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 The Sharenet Daily 
Tuesday, 21 January 2014 - 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 - Charlie Munger: Poor Charlie?s Almanac

Over the Christmas break, I had the opportunity to read Poor Charlie’s Almanack – a compendium of insightful articles, essays about and talks from Charlie Munger.

Who is Charlie Munger? He is the partner of the better known Warren Buffett, chairman and CEO of listed Berkshire Hathaway. He has partnered Buffett for some 45 years. Munger, now 90 years old, is vice chairman of the Berkshire Hathaway and Chairman of Wesco Financial Corporation.

Munger is noted as an excellent thinker and this book gave some insight into how his mind works. Buffett said of him, “Charlie can analyse and evaluate any kind of deal faster and more accurately than any man alive. He sees valid weakness in sixty seconds.”

Munger has a systematic way of analysing problems and approaches to business analysis and assessment. Instead of making a standalone assessment of a company and its finances, he will rather conduct a more comprehensive analysis, calling the tools that he uses his “Multiple Mental Model”.

“You must know the big ideas in the big disciplines and use them routinely – all of them. Not just a few. Most people are trained in one model – economics for example – and try to solve all problems in one way. You know the old saying, “to the man with a hammer, the world looks like a nail.” This is a dumb way of handling problems.”

When properly collected and organised, his Multiple Mental Models (around 100 of them he estimates) provides a context or latticework that leads to remarkable insights as to the purpose and nature of life. His models supply the analytical structure that enables him to reduce the inherent chaos and confusion of a complex investment problem into a clarified set of fundamentals. Some of the more important models that he knows well and uses often include:

• Redundancy / backup, breakpoints and critical mass system model from engineering
• Compound interest, permutations, probability and decision tree model from maths
• Breakpoint / tipping moment / autocatalysis model from physics and chemistry
• Cognitive misjudgement model from psychology
• Accounting – double entry bookkeeping
• Microeconomics – scale and competitive destruction
• Chemistry

His most basic guiding principles and fundamental philosophy of life includes preparation, patience, discipline, and decisiveness.

As part of his decision making process, Charlie Munger firmly believes in using checklists for investing decisions. Such a checklist, not necessarily used by Munger, was outlined in the book and covered the following headings:

• Risk – all investment valuations should begin by measuring risk;
• Independence – only in fairy tales are emperors told they are naked;
• Preparation – the only way to win is to work, work, work and hope to have a few insights;
• Intellectual humility – acknowledge what you don’t know is the dawning of wisdom;
• Analytics rigor – use of the scientific method and effective checklists minimises errors and omissions;
• Allocation – proper allocation of capital is an investors number one job;
• Patience – resist the natural human bias to act;
• Decisiveness - when proper circumstances present themselves act with decisiveness and conviction;
• Change – live with change and accept irremovable complexity; and
• Focus – keep things simple and remember what you set out to do.

All in all, a very good outline for decision making from a very successful investor.

Kind regards,

Ian de Lange

021 914 4966

Tue, 21 Jan 2014
Top News
South African stocks ended slightly lower on Tuesday after booking all-time closing highs in the previous session, as profit-taking in resource shares and technical factors took some of the steam out of the market.  Full story

South Africa's rand held its ground against the dollar on Tuesday after a heavy sell-off last week, with investors taking looming strikes in the mining sector in their stride.  Full story
Syrian and international delegates were arriving in Switzerland on Tuesday on the eve of peace talks that few believe can succeed as the three-year-old civil war and geopolitical acrimony it has brought show no sign of abating.  Full story
A suicide bomber killed four people on Tuesday in a residential district of southern Beirut known for its support of the powerful Shi'ite Muslim military and political movement Hezbollah, security sources said.  Full story
The Thai government declared a 60-day state of emergency to start on Wednesday, saying it wanted to prevent any escalation of more than two months of protests aimed at forcing Prime Minister Yingluck Shinawatra from power.  Full story
European shares climbed to fresh 5-1/2 year peaks on Tuesday, as glimmers of optimism from Unilever and Remy Cointreau SA, as well as solid. . .  Full story
U.S. bond prices slipped and the dollar rose on Tuesday on speculation the Federal Reserve will further pare its bond-buying stimulus at next. . .  Full story
Britain's top shares consolidated near an eight-month high on Tuesday as reassuring news about economic conditions in emerging markets boosted consumer staples and financials,. . .  Full story
U.S. stocks edged higher on Tuesday, putting the S&P on pace to snap a two-session decline, as gains in the materials sector were. . .  Full story

