Having trouble reading this email? View in your web browser
 The Sharenet Daily 
Wednesday, 25 September 2013 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Seed Weekly - Value Investing the Buffett Way

During my honours year at UCT we had to read and summarise all of Berkshire Hathaway’s annual shareholder letters. This was most likely to have the philosophy of value investing indoctrinated into our minds, as it’s a widely utilised investment philosophy – and one you hear most at investment presentations and while studying at university.

Value investors buy companies at prices below their true value. Company value is determined through fundamental bottom up analysis. Typical value indicators are companies with strong balance sheets, low price-to-earnings (PE) and price to book (PB) ratios and high dividend yields.

Unfortunately, while value investing seems simple, it’s not always that easy and cannot be done 100% through ratio analysis as one also needs wisdom and insight. For that reason it’s best to go back to the source of value investing. Benjamin Graham, a former professor at Columbia business school, is considered to be the father of value investing. If one wants to get into the heart and soul of value investing, two of Graham’s well known books The Intelligent Investor and Security Analysis are a good place to start.

Warren Buffett is his most famous student, and his nuggets of wisdom are found in his annual letters to his shareholders. One can learn a lot from the “Oracle of Omaha” and I thought this to be insightful information to share.

Warren Buffett was born in 1930, and at the age of 83 he is currently still the Chairman of Berkshire Hathaway Inc., the company he took over by way of a share buyout. Interestingly, the company was not started as an investment house; rather formed through two textile companies merging in 1955. Warren Buffett started buying shares in the company in 1962 and in 1964 he was the majority shareholder. Today it operates as a multinational investment holding company.

Some of the highlights found in his letters are his thinking and rationale behind the decisions he makes. Warren Buffett makes investing sound very simple:
• Use your logic.
• Work hard.
• Think clear.
• Be ethical.
• Enjoy what you do, that way you won’t have to work one single day of your life.
• Invest into businesses where tailwinds prevail rather than headwinds.
• Place a lot of weight on measuring managerial economic performance by a company’s return on equity (ROE).
• Buy shares to become a mutual owner in the company – and thereby aim to remain a shareholder forever.
• Measure a company’s performance over the long term – not any given day.

Mr Buffett tries to get a significant stake in a company since; “If something’s not worth doing at all, it’s not worth doing.” he admits that he made mistakes in the past by acquiring businesses – mostly due to miscalculation. However, it is easier to correct your wrongs when you have controlling interest in the company. While investors and managers must place their feet in the future, their memories and nervous systems often remain plugged into the past.

Some of his lines of wisdom are indeed very catchy. “Like virginity, a stable price level seems capable of maintenance, but not of restoration” or the Noah principle: “predicting rain doesn’t count, building arks does.”

The first letter dates back to 1977 we will therefore break it up in sections of five years at a time. A one page summary of each year will also be posted onto our website. For what it’s worth – feel free to give it a read and provide us with any insights and comment if you like. This is by no means a comprehensive summary of his work; the full collection of his letters is available at http://www.berkshirehathaway.com. Judging by the appearance of the company’s website (which looks like something from the 80’s) – it is clear that Warren Buffett completely skipped the dotcom bubble. There is much to learn from this man. It is this kind of insight that makes Warren Buffett the most successful investor of the 20th century.

Kind regards,

Lourens Rabe

021 914 4966

Wed, 25 Sep 2013
Top News
Revenue for the year grew to R93.7 million (2012: R81 million). Operating profit shot up to R10.8 million (2012: R8.5 million). Total comprehensive income attributable to owners of the company increased to R9.8 million (2012: R7.2 million). In addition, headline earnings per share rose to 10  Full story

U.S. stocks were set to open mixed on Monday as traders balanced upbeat data from Germany and China with angst ahead of Federal. . .  Full story
Gold edged down on Monday, adding to the previous session's sharp sell-off as confusion over the outlook for U.S. monetary policy dragged on,. . .  Full story
Shares and the euro trod water on Monday as an election triumph for Angela Merkel and upbeat euro zone and Chinese data helped. . .  Full story
Britain's top share index slipped on Monday, led down by banks on a hint that the U.S. Federal Reserve could move to cut. . .  Full story

