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 The Sharenet Daily 
Tuesday, 12 November 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: 1987 ? 1991

This is the third part in a series looking at Berkshire Hathaway’s annual reports. In it, Warren Buffett continues to demonstrate his simplistic approach of looking at Berkshire’s investment portfolio. Although asserting that the market is less attractive than the previous two decades, Berkshire’s managers have produced extraordinary results by doing rather ordinary things - but doing them exceptionally well.

The best business returns are usually achieved by companies that are doing something quite similar today to what they were doing five or ten years ago. Most sell non-sexy products or services in much the same manner as they did ten years ago (albeit in larger quantities, or at higher prices, or both). They may be making the most of an already strong business franchise, or concentrating on a single winning business theme.

Mr Buffett approaches a purchase as if it’s a private business. He advises that when investing, one should view oneself as a business analyst (and not solely as a market, macroeconomic, or security analyst). He looks for outstanding businesses at a sensible price rather than mediocre businesses at a bargain price. Buffett concentrates his investments in a few companies that are understood well. He does not have in mind any time or price for sale, instead he’s willing to hold a company indefinitely, granted that he expects the business to increase in intrinsic value at a satisfactory rate. He mentions that a stock is not necessarily an intelligent purchase purely because it is unpopular – i.e. being contrarian for the sake of it.

Mr Buffett states that declining share prices benefit investors, and rising prices hurt investors. “The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.” One should always be well positioned for prospective investments. “If you want to shoot rare, fast-moving elephants, you should always carry a loaded gun.” During 1989 Mr Buffett increased his holdings in Coca Cola.

Mr Buffett is not weary of missing out on some company that depends upon an esoteric invention (Xerox), high-technology (Apple), or brilliant merchandising (Wal-Mart). Exotic sounding businesses that hold out the promise of feverish change generally trade at the highest PE ratios. That prospect lets investors fantasise about future profitability rather than facing today's business realities. Mr Buffett notes that, “We will never develop the competence to spot such businesses early. Instead I refer to business situations that Charlie and I can understand and that seem clearly attractive - but in which we nevertheless end up sucking our thumbs rather than buying.”

A significant portion of Berkshires earnings were given to charity. During November 1988, Berkshire’s shares listed on the New York Stock Exchange. Mr Buffett’s wish was to attract long-term owners who, at the time of purchase, had no timetable or price target for sale but plan instead to stay with Berkshire indefinitely. Long term investors have been handsomely rewarded.

Kind regards,

Lourens Rabé

021 914 4966

Tue, 12 Nov 2013
Top News
South Africa's rand and government bonds weakened to their lowest in over two months on Tuesday on expectations that the United States would reduce monetary stimulus sooner than expected.  Full story

Tanzania's current account deficit widened 26.1 percent in the year to September following a decline in receipts of aid and loans, its central bank said on Tuesday.  Full story
A U.S. aircraft carrier set sail for the Philippines on Tuesday to accelerate relief efforts after a typhoon killed an estimated 10,000 people in one coastal city alone, with fears the toll could rise sharply as rescuers reach hundreds of isolated towns and villages.  Full story
The Congolese government delegation has quit Ugandan-hosted talks with M23 rebels, saying Kampala's support for insurgents was to blame for the failure to sign a document due to officially end Congo's latest rebellion.  Full story
Iranian Foreign Minister Mohammad Javad Zarif rejected U.S. Secretary of State John Kerry's pinning of blame on Iran for the lack of a deal on its nuclear programme last week, saying splits between Western powers prevented a breakthrough.  Full story
Financial stocks kept a lid on Britain's top share index on Tuesday after Goldman Sachs downgraded Royal Bank of Scotland.. . .  Full story
U.S. stocks eased on Tuesday before remarks by key Federal Reserve officials, which investors will scrutinize for hints when the U.S. central. . .  Full story
Global equity markets and government debt prices fell on Tuesday as investors speculated on how soon the Federal Reserve may begin reducing its. . .  Full story
European shares edged lower on Tuesday as a fresh set of weak corporate results put the brakes on a rally that had pushed. . .  Full story

