2014 STOCK PICKS AND INSIGHT


Investing & Money
piece written on the 6th January 2014 by  

During 2013 I spent a lot of my spare time exploring investment options, I spoke about bitcoin a lot, I moaned about Bitcoin in South Africa and I gave my best shot at writing an article on where to invest your money. These articles drummed up quite a lot of interest and harvested some really interesting discussions in the comments, it’s easy to say that people are interested in ways to grow their hard earned money. Today I want to reflect on a few things, not in an overly detailed way, but some thing I’ve picked up on.

First up, I’d like to mention that if you’re someone who doesn’t want to manage your own investments or need a lot of guidance, I have a friend from school called Craig who’s fantastic at assisting with a managed portfolio. I spent 2 hours with him, he ran me through everything and was clued up on how to create a good diversified portfolio. If you’d like his contact details, just drop me an email or pop your email into the comments below and I’ll hook you up.

For those of you who prefer to do it yourself then here are some things I’ve picked up on this year already.

Just a few days ago, Alwyn van der Merwe, the director of investments from Sanlam Private Investments announced his JSE stock picks for 2014. Alwyn is someone who usually picks shares that are performing below the norm but traditionally result in high returns. His picks for 2014 are as follows:

  1. Kumba Iron Ore (KIO)
  2. Sun International (SUI)
  3. BHP Billiton (BIL)
  4. Imperial (IPL)
  5. Invicta (IVT)
  6. AdvTech (ADH)
  7. Adapt IT (ADI)
  8. Curro Holdings (COH)
  9. Harmony (HAR)
  10. Lonmin PLC (LON)
  11. Pallinghurst (PGL)
  12. Torre Industrial (TOR)
  13. Tsogo Sun Holdings (TSH)

You’ll need to do some research around them, look at the performance over the past year and investigate the PE ratio and such. Never simply buy into a share just because someone recommends it. What I can tell you is that my top performing share last year was BHP Billiton so to see it on the hit list for 2014, I’m quite excited. The Satrix 40 saw a return of 15.54% in 2013, whereas my BHP shares just missed the 20% return mark.

Satrix 2013 Graph
BHP Graph 2013

A 20% return is well worth being interested in!

Here are some articles I’ve read recently that are quite interesting:

These articles lend themselves to optimism, however, I’ve read a lot of material that suggests that 2014 is going to be rather sluggish after the gains of 2013, and many articles anticipate a difficult 3 years ahead with corrections and the likes.

Here’s a look at the All Share Index performance from 2013:

All Share Index 2013

I’d also like to share the places where I look at graphs and information:

So that’s what is going through my mind at the moment, I’m reading a lot and finding my bearings again after the festive season. If there’s going to be market strain this year it’s important that we invest carefully to maximise our returns!

Click here to download Moneyweb’s 2013 share performance report.

Want to share a tip or have a question, please leave it in the comments below.