All these RAs are Section 28 Compliant which I think is a good thing. It diversifies risk but unfortunately misses opportunities when they arise. The problem is you cannot time the market as opportunities present themselves so its time in the market that counts and how to keep pace with or ahead of inflation in South Africa. Our currency is structurally a weak currency over time so it would make sense to always have a high portion of foreign exposure in your portfolio.
But this theory fails each time when opportunity presents itself locally and there are lots currently.
If you are young you could take the risk of betting on the South African economy entering a new or second honeymoon phase after the 2019 Elections if that outcome is positive. You could potentially then take a dart board and throw your dart at any of the good listed SA Inc shares on offer and probably double your money but you have to start taking that risk now while they are "cheapish". If you are in your late 40s, 50s or about to go on pension then Section 28 all the way in my opinion, you really cannot afford to take any risks in your portfolio, especially not SA Inc shares with all the uncertainty of the unknown outcome of the 2019 National Elections in South Africa.
And then there is somewhere in-between, try hedging your money against inflation and Rand devaluation in Kruger Rands and rental properties in known good areas.
Strictly speaking your age determines your risk profile but a mixture of all of the above could also be good. I have actually 2 RAs, one which is a passive Section 28 compliant one and the other is in a non passive Personal Share Portfolio managed by myself and the manager of that portfolio.
My latest tact in choosing a particular share is to open the PDF documents available online of the Balanced Funds of
Coronation,
Foord and
Allan Gray and see what are their top 10 holdings and add some of those to my Share Portfolio. If one or more of those top 10 holdings exceeds around 5% in that PDF document, expect to see selling on the market as they reduce their exposure and bank their gains, also keeping with their exposure limits which I expect is no more than 5% in a Top30 Share. Compare all 3 Companies top 10 holdings and choose a couple that you have confidence in. Maybe the holdings that are in the 2 to 4% category as 5% always suggests that they have run up a bit already and there will be selling into that strength.
I also found trying to buy a cheap share usually ends up getting even cheaper and you losing half your initial capital. Buy shares that are trending, in others words buy high and sell higher. The trend is your friend.
Never sell too early but at the same time bank profits.
Share tips is your worst advice. There are forums like Sharenet where the main topic of discussion is Steinhoff!
That is not investing, that is speculation. Its not helpful and serves a few people who play in that space.
One thing I have noticed more-so the last 2 years ... if any particular share goes out of favour or the slightest bit of bad news like the Company missing their earnings targets, the share sells down heavily often over-correcting.
Its painful to be in this market at present and I say well done to any person that can call it right.
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