoreShares Global Dividend Aristocratic ETF that will launch on 22 February. However, I would obviously want to make sure that I am buying the share at fair value or at a discount. How would one ascertain whether the price is at fair value or a discount? Normally, one can use the P/E ratio to ascertain value. But, in the case of an EFT, this ratio is not available. Additionally, I am nervous about committing to purchase the ETF during the book build that ends on 15 February because I don't know the launch price. It this nervousness justified? Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Dual CEOs at Investec (JSE codes: INL / INP)? Market sells off and rebounds (a bit) and we're in correction territory (down 10%). The falling property stocks of Resilient, Nepi Rockcastle, ForstressB & Greenbay (JSE codes: RES, NRP, FFB & GRB) continue to trade down at the low levels they hit when Viceroy concerns initially hit the market in early January. Capitec* still under fire from Viceroy and share likely to be subdued for a while. Brimstone (JSE code: BRN) has sold down their stakes in both Tiger Brands (JSE code: TBS) and Life Healthcare (JSE code: LHC). Now what will they do with the R750million cash? Stress free tax year Up-coming events * I hold ungeared positions. Section 12J (S12J) Introduced in 2009 this enables a tax payer to invest into a startup (via the S12J fund, Section 12J Venture Capital Companies (VCC)) and claim it as a deduction on their tax return effectively reducing ones income by the amount invested. An important point is that the investment has to be held for 5 years or income becomes taxable. In theory nice but with some buts; Firstly investing in startups is high risk - of course it is. That said you can invest in lower risk and more mature companies, know what you're investing into. Exiting at the end of five years may be a challenge. How does one sell a stake in a startup? They could list but if not liquidity is going to be a potential problem. Check how the fund plans to manage this and how it has worked in the past. Check the numbers very carefully. I've seen a lot S12J companies working the returns off R550k when you made a R1million investment. The theory is that they include the R450k tax saving into the return. Sure, but where did the R450k go? Know what you're investing into. This is much harder then listed investments as they're startups and we have limited information and hence valuations are hard. Get to grips with all the fees, all of them, in lots of detail. Quality and track record of the VCC managers. Bottom line is that there are good and bad in S12J. Make very sure you know which you're getting into. Lastly, saving tax is never a good enough reason on its own for an investment. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Viceroy charges into Capitec* I think we're missing a point with this latest Viceroy report on Capitec. Sure we're proud of the business and if you're a shareholder you've made amazing returns. But we seem to be circling the wagons and shooting the messenger rather then actually discussing the merits of the report. Two important thoughts to ponder. What if Viceroy had published their Steinhoff report before Steinhoff admitted to their fraud, would we have believed them? Simple answer is no and we would have looked stupid when the company admitted the fraud. A fund manager does their research in a company, decides it's a great sock. They buy it and then they go out into the world promoting the stock - talking it up in the media and notes to clients. How is this different from what Viceroy is doing (aside from Viceroy shorting rather then buying)? Here are some others who have been asking questions about Capitec. Benguela Fund Managers wrote to Capitec on 19 January 2018 asking questions. Summit Financial Partners has court action on-going against Capitec. Moyagabo Maake and Rob Rose wrote on the same issues on 19 May 2016. Former FNB CEO Michael Jordaan commented that "It is too early to draw any conclusions". *I sold half my Capitec shares at R911.00 yesterday. A last point is that with Capitec exposed as the Viceroy target suddenly the other contenders (Resilient stable, Aspen, etc) are now all forgiven. But hold on, when we were unsure who was next the market sold these stocks off aggressively - this tells us something important. It tells us the market is not confident about these stocks and we should take that warning seriously. Here's a Periscope video I did just after the news broke. Here's the Hebalife video. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Global Dividend Aristocrats ETF This week Simon chats to Chris Rule from CoreShares on their soon to be listed Global Dividend Aristocrats ETF. It uses dividends as a quality metric rather then searching for yield and much like the MSCI World ETFs we have locally it is concentrated in the US at 53% with Europe making up another 22% but it is light on tech. You can book for the events here. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Aspen (JSE code: APN) being vice squeezed. Woolies* (JSE code: WHL) trading update, "impact of a potential re-assessment of the carrying value of the David Jones assets". Watch out for the "goodwill write downs are not cash", true but they were paid for with cash. Shoprite* (JSE code: SHP) update seemed lighter then I had expected, good but not awesome. That said market liked it and stock is up over 6% since the SENS. * I hold ungeared positions. New year resolutions for investors "Everybody has a plan until they get punched in the face" Mike Tyson Stop watching the prices. These are long term investments, check them every so often if you must but certainly not even weekly never mind intra-day. Only own stocks that you have at least three strong reasons for owning and revisit these reasons at least once a year. Sell the dogs in your portfolio, sell them now (I'll wait). Sell anything that is not the best management and be very careful about what qualifies as best management (think Steinhoff). Careful of complexity (again Steinhoff). Miners and other cyclical stocks are never long term investments. ETFs are best and easiest way to create wealth, always have a core of at least 50% ETFs in your portfolio. Your first R33k invested every year must go into a low cost ETF tax-free account. If you not regularly beating the market over a 1 and 3 year period. Stop trying and just buy ETFs. Cost are a big killer. Keep it simple. Keep it diverse. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Every year the first JSE Direct of the year is our annual predictions show. Marc Ashton, Keith McLachlan, Small/Midcap fund manager at Alpha Wealth and Just One Lap founder Simon Brown review their predictions from the previous year and make their top three predictions for 2018. They then also make a call on the Top40 and ZAR/US$ for the year. You can find the 2017 edition here. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares EOH (JSE code: EOH), so the collapse was because of directors margin calls that forced them to sell? This is an epic disaster, if it was my board I would fire them. A share price collapse has real consequences, especially for a company like EOH that uses their shares for acquisitions. Steinhoff (JSE code: SNH) mess continues but an interesting meme occurring in an attempt to make sure the asset managers take no blame. The same happened after African Bank, Enron and other notable corporate collapses. I not saying we should be jailing the asset managers but we should be asking hard questions and having the debate. I am seeing more and more analysis on the fact that SNH was not quality, sure it is in some (but not all) cases after the fact but enough people are speaking out. Yet this low quality stock was valued at around R300billion at its peak and suggesting that it was impossible to tell is an outright lie as proved by many people being short and querying the numbers. Surely as an industry it is important to understand how this happened? Now some managers hunt out low quality as an investment theme, but they are the minority. Pretty much every asset manager will say they buy quality at a good price - but then I ask again, how did this low quality stock end up worth over R300billion? As an industry we are the custodian of peoples retirements, savings and ultimately their dreams - we need to take this seriously and surely, at a minimum, the honest response when we get it spectacularly wrong is to reflect how we get it wrong? Instead I see all sorts of head in sand or finger pointing? Why? Too busy keeping the fees and buying luxury German sedans and Cape Town holiday homes? Likely this is the final JSE Direct for 2017. I have many more ideas but need to take a break. We'll be back with our predictions show in January with Marc Ashton and Keith Mclachlan and as always we'll start by scoring our 2017 predictions (find our 2017 predictions here) Position your portfolio for 2018 is online (video, audio and PDF). Asymmetry of investing The asymmetrical nature of investing is a huge boom to investors. A share we own can go to zero with a 100% loss, but the flip side is that it can up go up multiples of 100%. So even the occasional loser doesn't derail a diverse quality investment portfolio. The two key points, diverse and quality. If you have only one stock you're at massive risk and if you have a basket of dogs then you're still in serious trouble. But a collection of quality stocks can survive the occasional blow out as they others run and we only needs a few real winners to make it all work and market beating. Now in an ideal world we'll never see a 100% blow out because when it's time to panic we'll panic quick, right? A last word on the asymmetry of trading (as apposed to investing). We have no real floor on loses as we also have no real floor on gains. So it is not asymmetrical and so we have to make it so by being ruthless with stop losses. I have long said my trading success is due to my always taking the stop immediately no questions asked. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Our signature yearend JSE Power Hour presented by Just One Lap founder, Simon Brown. Simon looks at what he predicted last year before embarking on his 2018 predictions that include; Steinhoff (JSE code: SNH) Naspers (JSE code: NPN) Bitcoin (BTC) The December ANC elective conference, who'll win and how will this impact our market Junk status The R50billion tax hole looming in the February budget Interest rates The Rand International markets Commodities His preferred stocks and ETFs for 2018. The PDF of the presentation is here and video here.

Simon Shares Twitter poll for tonight's JSE Power Hour presentation ~ What's your expectation for the Top40 in 2018? Time for my annual poll .. What's your expectation for the Top40 in 2018 ?#JSE — Simon Brown (@SimonPB) December 4, 2017 Steinhoff, where there's smoke Markus Jooste has also quit Stenihoff (JSE code: SNH), Star (JSE code: SRR), PSG (JSE code: PSG) and Phumelela Gaming (JSE code: PHM) boards. Steinhoff CFO and Star CEO Ben la Grange has quit as CEO of Star, but seemingly stays on at Steinhoff, for now. It's an oldie but it always true. Where there's smoke theirs fire and locally that is Steinhoff. Forever people have been in one of two camps on this stock. They either loved it or didn't understand the financials and stayed well away. I have always been in the latter camp and recently the warnings have gotten dire and now the CEO is out, results delayed and an investigation by PwC to try and understand exactly what's happen. Now hindsight is easy, but there has been a lot of smoke around Steinhoff for ages, enough to scare away any investor one would think. I warned as recently as a month ago about this. For traders the lesson is simple. Don't try and catch falling knives. Sure sometimes it works but when it doesn't you blow up. Wiese took some R122million SSF exposure in early November at 6146c. This is why we largely ignore director buying. The company did a share buy back also in early November for about R4,8billion, now worth R1.2billion. Also a lot of hating on ETFs as Steinhoff was 2.35% of the Swix (which is a truly horrid index) and 1.88% of the Top40. Frankly active fun damagers who liked the company probably had a lot more. The 7th largest stock in the South African SWIX index is currently down 61% amidst accounting irregularities and resignation of the CEO. pic.twitter.com/NEqwrsBGwo — Delphine Govender (@Delphine_DG) December 6, 2017 Of course everybody now wants to know if it is time to buy? The answer is no because we simple know nothing except that what we thought we knew is not true. Never blindly buy something where everything is simple unknown. Some saying they have 2500c odd value in Star, PSG & Kap, but then they also have debt that is likely about the same. Viceroy Research has published their report in Steinhoff and it makes for scary reading. Lastly, what to do if you hold Steinhoff? Sell. The 'it can't get worse' trope is a lie. It can get worse, it can go to zero.