Gold fell on Tuesday, dragged down by firmer equities and a broadly steady dollar after renewed talk that the U.S. Federal Reserve might. . .  Full story
U.S. stocks rose at the open on Tuesday, putting the S&P 500 on track to snap a two-session losing streak after a flurry. . .  Full story
European shares rose to 5-1/2 year highs on Tuesday, boosted by gains in consumer goods group Unilever after strong results and by China's. . .  Full story
European shares edged higher early on Tuesday as relief at moves to defuse a cash squeeze in China was tempered by a batch. . .  Full story
SA Business
A 29.6 carat blue diamond, one of the rarest and most coveted in the world with a possible price tag of tens of millions of dollars, has been discovered at a. . .  Full story
The South African Reserve Bank's monthly leading business cycle indicator edged down 0.2 percent month-on-month in November, partly because of a decrease in the number of residential building plans passed in. . .  Full story
Gold was holding just below a six-week peak on Tuesday amid higher equities and worries that physical demand could ease due to the recent rally in prices.. . .  Full story

Business leaders gathering for their annual high-profile networking forum in Davos are feeling a bit better about their companies' prospects and a lot more. . .  Full story
The chief executives of the world's top three platinum producers said on Tuesday wage hikes being sought by the AMCU union, which plans. . .  Full story
South Africa's National Union of Mineworkers said on Tuesday over 7,000 of its members would return to work on Wednesday at. . .  Full story
Dissidents in South Africa's AMCU union are forming a rival to the militant labour group, accusing its leadership of recklessly pursuing. . .  Full story

Unilever said it would stick to its emerging markets growth strategy as a fourth-quarter recovery in sales in the region boosted the consumer. . .  Full story
South Africa's Treasury sold a total of 2.35 billion rand of its 2030, 2037 and 2048 government bonds on Tuesday.. . .  Full story
South African food company Tiger Brands said on Tuesday it had agreed to buy a Kenyan firm, identified by a newspaper. . .  Full story
South African food company Tiger Brands has agreed to buy a Kenyan milling and confectionery firm for $25 million, the Business Day newspaper reported. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0046889.64-44.95-0.10%
JSE Top 4017:0042195.76-45.18-0.11%
JSE Gold17:001168.29-46.76-3.85%
JSE Financial17:0033181.37239.300.73%
JSE Industrial17:0062300.38164.550.26%
JSE Indust 2517:0054907.28147.380.27%
JSE Resource17:0053263.41-759.92-1.41%
DJ Futures19:5216300.00-95.00-0.58%
DJ Ind20:0016370.97-87.59-0.53%
SP 50020:001838.860.160.01%
FTSE 10018:356834.26-2.47-0.04%
All Ords07:395342.0034.400.65%
NZSE 5006:484921.6731.170.64%
NameTimeRPMove% Move
Gold $19:591241.70-12.82-1.02%
Gold R20:0013480.48-113.65-0.84%
Gold R/kg20:00433398-4525-1.03%
Silver $19:5919.8500-.4430-2.18%
Platinum $19:591448.50-18.00-1.23%
Palladium $19:59746.50.500.07%
Brent Crude20:00106.93-.13-0.12%
Rand / Dollar19:5910.85560.02120.20%
Rand / Pound19:5517.84790.07200.41%
Rand / Euro19:5514.70410.00840.06%
Rand / NZD19:599.0208-0.0079-0.09%
Rand / AUD19:559.5528-0.0033-0.03%
Yen / Dollar19:59104.1600-0.00500.00%
Euro / Dollar19:590.73800.00020.03%
Dollar / Euro19:591.3550-0.0004-0.03%
Pound / Dollar19:550.6067-0.0017-0.28%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 MASONITE  350069824.91.%524
2 ADAPTIT  655569.35.%938344
3 WILDRNESS  375257.14.%222
4 ADVTECH  835557.05.%406797
5 ARB  598366.41.%156775
6 CONDUIT  14075.26.%133754
7 METROFILE  484245.21.%99074
8 NIVEUS  2099894.43.%1500
9 WCC  16063.90.%22986
10 PETMIN  19073.83.%26164
11 CENRAND  300103.45.%2000
12 BEE-SASOL  3900012733.37.%785
13 KAP  370123.35.%317367
14 SANTAM  183495493.08.%33364
15 PREMIUM  1769492.85.%5992
16 CML  80162102.69.%700978
17 TELKOM  3385852.58.%2113089
18 CADIZ  12032.56.%111030
19 ELLIES   610152.52.%1562952
20 HULAMIN  615152.50.%651294

