Simon Shares

• Results are pouring in, food producers are struggling.
• Coronation (JSE code: CML) results with DY of over 10% and PE ±9X.
• Snap Inc (NYSE code: SNAP) profit warning. It now trades at half its listing price.
• Current under recovery in petrol price is 236c, + the 150c fuel levy suspension means we could see a 386c increase in June to over R25 a litre!
• What’s your fav ETF? We ask our readers, Rochelle is first up and likes an offshore ETF with a monthly dividend payment of almost 1%.
• Hello Eskom, best budget power banks.

Slightly better than average is enough

Investors and traders love big winners. That 10 bagger that happens in a matter of months or maybe a few years. But by consistently hunting for those big winners we're taking larger risks.

We're better off aiming for the modest winners.

Beating your benchmark by 2% a year sees you with almost 50% more after twenty years.

A recent Planet Money Podcast, Investing in mediocrity, talks about a fund manager who only ever aimed to be in the top third of all funds. After a decade of succeeding at that, they were the top fund over ten years.

Simon Shares

• 10X Investments buying CoreShares.
• MPC, 0.5% expected.
• Balwin (JSE code: BWN) results vs. Calgro M3 (JSE code: CGR).
• Pick n Pay (JSE code: PIK) results vs. Shoprite* (JSE code: SHP).

* I hold ungeared positions.

Simon Shares

• US April CPI 8.3%; Core CPI 6.2% (month-on-month core was +0.6%)
• FOMC
• Sibanye-Stillwater* (JSE code: SSW) update the market hated.
• Kaap Agri (JSE code: KAL) results
• Wandile Sihlobo on agri in SA.
• New Satrix global healthcare ETF.
• Thungela Resources (JSE code: TGA) could pay an R100 dividend this year, putting them on a +40% DY.

US Tech selloff continues

1-year FAANG returns

° Meta
° Apple
° Amazon
° Netflix
° Alphabet pic.twitter.com/VybsCoWDfh

— Simon Brown (@SimonPB) May 9, 2022

* I hold ungeared positions.

Simon Shares

• Combined Motor Holdings* (JSE code: CMH) results, Best ever.
• Renergen* (JSE code: REN) cold commissioning of phase 1 going well.
• New global healthcare ETF coming from Satrix. Currently in IPO and listing 26 May.
• EU unveils a proposal to ban Russian oil imports within 6 months, all refined oil products by the end of the year.
  • OPEC+ Sees Production From Non-Opec Participants in OPEC+ at 18.2 mln Bpd in May, 600,000 Bpd Lower Than Last Forecast
• Lyft (Nasdaq code: LYFT) shares fall 26% on disappointing forecast (earnings 75% below expectations) as they say they'll pay drivers more.
• Intel says chip storage till 2024 at least.

Stagflation

"Stagflation is most commonly referred to as the simultaneous experience of three separate negative economic phenomena: rising inflation, rising unemployment, and the declining demand for goods and services."

The best defence is generally commodities.

* I hold ungeared positions.