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 The Sharenet Daily 
Tuesday, 22 April 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
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Seed Weekly - Value Investing the Buffett Way (Part 6 2003 ? 2007)

2003 marked the first positive year on the S&P500 following the Dotcom bubble. The US stock market experienced another bull market period leading up to the start of the financial crisis in 2007.

By this time Warren Buffett has been around for so long that he has a very good feeling for the market and also for big US companies. During 2003 he mentions of his purchase of McLane, a subsidiary of Wal-Mart: “We did no “due diligence.” We knew everything would be exactly as Wal-Mart said it would be – and it was.” For Buffett – it’s much more than just a company he purchases – it’s a belief in their management, integrity and product.

He wants to be able to make a character judgement on the company and its management and preferably management must own a stake in the business. “Charlie and I love such honest-to-God ownership. After all, whoever washes a rental car?” He praises the owner of one of Berkshire’s star companies, the Belarus-born “Mrs B” who died during 2003 at the age of 103 and had worked until her death. Her company motto was “sell cheap and tell the truth”. Being a low cost producer demands success, but if a business requires a superstar manager to produce great results, the business itself cannot be deemed great. “The company should be simple that it can be run by a monkey”. Unfortunately, finding these businesses is not that common and Mr Buffett admits “I’ve never gone to bed with an ugly woman, but I’ve sure woke up with a few.”

Interestingly, during 2003 Berkshire Hathaway sent the US Treasury $3.3 billion for tax on its 2003 income, a sum equalling 2½% of the total income tax paid by all US corporations. In contrast, Berkshire’s market valuation at that time was about 1% of the value of all US corporations. “Our payment will almost certainly place us among our country’s top ten taxpayers.”

Berkshire ended 2004 with $43 billion of cash equivalents, not a happy position. “Charlie and I will work to translate some of this hoard into more interesting assets during 2005, though we can’t promise success”

As always, Mr Buffett makes investing into stocks seem so simple. In his 2006 letter he tells the story of one of his long-time friends, Walter Schloss, who managed a remarkably successful investment partnership. He didn’t take a dime unless his investors made money. Walter did not go to business school, or for that matter, college. His office contained one file cabinet in 1956; the number mushroomed to four by 2002. Walter worked without a secretary, clerk or bookkeeper, his only associate being his son, Edwin, a graduate of the North Carolina School of the Arts. “We try to buy stocks cheap.” He built this record by investing in about 1,000 securities, mostly of a lacklustre type.

“So much for Modern Portfolio Theory, technical analysis, macroeconomic thoughts and complex algorithms. Walter produced results over his 47 years that dramatically surpassed the S&P 500. And what did members of the academic community do when they were exposed to this new and important evidence? Unfortunately, they reacted in all-too-human fashion: Rather than opening their minds, they closed their eyes. To my knowledge no business school teaching Efficient Market Hypothesis made any attempt to study Walter’s performance and what it meant for the school’s cherished theory. Walter meanwhile went on over performing, his job made easier by the misguided instructions that had been given to those young minds.” Buffett frequently made known his thoughts on investment academics and participants.

By the time that his 2007 letter was published the credit crisis had started. Just about all Americans came to believe that house prices would forever rise. That conviction made a borrower’s income and cash equity seem unimportant to lenders, who shovelled out money, confident that house price appreciation would cure all problems. Some major financial institutions experienced staggering problems because they engaged in “weakened lending practices”. “It is interesting that the industry has invented new ways to lose money when the old ways seemed to work just fine.” The next article will cover this crisis in more detail.

