April 20, 2016

JSE Direct 211: An investment check list

25 minutes

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 :

Liquidate the unit trust and open a trading account in her name?

Start with about five shares - I am considering Coronation, Old Mutual, Steinhoff, Discovery and Mediclinic.

ABSA MAPPS PRO ETF

NFILBI

BBET40

DBXWD

DIVTRX

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