European shares traded flat at midday on Monday after stronger euro zone data and Angela Merkel's landslide personal victory in Germany's election failed to. . .  Full story
Hong Kong shares slipped from a near eight-month high, led by a 1.9 percent tumble for index heavyweight HSBC Holdings as investors. . .  Full story
China shares returned strongly from a holiday break, outperforming most Asian markets on Monday after a survey showed manufacturing activity in the world's second-largest. . .  Full story
Australian shares fell 0.5 percent on Monday as investors fretted over mixed signals of when the Federal Reserve could scale back its stimulus. . .  Full story
Company News
The company has entered into an agreement with Izingwe Holdings PTy LTd (Izingwe) which currently holds 10.25% of the issued share. . .  Full story
The board of Trustco advised that at the Annual General Meeting of shareholders held today, all the resolutions as set out. . .  Full story
The company reported a 26% increase in second quarter volumes of gravel processed to 934 975m3, of which 627 746m3 was. . .  Full story
Taste is currently finalising its results for the six months ended 31 August 2013 and shareholders were advised that the directors. . .  Full story

Anglo American South Africa ("AASA") announced that it has concluded an agreement which resolves fully and finally 23 stand-alone silicosis claims, instituted against it between 2004 and 2009. The settlement has. . .  Full story
Shareholders were referred to the company's outlook statement contained in its 2013 year-end results announcement and are advised that the company's normalised headline earnings per share are expected to be between. . .  Full story
On 4 January 2013 Anglo announced the sale of its 70% interest in the Amap▀ iron ore operation in Brazil ("Amap▀") to Zamin Ferrous Ltd. ("Zamin"). On 28 March 2013, prior. . .  Full story
Company Results
Interest income rose by 52% to R4.6 billion (R3 billion). Net interest income was up 55% to R3.6 billion (R2.3 billion).. . .  Full story
Revenue was up to R133.1 million (2012: R92 million). Operating loss was recorded at R7.7 million (2012: profit of R7.6 million).Total. . .  Full story
Revenue for the year grew 2% to R862.6 million (R844.4 million). Operating loss was R44.5 million (profit of R45.6 million). Loss. . .  Full story
Torre released its maiden final results as a listed company showing revenue of R83.1 million. Gross profit amounted to R41.7 million. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0044453.88436.150.99%
JSE Top 4017:0039824.79380.730.97%
JSE Gold17:001224.59-.17-0.01%
JSE Financial17:0032120.86338.511.07%
JSE Industrial17:0058664.32621.851.07%
JSE Indust 2517:0051517.96542.021.06%
JSE Resource17:0050340.02382.330.77%
DJ Futures19:5415210.00-76.00-0.50%
DJ Ind20:0015261.74-72.85-0.48%
SP 50020:001693.06-4.36-0.26%
FTSE 10017:356551.53-19.93-0.30%
All Ords08:445270.1040.600.78%
NZSE 5007:524764.7254.131.15%
NameTimeRPMove% Move
Gold $19:591335.4112.090.91%
Gold R20:0013294.2751.780.39%
Gold R/kg20:0042741177401.84%
Silver $19:5921.8300.13100.60%
Platinum $19:591425.001.500.11%
Palladium $19:59721.704.100.57%
Brent Crude20:00108.64-.58-0.53%
Rand / Dollar19:599.95520.08720.88%
Rand / Pound19:5515.96840.20561.30%
Rand / Euro19:5513.46090.16481.24%
Rand / NZD23/098.23890.10841.33%
Rand / AUD19:559.32660.05850.63%
Yen / Dollar19:5998.5430-0.1790-0.18%
Euro / Dollar23/090.7390-0.0001-0.01%
Dollar / Euro19:591.35240.00530.39%
Pound / Dollar19:550.6219-0.0028-0.45%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 NUWORLD  185025015.63.%18288
2 ALERT  180159.09.%29352
3 COAL  143107.52.%206317
4 POYNTING  172127.50.%166920
5 ZCI  650447.26.%200
6 SEARDELN  269187.17.%2700
7 TORRE  160106.67.%12989
8 SYNERGY-B  660406.45.%1501
9 ESORFRANK  174106.10.%670147
10 TRNSHEX  365205.80.%24167
11 SIBANYE  1303705.68.%4529948
12 DRDGOLD  583285.05.%263641
13 LIFEHC  37171724.85.%6684217
14 A-V-I  61182774.74.%806181
15 WESCOAL  15574.73.%133249
16 AFGRI  555244.52.%455909
17 COMPCLEAR  397174.47.%40145
18 TASTE  380164.40.%835718
19 ALTRON-P  2275904.12.%336838
20 ANNUITY  530203.92.%37500

