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17 11, 2020

Cautionary Tales of Offshore Investing

2020-11-17T10:03:37+02:00Nov 17th, 2020|

South African businesses have a strong history of successfully expanding their operations offshore and becoming well renowned global businesses. This has been done to access growth opportunities in offshore markets and to diversify away from lower growth and higher risk domestic environment. While some companies have achieved success in their offshore pursuits, there are many that have struggled.In this article, we take a deeper look at two of these businesses, Woolworths and Sasol, and explore what lessons we can learn fromtheir failures by relating it back to how we make our own investment decisions.Woolworths: Paying too muchWoolworths is a classic example of a successful South African business that made a bold move offshore and struggled. In early 2010, the business was in a very healthy position and its management had a good reason to be confident. The business was growing; costs and inventories were being managed well; they had lots [...]

19 10, 2020

Investment Strategy Confidence That Delivers

2020-10-19T23:38:08+02:00Oct 19th, 2020|

Failing to Succeed For many investors keeping track of their portfolios is an anxious pursuit. Markets seem to behave in a non-sensical way at times, withany manner of factors causing anguish. Inflation expectations, GDP growth, sentiment, the oil price, central bank policy, debt levels,company mergers and acquisitions, cases of fraud and market disruption. These are all examples of news items which can materiallyimpact the value of your retirement savings, amongst thousands of others. Moreover, as soon as you think you have a handle onthings today, they change tomorrow. This is a tough position to be in when your retirement savings are at stake. How can we evergain confidence that the investment strategy we follow will deliver the goods when it is needed? Chart 1 below shows the rollercoaster ride which an average South African retirement investor would have typically experienced since1926.[1] Chart 1: Long term five year returns after [...]

10 06, 2020

Crisis? What Crisis?

2020-06-10T12:21:19+02:00Jun 10th, 2020|

While the world around us feels like it is falling apart, you might be forgiven for missing the fact that many investment markets, including our own, have mostly recaptured losses and in some cases are making new highs.… Read the rest