Gold hit a 3-1/2 week low on Tuesday, falling for the fourth straight session as the dollar strengthened and expectations increased that the. . .  Full story
Wall Street opened lower on Tuesday, a day after the Dow ended at a record high as investors shifted focus to how soon. . .  Full story
European shares fell on Tuesday, drifting away from near five-year highs after a poor revenue report from German chip maker Infineon highlighted weak. . .  Full story
European shares fell in early trade on Tuesday, reversing the previous day's gains, with Vodafone slipping after reporting a record fall in quarterly organic. . .  Full story
SA Business
South Africa's state pension fund is opposing the takeover of drugs firm Adcock Ingram by Chile's CFR Pharmaceutical because of concerns about foreign control and the share component of the deal, a source familiar with the fund's thinking said on Tuesday.. . .  Full story
The reasons that prompted investment flows into high-yielding emerging markets have not disappeared, but normalisation of U.S. monetary policy which has supported such markets is unavoidable, South African Reserve Bank Governor Gill Marcus said on Monday.. . .  Full story

The World Cup could be targeted again next year for demonstrations in Brazil against graft and poor public services but FIFA. . .  Full story
The World Cup could again be targeted next year for demonstrations in Brazil against graft and poor public services but FIFA. . .  Full story
Credit ratings organisations from five countries are launching a new global agency, touting it as an alternative to the Big Three agencies which. . .  Full story
Britain's Vodafone will spend 7 billion pounds - more than expected and earlier than expected - to increase the speed and coverage of. . .  Full story

South African discount retailer Mr Price on Tuesday posted interim earnings growth of 22 percent because of sales growth and said. . .  Full story
The platinum market in 2013 is set for its biggest deficit in 14 years and continuing strong industrial and jewellery demand may widen. . .  Full story
South Africa's state pension fund is opposing the takeover of drugs firm Adcock Ingram by Chile's CFR Pharmaceutical because of concerns about foreign control. . .  Full story
South Africa's Treasury sold a total of 2.35 billion rand of its 2023, 2030 and 2041 government bonds on Tuesday.. . .  Full story
Company News
The board of directors ("the Board") of SPAR advised shareholders that the CEO of the Company, Wayne Hook, will be stepping. . .  Full story
Shareholders are referred to the SENS announcement dated 21 October 2013 advising shareholders that Africa Wide Mineral Prospecting and Exploration (Pty). . .  Full story
Shareholders are advised that Ansys is currently in the process of finalising its interim results for the six months ended 31. . .  Full story
Old Mutual announced that terms have been agreed to sell Skandia Poland, part of Old Mutual Wealth, to Vienna Insurance Group. . .  Full story

Shareholders are advised that a subsidiary of the Company, Ixia Trading 532 (Pty) Ltd. ("the Seller") entered into an agreement, dated 4 October 2013, with City Deep 4X4 Commercial Spares (Pty). . .  Full story
The following Supplementary Offering Circular has been approved by the UK Listing Authority and is available for viewing: Supplementary Offering Circular dated 8 November 2013 (the "Supplementary Offering Circular") to. . .  Full story
RBPlat has undertaken a detailed strategic review of its operating activities and long-term capital expenditure ("capex") commitments. A deteriorating Platinum Group Metals ("PGM") pricing environment and associated industry cost escalations together. . .  Full story
Company Results
Revenue for the interim period ended 30 September 2013 shot up by 46% to R5.1 billion (2012: R3.5 billion). Operating profit. . .  Full story
Revenue for the interim period increased by 4.5% to R2.5 billion (2012: R2.4 billion). Operating profit rose slightly by 0.6% to. . .  Full story
. . .  Full story
. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0045448.28-39.90-0.09%
JSE Top 4017:0040727.80-30.53-0.07%
JSE Gold17:001329.6026.282.02%
JSE Financial17:0033100.0396.410.29%
JSE Industrial16:5159340.9121.270.04%
JSE Indust 2517:0052083.6262.390.12%
JSE Resource17:0052325.40-351.34-0.67%
DJ Futures19:5615675.00-48.00-0.31%
DJ Ind19:5615736.43-46.67-0.30%
SP 50019:561766.25-5.64-0.32%
FTSE 10018:356726.79-1.58-0.02%
All Ords07:525386.806.000.11%
NZSE 5006:484915.67-6.50-0.13%
NameTimeRPMove% Move
Gold $19:591275.38-6.41-0.50%
Gold R19:5813243.7813243.780.00%
Gold R/kg19:56425963-1802-0.42%
Silver $19:5920.8490-.4810-2.26%
Platinum $19:591431.754.450.31%
Palladium $19:59739.25-12.00-1.60%
Brent Crude19:56106.371.251.19%
Rand / Dollar19:5910.38280.00680.07%
Rand / Pound19:5516.4961-0.0731-0.44%
Rand / Euro19:5513.96360.04200.30%
Rand / NZD19:588.5392-0.0254-0.30%
Rand / AUD19:559.6604-0.0592-0.61%
Yen / Dollar19:5999.52300.36500.37%
Euro / Dollar19:550.7434-0.0022-0.30%
Dollar / Euro19:591.34410.00360.27%
Pound / Dollar19:550.62810.00290.46%