Click here for more Major Moves...
Major Moves Down
SharenameSaleMove% MoveVolume
1 LONFIN  350-50-12.50.%60
2 ATLATSA  350-30-7.89.%3077
3 S-OCEAN  135-11-7.53.%54104
4 CARGO  1400-100-6.67.%50
5 CONDUIT  150-10-6.25.%659793
6 WITSGOLD  800-50-5.88.%465
7 PUTPROP  643-37-5.44.%800
8 MAZOR  175-9-4.89.%4075
9 CENRAND  430-19-4.23.%1700
10 BELL  2349-100-4.08.%7888
11 SPANJRD  480-20-4.00.%2064
12 NICTUS  125-5-3.85.%874
13 METMAR  140-5-3.45.%60000
14 FAIRVEST  142-5-3.40.%383500
15 LITHA  285-10-3.39.%773298
16 DELTA  730-20-2.67.%55792
17 MIXTEL  585-15-2.50.%13000
18 BRIMST-N  1318-32-2.37.%2802
19 ARCMITTAL  3520-82-2.28.%192914
20 PAN-AF  240-5-2.04.%1735902

Click here for more Major Moves...

New Highs
SharenameSaleHighMove% MoveVolume
1 ESORFRANK  174180106.10.%670147
2 MSHolding  14014053.70.%139961
3 ALTRON  23852500853.70.%57965
4 PSG  781278442623.47.%70561
5 TELKOM  23802412592.54.%1476583
6 JSE  865089851651.94.%226300
7 RMBH  47604760851.82.%1143443
8 FIRSTRAND  34700601.76.%10646629
9 HOLDSPORT  50205279681.37.%5501
10 DIAMONDCP  16016721.27.%4550
11 NETCARE  24502475301.24.%4279060
12 STANBANK  12130121301251.04.%3469354
13 GRINDROD  24802496251.02.%957863
14 STEINHOFF  34813549340.99.%8790611
15 MASTDRILL  1005100550.50.%78141
16 AFRIMAT  11001133-1-0.09.%181143

Click here for more Major Moves...
New Lows
SharenameSaleLowMove% MoveVolume
1 GFIELDS  47004560-56-1.18.%3234392
2 ARGENT  5905400.72339

Click here for more Major Moves...