Simon Shares More downgrades as S&P Globals makes our local debt junk as well to go with Fitch. Moody's gave us 90 days which takes us to just after the February budget and if they drop us then we full on 100% junk, AKA Brazilian. The Rand is powering ahead trading in the R13.60's against US$. My call for a stronger Rand remains in force. Slowly but surely. The latest Long4Life* (JSE code: L4L) deal is a perfect fit with the Gauteng based contract bottler they are also buying. I like the share at these lower prices. Yearend portfolio clean up is coming up and the one I eyeing is Calgro M3* (JSE code: CGR) in my second tier portfolio. I sold most back when Nene was fired keeping a few and they have pretty much halved since then. Checking my notes from when I sold my plan was to monitor and sell if I saw weakness. Well we got the weakness, but I didn't sell. Now I could hold them on a prayer - but I'd rather just bin them. I've been writing my yearend columns for FinWeek looking into 2018 events and stocks. They'll be out Next Friday and I'll share some in the podcast in the weeks ahead. Sygnia Itrix 4th Industrial Revolution Global Equity ETF (SYG4IR) lists next week. ETF winners for the year, what's RHO? Up coming events; Position your portfolio for 2018 * I hold ungeared positions. Trading buddies Trading is often very lonely, sure there's the people on Twitter or WhatsApp group you chat to - but mostly that's wild and wooly and not really any support. Your friends and partner are likely not much help either as frankly they don't truly get what you do or the pressures involved. So we need a trading buddy, not just to keep us sane - but also to keep us honest and help us when we need it. we can use them to vent as required but even more importantly we give them access to our trading account for two reasons. Firstly they check our trades and make sure we're trading as we say we do. Keeping to the system and staying honest. Secondly they can get us into or out of trades when we're not able to. The real hard part is finding this trading buddy. Check around your circle of friends, try Twitter and other forums and be very selective when choosing. We Get Mail Anne Why when I look at the daily chart of an ETF does it jump all over the place? Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares I am traveling this week so recording on Monday and hence no thoughts. Naspers (JSE code: NPN) hits R4,000.00. Survey results are out. Up coming events; Position your portfolio for 2018 * I hold ungeared positions. Stop faffing, start trading I want to aim this mostly at the newbie traders. Those who've been flirting with the idea of trading for ages. Maybe you've tried your hand at it but failed or perhaps you haven't dipped your toe into the water as yet. Trading is not hard, the psychology is hard, but there are ways to deal with that. First find a strategy you think makes sense, then start working on it. Test it with hundreds of back tested paper trades. Tweak as required and test again, rinse and repeat until you have something that seems to have a profitable edge. This may take you weeks of manual work - that's fine. Then when you have something that seems to work, start with a small amount of money. Small as this will help reduce the stress. Set the rules and risk management and get trading. Track your performance, your perfect trades and keep a journal. Importantly change NOTHING about the system. Ideally you should trade the exact same system for the entire 2018. If it is losing money badly, then your testing was bad. But by the end of 2018 you'll ideally have a working trading strategy and you can start increasing the portfolio size. Point is start and have modest expectations. Aim to break even in year one - that's winning. Online resources; Boot Camp Master Class Traders Life We Get Mail Ivor Why do so many large cap companies not make it into the Top40? (Glencore, South32, Amplats, Hammerson, NEPI, Kumba, Resillent & Capco).

Simon Shares Zimbabwean coup, or not coup or whatever. People are all asking me what's the best investment thesis here. There isn't one, a coup is not great for an economy. A democratic functioning state is what is good for investments. My comments last week about large M&A activity seldom working promoted a number of responses about successful deals - but all were private (not listed). This makes sense, no hype, no over paying. Just good old fashioned due diligence and right price paid. Consolidated Infrastructure Group (JSE code; CIL) update and delayed results is a massive mess. Third update and this one says we simple don't know how bad things will be nor if previous results are sound. Major management failure both to communicate to market and to manage the company. Spar (JSE code: SPP) results show revenue up 5.4% while operating costs increased 19.2%. Not good at all. Switzerland seems to be coming right, Ireland not and South Africa is tough. Netcare (JSE code: NTC) trading update is all about their UK BMI Healthcare business and it's all bad news. Another large offshore deal gone all frot? South African bond issue on Tuesday at largest ever (R3,3bn vs. R2.75bn) and over subscribed 3x. But at 0.75% higher rates and maturing between 2031 and 2048. Compound that cost to our economy. Survey results are out. Up coming events; Position your portfolio for 2018 * I hold ungeared positions. When it's time to panic My grandfather introduced me to markets in the 80's and one of his key sayings was "when it's time to panic, panic fast". When bad news breaks (yes we looking at you CIL) and a stock crashes the immediate response is that it's too late to do anything. Maybe, but often times the will be continued weakness because news and response is not instant. It takes time for everybody to respond. The bigger issue is if the news markedly changes a view and saying the damage is done is not an answer. This is especially true if the issue is management related and also in cyclical and small/mid cap stocks. Importantly I am not talking about panicking when the market crashes. This is about exiting a stock forever and moving on until it proves its bonafides again. Selling crashes is nice in theory but never works. Stocks are different because they can go to zero worse case or spend years, decades, forever languishing around little or nothing. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares More highs locally and global for markets. And of course that makes everybody worried and certain we're about to crash. Well we will most definitely crash, just nobody (and I mean nobody) knows when. So as always ignore the doomsayers. Tencent buys a 10% stake in Snap, a clever deal as it gets them into the US market. It also means we now all own some Snap via any Top40 ETF we have with Naspers (JSE code: NPN) in it. Purple Group (JSE code: PPE) results were rough. Ignoring a write down of Real People, GT24/7 made a sliver of profit, Emperor is losing AUM hand over fist while EasyEquities continues loses. With almost 60k users the burn rate for EasyEquities is about R3m a month with revenue of some R800k a month. That's a large gap that needs a lot more customers to close. They do however have the money from Sanlam that tides them over for the next 3 years while they try turn the low cost idea into profits. Steinhoff (JSE code SNH) is back in the bad news on reports that it hid US1billion worth of related party deals. This company has a lot of smoke around for an innocent company. Sasfin (JSE code: SFN) has a price-to-book (PB) of around 1x and that is always a buy signal for the stock. Ungeared and hold until PB is 1.4x or higher, about 12-18 months typically. You'll get NAV uplift, dividends and the price gain above NAV. I have sold my Tongaat (JSE code: TON) shares. The latest update showed that even with returning rain we're not seeing the profits from sugar, so my thesis was right (rain) but with no profit to show for it I bailed. Help us help you, do our six minute user survey. 4 New ETFs from Sygnia. Up coming events; High probability derivative trading Position your portfolio for 2018 * I hold ungeared positions. Too big to work (AKA big deals suck) Brait (JSE code: BAT) has valued their UK New Look business at zero. They paid R37billion just under two years ago. Woolies* (JSE code: WHL) and Famous Brands* (JSE code: FBR) both struggling with big deals and now Firstrand (JSE code: FSR) spending some R20billion buying Aldermore. How many big deal really work? Sure they work eventually, but at what cost and never as management promised. I suspect it has two key problem. Firstly they buyer typically over pays in their eagerness to get the assets, this is especially true when the target is listed and the premium has to be agreed on by shareholders and is hence usually 20%-30% or more. Secondly merging two business is never easy. Some easy wins such as centralised costs like HR can be lowered, but actually extracting value a lot harder. The third of course is the ego of management. Who wants to be boss of some regional business when you can be a global titan over seeing a vast network of losses? My memory says very few ever work very well. Have you got some examples of large deals working? SABMiller worked, BHPBilliton* (JSE code: BIL) worked. Any others? We Get Mail Peter I see that some of the Satrix products are offered as either ETFs or unit trusts. What would compel me to purchase via a unit trust rather than an ETF for something basically the same? Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Famous Brands* (JSE code: FBR) results were nasty. Local was weak but the real issue is the UK GBP purchase that cost a bunch and is not performing. Long4Life (JSE code: L4L) is now 510c as I record. Nice price and a lesson that we must never chase stocks. Sasfin (JSE code: SFN) has a price-to-book (PB) of around 1x and that is always a buy signal for the stock. Ungeared and hold until PB is 1.4x or higher, about 12-18 months typically. You'll get NAV uplift, dividends and the price gain above NAV. Clicks (JSE code: CLS) are a master class in how a set of results should look if the company really is firing on all cylinders. Revenue +10.9%, HEPS +14.5% and the dividend +18.4%. The Traders Life three part series with IG is online. Up coming events; High probability derivative trading Position your portfolio for 2018 * I hold ungeared positions. How important is your trading system? Your trading system is one of the least important parts of a successful traders arsenal. Yes you need one and yes it need to be profitable. But it is not what is going to make you the money. That will be your discipline, your money and risk management - this is your trading edge. So stop trying to find the best system in the world. Stop tweaking your system every tine it loses some money and stop jumping from one system to another. Find a system that makes money, test it and learn to trust it. Become the absolute pro at the system and then trade it; unemotionally and with discipline. We Get Mail Ron I want to buy Tech stocks (eg Alphabet, Amazon, FB, Apple, Tesla ...) and get a little Biotech exposure using an off-shore account. I'd prefer an ETF than individual stocks. ========= Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Books Trading Trading in the Zone – Mark Douglas (detailed review) Trend Following – Michael Covel (detail review) Reminiscences of a Stock Operator – Edwin Lefevre Investing One up on Wall Street – Peter Lynch (detailed review) Common Stocks and Uncommon Profits – Phil Fisher (detailed review) Effective Investor – Franco Busetti Intelligent Investor – Benjamin Graham 123 Download the audio file here Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Local markets have been making new all time highs and right now the sellers look shell shocked and unable to exert any real downside pressure. Taste (JSE code: TAS) results were just a shocker and they need money fast, real fast. Pick 'n Pay (JSE code: PIK) results were uninspiring. Like for like sales after inflation went down as they continue to lose market share and operating margins remains very weak at 1.6%. Calgro M3* (JSE code: CGR) not bad is we strip out the funnies. Memorial parks coming along and Western Cape drought hurting a bit as is the weak economy. I reduced exposure at the the time of three finance ministers in 4 days in December 2015 and am not upping my exposure for now. Long4Life (JSE code: L4L) at 550c starts to get interesting and offers an important lesson - careful of chasing hype. Up coming events; FX – Wealth Creator or Poverty stamp The Traders Life: The tools High probability derivative trading Position your portfolio for 2018 * I hold ungeared positions. Managing the dreaded drawdown Every trader will at some point have a drawdown when a string of losing trades sees your once lovely equity curve head south. Or worse an ugly equity curve get even worse. Typically the gut response is to either; change system, tweak the system, reduce trade size or just panic. None are a good idea. August saw me have a horror week with four large loses (within system expectations, but not expected all at once). My immediate response was some Amazon shopping but then I got into my drawdown mode. First I check every trade to make sure I did everything right. Now every trade I do is marked for a 'perfect trade' but I double check. I also go back to my initial system checking and see if this was expected. I use the Mark Douglas method of system testing and this process is very important. Firstly it gives an expectation of what the system can deliver, tests if it works and also shows what sort of drawdown you can expect. The point is drawdowns are a part of trading and veery