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 NIVEUS  239068440.09.%271
2 NHMN  1191919.00.%90114
3 BRIMSTON  140015012.00.%200
4 MMG  1020909.68.%5279
5 ABIL  14201068.07.%10723141
6 ABLN  610457.96.%22855295
7 TOWER  880607.32.%10000
8 FINBOND  350237.03.%1154921
9 VUNANI  175106.06.%15000
10 BLACKSTAR  1180655.83.%5500
11 POYNTING  15385.52.%41114
12 CONDUIT  15574.73.%22500
13 CROOKES  69992994.46.%360
14 COMAIR  324134.18.%123800
15 BCX  554213.94.%95472
16 ONELOGIX  400153.90.%56376
17 PETMIN  21983.79.%242526
18 NORTHAM  42391393.39.%501791
19 VODACOM  118513763.28.%2552432
20 GFIELDS  46601453.21.%2231565

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Major Moves Down
SharenameSaleMove% MoveVolume
1 PUTPROP  602-98-14.00.%1400
2 RANGOLD  215-25-10.42.%8568
3 GOLDONE  200-14-6.54.%27204
4 DIAMONDCP  167-11-5.95.%87182
5 HOWDEN  4399-241-5.19.%1399
6 COAL  132-7-5.04.%129924
7 ALTRON-P  2300-120-4.96.%113213
8 DIGICOR  166-8-4.60.%45279
9 ILLOVO  2890-121-4.02.%621306
10 STEFSTOCK  926-39-3.90.%48919
11 NAMPAK  3022-100-3.20.%2102515
12 WITSGOLD  825-25-2.94.%500
13 HULAMIN  520-15-2.80.%246806
14 KEATON   234-6-2.50.%5776
15 LONMIN  5524-131-2.32.%514282
16 RBPLAT  6161-139-2.21.%86291
17 MIXTEL  540-12-2.17.%10318
18 SYCOM  2485-55-2.17.%71693
19 RCL  1763-39-2.16.%41818
20 ARM   18690-401-2.10.%929670

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New Highs
SharenameSaleHighMove% MoveVolume
1 NIVEUS  2390239068440.09.%271
2 NHMN  1191191919.00.%90114
3 ABLN  610650457.96.%22855295
4 FINBOND  350375237.03.%1154921
5 WESCOAL  22022052.33.%65990
6 BRAIT  50305150851.72.%318203
7 CIL  22802400301.33.%72689
8 DISTELL  13750144001801.33.%12804
9 DCENTRIX  47549851.05.%64435
10 PALAMIN  11630118101100.94.%9356
11 ADAPTIT  42042020.48.%191235
12 SABMILLER  5316053493-122-0.23.%982018
13 BATS  5655057200-299-0.53.%343351
14 NEPI  76558001-44-0.57.%26461
15 TSOGO-SUN  28353139-19-0.67.%71226
16 SASFIN  42004260-50-1.18.%9407