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ONELOGIX  295-25-7.81.%203632
2 CONVERGE  128-9-6.57.%102077
3 HOWDEN  4300-298-6.48.%2789
4 S-OCEAN  128-8-5.88.%1285
5 ATLATSA  553-32-5.47.%20350
6 ANGGOLD  14400-721-4.77.%1043019
7 BRIMSTON  1320-50-3.65.%2969
8 CMH  1302-48-3.56.%6517
9 ZEDER  430-15-3.37.%158706
10 HARMONY  2987-104-3.36.%1068668
11 KUMBAIO  44600-1500-3.25.%481431
12 LONMIN  5600-188-3.25.%898125
13 AUSTRO  150-5-3.23.%819388
14 GFIELDS  3625-120-3.20.%2645676
15 OANDO  167-5-2.91.%18022
16 SOVFOOD  515-15-2.83.%71553
17 DIGICOR  175-5-2.78.%579085
18 ANGLO  24184-681-2.74.%4611966
19 SYCOM  2371-61-2.51.%94524
20 GRANPRADE  470-12-2.49.%2265454

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New Highs
SharenameSaleHighMove% MoveVolume
1 ADAPTIT  655690569.35.%938344
2 ADVTECH  835874557.05.%406797
3 BEE-SASOL  390003910012733.37.%785
4 TELKOM  33853495852.58.%2113089
5 NORTHAM  44914595912.07.%430549
6 SASOL  54500547997151.33.%1503623
7 PALLINGHT  33433941.21.%83724
8 OMNIA  2217622233960.43.%52325
9 ARM   2121021382600.28.%444845
10 CAPCO  65356677150.23.%1855050
11 STEINHOFF  47104748100.21.%7371847
12 SABMILLER  5496855499790.14.%1671199
13 INTUPROP  5620566550.09.%1778727
14 DISTELL  16200166000.20845
15 TORRE  3003500.204288
16 AUSTRO  150160-5-3.23.%819388

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New Lows
SharenameSaleLowMove% MoveVolume