trader will have many of them over a life time of trading. We need to expect them, manage them and not have a knee jerk response to them. I was interviewed by Duncan McLeod from TechCentral on local and offshore tech stock, interview below or here. Content hosted by iono.fm Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Just two weeks ago I was moaning about a sideways market going nowhere, now we have eight green days in a row with local markets joining much of the world at all time highs. Famous Brands* (JSE code: FBR) trading update was bleak, very bleak. Interest costs we expected, they suggest SA doing well enough. But UK losing money after paying some R2billion is a shocker. PPC (JSE code: PPC) has doubled in price, remember I said wait for doubling and then buy. So heres your entry. Santova* (JSE code: SNV) comes out with very good trading update considering ZAR strength during the period. List of all listed ETFs ranked by their TERs. A great list from Kristia. Up coming events; FX – Wealth Creator or Poverty stamp The Traders Life: The tools * I hold ungeared positions. When to short shares A recent flurry of emails from people shorting stocks and getting burnt. In particular shorts on Capitec*, Naspers and Kumba. A side note that emailing me is a form of confirmation bias as the emailers wanted me to essentially confirm they were right and the market was wrong. First rule is don't. Second rule is don't short on fundamentals. Short on price action, if you want coupled with fundamentals. But don't just decide a share is expensive so now it must go down, it can get way more expensive. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Market going nowhere, I take a week off and it literally goes sideways in tight range. Capitec* (JSE code: CPI) results saw HEPS up 17% (trading statement said 15%-18%, they always come in near top of range). Lots of wow numbers; 9.2million active clients and cost-to-income ratio at 36%. The disputed arrears coverage ratio is back at 237% after concerns about it decreasing a year ago. Discovery* (JSE code: DSY) results solid with lost of spending on the future. Still my favourite share I own in terms of potential and I happy to add below R156. Richemont* (JSE code: CFR) trading update shows they turned the corner re nasty watch sales that resulted in them having to buy back watches. Stock trading up at all time highs above R120. My buy price is R118. Santova* (JSE code: SNV) nice clean deal buying out a 25% silent partner from their Australian operation at decent price. Gives immediate extra AUD earnings. New Ashburton World ETF Up coming events; The Traders Life: The money with IG and Simon Brown Buying when the Markets are at all-time Highs FX vs Shares – Wealth Creator or Poverty stamp * I hold ungeared positions. Trading time frames The first question no new trader asks is which time frame should they be trading in. Typically one starts looking at daily charts but quickly drops to shorter time frames because we want the rush that comes from each trade and we get more at shorter time frames. Yes trades happen in all time frames, but it's our ability to manage and profit from them. But truthfully can most people manage an intra-day time frame unless this is all they do? Markets is pretty much my life and an hourly chart is still tricky for me as I miss some entries (stops are automated so that no problem). Shorter time frames; Are also more noisy, Require quicker responses Means shorter trade duration, smaller profit per trade but same costs Forget about getting a rush from trading and find a time frame that works for you and potentially use multiple time frames. Start with a weekly chart, if you get a tigger wait for it to confirm in the daily chart. Now if you not using technicals but more about price then tie frames become less of an issue, but you're then having to watch the market consistently hence no other day job or trade at night. We Get Mail I started buying ETF's about 4 months ago. I purchase through on line trading. It appears however that prices are manipulated to keep them within a band. I have been seeing signs of this across all ETF's – some more than others. Last traded prices are impossible to buy at due to the artificial bid volume/price. What makes it even more obvious is often the identical bid / offer volumes. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Metrofile* (JSE code: MFL) results very modest as they reduce dividend for H2 but keep it flat for the year. Clover (JSE code: CLR) results were ouch, very ouch. They call it a perfect storm, I call it over priced branded milk. Spur (JSE code: SUR) were also very bleak and give us some insights to the Famous Brands* (JSE code: FBR) due at the end of October. Now Famous Brands has a way better business model and management, but expect very tough results from them. JPMorgan's Dimon said that Bitcoin 'is a fraud'. Right or wrong the price collapsed again and expect a lot more attacks from 'traditional' financial institutions, attacks that Bitcoin fans will say prices its value as it shakes up the establishment. No to tax, yes to fees? Up coming events; The Traders Life: The money with IG and Simon Brown FX vs Shares - Wealth Creator or Poverty stamp * I hold ungeared positions. Everything is at all time highs Why does everybody hate highs? If we're an investor highs are a great thing as it means we're richer then before? I once had a trading system that one of the rules buy new twelve month highs, and it made money. We get mail Leonard I was a client of Saambou back in the day, and I'm concerned about possible risks of holding everything through a single financial institution. Would there be any risk associated with putting all my eggs into one basket? Hoosain Just read about Patrice Motsepe's ARC investments going public on the JSE yesterday. The headline on moneyweb says "Patrice Motsepe lists his Berkshire Hathaway". Alarms bells rang off in my head when I saw this. Your thoughts about the company and its potential to be South Africa's Berkshire Hathaway? Chris Could u please explain the implications of the STAR spinoff? I currently hold Steinhoff and Shoprite. If I want to hold on to my exposure to PEP, ACKERMANS etc., do I now need to go and buy STAR? Or does Steinhoff still own STAR and thus I can just hold on to my Steinhoff shares? Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Capitec* (JSE code: CPI) trading update is looking for HEPS to be 15%-18% higher. Modest for a 27x PE stock with consensus being 18.7%. The DB x-tracker ETFs will see their name change on Monday 18 September as Sygnia completes the purchase process. The new name is Sygnia Itrix and the ETF codes will see DBX replaced with SYG.Rhodes Food Group (JSE code: RFG) got hit after a trading update that saw decent local operations but declining offshore sales further hurt by the stronger Rand. ARC Investments (JSE code: ARC) lists today (7 September) after an over subscribed placement at 850c. They have an interesting set of assets, mostly unlisted with net asset value (NAV) also 850c and an investment holding company should trade at a 10%-20% discount to the NAV. So we should see some weakness which give an entry to those wanting stock. Star lists later this month and after the Shoprite* (JSE code: SHP) vote on Tuesday to buy the shares back from previous CEO they now have total control of SHP. Reading the star listing docs, they are most certainly coming for my SHP shares and I am not a keen seller. A Periscope viewer asked my views on the Easy Equities launch of US listed stocks. Short answer is I like but with some cautions such as cost and paper work to transfer money and what to buy. Up coming events; JSE Power Hour: Disruptions or Innovation The Traders Life: The money with IG and Simon Brown * I hold ungeared positions. Ignore the fear Remember Greece? I don't mean as a holiday destination, I mean as the country who's debt levels caused years of panic that were going to crash the global economy? This peaked in 2015 with elections in January 2015 and then in July a referendum saw voters reject the European Union proposed bailout leading to new elections in September 2015. Yet two years later Greece is pretty much never spoken of? The debt had not magically disappeared, rather it is being 'managed'. The struggle remains real for ordinary Greeks and no doubt the politicians continue to do whatever politicians do. The point is the word is full of one crisis or another and the media will always make the crisis seem way bigger then it often is. If it bleeds it leads is the old newspaper adage and a financial crisis in an EU economy is always going to lead with plenty hysteria thrown in for good measure.The truth is the Greek debt crisis never really mattered to the rest of the world and I did a JSE Power Hour on this in June 2012. Now don't get me wrong, we will have another global financial crisis - of that I am certain. But what will trigger it and when it will happen I have no idea. So as long-term investors and short-term traders we ignore all the hype and fear mongering. We focus on what we know and can control. For investors that means buying quality at prices we like. For traders - trade the price and ignore the noise. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Telkom (JSE code: TKG) has confirmed government wants to sell their 39% stake in the company, likely to bail out SAA. Classic rookie error, exiting good trade to keep bad trades. Amazingly good results from Home Choice (JSE code: HIL), but with zero liquidity in the stock the results are merely of passing interest. Decent results form AdaptIT (JSE code: ADI) albeit some margin pressure in the education and financial services segments albeit with the latter doing decent revenue growth. All considered around 900c price is a fair value. I mentioned last week I was digging more into ADvTech* (JSE code: ADH) to determine a price to buy at and have now started buying with my fair value (so price below which I am happy to buy) being 1970c. The Harvey storm has hit land again, this time at Louisiana and this is just next to Lake Charles where Sasol* (JSE code: SOL) is building their Ethan Cracker plant. So far Lake Charles has been spared the worst of the wind and rain but we have a few more days of rain to come. The Sasol project will almost certainly be delayed by some amount (and hence costs) but as yet management have said nothing. Understanding the Krugerrand Custodial Certificate. Up coming events; The Traders Life: The process with IG and Simon Brown JSE Power Hour: Disruptions or Innovation * I hold ungeared positions. Where's your stop loss? The #ALSI gives us a free lesson in stop hunting pic.twitter.com/EkqvebhUkV — Trader1137 (@Trader1137) August 30, 2017 As a trader your stop loss is your most important decision as it protects your capital from destruction. Sure it is hard emotionally cutting losing trades, but that's a lot harder then going bust - so every good trader is ruthless with their stop losses. But where to place it is hard. Point is - don't be obvious when placing a stop loss. Don't make it too tight or place it where everybody else would place their stops. Other traders will go stop loss hunting and will shake you out. If you find yourself being stopped out only for the trade to reverse and go in your initial direction - widen your stops. That said careful your stop loss isn't so wide that your system starts to lose money. Yes stop losses are hard. Hard emotionally as we're losing money and even harder to know where to place them. But without a stop loss process as part of every trading system you will go bust. So spend the time working on your stop loss placement within your trading system. We Get Mail Hawu I kindly would like to know, what is meant by a company when its raising funds on book-build? Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Shoprite* (JSE code: SHP) results were stellar, the best food retailer anywhere on this planet? Operating margin from 5.6% last year to 5.76% in the 2017 (more than double that of Pick n Pay), market share growing, rest of Africa rocking (albeit some currency pains). ADvTech (JSE code: ADH) results show tertiary booming but schools under a bit of pressure that they partly blame on "rise in the number of families emigrating"? I like the stock, am doing some more digging and working out my preferred pricing. Will update my portfolio page as and when, certainly cheaper and better positioned than Curro (JSE code: COH). Implats (JSE code: IMP) wins the award for stupidest thing in a SENS announcement "The major reason for the decline in HEPS from the comparative period is that the prior year gross profit declined to a gross loss in the current year." BHP Billiton* (JSE code: BIL) results show them back on track. Reducing debt, paying dividends and not going crazy on capex. I have been holding for ages but not buying, I have updated the buy price and it comes out at R168, so a long way off. Naspers (JSE code: NPN) hit R3,001.00 and it still valued at less than its passive stake in TenCent. The video from Trader Petri is online - things he does well as a trader. Understanding the Satrix MSCI World ETF. Up coming events; The Traders Life: The process with IG and Simon Brown JSE Power Hour: Disruptions or Innovation * I hold ungeared positions. Scam alert Recently I have been getting a ton of