Tuesday, 04 November 2014 - 20:00
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Seed weekly - Investment greats ? George Soros
Our short bio on investments greats for today is George Soros – the legendary “man who broke the bank of England” hedge fund manager known for his large bets on macro-economic events.
Photo: georgesoros.com
Currently aged 84, and residing in New York, George Soros was born in Hungary. He survived the Nazi occupation of Budapest and thereafter fled the communist rule in Hungary in 1947 when he went to London as an impoverished student to study at the London School of Economics. There he studied philosophy and paid his way, working as a railway porter. In 1956 he moved to America and started working as an analyst and trader.
In 1973, after some positions at New York based investment firms, Soros went on his own and started Soros Fund Management. Their flagship fund, The Quantum Fund, which he ran for almost two decades, reported annualised returns in excess of 30% from 1970 to 2000, one of the most successful hedge funds in history.
He is known for his logical, yet abstract, investment style and has developed what he calls the theory of reflexivity. In its economic perspective it basically says that prices do in fact influence fundamentals, and that these newly influenced set of fundamentals then proceed to change expectations, thus influencing prices and the process continues in a self-reinforcing pattern. Because the pattern is self-reinforcing, markets tend towards disequilibrium. He believed that financial markets can at best be described as chaotic. Prices and currencies depend on people or traders (professional and non-professional) who buy and sell these assets. People often tend to act out of emotions rather than logical considerations.
He is most known for his highly leveraged trades in the international currency markets. He was a short term speculator – making huge bets on the direction of financial markets. He was very aware of behavioural biases in the financial markets. "I rely a great deal on animal instincts." He was not shy to “move with the herd”, but always watched for an opportunity to get out in front and "make a killing." "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."
He would have an instinctive physical reaction about when to buy and sell; making his strategy a difficult model to emulate. “I'm only rich because I know when I'm wrong ... I basically have survived by recognizing my mistakes. I very often used to get backaches due to the fact that I was wrong. Whenever you are wrong you have to fight or [take] flight. When [I] make the decision, the backache goes away.”
George Soros gained international notoriety when, in 16 September 1992 (aka “Black Wednesday”), he put a $ 10bn trade on a single currency speculation when shorting the British pound. He turned out to be right, and the trade generated a $ 1bn profit in one day. This trade is considered one of the greatest trades of all time. Later it was reported that his profit on the transaction almost reached $ 2bn. As a result, he is famously known as the "the man who broke the Bank of England."
He has written a few books, his first and most famous being the Alchemy of Finance (1988).
He is no longer managing his own money full-time, but his touch remains: last year, he apparently made a reported $ 1bn shorting the Japanese yen. Today he actively focuses his time on philanthropy and politics and you will see his views regularly on international news sites. He once wrote “My success in the financial markets has given me a greater degree of independence than most other people... This allows me to take a stand on controversial issues: In fact, it obliges me to do so because others cannot.”
Upon receiving an honorary doctorate from Oxford University he said he wanted to be presented as follows: “I would like to be called a financial, philanthropic and philosophical speculator." Food for thought.
Keep well,
Lourens Rabé
Sources
Investopedia, Forbes, Wikipedia, GeorgeSoros.com
Tue, 04 Nov 2014
Top News
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South Africa's rand edged up against the dollar on Tuesday, arresting a recent slide against a strong dollar before the release of domestic business-activity figures. Full story |
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A gathering of millions of Shi'ite Muslims at shrines and mosques across Iraq for the Ashoura religious commemoration passed without any major attacks on Tuesday, under tight security imposed for fear of Islamic State bombers. Full storyUnited Nations Secretary-General Ban Ki-moon said on Tuesday the holding of separatist elections in eastern Ukraine at the weekend was "unfortunate and counterproductive". Full story |
