Where to invest offshore?

Simon Shares

• Pick n Pay (JSE code: PIK) results show the turn around is very much working albeit the stock remains very expensive. But the margins are still way to slim at 2% and less than half that of Shoprite (JSE code: SHP). This has to be the focus going forward if they have any hope of justifying the stretched valuation.
• MTN is getting money out of Iran, reportedly USD1billion and this certainly helps with the Nigerian fine, but once again this comes from third party sources not from the company via SENS.
• Steinhoff (JSE code: SNH) said it won’t raise its offer for French retailer Darty and this is a good thing because in a bidding war the only winner is the seller.
• Berkshire Hathaway is webcasting their AGM this weekend, this Saturday 30th April 2016 at 4pm. you can view it here.
• Kristia van Heerden looks back at a year of erratic ETF buying in our weekly ETF blog.
• We're doing a webcast of the lazy trading system on the 12th at 8pm.

Wehmeyer Ferreira from DB X-Trackers

Where to invest offshore? US, EU, UK or Japan? What of China or maybe just the world?

We've recently covered two of the more popular ETFs from Deutsche Bank; DBXWD and DBXUS.

We Get Mail

• Samuel
  • Should a home loan be considered as debt?
• Tshepo
  • What is best index to use for a benchmark?

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.

An investment check list

Simon Shares

• Everybody is freaking out on the Capital&Counties (JSE code: CCO) sell off, some 50% off the highs of January. Really driven by three things; it had been flying, stronger ZAR against Sterling and concerns about Brexit. Long term not an issue, so if you love the stock nows your chance to get more cheaper.
• Kristia van Heerden (Just One Lap CEO) tweeted some thoughts from last weeks podcast where I spoke about expectations. Her comment was that managing expectations doesn't start with investing. It's also about debt, hating on your job. These need fixing long before investing and certainly no investment will make your job better or the debt suddenly disappear.

If you expect your investments to save you from your shitty job or debt or pay for things you can't afford, you're in for disappointment.

— Kristia van Heerden (@kristiavh) April 18, 2016

• Our ETF this week is DBXUS and it has staggering returns of 223% over five years.
• New videos galore;
  • Managing volatility with Gary Booysen
  • IG Boot Camp: Trading psychology
• Added a bunch of new events, find them here.

Gary Booysen Portfolio Manager Rand Swiss

Gary did a great presentation for the JSE Power Hour last week (find it here). In it he looked at current market conditions, volatility and how to manage a share portfolio in these conditions. In this chat Simon also focuses one of his stock picks (AdaptIT, JSE code: ADI) and his check list. The check list (below) is a simple first filter to find quality stocks worth investigating further. The full video is here.

The check list;

• 3 year total return +20%
• Increasing revenue over 5 years
• Increasing earnings over 5 years
• Increasing dividends
• Increasing gross margin
• Increasing ROE
• Outstanding shares stable or decreasing
• PE, P/B, P/S, PEG, FPE in range
• Current ratio, LT-Debt/Equity
• Management quality

We Get Mail

• Ros
  • Once I've put my annual R30,000 into my TFSA, and I've also reached my tax-deductible limit in terms of my RA contribution, would it still be better to invest within the RA for the tax advantages it provides on withdrawal? Or should I just buy ETFs directly?
• Brenda
  • My daughter is now in Grade 10. Over the years I have been saving in unit trusts for her university fees. I stopped the monthly debit orders at the beginning of the year when I realised that the performance did not justify the fees. I now have almost R500k in two unit trust. On the one hand I do want some capital protection but also want growth with some income so that she can have funds for a car, deposit for a flat etc. I know that I can do better investing in the market. Should I :

1. Liquidate the unit trust and open a trading account in her name?
2. Start with about five shares - I am considering Coronation, Old Mutual, Steinhoff, Discovery and Mediclinic.

• ABSA MAPPS PRO ETF
• NFILBI
• BBET40
• DBXWD
• DIVTRX 

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.

Realistic expectations and success

Simon Shares

• The rand is back where it was when then Finance Minster Nene was fired. So everybody who was lamenting that they missed their chance to get money offshore into USD, here's your second chance.
• The NewFunds ILBI (JSE code: NFILBI) is our focus ETF this week. Tracking inflation linked bonds it sounds perfectly boring but actually looks really interesting for a broad ETF portfolio.
• Expectations. What are your expectations from your trading and/or investing? Are they reasonable? Are they hurting your ability to create wealth?

We Get Mail

• Terrance
  • I also hold Astoria (JSE code: ARA), I bought @ R15.14- 10% of portfolio already down 6.8% but so also is the rand/dollar, I was wondering on your thoughts regarding its value and comments by Keith Mclachlan as there seems quite a bit of negativity surrounding its value and costs. I bought it for the long term 5-10 years and the purpose 2 fold to invest in other markets and rand hedge. Is this all just hear say and noise?
• Everybody
  • What about putting your emergency cash into your bond?

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.

Hating on unit trusts

Simon Shares

• SPIVA results for South Africa are out and they track how many active managers fail to beat the index. Truth is that even over 1 year most do NOT beat the index. In short, buy passive or lose money? The PDF of the report is here.
• Standard & Poors has downgraded SA's expected GDP for 2016 from 1.6% to 0.8% further cementing the likelihood of a downgrade to junk from the rating agency.
• African Bank has relaunched, but this is not the one you have shares in. The suspended ABIL sold off good assets and is left with a giant pile of debt and those left holding ABIL when it was suspended in August 2014 hold worthless shares.
• The Satrix Resi (JSE code: STXRES) is our focus ETF this week.
• We published our bubble graphic of Top40 individual stock returns for Q1 2016.

Helena Conradie CEO Satrix

Satrix is best known for their Exchange Traded Funds (ETFs) but have in recent years also moved into index tracking unit trusts. The question is why and if unit trusts are still the evil rip off they were back in the day? It is still a case of watch the fees and know what's inside?

We Get Mail

• clintvanhere via Twitter
  • If you withdraw from TFSA, what are the effects on your annual & lifetime limits?
• Ryno
  • Can I trade your lazy system in a tax free savings account ? http://justonelap.com/lazy-trading-system/
• Fathima
  • After attending your seminar for beginners, I invested in ETFs. However yesterday, I watched your video explaining the benefits of TFSA and I need to know if I made a mistake opening an non TFSA account? Should I close that account and open a TFSA, or keep both? I don't want to incur extra costs.

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.