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Index Summary
Index NameRPMove% Move
Top 4042,195.76-45.18-0.11%
Mid Cap59,552.15-.98-0.00%
Small Cap50,864.28-93.53-0.18%
Resource 2053,263.41-759.92-1.41%
Industrial 2554,907.28147.380.27%
Financial 1512,634.16105.920.85%
Financial & Ind. 3057,775.97242.480.42%
All Share46,889.64-44.95-0.10%
Oil & Gas 41,242.64541.081.33%
Mining 31,824.61-653.40-2.01%
Gold Mining1,168.29-46.76-3.85%
Platinum Mining50.75.240.48%
GENERAL MINING9,295.42-202.73-2.13%
Oil & Gas Producers 22,175.40290.921.33%
Basic Materials 28,287.88-556.33-1.93%
Chemicals 24,888.8126.250.11%
Forestry & Paper 29,572.06-355.26-1.19%
Industrial Metals 24,053.76-701.12-2.83%
Industrials 44,164.81-44.51-0.10%
General Industrials
Consumer Goods 58,218.30453.430.78%
Automobiles & Parts 10,
Household Goods320.1410.21%
Health Care 73,129.02314.520.43%
Index NameRPMove% Move
Food Producers 66,836.95673.391.02%
Personal Goods 1,078.6613.981.31%
Consumer Services 11,190.19-39.59-0.35%
General Retailers 59,333.44443.050.75%
Travel & Leisure 5,630.16-24.97-0.44%
Media 254.44-2.71-1.05%
Support Services 2,556.2426.001.03%
Telecommunications 10,151.5849.580.49%
Financials 33,181.37239.300.73%
Banks 55,524.50270.850.49%
Non-life Insurance 46,830.701401.173.08%
Life Insurance 32,754.59516.011.60%
General Financial 3,255.3316.760.52%
Technology 42,824.11-121.58-0.28%
SHARIAH TOP40 3,973.75-35-0.88%
FTSE/JSE SHARIAH ALL4,086.27-33-0.80%
COAL MINING19,847.56-204-1.02%
FTSE JSE Fledgling 6,395.42-18-0.28%
FTSE/JSE Alt X 1,240.5820.14%
RESOURCE 29,087.95-417-1.41%
DIVIDEND PLUS215.5210.40%
FTSE/JSE RAFI 409,263.14-22-0.24%
Capped Top 4022,289.18-10-0.05%
Capped All Share23,735.94-17-0.07%
JSE TABACO 7,193.001031.45%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
31/01/2014ZCISeptember 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
FOORDCMPS20/01/1407/02/1417/02/14ZAR 0.5875
MARSHALL17/01/1431/01/1414/02/14USD 0.0180
DON08/01/1424/01/1403/02/14ZAR 0.1600
ARGENT04/12/1320/03/1431/03/14ZAR 0.0700
PNR FOODS25/11/1324/01/1403/02/14ZAR 0.8600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ILRPREF131/12/1317/01/1427/01/14ZAR 11.9962
ASTRAL11/11/1317/01/1427/01/14ZAR 2.2200
LEWIS11/11/1317/01/1427/01/14ZAR 2.1500
CLICKS24/10/1317/01/1427/01/14ZAR 1.1950
NAMPAK 6.506/12/1317/01/1427/01/14ZAR 0.0650

Upcoming AGMs**
CodeCompany NameDateStatus
FVTFairvest Property Holdings Ltd.21/01/2014Confirmed
FVTPFairvest Property Holdings Ltd.21/01/2014Confirmed
IDQIndequity Group Ltd.21/01/2014Confirmed
IDQPIndequity Group Ltd.21/01/2014Confirmed
IDQPAIndequity Group Ltd.21/01/2014Confirmed

