Help me pick shares for investment

[undesign]

Plenty of threads around, thought I'd pick your brains in a new one. Planning to start investing in shares - long term investment horizon in inter vivos trust. Thinking is to limit to say 10 max, Top 40, good exposure to global (or outside SA) economy.

Strategy - probably start off with R100k initial and then R5-10k monthly, with additional lump sums as prices drop/corrections etc.

Candidates:

Shoprite
SAB
Sasol
Bidvest
Remgro
Reinet
Richemont
Naspers

Any advice appreciated!

 

[ToxicBunny]

Those shares over there, and those other ones in the left corner as well...

That should be a good start.

 

[HavocXphere]

Given that your asking here & don't seem on a mission to learn about shares I'd suggest rather go for ETFs (Exchange traded funds).

i.e. Satrix & the DBX trackers for a bit of non-SA.

I very much doubt that anyone here will post any decent quality advice on long range individuals shares. Because its 10 years you'll need fundamental analysis and the list of people on this forum that can provide that is (in my opinion) very short, and the list of those willing to invest the time to advise is...well zero I reckon.

On that scale it might be worthwhile getting some professional advice though...if you can find someone that isn't out to sell you some random product.

 

[Viva]

Last time I spoke to a financial advisor (PSG), he told be that they're buying Anglo American - they expect some growth there. This was about two and a half months ago.

 

[Viva]

On that scale it might be worthwhile getting some professional advice though...if you can find someone that isn't out to sell you some random product.

Completely agree. I don't understand why people seem reluctant to get professional help when it comes to investments.

 

[HavocXphere]

Completely agree. I don't understand why people seem reluctant to get professional help when it comes to investments.

On that topic...do you know of any advisers not selling product but rather time?

 

[undesign]

All sources of information go into the decision making pot...

I have a (relatively) substantial Satrix portfolio. Looking to be a bit more active, buy on dips etc - although still strictly long-term buy and hold.

Also, I have access to a few professionals, like I said the more information/opinions/advice to consider the better.

 

[Viva]

On that topic...do you know of any advisers not selling product but rather time?

Nope. But I'm quite new to all of this, so maybe someone else would know better.

Initially I thought about going with Satrix as the fees are minimal. In the end, I decided to instead work through PSG, which allows me to drop by their offices from time to time and speak to really knowledgeable people and learn more in the process (without it costing me anything extra). At least at this stage, this seems like the best route for me.

 

[undesign]

Given that your asking here & don't seem on a mission to learn about shares I'd suggest rather go for ETFs (Exchange traded funds).

i.e. Satrix & the DBX trackers for a bit of non-SA.

I suppose if your basket becomes large enough from a risk diversification point of view you can just as well buy ETFs - unless one has a very specific weighting of a share in mind, which I don't. Perhaps be a bit more active in ETF choices. I don't know much about the DBX trackers, reading up on it now.

EDIT/ ok read up on the DBX products, looks like a great rand hedge option. What would one aim for, 20% exposure? And in which currency?

 

[F40]

All sources of information go into the decision making pot...

I have a (relatively) substantial Satrix portfolio. Looking to be a bit more active, buy on dips etc - although still strictly long-term buy and hold.

Also, I have access to a few professionals, like I said the more information/opinions/advice to consider the better.

I am always interested to know what "(relatively) substantial" means - R10k, R50k, R100k, R1m, R10m, R100m?

 

[undesign]

I am always interested to know what "(relatively) substantial" means - R10k, R50k, R100k, R1m, R10m, R100m?

Relative to lumpsum and monthly pmts I plan to be making into this new investment. Approx R500k.

 

[Dolby]

You should play Investor Challenge!

 

[pimpmycode]

Speak to Warren Ingram. He's on the Money Show on 702 regularly.
http://www.galileocapital.co.za/team.php

 

[^^vampire^^]

Those shares over there, and those other ones in the left corner as well...

That should be a good start.

Damn I wanted to do that

 

[Aquadyne]

Given the fairly rigid structure of your intention and the vehicle you will be doing it from, coupled with your intended long-term strategy I would recommend a combination approach.

Invest a portion in exchange traded funds (ETF), like Satrix40, etc.
And then you can also use a carefully selected group of unit trusts to give you the proper required exposure to overseas markets.
By selecting the correct unit trusts with proper risk weighting and diversification, you will free yourself from having to manage your investments hands-on as it were.

When it comes to unit trusts, you select the proper fund manager with a consistent good record or investment house.
Good ones to mention here are FOORD, Coronation (Strategic Income), Allan Gray (Equity Fund)., Nedgroup's Rainmaker Fund.

Each fund manager of a unit trust has a mandate for the fund that highlights the risk weighting, diversification, underlying commodities, asset classes, etc.

Your monthly transfer portion will typically go into a Money Market Fund (Parking), until you transfer it into a particular investment.

You could actively manage that process and select which funds you want to invest in, or have someone do that for you.

Glacier by Sanlam is a good way to do this, self manage that is.

Or approach PSG, many guys ply their trade.

What is key in this game is to manage your costs of transacting. Liberty has recently launched a product that they will not charge you any fees until they have made you a certain percentage return.