Index Summary
Index NameRPMove% Move
Top 4039,824.79380.730.97%
Mid Cap58,105.24659.041.15%
Small Cap48,208.10485.841.02%
Resource 2050,340.02382.330.77%
Industrial 2551,517.96542.021.06%
Financial 1512,149.46134.491.12%
Financial & Ind. 3054,415.62567.471.05%
All Share44,453.88436.150.99%
Oil & Gas 36,769.51634.911.76%
Mining 30,542.63171.910.57%
Gold Mining1,224.59-.17-0.01%
Platinum Mining51.49.260.51%
GENERAL MINING8,757.9056.560.65%
Oil & Gas Producers 19,770.29341.381.76%
Basic Materials 27,133.79196.260.73%
Chemicals 23,535.67681.032.98%
Forestry & Paper 27,699.52752.742.79%
Industrial Metals 24,657.54-226.35-0.91%
Industrials 43,184.76428.991.00%
General Industrials 129.761.611.26%
Consumer Goods 54,332.84261.420.48%
Automobiles & Parts 7,585.94113.231.52%
Household Goods236.6120.99%
Health Care 75,458.041223.301.65%
Beverages 175.681.080.62%
Index NameRPMove% Move
Food Producers 72,179.131484.662.10%
Personal Goods 1,007.051.300.13%
Consumer Services 10,274.5692.160.91%
General Retailers 65,094.92915.291.43%
Travel & Leisure 5,550.8721.440.39%
Media 205.97.560.27%
Support Services 2,610.479.330.36%
Telecommunications 9,462.82253.792.76%
Financials 32,120.86338.511.07%
Banks 56,083.55750.981.36%
Non-life Insurance 49,513.08765.661.57%
Life Insurance 30,307.77236.090.79%
General Financial 2,837.9319.210.68%
Technology 43,562.62499.711.16%
SHARIAH TOP40 3,755.38441.19%
FTSE/JSE SHARIAH ALL3,868.95471.24%
COAL MINING20,993.3370.03%
FTSE JSE Fledgling 5,883.77430.73%
FTSE/JSE Alt X 1,038.2020.20%
RESOURCE 27,549.712110.77%
DIVIDEND PLUS215.1831.33%
FTSE/JSE RAFI 408,771.611001.15%
Capped Top 4021,085.952081.00%
Capped All Share22,519.062231.00%
JSE TABACO 6,757.14-12-0.18%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
26/09/2013FONEWORXJune 2013 (Final)
26/09/2013KIBOMarch 2013 (Interim)
26/09/2013TORREJune 2013 (Final)
26/09/2013WITS LDJune 2013 (Interim)
26/09/2013WITSLDTSXJune 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PUTPROP20/09/1311/10/1321/10/13ZAR 0.1800
CONVERGE20/09/1322/11/1302/12/13ZAR 0.1200
FAIRVEST19/09/1304/10/1314/10/13ZAR 0.0600
KGMEDIA18/09/1304/10/1314/10/13ZAR 0.4000
ELBGROUP18/09/1318/10/1328/10/13ZAR 0.6000
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ARM02/09/1319/09/1330/09/13ZAR 5.1000
IMPERIAL20/08/1319/09/1330/09/13ZAR 4.4000
GRINDROD PREF02/09/1319/09/1330/09/13ZAR 3.7100
PSGFIN PREF02/09/1319/09/1330/09/13ZAR 3.5706
IMPERIALP20/08/1319/09/1330/09/13ZAR 3.4966

Upcoming AGMs**
CodeCompany NameDateStatus
GGPGoGlobal Properties Ltd.25/09/2013Confirmed
OMNOmnia Holdings Ltd.26/09/2013Confirmed
ZCIZCI Ltd.26/09/2013Confirmed
BSSBSI Steel Ltd.26/09/2013Confirmed
OMPOmnia Holdings Ltd.26/09/2013Confirmed