scam phone calls around trading and investing that follow two themes. The first is offering me some training and software that will make me a fortune, usually 40% in six months! It won't. If it was so awesome why's this person stuck in a call center cold calling me? The second is offering to get me on the ground floor on some stock (such as Space-X, Uber or the like) or alternatively they've got a hot tip for me. If it all so hot, why are they cold calling me? Surely people would be queuing up to buy? These are scams, disconnect the call and if you can block the number and warn your friends. Certainly do not start sending money offshore to some random voice on the phone regardless who they say they are. Nor pay top money for software and training when much is free or cheap on the internet. We Get Mail Babsy What is the importance of having ETF in ones portfolio? why cant one just invest in shares only as this ETF also generate their income in shares. In a nutshell what is the importance of ETF in ones portfolio? Steven I invested in the DBXWD last week, me and a partner got into a discussion about what happens to my portfolio if I die? Subscriber to our feed here Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Curro (JSE code: COH) were mixed but mostly good. The lower priced schools struggled and the tertiary are still getting off the ground and will be unbundled in September. But for a stock on a PE of some 100x HEPS growth of just 22% is way to low. Anchor Group (JSE code: ACG) results were as expected from their trading update - a massive disappointment. Last March I was expecting HEPS of 100c for this financial year and they just did 22c (down 39%) and will be hard pressed to do 50c HEPS for the year. That said, 50c HEPS puts them on a forward PE of around 10x, not bad but frankly Coronation (JSE code: CML) with a dividend yield of some 6.5% looking much more attractive. PPC (JSE code: PPC) woes continue as the share trades at 1999 levels. Yip zero price profit this century if you've been holding the stock. This after a high of 5300c in 2007. So now everybody wants to buy, but there's no rush (if at all). Wait for a doubling of price before considering an entry. Famous Brands* (JSE code: FBR) update shows very modest like for like growth but this statement worries me "To date, certain of the new UK stores opened since acquisition have not met sales projections.". Up coming events; JSE Power Hour: Getting trading right with Trader Petri The Traders Life: The process with IG and Simon Brown JSE Power Hour: Disruptions or Innovation * I hold ungeared positions. Back to Bitcoin I did a Bitcoin (code: BTC) podcast in March and nobody cared . Another in June and interest was still modest. Now it booming and everybody wants in? Is it too late? No idea. Is it going to crash? No idea. How high will it go? No idea. What is Bitcoin? It is not a currency, it is if anything a commodity. It pays no dividends and can buy things but remember sea shells have been used to buy things in the past. For those wanting to buy Bitcoin, Magda Wierzycka )CEO of Sygnia) recommends using Luno locally (albeit it internal so only market within SA and hence price not always reflective of other exchange prices). Or use an offshore exchange (using your annual R10million offshore allowance) via Kraken or Xapo. Here's a trick, there is no central exchange for Bitcoin, so what's the price? Also no regulator and we have seen exchanges crash, be hacked and go bust. So this is fairly wild west out there. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares New all time highs locally for the All Share Index, Indi25, Top40 and ALSI futures as latter traded one contract at 50,000 for first time ever. I love all time highs. Upcoming events; JSE Power Hour: Getting trading right with Trader Petri JSE Power Hour: Disruptions or Innovation We Get Mail Johan If everyone is making money from trading, who are they making the money off? The answer is of course that everyone can't be winners and there has to be losers. The ones that lose more than they win, give up and stop trading. Therefore you need a constant flow of newbies that will fail so that the winners can keep winning. Does this not seem like some sort of great pyramid-type scheme? Or is the general justification "survival of the fittest"? Your take on this? Wouter One question from a new investor. Would you stick to your current ETFs you have in your tax-free savings account or add new ones as markets change. Regards from China. Eric I have R50 000 that I want to passively invest in Satrix for 3-5yrs and I was thinking about taking 7 Satrix products and divide the money equally. Tim Could we not just be another Japan, everyone says the market may go up but Japan is the elephant in the room? Or am I mistaken? Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares British American Tobacco (JSE code: BTI) is in trouble on two fronts. Firstly the US is looking at requiring nicotine be reduce to non-addictive levels. Then the UK is investigating the company bribing African governments to get favourable smoking legislation. I suspect many had though the legal issues for these companies were behind them. Bank results are showing surprisingly low dab debt levels. Barclays Africa (JSE code: BGA) at 0.96% and Nedbank (JSE code: NED) at 0.47%. Good news, but cost-to-income levels remain high with Nedbank blowing it out at 59.3% and Barclays 56.4%. These high cost bases are a problem and are not coming down. MTN (JSE code: MTN) update was bleak. It finally gave us real numbers and shows it is down by about two thirds compared to 2015, which is pre-Nigeria. Local markets toying with all-time highs but unable to break higher. Understanding ETF TER ratios. Upcoming events; JSE Power Hour: Getting trading right with Trader Petri Investor or trader? Or both? I got an email about how a long-term investor had a 15% trailing stop loss on their share and asked it this was the right stop loss level. The question was moot as the writer seems confused as to whether they were a trader or an investor. The easiest measure is how long you plan to hold a position. If less than three years than you are a trader as SARS says holding less than three years is income and hence taxed at your marginal rate. So derivative or not short-term under three years is trading. But there is another issue which is technical vs. fundamental. Traders generally use charts as price action trumps all else and plays out in the short term regardless of valuations. Long-term investors use fundamentals as they will play out over the long term. So a long-term investor would have a stop loss but it would be fundamental based, not price based. Lastly, you can be both. Certainly I am both short-term trader and a long-term investor. Importantly use separate accounts, even if with the same broker. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares PPC (JSE code: PPC) announced departure of CEO and share tanks. This company in serious board room trouble. Kumba (JSE code: KIO) results were decent, dividend was wild (ahead of actual HEPS) as they compensated shareholders for missed dividends! This is odd and asks the question about dividends going forward. Concern is average cash break-even price of US$43/tonne was up from US$29/tonne in the previous period. Long4Life (JSE code: L4L) runs to 838c then announces confirmed deal for Holdsport (JSE code: HSP) at slightly higher ratio (was 10.44 L4L for every HSP, now 12.1) and share down to 600c. Starts to get interesting another 50c lower. Upcoming events Moneyweb Expo – Structure your pay cheque The market vs. the economy On Tuesday the Top40 was trading at the high for 2017 (and again on Wednesday) and when I tweeted the fact the replies were mostly about how the market is wrong. Look at unemployment, Guptas, recession, down grades etc. they all shouted. None of the is wrong, but is it relevant? Firstly we've had a three year +/-30% correction in time. But as importantly the market is not the local economy with listed companies earning a lot beyond our boarders and mostly the better stocks in the index as loser are tossed out. Lastly and perhaps most importantly the market looks head 12-18 months. With rates coming down, Zuma out in the new year and his preferred choice struggling 2018 looks way better for South Africa than many a recent year. So if we're looking to the seed half of 2018 then the future s brighter, and sure this may be relative, but brighter surely means higher for the market? Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Finally, 5 weeks after moving my FTTH has been installed so I am going to Periscope each recording as it happens which is typically Wednesday afternoon. https://www.pscp.tv/SimonPB/ Retail trading updates coming in and as expected they are mostly bleak, but we are seeing the impact of the rains mostly returning. Netflix is a monster, over 100million customers world wide. Long4Life is buying; Holdsport and Sorbet. Steinhoff (JSE code: SNH) raises R12bn (Euro800million) in Europe with a 7.5 year bond at 1.875%. Upcoming events JSE Power Hour: Recession proof stocks Moneyweb Expo - Structure your pay cheque Is the fees battle over? Last week I spoke about the price war in ETFs. But do fees still matter? For the passive market fees are surely at point where they almost don't matter. Sure they can go lower but we're talking most local ETFs now nicely below a 0.5% TER ratio while the offshore are slightly above 0.5%. Don't get me wrong, every 0.1% makes a difference, but on R100k that's R100. Not nothing but not the difference between retiring or not. I still look at VOO with a TER of 0.04%, but we're never going to get that low (they're a mutual company and owned by the fund holders and have massive scale we'll never see in South Africa). Admin fees, once a silent killer have also disappeared at some brokers where a simple ETF or tax-free account has zero admin fees. Transaction fees are still a bug bear at some places with minimums that mean you need to trade some R18k-R30k per hit to get the effective rate. We Get Mail Georges I would like to find out how/when do ETFs collect their TER? Is this set off against distributions quarterly or "baked" into the price? Helen What will happen to my preference shares with Basil III? Will I loose them? JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Finally, 5 weeks after moving my FTTH has been installed so I am going to Periscope each recording as it happens which is typically Wednesday afternoon. Calgro M3* (JSE code: CGR) update on their missing SENS. Feeling is that the impact is marginal and will hardly hurt earnings? Time will tell, I still don't like asymmetrical information. Oakbay (JSE code: ORL) is delisting from the JSE as they can't find a sponsor. No surprises but real bad for any shareholders. Sygnia (JSE code: SYG) announced the details of the rights offer and it is at 900c but only for R160million as apposed to the expected R320million. So much less dilution, albeit also much lower price. Pubic Protector not fighting the SARB objection of her attempt to change its mandate. New emerging market ETF from Satrix Upcoming events JSE Power Hour: Recession proof stocks * I hold ungeared positions. ETF price wars With the new issue of ETFs from Satrix and Sygnia taking over the DB x-trackers (to be branded Itrax) we're seeing some price wars forming. Very good news for consumers, but some buts. Read the small print. Don't rush. Much of this is targeted TERs and the incumbents may also adjust their TERs downwards. Switching into a same but cheaper ETF may not be economical Tax, costs and spread adds up. My strategy will be where I buy an ETF that now has a cheaper alternative I will start buying the cheaper immediately. Switching will take longer. We Get Mail Everybody is asking Are you buying the new emerging market ETF from Satrix? JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares New Satrix ETFs; S&P500, MSCI World Index and MSCI Emerging Markets Investable Markets and at low 'target' TERs. A price war in the local ETF offerings? Wednesday was exactly ten years since the UK had an interest rate increase from the BoE? Calgro M3* (JSE code: CGR) issued a press release stating that they're cutting back on 'wet work' in the Western Cape due to drought. But no SENS? ANC policy conference has proposed that the SA Reserve Bank be nationalised. Aside from my (so far failed) attempt to buy shares in it, so what? Shareholders have no say in the running of the bank and almost every other central bank is state owned. What percentage ETFs in a portfolio? Upcoming events JSE Power Hour: Recession proof stocks * I hold ungeared positions. New listings in hot sectors We've seen two small stock listing recently that were trying to attach themselves onto the hype of a hot sector. Gold Brands in the quick service restaurant (QSR) space and Pembury in education. Both have failed and both teach us an important lesson in the new stars that are worth investing in. It is about quality, it always is. Sure a raging bull market will lift all stocks as we saw way back in 2005-8 listing boom. But in a more subdued market, a more skeptical market, quality matters. Cash matters, brands matter, management matters. It all really matters. It is not enough to just be in the right space. Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.