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New Lows
SharenameSaleLowMove% MoveVolume

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Index Summary
Index NameRPMove% Move
Top 4040,727.80-30.53-0.07%
Mid Cap59,118.33-77.71-0.13%
Small Cap50,037.23-134.97-0.27%
Resource 2052,325.40-351.34-0.67%
Industrial 2552,083.6262.390.12%
Financial 1512,520.6033.070.26%
Financial & Ind. 3055,293.08103.100.19%
All Share45,448.28-39.90-0.09%
Oil & Gas 38,217.17152.870.40%
Mining 31,716.83-279.95-0.87%
Gold Mining1,329.6026.282.02%
Platinum Mining52.89-.28-0.53%
GENERAL MINING9,085.76-114.19-1.24%
Oil & Gas Producers 20,548.6682.190.40%
Basic Materials 28,061.67-226.25-0.80%
Chemicals 23,508.3787.260.37%
Forestry & Paper 28,342.01-131.26-0.46%
Industrial Metals 23,172.0636.350.16%
Industrials 42,985.40-257.52-0.60%
General Industrials 128.04-.71-0.55%
Consumer Goods 56,330.60-91.51-0.16%
Automobiles & Parts 8,659.29-58.88-0.68%
Household Goods271.8272.54%
Health Care 75,308.45156.050.21%
Beverages 181.55-.43-0.24%
Index NameRPMove% Move
Food Producers 70,200.20-320.22-0.45%
Personal Goods 1,037.12-2.89-0.28%
Consumer Services 10,135.7651.490.51%
General Retailers 61,687.15-74.43-0.12%
Travel & Leisure 5,672.51-20.27-0.36%
Support Services 2,610.53-12.34-0.47%
Telecommunications 9,440.3365.220.70%
Financials 33,100.0396.410.29%
Banks 55,929.5070.450.13%
Non-life Insurance 48,492.19-125.06-0.26%
Life Insurance 32,387.16218.790.68%
General Financial 3,195.0840.171.27%
Technology 44,291.8549.180.11%
SHARIAH TOP40 3,865.25-9-0.22%
FTSE/JSE SHARIAH ALL3,976.93-10-0.26%
COAL MINING19,002.95-306-1.59%
FTSE JSE Fledgling 6,259.6830.05%
FTSE/JSE Alt X 1,117.7190.82%
CAPPED PROPERTY 423.52-0.40%
RESOURCE 28,613.28-189-0.66%
DIVIDEND PLUS216.2110.54%
FTSE/JSE RAFI 409,013.98-4-0.04%
Capped Top 4021,509.26-8-0.04%
Capped All Share23,004.97-18-0.08%
JSE TABACO 7,226.10-38-0.53%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
13/11/2013AFDAWNAugust 2013 (Interim)
13/11/2013AMECORSeptember 2013 (Interim)
13/11/2013ANGLDSeptember 2013 (Q)
13/11/2013ANGLD-ASeptember 2013 (Q)
13/11/2013ANGLD-BSeptember 2013 (Q)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
VODACOM11/11/1322/11/1302/12/13ZAR 3.9500
ASTRAL11/11/1317/01/1427/01/14ZAR 2.2200
TONGAAT11/11/1324/01/1406/02/14ZAR 1.5000
INVICTA11/11/1329/11/1309/12/13ZAR 1.0200
LEWIS11/11/1317/01/1427/01/14ZAR 2.1500
Ex Div**
Share NameDec-DateLDTPay-DateAmount
REMGRO18/09/1308/11/1318/11/13ZAR 2.0100
OCTODEC23/10/1308/11/1318/11/13ZAR 0.7890
PREMIUM23/10/1308/11/1318/11/13ZAR 0.6620
OASIS18/10/1308/11/1318/11/13ZAR 0.4308
PINNACLE05/09/1308/11/1318/11/13ZAR 0.4100