Kind regards

Lourens Rabé

021 914 4966

Tue, 22 Apr 2014
Top News
Gold prices dropped to their lowest in more than two months on Tuesday, weighed down by gains on Wall Street stocks and as outflows from physical gold funds pointed to weak investment appetite.  Full story

Mining companies helped lift South African shares higher on Tuesday, after mining union members and executives from the world's top platinum producers met to discuss a deal aimed at ending a crippling 13-week strike.  Full story
U.S. Vice President Joe Biden told Russia on Tuesday that "time is short" for action on defusing the crisis in eastern Ukraine, but Moscow refused to be rushed, saying it could handle any tougher economic sanctions the West might impose.  Full story
Chlorine gas attacks in Syria this month, if proven, expose a major loophole in an international deal to remove chemical weapons from the war-torn country and suggest chemical warfare could persist after the removal operation has finished.  Full story
A Japanese cabinet minister and about 150 lawmakers visited Yasukuni Shrine, seen by critics as a symbol of Japan's past militarism, on Tuesday, sparking anger among Asian neighbors and U.S. frustration a day before U.S. President Barack Obama visits Japan.  Full story
Global equity markets rose on Tuesday, powered by solid U.S. corporate earnings and deal-making activity among European drugmakers, while the euro edged above break-even.. . .  Full story
European shares rose on Tuesday, boosted by mergers and acquisitions activity in the pharmaceuticals sector and by bullish euro zone consumer confidence data.. . .  Full story
U.S. stocks rose on Tuesday, with both the S&P 500 and Nasdaq on track for a sixth straight day of gains as a. . .  Full story
Corporate activity in the pharmaceutical sector on Tuesday pushed Britain's benchmark stock index to a two-week high and to within sight of a. . .  Full story

Investors trimmed their positions of U.S. dollars on Tuesday after a two-week run higher, unmoved by a U.S. March existing home sales report. . .  Full story
U.S. stocks edged up on Tuesday boosted by deals in the healthcare sector and upbeat results, while Facebook and Netflix lifted the Nasdaq.. . .  Full story
Hong Kong shares edged lower on Tuesday, dragged down by losses in China Resources Power after Chinese authorities said they were probing. . .  Full story
China shares closed up 0.3 percent on Tuesday, as strong performances from free trade zone firms helped the index turnaround from being in. . .  Full story
SA Business
Chief executives of the world's top platinum producers were to again meet the leaders of the AMCU union on Tuesday for wage talks in a bid to find an agreement to end the longest and most costly strike on South Africa's. . .  Full story
South Africa's rand was largely flat against the dollar on Tuesday as trading resumed after the Easter holiday, with a local mine strike that has dragged on for months as well as political turmoil in Ukraine posing downward risks for the. . .  Full story

South Africa's treasury sold 2.35 billion rand ($224 million) worth of its 2023, 2037 and 2048 bonds on Tuesday.. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0048643.31281.090.58%
JSE Top 4017:0043711.36264.840.61%
JSE Gold17:001488.69-10.03-0.67%
JSE Financial17:0035949.75257.650.72%
JSE Industrial17:0062604.91390.240.63%
JSE Indust 2517:0055223.83357.310.65%
JSE Resource17:0057077.49224.940.40%
DJ Futures19:1816480.00109.000.67%
DJ Ind19:5816559.42110.170.67%
SP 50019:581884.5712.680.68%
FTSE 10017:356681.7656.510.85%
All Ords08:435467.1022.300.41%
NZSE 5007:485104.941.590.03%
NameTimeRPMove% Move
Gold $19:591281.38-8.60-0.67%
Gold R19:5813512.86-22.71-0.17%
Gold R/kg19:58434631-2969-0.68%
Silver $19:5919.3840-.0300-0.15%
Platinum $19:591397.701.050.08%
Palladium $19:59782.806.300.81%
Brent Crude19:48108.97.170.16%
Rand / Dollar19:5910.54660.05310.51%
Rand / Pound19:5517.71490.13610.77%
Rand / Euro19:5514.55250.08610.60%
Rand / NZD19:589.07050.07400.82%
Rand / AUD19:559.87890.08600.88%
Yen / Dollar19:59102.6150-0.0140-0.01%
Euro / Dollar19:550.7243-0.0004-0.06%
Dollar / Euro19:591.38010.00080.06%
Pound / Dollar19:550.5939-0.0013-0.22%