Stock Exchange News Service
21/01/201417:50ASCENDIS HEALTH LIMITED - Fulfilment of outstanding condition precedent
21/01/201417:17FIRSTRAND BANK LIMITED - New Instrument Listing-FRS101 and FRS102
21/01/201417:11AFRICAN DAWN CAPITAL LIMITED - Changes to the board
21/01/201417:01VUNANI PROPERTY INVESTMENT FUND LTD - Disclosure of a holding in VPIF units
21/01/201416:44FIRSTRAND BANK LIMITED - Interest Rate reset - FRJ16
21/01/201416:40INTU PROPERTIES PLC - Notification of Major Interest in Shares
21/01/201416:40ALLIED ELECTRONICS CORPORATION LTD - Dealing in Securities by the Altron Company...
21/01/201416:40NORTHAM PLATINUM LIMITED - Settlement reached at Northam Zondereinde mine
21/01/201416:35ASTRAPAK LIMITED - Report on round robin resolutions
21/01/201416:35RESILIENT PROPERTY INCOME FUND LTD - Interest Rate Reset-RES27
21/01/201416:32THE STANDARD BANK OF SA LTD - The Standard Bank of South Africa Limited Tap Iss...
21/01/201416:30JASCO ELECTRONICS HOLDINGS LIMITED - Disposal of automotive business
21/01/201416:29STANDARD BANK OF SOUTH AFRICA LD - The Standard Bank of South Africa - Issue of ...
21/01/201416:28STANDARD BANK OF SOUTH AFRICA LD - CANCELLATION OF S340597 SCIB: The Standard Ba...
21/01/201416:15JASCO ELECTRONICS HOLDINGS LIMITED - Results of the rights offer
21/01/201416:10AFRICAN DAWN CAPITAL LIMITED - Results of the Afdawn General Meeting
21/01/201416:00FAIRVEST PROPERTY HOLDINGS LIMITED - Results of annual general meeting of linked...
21/01/201415:53VUKILE PROPERTY FUND LIMITED - Change in investor relations contact
21/01/201415:50MICROMEGA HOLDINGS LIMITED - Appointments to the Board of Directors
21/01/201414:44GOLD FIELDS LIMITED - Media Release - Gold Fields to beat Guidance - Production ...
21/01/201414:35VUKILE PROPERTY FUND LIMITED - TRP121: Notification of change of beneficial inte...
21/01/201413:51BSI STEEL LIMITED - Trading in securities by a director
21/01/201413:49ALEXANDER FORBES PREF SHARE INV LTD - Report on proceedings at Alexander Forbes ...
21/01/201413:30INDEQUITY GROUP LIMITED - Results of Annual General Meeting
21/01/201412:00SECUREDATA HOLDINGS LIMITED - Results of general meeting
21/01/201411:40STANDARD BANK OF SOUTH AFRICA LD - The Standard Bank of South Africa Limited - N...
21/01/201411:38SEARDEL INVESTMENT CORPORATION LTD - Results of general meeting
21/01/201411:32SECUREDATA HOLDINGS LIMITED - Results of annual general meeting
21/01/201411:30ABSA BANK LIMITED - Interest Rate Reset-ABN58
21/01/201411:201TIME HOLDINGS LIMITED - Renewal of cautionary announcement
21/01/201411:19ATTACQ LIMITED - Proposed modification of certain resolutions proposed for adopt...
21/01/201411:08HUGE GROUP LIMITED - Change in Designation of the Chairman
21/01/201411:00IVUZI INVESTMENTS LIMITED - Listing of tap issue -IVA415
21/01/201410:51TAWANA RESOURCES NL - Metallurgical Results Confirm a 68% Fe Premium Grade Produ...
21/01/201410:41INDWA INVESTMENTS LIMITED - New Instrument Listing-INA417
21/01/201410:19FORBES & MANHATTAN COAL CORP - Forbes Coal extends its opencast operations
21/01/201409:56INVESTEC BANK LIMITED - Final Expiry Announcement RDHIHF
21/01/201409:22INVESTEC BANK LIMITED - Notice of Barrier for Hot Enhanced Dividend SHPIHF
21/01/201409:15ESKOM HOLDINGS SOC LIMITED - Media Statement
21/01/201409:11ANGLO AMERICAN PLAT LTD - Anglo American Platinum receives notice of intention t...
21/01/201409:00BLACKSTAR GROUP SE - Transaction in own shares
21/01/201409:00SABMILLER PLC - SABMiller plc Trading Update
21/01/201408:30ARGENT INDUSTRIAL LIMITED - Dealing in securities by a director
21/01/201407:05ALEXANDER FORBES PREF SHARE INV LTD - Cautionary announcement regarding the prop...
21/01/201407:05ELLIES HOLDINGS LIMITED - Unaudited interim results for the six months ended 31 ...

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