I’ll have some Naspers to go with the emerging market fund, thanks – On the Money with Jarryd Neves

Jarryd Neves
On the Money. Budding stock market investor Jarryd Neves, of BizNews, sends out an invitation to everyone who wants to ask questions about share investing – but is too embarrassed to ask. Write to [email protected]. And tune in for his regular Monday column: On the Money.

Have you seen the 2006 comedy The Devil Wears Prada? On the off chance that you haven’t, let me summarise it for you. It follows a bright, ambitious woman named Andy (played by Anne Hathaway) on her journey to make it big as a journalist in New York.

She lands up with a job at a fictitious fashion magazine called Runway, working for a ruthless (and impeccably dressed) editor, played by the talented Meryl Streep.

Like a fish out of water, Andy navigates the world of fashion, taking orders from Streep’s character, Miranda Priestly, all while educating herself about the mammoth world of fashion.

As the story progresses, Andy trades her rather tatty clothing in for (free) designer goods and moulds herself into the consummate fashionista/professional.

When I started at BizNews, I thought of this movie a lot. I, like Andy, didn’t know where to start. Thankfully, my colleagues and editor were nothing like the cruel characters in the movie and helped me each step of the way. As I sail past the four month mark at BizNews, I think I’ve traded my proverbial worn running shoes for a pair of sleek Gucci loafers.

I started my EasyEquities account as a bit of fun, a laugh. A learning experience. Now, I’m becoming genuinely interested in the happenings of the stock market. I’ve even invested in Naspers (Christmas came early) and an emerging markets fund. Like Andy – whose fashion sense was nurtured and moulded – I feel my finances and investment prowess finally taking shape.

Now, I’m no Warren Buffett or Koos Bekker – far from it. But I’m certainly not the clueless finance fool I was a couple of months back. I suppose my mother was right then. The company you hang out with determines who you become. I guess that includes the company you work for, too.

Last week, I asked you to send me your finance and investment queries. Here, Johan Steyn, CFA* of Stellenbosch University, shares his expert advice by providing answers to your questions.

Petrus asked,

I know someone who wants to purchase shares in Caledonia mining. How would she go about this? I would really appreciate some insight into this.

Caledonia Mining Corporation is listed on the New York stock Exchange, so you will need an international stock brokerage account that gives you access to that exchange. Although the EasyEquities platform does have selected US shares available, this specific share is not one of them. Either way, to buy the share will require funding the offshore account by converting rands into dollars. There are a few SA based service providers that can help with the set-up of an appropriate account.

Steve van den Bergh asked,

For some reason I am extremely bullish on the future of PPC shares and would be interested to hear your views. Where do you see the company’s share price a year or so down the line, obviously without any unforeseen surprises like Covid?

I do not have specific insight into PPC and would be reluctant to comment too much on specific shares. I am not that familiar with PPC in particular, but I would approach the investment decision the same way I would any other investment. By trying to build an investment narrative and form an opinion about the future prospects of the company. The broader macro environment the company operates in is important, but company specifics will have a larger bearing on the investment performance. Things like valuation, debt, management, and cash flow are all important considerations.

  • Johan Steyn, CFA is a lecturer in investment management, from the department of business management at Stellenbosch University. He holds a Masters in investment management and has a background in fund management.

Have a question about share investing? Write to me at [email protected].

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