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 SABVEST  335050017.54.%2499
2 AQPN  1762113.55.%557083
3 DIAMONDCP  1041010.64.%76819
4 BUILDMX  269197.60.%6636
5 NET1UEPS  91105606.55.%13342
6 SEARDEL  16595.77.%124901
7 PICKNPAY  57603005.49.%1187727
8 SAPPI  35431835.45.%819217
9 MERAFE  11554.55.%1074940
10 TORRE  27593.38.%406807
11 ARCMITTAL  38501253.36.%223768
12 KAP  377123.29.%36417
13 TRENCOR  72502303.28.%64743
14 RIPLC  1012313.16.%149676
15 PIKWIK  2421733.11.%91897
16 NAMPAK  37481082.97.%1291421
17 STEINHOFF  53651512.90.%15239332
18 PUTPROP  720202.86.%81418
19 CSG  24762.49.%21712
20 CLICKS  62491482.43.%311105

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Major Moves Down
SharenameSaleMove% MoveVolume
1 AQUARIUS  430-315-42.28.%1642581
2 CENRAND  260-50-16.13.%2516
3 TELEMASTR  132-18-12.00.%4000
4 HUGE  147-15-9.26.%127000
5 TREMATON  340-25-6.85.%1155
6 PALLINGHT  330-20-5.71.%662199
7 CADIZ  101-6-5.61.%10500
8 CALGRO  666-34-4.86.%41128
9 MMG  860-40-4.44.%1307
10 STEFSTOCK  841-39-4.43.%1271
11 FORBES  335-15-4.29.%600
12 CULLINAN  230-10-4.17.%1400
13 CAMAC  722-29-3.86.%14558
14 BOWCALF  770-30-3.75.%4011
15 ITLTILE  790-30-3.66.%23850
16 BRIMSTON  1340-50-3.60.%57484
17 OANDO  115-4-3.36.%32329
18 TRNSHEX  360-12-3.23.%831
19 AUSTRO  155-5-3.13.%4700
20 KEATON   241-7-2.82.%22357

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New Highs
SharenameSaleHighMove% MoveVolume
1 SABVEST  3350335050017.54.%2499
2 AQPN  1762102113.55.%557083
3 PICKNPAY  576058123005.49.%1187727
4 PIKWIK  24212475733.11.%91897
5 INVLTD  900090001521.72.%252339
6 SUPRGRP  28532910431.53.%499973
7 INVPLC  894089861061.20.%1878171
8 PHUMELELA  21252126150.71.%170026
9 RMBH  50865086260.51.%1006658
10 NIVEUS  27902790100.36.%1430
11 RMIH  3025304650.17.%381447

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New Lows
SharenameSaleLowMove% MoveVolume
1 AQUARIUS  430420-315-42.28.%1642581
2 CAMAC  722722-29-3.86.%14558

