The world is changing fast and to keep up you need local knowledge with global context.
Have been doing quite a bit of reflection about the investments this week.
After interviewing London-based Sean Peche – whose Ranmore Fund now ranks in the top 1% of its peer group – I was ready to sell anything that looks even vaguely like a growth stock. Sean makes a compelling argument that the time for value investing is here and has only just begun. And who can resist buying a big brand like ABN Amro for 50c in the Euro?
A few hours later, another South African investment fundi who relocated abroad got me thinking differently. Anthony Ginsberg, who lives in Los Angeles, has built a splendid ETF business under the GinsGlobal brand. He’s convinced tech stocks are heavily oversold, and these fast growing businesses are now rated too low relative to stodgy alternatives.___STEADY_PAYWALL___
Choosing between them isn’t easy, so best we defer to the Oubaas of Omaha. Warren Buffett says only invest in stocks that don’t disturb your sleep. Even though their ratings are appealing relative to where they were, our exponentially growing favourites are subject to the golden rule: Growth stocks don’t do well during upward interest rate cycles.
So best to remain circumspect about every rally, like last Thursday’s surge on better-than-expected inflation data. Until there’s a clear signal of a reversal, act as though the Bear is still on top. Exponential stocks may be cheap, but they can become cheaper still. And unless you’re comfortable with further ‘drawdowns’ (jargon word for price declines) or if there’s any chance you may need to liquidate to meet other needs, best stick with Peche.
More for you to read today:
- UK inflation hits 41-year high on soaring energy prices. Energy bills drove UK inflation to a stronger-than-forecast 41-year high in October, adding to pressure on the government and Bank of England to act.
- Trump steps up battle of wills in announcing 2024 bid with GOP starting to doubt him. Donald Trump escalated his battle of wills in announcing his 2024 bid just as many GOP faithful are ready to abandon the former president.
- Tencent to distribute $20 billion Meituan stake as dividend. China’s Tencent will dole out more than 958 million Class B stock in Meituan as a special dividend to existing shareholders.
- Anthony Ginsberg: Tech Wreck drove prices too low – smart money buying, big rebound in 2023. Anthony Ginsberg makes some powerful points in this interview on the Tech Wreck and what lies ahead for Wall Street’s fallen angels.
- Learn about the importance of diversifying your assets for the 100-year life. A 100-year life will give you more time to build a foundation to create and protect your wealth, and accelerate wealth creation.
- Political squabbling “not helping at all” to make a case for coalitions come 2024 – Dr Corné Mulder. ActionSA’s withdrawal from the Ekurhuleni coalition agreement on Monday is the latest setback for multi-party mergers trying to bring a semblance of stability to municipalities. Coalition technical committee chairperson Dr Corné Mulder weighs in.
Looking Ahead: Investing for 2024 with Alec Hogg
Following the resounding success of Alec’s recent roadshow with Standard Bank and an overwhelming number of requests from the tribe to access the presentation we’ve decided to set up a final webinar exclusive to Standard Bank and BizNews.
Click here to register to Join Alec as he looks forward to 2024 in light of the National Elections as he shares his views on how an investor can approach their portfolio given the potential outcomes of these upcoming elections.
The webinar will take place on Friday the 18th of November at 10h00, you need to register beforehand to attend.
Monthly BizNews Share Portfolio Webinar
Alec will be giving us his monthly update on the recently restructured share portfolio, which saw a movement to onshore equities and an already pleasing set of results in its first month of performance.
Click here to register to join Alec next Tuesday, the 22nd of November at 12h00.
If you missed last month’s webinar and would like to catch up, you can find it here.
Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.