In December 20112, Robert K sent this email:
I am wanting to invest my bonus in some share but I am not 100% sure where to find value at the moment. I already have MPC, Curro (which has done well for me), Steinhoff and Old Mutual as well as Satrix Top 40 and Stanlib unit trusts.
Are there any shares you would recommend? I have been looking at AGL but they are very expensive although I do see value there.
Thanks in advance and have a wonderful christmas and new years 🙂
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Hi Robert
Thanks for the support – glad to be missed!
I’d be inclined to take profits on the Curro and Old Mutuals. They’ve both run really hard and are overdue for a breather.
Also, am a bit worried about the Steinhoff/Jooste/PSG deal announced last week where Markus Jooste and Christo Wiese are swapping their 20% of PSG for Steinhoff shares (at a discount to the current market price). What possible motivation can there be for Steinhoff to own 20% of a financial services company? I’m sure Jooste has his reasons but this group has grown so fast and into so many areas that it is bound to have made a costly mistake here or there. Besides, a really complex business and I prefer my companies easy to understand!So I’d be leaving Steinhoff shares to someone else right now.
As for what to buy, offshore tech giants Google and Apple are great long-term purchases; and Warren Buffett’s Berkshire Hathaway hasn’t been this cheap for a long time. You’re able to buy the stocks through the IDX programme available through most JSE stockbrokers. Get the benefit there of being Rand Hedges, too, without all the hassle of SARB permission to invest abroad.
On the local front, a few smaller stocks that I like are Accentuate, ARB, Afrimat and Village. If you prefer playing in the bigger counters then Barloworld and JD Group are worth considering. Have blogged on them – have linked them to the stories so just click on the name to go there. But there’s no need to rush into the shares. Take your time and buy them on weakness.
And go have a Happy Xmas too!