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Index Summary
Index NameRPMove% Move
Top 4043,711.36264.840.61%
Mid Cap62,365.61292.360.47%
Small Cap52,604.49127.780.24%
Resource 2057,077.49224.940.40%
Industrial 2555,223.83357.310.65%
Financial 1513,762.31111.990.82%
Financial & Ind. 3059,060.88409.640.70%
All Share48,643.31281.090.58%
Oil & Gas 44,379.35162.700.37%
Mining 34,138.13134.210.39%
Gold Mining1,488.69-10.03-0.67%
Platinum Mining51.99.440.85%
GENERAL MINING9,858.1245.860.47%
Oil & Gas Producers 23,861.9587.480.37%
Basic Materials 30,035.15151.030.51%
Chemicals 23,967.73195.320.82%
Forestry & Paper 29,929.01644.352.20%
Industrial Metals 20,878.90-93.32-0.44%
Industrials 44,664.9286.750.19%
General Industrials
Consumer Goods 58,796.27615.371.06%
Automobiles & Parts 9,623.95.000.00%
Household Goods364.66102.90%
Health Care 76,202.69-1201.20-1.55%
Beverages 186.551.891.02%
Index NameRPMove% Move
Food Producers 69,856.6044.460.06%
Personal Goods 1,053.107.590.73%
Consumer Services 10,935.5622.670.21%
General Retailers 59,443.74-33.67-0.06%
Travel & Leisure 5,648.3159.171.06%
Support Services 2,564.383.980.16%
Telecommunications 10,420.0499.840.97%
Financials 35,949.75257.650.72%
Banks 62,289.76299.710.48%
Non-life Insurance 49,964.83451.750.91%
Life Insurance 34,169.43407.961.21%
General Financial 3,671.9031.250.86%
Technology 42,089.08261.490.63%
SHARIAH TOP40 4,206.66230.55%
FTSE/JSE SHARIAH ALL4,307.26200.47%
COAL MINING17,948.77-3-0.01%
FTSE JSE Fledgling 6,606.78-13-0.20%
FTSE/JSE Alt X 1,197.37-7-0.57%
RESOURCE 31,220.951210.39%
DIVIDEND PLUS220.9210.24%
FTSE/JSE RAFI 409,782.95590.61%
Capped Top 4023,129.361380.60%
Capped All Share24,625.471410.58%
JSE TABACO 7,791.281251.63%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
23/04/2014LABATFebruary 2014 (Final)
23/04/2014RIPLCFebruary 2014 (Interim)
24/04/2014ALTECHFebruary 2014 (Final)
24/04/2014CLICKSFebruary 2014 (Interim)
24/04/2014OCTODECFebruary 2014 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
BLACKSTAR16/04/1430/04/1430/05/14GBP 0.0080
PSG16/04/1409/05/1419/05/14ZAR 0.9000
PIKWIK15/04/1406/06/1417/06/14ZAR 0.3710
PICKNPAY15/04/1406/06/1417/06/14ZAR 0.7750
DCENTRIX15/04/1409/05/1419/05/14ZAR 0.0817
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ILRPREF131/03/1416/04/1429/04/14ZAR 12.2033
BRIMST-N04/03/1416/04/1429/04/14ZAR 0.3000
BRIMSTON04/03/1416/04/1429/04/14ZAR 0.3000
MONDILTD28/02/1416/04/1422/05/14EUR 0.2645
MONDIPLC28/02/1416/04/1422/05/14EUR 0.2645

Upcoming AGMs**
CodeCompany NameDateStatus
HLMHulamin Ltd.24/04/2014Confirmed
HULAHulamin Ltd.24/04/2014Confirmed
HULBHulamin Ltd.24/04/2014Confirmed