Upcoming AGMs**
CodeCompany NameDateStatus
GRTGrowthpoint Properties Ltd.12/11/2013Confirmed
YRKYork Timber Holdings Ltd.12/11/2013Confirmed
YRKPYork Timber Holdings Ltd.12/11/2013Confirmed
WBOWilson Bayly Holmes - Ovcon Ltd.13/11/2013Confirmed
WBOPWilson Bayly Holmes - Ovcon Ltd.13/11/2013Confirmed

Stock Exchange News Service
12/11/201317:03JSE LIMITED - Index Change Advice - Accentuate Ltd Shares In Issue and Free Floa...
12/11/201317:00SOUTH OCEAN HOLDINGS LIMITED - Notification in terms of S122(3) of the Companies...
12/11/201317:00SOUTH OCEAN HOLDINGS LIMITED - Share Dealings in Securities by Directors Associa...
12/11/201316:45RESILIENT PROPERTY INCOME FUND LTD - Interest Rate Reset - RES15
12/11/201316:20MONDI LIMITED - Transactions in Mondi plc ordinary shares of EUR0.20 each
12/11/201316:15PSG GROUP LIMITED - Dealing In PSG Group Limited Shares By An Associate Of A Dir...
12/11/201316:15GROWTHPOINT PROPERTIES LIMITED - Results of annual general meeting
12/11/201316:00TIMES MEDIA GROUP LIMITED - Dealing In Times Media Group Limited Shares By An As...
12/11/201316:00WITWATERSRAND CONS GOLD RESOURCES - Renewal of cautionary announcement regarding...
12/11/201316:00MUSTEK LIMITED - No change statement and notice of annual general meeting
12/11/201314:40PETMIN LIMITED - Reserve Update and Renewal of Cautionary Announcement
12/11/201314:40PALLINGHURST RESOURCES LIMITED - Director's Dealings
12/11/201314:35REAL PEOPLE INV HOLDINGS LTD - Interest Rate Reset - RP020
12/11/201314:30SOUTH OCEAN HOLDINGS LIMITED - Notification in terms of S122(3) of the Companies...
12/11/201314:05THE SPAR GROUP LIMITED - Resignation By Chief Executive Officer And Appointment ...
12/11/201314:00MR PRICE GROUP LIMITED - Unaudited group results and interim cash dividend decla...
12/11/201314:00AFGRI LIMITED - Director's Dealings
12/11/201312:56HYPROP INVESTMENTS LIMITED - Dealing in securities by an associate of a director...
12/11/201312:50WESIZWE PLATINUM LIMITED - Update on Maseve Project
12/11/201312:45INDWA INVESTMENTS LIMITED - Interest Rate Reset - IN03Q and INF407
12/11/201312:02INDWA INVESTMENTS LIMITED - New Instrument Listing - INA407
12/11/201311:13CAXTON CTP PUBLISHERS & PRINTERS LD - Annual Report and No Change Statement
12/11/201311:00NICTUS BEPERK - Trading statement for the six months ended 30 September 2013
12/11/201310:15Santova Limited - Dealing In Securities By Director Of A Major Subsidiary
12/11/201310:02HOSPITALITY PROPERTY FUND LIMITED - Dealings in securities
12/11/201309:40ANSYS LIMITED - Trading Update
12/11/201309:01PICK N PAY STORES LIMITED - New Financial Instrument Listing PnP13
12/11/201309:00OLD MUTUAL PLC - Old Mutual Plc agrees the sale of Skandia Poland
12/11/201307:36ORION REAL ESTATE LIMITED - Disposal of Property
12/11/201307:30ROYAL BAFOKENG PLATINUM LIMITED - Strategic focus on core business strength resu...
12/11/201307:20The Nitro Securitisation 4 Issuer Trust - Release of Annual Financial Statements
12/11/201307:05CORONATION FUND MANAGERS LIMITED - Reviewed preliminary financial results for th...
12/11/201307:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
12/11/201307:05ANGLO AMERICAN PLC - Publication of Supplementary Offering Circular
12/11/201307:05ANGLO AMERICAN PLC - Anglo American Share Incentive Plan SIP

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