Test your investment savvy on the JSE

P

patrick

Expert Member
Joined
Dec 14, 2005
Messages
3,122
My new site launched today, http://www.investorchallenge.co.za/.

Basically you're the chairman of an investment club, and every month you're given R100 000 to invest in anything that trades on the JSE.

And your R100 000 per month is backdated to January, so someone starting now would receive R400 000, someone starting next month R500 000, so everyone ends up with the same amount to spend.

All completely free of course, so if anyone's keen sign up and give it a try.
 
Last edited:
P

patrick

Expert Member
Joined
Dec 14, 2005
Messages
3,122
This should probably be in the business and finance section. Could a mod move it for me?
 
ShaunSA

ShaunSA

Derailment Squad
Joined
Sep 7, 2005
Messages
49,762
Bookmarked and may give it a bash. Although I will most probably end up losing everything :p
 
F

Fudzy

Guest
Is this linked to the actual figures? I've signed up and made some investments, lets see how they pay off :D
 
P

patrick

Expert Member
Joined
Dec 14, 2005
Messages
3,122
ShaunSA said:
Bookmarked and may give it a bash. Although I will most probably end up losing everything :p
Click to expand...

Haha, you'll be investing, not trading. Losses should be minimised. But if you do something really stupid like investing in a company that goes broke you'll get another R100 000 the next month. Just remind me not to join your investment club haha.
 
P

patrick

Expert Member
Joined
Dec 14, 2005
Messages
3,122
ShaunSA said:
I see you're still in the Top 10 :)

I am 24th this am :(
Click to expand...

There's a couple of reasons for that. Firstly Fudzy is still holding loads of cash, he still has R311k unspent, so even though he lost money, he only lost some. You on the other hand have spent just about everything, so your shares losses will affect you more. But that's what the site is all about. Learning :)

Next month you'll have more cash to spend. One other mistake you made was buying in small values. As trading accounts generally have a minimum fee, in this case R120 (the same as absa stockbrokers), buying anything under R30k worth of shares will mean your fees are very high. To show you how that affects you, imagine buying just 10 shares of Netcare at R19.80 each. Your share cost would actually be ((10 x R19.80) + R120)/10 = R31.80, meaning even if this shares gains 33% (highly unlikely) you'll barely break even.

That's why individuals can't buy shares every month. They just don't have R30k to spend, and also why I think investment clubs are a good way forward, hence the motive of the site.
 
Last edited:
Bismuth

Bismuth

Expert Member
Joined
Jun 22, 2007
Messages
3,834
Oooh, gonna try it out, last did something like this when Investec had a competition a number of years ago. Was interesting to see the difference between "emotional" purchases I made, and "researched" ones. "Emotional" as in companies/brands I just liked, and "researched" well, obvious what I did there. Needless to say, my "emotional" purchases tanked.

B
 
F

Fudzy

Guest
patrick said:
There's a couple of reasons for that. Firstly Fudzy is still holding loads of cash, he still has R311k unspent, so even though he lost money, he only lost some. You on the other hand have spent just about everything, so your shares losses will affect you more. But that's what the site is all about. Learning :)

Next month you'll have more cash to spend. One other mistake you made was buying in small values. As trading accounts generally have a minimum fee, in this case R120 (the same as absa stockbrokers), buying anything under R30k worth of shares will mean your fees are very high. To show you how that affects you, imagine buying just 10 shares of Netcare at R19.80 each. Your share cost would actually be ((10 x R19.80) + R120)/10 = R31.80, meaning even if this shares gains 33% (highly unlikely) you'll barely break even.

That's why individuals can't buy shares every month. They just don't have R30k to spend, and also why I think investment clubs are a good way forward, hence the motive of the site.
Click to expand...

Ah interesting, perhaps the leaderboard should be based on the dividends rather than the totals?

Will it generate a report at the end of the month to show which stocks did well/which did not?
 
P

patrick

Expert Member
Joined
Dec 14, 2005
Messages
3,122
Fudzy said:
Ah interesting, perhaps the leaderboard should be based on the dividends rather than the totals?

Will it generate a report at the end of the month to show which stocks did well/which did not?
Click to expand...

The leaderboard is overall. If you're an investor you make a choice to stay in cash, partially or completely. If the markets going down it'll be a wise choice, if it's on the way up it'll be a bad choice. The competitions target is to show the best total growth, so the winner may very well be someone who buys no shares if there were to be a crash!

As for the reports to be generated, I'm still looking into that. For now you can see the first piece of data analysis here: http://www.shareforum.co.za/shares/so-what-are-people-buying/
 
You must log in or register to reply here.
Top