🔒 Webinar: Biznews Global portfolio recovers composure after October wipeout

LONDON – It’s been quite a ride for stock markets in the past two months, with the prices of shares owned in the tightly-focused Biznews Global share portfolio reflecting the extreme turbulence. Predictably, November was a better month than October’s wipeout, with all but one of the stocks owned now trading higher than a month earlier. The volatility provided the opportunity to share the philosophy underlying the structure of and selections in our portfolio. And to pick up on questions about which stocks look particularly attractive after the recent sell-off. – Alec Hogg

Highlights of the November webinar:
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• Overall valuations – The portfolio regained its composure in the past month after October’s chaos, with the total value rising to $339k from $336k – but still 13% below September’s elevated $390k. A strengthening in the Rand more than offset this improvement for SA investors, however, with the value easing back from October’s R4.78m to R4.57m. In Rand terms the portfolio is almost 15% below September’s peak of R5.36m.
• Apple – After initially resisting the market meltdown, Apple shares were heavily sold off in the past month primarily because of its vulnerability to the Donald Trump-initiated trade war against China. After initially suggesting that Apple products would be unaffected, the US president changed his mind on a view this would hurt Chinese people more than Americans. Wall Street thought differently, smacking the Apple share price. What for some years was the world’s most valuable stock has now lost that position to Microsoft.
• Tencent and Alibaba – While Apple caught a cold in the month, the two Chinese stocks in the portfolio recovered some ground lost earlier in the year. This appears to have been driven by a newfound  appreciation that although their home market would be hurt by the trade war, China’s economy is not about to collapse. Both Tencent and Alibaba had become oversold so were overdue a recovery, but the extent of the rebound ($50 a share in Tencent’s case) was a pleasant surprise.
• South African Rand – After being hammered in October, the Rand rose from R14.63 to R13.86 against the US Dollar, offsetting the small improvement in the US prices of the portfolio’s holdings. Upside potential for the currency is evident when one considers the Rand started the year at R12.37.