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Markets | Global equity markets fell on
Tuesday as European shares dropped and U.S. equities extended
declines after a Reuters report saying central bankers in. . . Full story | | Gold edged higher on Tuesday,
recovering from last week's four-year low, as the dollar's
retreat from multi-year highs against a currency basket relieved
downward. . . Full story | | European shares gained ground and
core bond yields dipped on Tuesday following a raft of company
trading updates, bucking a more muted trend. . . Full story | | Hong Kong shares ended mixed in
a volatile session on Tuesday, with Chinese listings in the
territory gaining on optimism over planned. . . Full story |
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| China shares ended flat on
Tuesday after a five-day rally as profit taking capped gains in
engineering and machinery companies, which rose after. . . Full story | | Japan's Nikkei share average hit a
seven-year high on Tuesday as investors gave a thumbs up to the
Bank of Japan's unexpected move. . . Full story | | Australian shares edged up 0.1
percent on Tuesday, with miners and banks providing support
after the Reserve Bank of Australia left interest rates
unchanged. . . Full story | | China shares were flat on
Tuesday morning after a five-day rally as profit taking capped
gains in engineering and machinery companies, which rose. . . Full story |
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SA Business | French energy major Total has halted oil exploration off the southern coast of Africa due to mechanical problems with a rig,. . . Full story | | South Africa's tax revenues jumped by 10.6 percent in the 2013/2014 fiscal year, helped by more people paying income tax due. . . Full story | | French energy major Total will only resume drilling off the South African coast in 2016 after the rig it was using. . . Full story | | Failed South African lender African Bank Investments (Abil) said on Tuesday it had delayed publication of its annual results as it. . . Full story |
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| Ketso Gordhan, the former head of PPC, wants to return to South Africa's biggest cement manufacturer as either chief executive or board member, he said on Tuesday.. . . Full story | | The ousted former head of South Africa's PPC said on Tuesday he would hold on to his shares in the cement maker even if he does not return as chief executive.. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 49788.32 | -234.32 | -0.47% | JSE Top 40 | 17:00 | 44451.72 | -254.19 | -0.57% | JSE Gold | 17:00 | 1008.47 | 7.13 | 0.71% | JSE Financial | 17:00 | 39512.63 | -170.74 | -0.43% | JSE Industrial | 17:00 | 68527.72 | -172.64 | -0.25% | JSE Indust 25 | 17:00 | 60674.27 | -172.38 | -0.28% | JSE Resource | 17:00 | 47575.34 | -533.84 | -1.11% | DJ Futures | 19:22 | 17275.00 | -2.00 | -0.01% | DJ Ind | 19:58 | 17376.20 | 9.96 | 0.06% | SP 500 | 19:58 | 2011.39 | -6.42 | -0.32% | Nasdaq | 19:58 | 4616.18 | -22.73 | -0.49% | FTSE 100 | 17:57 | 6451.70 | -36.27 | -0.56% | DAX | 19:08 | 9166.47 | -85.23 | -0.92% | CAC40 | 19:08 | 4130.19 | -63.84 | -1.52% | Nikkei | 08:30 | 16862.47 | 448.71 | 2.73% | Shanghai | 09:28 | 2430.68 | .65 | 0.03% | Hang-Seng | 06:28 | 23959.79 | 43.82 | 0.18% | All Ords | 07:49 | 5498.20 | 13.20 | 0.24% | NZSE 50 | 06:48 | 5423.26 | 5.04 | 0.09% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:59 | 1169.17 | 4.24 | 0.36% | Gold R | 19:58 | 12905.78 | 15.08 | 0.12% | Gold R/kg | 19:58 | 414880 | 489 | 0.12% | Silver $ | 19:59 | 16.0120 | -.0990 | -0.61% | Platinum $ | 19:59 | 1224.70 | -9.85 | -0.80% | Palladium $ | 19:59 | 788.90 | -13.00 | -1.62% | R157 | 22/09 | 6.99 | -.02 | 0.00% | R186 | 17:43 | 7.97 | .01 | 0.19% | R204 | 17:38 | 7.07 | .01 | 0.14% | R207 | 17:33 | 7.32 | .01 | 0.14% | Brent Crude | 19:58 | 82.61 | -2.17 | -2.56% | Rand / Dollar | 19:59 | 11.0415 | -0.0250 | -0.23% | Rand / Pound | 19:55 | 17.6295 | -0.0211 | -0.12% | Rand / Euro | 19:55 | 13.8550 | 0.0310 | 0.22% | Rand / NZD | 19:58 | 8.5903 | 0.0256 | 0.30% | Rand / AUD | 19:55 | 9.6415 | 0.0209 | 0.22% | Yen / Dollar | 19:59 | 113.5190 | -0.2910 | -0.26% | Euro / Dollar | 19:55 | 0.7968 | -0.0036 | -0.45% | Dollar / Euro | 19:59 | 1.2545 | 0.0055 | 0.44% | Pound / Dollar | 19:55 | 0.6250 | -0.0006 | -0.10% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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04/11/2014 | 141 | 208 | 68 | 417 | 226,365,451 | R14,887,354,176 | 214623 | 1299763 | 03/11/2014 | 209 | 168 | 65 | 442 | 210,781,938 | R14,970,409,756 | 208052 | 258665 | 31/10/2014 | 293 | 97 | 57 | 447 | 286,317,383 | R20,057,400,517 | 241921 | 1628186 | 30/10/2014 | 136 | 222 | 59 | 417 | 261,496,176 | R16,028,235,985 | 219665 | 1531967 | 29/10/2014 | 256 | 109 | 54 | 419 | 224,505,779 | R15,489,547,399 | 206219 | 1179287 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 44,451.72 | -254.19 | -0.57% | Industrial | 68,527.72 | -172.64 | -0.25% | Mid Cap | 65,785.88 | 37.10 | 0.06% | Small Cap | 56,514.46 | 7.26 | 0.01% | Resource 20 | 47,575.34 | -533.84 | -1.11% | Industrial 25 | 60,674.27 | -172.38 | -0.28% | Financial 15 | 15,173.37 | -83.40 | -0.55% | Financial & Ind. 30 | 64,765.60 | -272.06 | -0.42% | All Share | 49,788.32 | -234.32 | -0.47% | Oil & Gas | 41,091.29 | -1514.24 | -3.55% | Mining | 27,493.77 | -108.57 | -0.39% | Gold Mining | 1,008.47 | 7.13 | 0.71% | Platinum Mining | 35.46 | .00 | 0.00% | GENERAL MINING | 8,245.50 | -43.68 | -0.53% | Oil & Gas Producers | 22,094.03 | -814.18 | -3.55% | Basic Materials | 24,868.30 | -75.45 | -0.30% | Chemicals | 24,394.53 | 168.08 | 0.69% | Forestry & Paper | 32,737.80 | 91.76 | 0.28% | Industrial Metals | 16,188.15 | 6.03 | 0.04% | Industrials | 47,232.37 | -12.94 | -0.03% | General Industrials | 158.87 | .09 | 0.06% | Consumer Goods | 60,201.98 | -367.56 | -0.61% | Automobiles & Parts | 8,672.88 | 249.09 | 2.96% | Household Goods | 389.88 | -0 | -0.07% | Health Care | 9,989.57 | 50.50 | 0.51% | Beverages | 212.02 | -.27 | -0.13% |
| | Index Name | RP | Move | % Move | Food Producers | 8,377.21 | 26.71 | 0.32% | Personal Goods | 906.18 | -23.07 | -2.48% | Consumer Services | 13,069.73 | 5.02 | 0.04% | General Retailers | 71,106.50 | 635.83 | 0.90% | Travel & Leisure | 6,087.18 | -10.32 | -0.17% | Media | 299.53 | -1.31 | -0.44% | Support Services | 2,862.72 | -8.69 | -0.30% | Telecommunications | 11,722.71 | -54.81 | -0.47% | Financials | 39,512.63 | -170.74 | -0.43% | Banks | 68,625.02 | -848.19 | -1.22% | Non-life Insurance | 52,320.53 | -96.98 | -0.19% | Life Insurance | 37,229.32 | -44.80 | -0.12% | General Financial | 3,845.91 | -.73 | -0.02% | Technology | 48,025.34 | 181.33 | 0.38% | SHARIAH TOP40 | 3,857.09 | -27 | -0.71% | FTSE/JSE SHARIAH ALL | 4,032.28 | -23 | -0.57% | COAL MINING | 14,639.16 | -215 | -1.45% | FTSE JSE Fledgling | 6,542.09 | -5 | -0.07% | FTSE/JSE Alt X | 1,324.69 | 4 | 0.32% | SA LISTED PROPERTY | 572.56 | | -0.23% | CAPPED PROPERTY | 496.46 | | -0.14% | RESOURCE | 25,839.61 | -279 | -1.07% | DIVIDEND PLUS | 225.04 | -1 | -0.37% | FTSE/JSE RAFI 40 | 9,582.01 | -53 | -0.55% | Capped Top 40 | 23,654.84 | -136 | -0.57% | Capped All Share | 25,240.12 | -119 | -0.47% | JSE TABACO | 8,040.84 | 107 | 1.35% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | REI | REINET INVESTMENTS SCA | BUY | 03/11/2014 | NED | NEDBANK GROUP LTD | HOLD | 31/10/2014 | VOD | VODACOM GROUP LIMITED | HOLD | 30/10/2014 | SGL | SIBANYE GOLD LIMITED | HOLD | 29/10/2014 | AFX | AFRICAN OXYGEN LTD | SELL | 28/10/2014 |
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Results Expected** Expected | Company Name | Fin. Date | 05/11/2014 | DELTA INT | May 2014 (Q) | 05/11/2014 | HARMONY | September 2014 (Q) | 05/11/2014 | HARMONY-P | September 2014 (Q) | 05/11/2014 | RAUBEX | August 2014 (Interim) | 05/11/2014 | SVF | June 2014 (Final) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | TRNSHEX | 03/11/14 | 21/11/14 | 01/12/14 | ZAR 0.5000 | SPANJAARD | 31/10/14 | 14/11/14 | 24/11/14 | ZAR 0.1000 | ECSP A | 31/10/14 | 07/11/14 | 17/11/14 | ZAR 0.8493 | CAR | 31/10/14 | 28/11/14 | 08/12/14 | ZAR 0.0600 | ECSP C | 31/10/14 | 07/11/14 | 17/11/14 | ZAR 1.1253 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | PSG | 13/10/14 | 31/10/14 | 10/11/14 | ZAR 0.5500 | DELPROP | 13/10/14 | 31/10/14 | 10/11/14 | ZAR 0.4001 | FPT | 09/10/14 | 31/10/14 | 10/11/14 | ZAR 0.2928 | EQUITES | 10/10/14 | 31/10/14 | 10/11/14 | ZAR 0.2037 | ANCHOR | 29/09/14 | 31/10/14 | 10/11/14 | ZAR 0.0300 |
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Upcoming AGMs** Code | Company Name | Date | Status | GRF | Group Five Ltd. | 04/11/2014 | Confirmed | IPL | Imperial Holdings Ltd. | 04/11/2014 | Confirmed | IPLP | Imperial Holdings Ltd. | 04/11/2014 | Confirmed | IPLPP | Imperial Holdings Ltd. | 04/11/2014 | Confirmed | AEG | Aveng Ltd. | 04/11/2014 | Confirmed |
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