Stock Exchange News Service
25/09/201317:30BAYPORT SECURITISATION (RF) LTD - Bayport Securitisation monthly investor report...
25/09/201317:16ONELOGIX GROUP LIMITED - Repurchase of shares from Izingwe Holdings Proprietary ...
25/09/201317:08JSE LIMITED - Index Change Advice - 20131003 Ingenuity Property Shares In Issue ...
25/09/201317:03JSE LIMITED - Index Change Advice - 20131003 IPSA Group Shares In Issue Update
25/09/201317:00REDEFINE PROP INTERNATIONAL LTD - Redefine International P.L.C. - TR-1: Notifica...
25/09/201317:00PALABORA MINING COMPANY LIMITED - Notice Of An Aquisition Of A Beneficial Intere...
25/09/201317:00COMPU-CLEARING OUTSOURCING LIMITED - Dealing by a director
25/09/201317:00SASOL LIMITED - Dealings in securities by a director of a major subsidiary of Sa...
25/09/201316:57BAUBA PLATINUM LIMITED - Trading Statement
25/09/201316:55FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1D1
25/09/201316:49FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1C1
25/09/201316:48FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1B1
25/09/201316:47FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1A5
25/09/201316:45FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1A4
25/09/201316:30THE SPAR GROUP LIMITED - Dealing In Securities By The Spar Group Limited Employe...
25/09/201316:30GOGLOBAL PROPERTIES LIMITED - Results of Annual General Meeting
25/09/201316:30WOOLWORTHS HOLDINGS LIMITED - Dealing in securities by a director
25/09/201316:27FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1A3
25/09/201316:25JSE LIMITED - Gen - General - Update to pre-listing statement
25/09/201316:00POYNTING HOLDINGS LIMITED - Summarised Provisional Consolidated Financial Statem...
25/09/201316:00FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1A2
25/09/201316:00BAUBA PLATINUM LIMITED - Cautionary Announcement
25/09/201315:57FOX STREET 1 (RF) LIMITED - New Financial Instrument Listing - FS1A1
25/09/201315:30SABMILLER PLC - Transaction by a Director
25/09/201315:20JSE LIMITED - Gen - General - Notice of Appointment of a Business Rescue Practit...
25/09/201314:37TRUSTCO GROUP HOLDINGS LIMITED - Results of AGM
25/09/201314:30ROCKWELL DIAMONDS INCORPORATED - Rockwell increases carat production and revenue...
25/09/201314:15INDWA INVESTMENTS LIMITED - New Instrument Listing - INA402
25/09/201314:12ANGLOGOLD ASHANTI LIMITED - AngloGold Says Kibali Gold Mine Starts Early, Within...
25/09/201314:10AFRICAN BANK LIMITED - Interest Rate Reset - ABL16
25/09/201313:36PEREGRINE HOLDINGS LIMITED - TRP121: Notification of an acquisition and disposal...
25/09/201313:14BOWLER METCALF LIMITED - Notice of Annual General Meeting
25/09/201313:12AFROCENTRIC INVESTMENT CORP LIMITED - Trading statement, update of 2nd tranch pa...
25/09/201312:30DIGICORE HOLDINGS LIMITED - Dealing in securities by an associate of a director
25/09/201312:30THE DON GROUP LIMITED - Trading statement
25/09/201312:13SOUTHERN ELECTRICITY COMPANY LTD - Ann of the firm intention of Rural Maintenanc...
25/09/201311:30TASTE HOLDINGS LIMITED - Trading update
25/09/201311:00TORRE INDUSTRIAL HOLDINGS LIMITED - Provisional condensed results for the financ...
25/09/201310:40COMPU-CLEARING OUTSOURCING LIMITED - Dealing by a director
25/09/201310:00ANGLO AMERICAN PLC - Anglo American South Africa agrees settlement of stand-alon...
25/09/201310:00NEW EUROPE PROPERTY INVESTMENTS PLC - Two new Directors Appointed
25/09/201309:55IVUZI INVESTMENTS LIMITED - Full Capital Redemption - IVA339
25/09/201309:45DIGICORE HOLDINGS LIMITED - Group Audited Results For The Year Ended 30 June 201...
25/09/201309:33STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank of South Africa Limit...
25/09/201309:30NEDBANK LIMITED1 - Dealings in securities by a non-executive director
25/09/201309:30NEW GOLD ISSUER LIMITED - NGPLT - Listing additional NewGold Platinum Debentures
25/09/201309:22TAWANA RESOURCES NL - Additional Mineralisation defined at Mofe Creek Iron Proje...
25/09/201309:15FIRESTONE ENERGY LIMITED - Change of Directors Interest Notice Appendix 3Y
25/09/201309:10GROWTHPOINT PROPERTIES LIMITED - Director's Dealings
25/09/201309:09RBA HOLDINGS LIMITED - Unaudited interim results for the six month period ended ...
25/09/201309:05ALLIED ELECTRONICS CORPORATION LTD - Trading Statement
25/09/201308:00ANGLO AMERICAN PLC - Anglo American agrees revised terms for sale of Amap to Zam...
25/09/201307:52CAPITAL & COUNTIES PROPERTIES PLC - Listing Application for Scrip Dividend Alter...
25/09/201307:50INDWA INVESTMENTS LIMITED - Full Capital Redemption - INA339
25/09/201307:45INVESTEC BANK LIMITED - New Listing ESPIBB
25/09/201307:45BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
25/09/201307:35OLD MUTUAL PLC - Dealing Disclosure
25/09/201307:06CAPITEC BANK HOLDINGS LIMITED - Changes To The Board Of Directors: Capitec Bank ...
25/09/201307:06BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
25/09/201307:06BHP BILLITON PLC - Notice of 2014 Interim Dividend Dates
25/09/201307:05CAPITEC BANK HOLDINGS LIMITED - Unaudited Financial Results For The Six Months E...
25/09/201307:05BHP BILLITON PLC - BHP Billiton Plc - Annual Financial Report 2013
25/09/201307:05FERRUM CRESCENT LIMITED - US$13.5m Investment Agreement with Anvwar Asian Invest...
25/09/201307:05BRITISH AMERICAN TOBACCO PLC - Notification of transactions by directors, person...

Click here for more SENS news