Stock Exchange News Service
22/04/201417:40SABMILLER PLC - Block listing six monthly return
22/04/201417:30FIRSTRAND BANK LIMITED - New Instrument Listing-FRS112
22/04/201417:27SA CORPORATE REAL ESTATE FUND - The Acquisition by SA Corporate Of Afhco Holding...
22/04/201417:16INVESTEC BANK LIMITED - Dividend Announcement - SBKIHH
22/04/201417:12DORBYL LIMITED - Posting of circular and notice of scheme meeting
22/04/201417:10UBUBELE HOLDINGS LIMITED - Dealing in Ububele Holdings Limited securities by an ...
22/04/201417:00DATATEC LIMITED - Notification of change in a major interest in Datatec shares
22/04/201416:30DELTA PROPERTY FUND LIMITED - Acquisition of OMC Durban and the Marine
22/04/201416:14STANDARD BANK OF SOUTH AFRICA LD - The Standard Bank of South Africa - Notice of...
22/04/201416:05BANK OF CHINA LIMITED - New Debt Instrument - BCJ04
22/04/201416:01JUBILEE PLATINUM PLC - TR-1: Notification of major interest in shares
22/04/201416:00CONDUIT CAPITAL LIMITED - Notification in terms of section 122(3) of the Compani...
22/04/201416:00JUBILEE PLATINUM PLC - TR-1: Notification of major interest in shares
22/04/201415:59THE STANDARD BANK OF SA LTD - New Financial Instrument Listing Announcement - SB...
22/04/201415:58ATTACQ LIMITED - Dealings in securities by an associate of a director of Attacq
22/04/201415:55STANDARD BANK OF SOUTH AFRICA LD - The Standard Bank of South Africa Limited - N...
22/04/201415:53UBUBELE HOLDINGS LIMITED - Results of the Ububele Rights Offer
22/04/201415:30CAMAC ENERGY INCORPORATED - Operational Update
22/04/201415:21THE THEKWINI WAREHOUSING CONDUIT (RF) LTD - New Financial Instrument Listing - T...
22/04/201415:20THE THEKWINI WAREHOUSING CONDUIT (RF) LTD - New Financial Instrument Listing - T...
22/04/201415:00ELB GROUP LIMITED - Implementation of the acquisition by ELB Group Limited of B&...
22/04/201414:53TRUSTCO GROUP HOLDINGS LIMITED - Shareholder Update
22/04/201414:50OANDO PLC - Oando Energy Resources increases deposit for acquisition of Nigerian...
22/04/201414:50HYPROP INVESTMENTS LIMITED - Dealings in securities by an associate of a directo...
22/04/201414:33SASOL LIMITED - Dealing in securities by a director of a major subsidiary of Sas...
22/04/201414:00THE BIDVEST GROUP LIMITED - Director's Dealings
22/04/201413:40PLATFIELDS LIMITED - Withdrawal of cautionary announcement
22/04/201413:06AFRICA ETF ISSUER LTD (RF) - ETFPLD - Listing of Additional - AfricaPalladium d...
22/04/201413:00SEKUNJALO INVESTMENTS LIMITED - Media release: Sekunjalo posts impressive interi...
22/04/201412:45SEKUNJALO INVESTMENTS LIMITED - Unaudited interim results for the period ended 2...
22/04/201412:20SYNTHESIS FUNDING LIMITED - New listing - Zero Coupon Note - SY1075
22/04/201412:20SYNTHESIS FUNDING LIMITED - New listing - Zero Coupon Note - SY1076
22/04/201412:13HOSPITALITY PROPERTY FUND LIMITED - Listing of Tap Issue - HPF04
22/04/201412:07NEW GOLD ISSUER LIMITED - GLD-Additional Listing of 800 000 NewGold Debentures
22/04/201412:03NEW GOLD ISSUER LIMITED - GLD-Additional Listing of 400 000 NewGold Debentures
22/04/201411:50ABSA BANK LIMITED - New Financial Instrument Listing - ASN016
22/04/201411:49NEW GOLD ISSUER LIMITED - NGPLD-Additional Listing of NewGold Palladium Debentur...
22/04/201411:00SABMILLER PLC - Change in particulars of a non-executive director
22/04/201410:49INTU PROPERTIES PLC - Sale of Rights Issue Rump
22/04/201410:06TOYOTA FIN SERVICES (SA) LTD - Fulll Capital Redemption-TFS119
22/04/201410:00DELTA PROPERTY FUND LIMITED - The acquisition of OMC Durban and the Marine and C...
22/04/201409:20BUSINESS CONNEXION GROUP LIMITED - Disclosure of significant holding by Discover...
22/04/201408:30TORRE INDUSTRIAL HOLDINGS LIMITED - Dealing in securities by an associate of a d...
22/04/201408:10SABVEST LIMITED - Changes to the board
22/04/201408:00INVESTEC BANK LIMITED - Investec Issue of Equity Structured Product (ESPIBF)
22/04/201408:00BLACKSTAR GROUP SE - Director Dealing
22/04/201408:00INTU PROPERTIES PLC - Results of Rights Issue
22/04/201407:30JSE LIMITED - Notice of amendments to resolutions to be tabled at the ninth Annu...
22/04/201407:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares

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