Tuesday, 21 July 2015 - 20:00
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Seed Weekly - Investment Greats - Peter Lynch
Peter Lynch was born in 1944 in the USA, just before the end of the Second World War. He is most well-known for his management roles and especially the fund management role at Fidelity Investments Inc.
His father died when he was seven so at the age of 11 he got his first job at caddying golf to help his mother to pay the bills. This eventually gained him a contact to an internship at Fidelity after graduating from college.
After serving two years in the military he went on to finish his MBA studies in 1968 at the University of Pennsylvania. He returned to work for Fidelity Investments as an investment analyst, eventually working himself up to the firm's director of research. Thereafter Lynch was named manager of the (then little known) “Fidelity Magellan Fund” in 1977 which he continued to manage until his retirement in 1990. During his management tenure, the fund's assets grew from $20 million to $14 billion while he outperformed the S&P 500 Index benchmark in 11 of those 13 years, achieving an annual average return of 29% - making it one of the best performing mutual funds in the world.
His most famous investment principle is simply, "Invest in what you know". He had a chameleon-like investment style in that he adapted to whatever investment style worked at the time. He worked around the clock, talking with company executives, other investment managers, industry experts and analysts. Always keeping an eye out for opportunities, he found many investment opportunities when not in his office, during everyday life while out with his family, driving around or making a purchase at the mall. "If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them."
He dedicated himself to a high level of due diligence and company research. "Investing without research is like playing stud poker and never looking at the cards." He disregarded market noise and concentrated on a company's fundamentals rather, using a bottom-up approach. "Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it." He believed it futile to predict the economy and interest rates. "If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes."
He avoided the “long shots” rather investing for the long run and paid little attention to short-term market fluctuations. "Absent a lot of surprises, stocks are relatively predictable over twenty years. As to whether they're going to be higher or lower in two to three years, you might as well flip a coin to decide."
Over the course of his life he is widely written and quoted. He’s known for coining the phrase "ten bagger" which refers to an investment which is worth ten times its original purchase price.
Perhaps his most famous book you might find on any investor’s bookshelf is "One up on Wall Street" (1989). This book as well as “Beating the Street" (1993) and “Learn to earn” (1996) are widely considered to be mandatory reading for any investor.
Following retirement, he continues to work part-time as vice chairman of Fidelity Management & Research Co., spending most of his time mentoring young analysts. He has also been an active participant in a variety of philanthropic endeavors (which he sees as social investment).
Keep well,
Lourens Rabé
Sources
Investopedia, Bloomberg, Wikipedia
Tel 0219144966
Fax 0219144912
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Tue, 21 Jul 2015
Top News
Local markets
The JSE All Share ended 0.16% lower on Tuesday as gains in gold miners and resources were not enough to offset losses in other sectors. Full story
South Africa's rand strengthened against the dollar on Tuesday supported by a recovery in commodity prices and as the greenback paused its recent rally against a basket of currencies.
At 1435 GMT, the rand was trading 0.59 percent firmer at 12.3615 to the dollar compared with its c Full story |
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A policeman and an opposition official died in violence at the start of Burundi's presidential election on Tuesday, held amid protests over President Pierre Nkurunziza's decision to run for a third term and an opposition boycott. Full storyPresident Barack Obama on Tuesday listed Americans held in Iran by name and said the United States will not give up until they are returned. Full storyFrance's hard line towards Iran in nuclear negotiations won't hurt its businesses once sanctions are lifted, Foreign Minister Laurent Fabius said on Tuesday before a trip to Tehran aimed at reviving relations. Full story |
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Markets | Crude oil edged higher and
gold prices rose on Tuesday on the back of a softer U.S. dollar,
while earnings hurt Wall Street. . . Full story | | A rush of activity in near-term
Comex gold options after Monday morning's dramatic price rout
suggests investors are braced for the market sliding. . . Full story | | Gold was on the brink of
five-year lows on Tuesday, with more losses expected in the
coming months following Monday's "bear raid" when. . . Full story | | A dramatic slide in
gold prices this week threatens to squash a run of mining
mergers and acquisitions just as momentum in the. . . Full story |
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| Hong Kong stocks rose on Tuesday, with
investors encouraged by signs that mainland share markets are
stabilising.. . . Full story | | China stocks rose for the
fourth straight session on Tuesday, with gains in telecoms and
start-up firms offsetting weakness in banks, as investors
regained. . . Full story | | Australian shares ended up 0.35
percent on Tuesday, rising for a sixth straight session, led by
solid gains in banks and consumer staples. . . Full story | | Japan's Nikkei share average
climbed to near four-week highs on Tuesday, supported by growing
expectations for strong first-quarter earnings while gains in
Chinese shares. . . Full story |
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SA Business | South Africa's Evraz Steel and Vanadium said on Tuesday it could lay off more than 1,000 workers after temporarily ceasing the. . . Full story | | South African private education group Advtech said on Tuesday it had rejected a takeover offer from its bigger rival Curro Holdings,. . . Full story | | South Africa's Kumba Iron Ore suspended its half-year dividend for the first time after a plunge in profits and warned low. . . Full story | | Officials from the world's largest emerging nations launched the New Development Bank (NDB) on Tuesday, the second of two new policy. . . Full story |
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| China's central bank and
finance ministry will inject billions of dollars into the
country's policy banks, Caixin reported on Tuesday without
specifying the source of its information.. . . Full story | | South African platinum producer Northam Platinum said on Tuesday output at its Booysendal mine had been disrupted by protesters in the surrounding town of Steelpoort.. . . Full story |
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Company News | Further to the announcement on 20 July 2015, in relation to the allotment of 1,689,556 ordinary ZAR 0.01 shares to satisfy. . . Full story | | Shareholders are referred to the further cautionary announcement published on SENS on Tuesday, 14 July 2015. Following receipt of the initial. . . Full story | | Shareholders are advised that despite successful efforts to reduce fixed costs as well as process improvements in efficiencies, it was decided. . . Full story | | Medclin shareholders are referred to the announcement released on the Stock Exchange News Service ("SENS") on 22 June 2015 relating to. . . Full story |
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| We draw attention to the following news release issued by Textainer Group Holdings Limited, in which Trencor has a 47,9% beneficiary. . . Full story | | Shareholders are advised that the annual report containing the annual financial statements for the year ended 28 February 2015, will be. . . Full story | | Cenrand announced the appointment, with immediate effect, of Panmure Gordon (UK) Ltd. as the Company¦s nominated adviser and broker. This follows. . . Full story | | Anglo wished to draw attention to Kumba Iron Ore Ltd.¦s ("Kumba") announcement of its results for the six months ended 30. . . Full story |
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Company Results | Net sales revenue grew 7% to R29.8 billion (R27.8 billion). Operating profit shot up 976% to R3.8 billion (R0.4 billion). Profit attributable to owners increased by 470% to R2.4 billion (R0.4 billion). In addition, headline earning per share jumped to 946cps. . . Full story | | Revenue for the interim period decreased to R20.5 billion (2014: R26.4 billion). Operating profit weakened to R5.8 billion (2014: R12.3 billion), while profit for the period attributable to owners of Kumba lowered to R2.5 billion (2014: R6.5 billion). Furthermore, headline earnings. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 52901.42 | -86.90 | -0.16% | JSE Top 40 | 17:00 | 47256.32 | -132.35 | -0.28% | JSE Gold | 17:00 | 869.80 | 22.87 | 2.70% | JSE Financial | 17:00 | 45865.95 | -130.90 | -0.28% | JSE Industrial | 17:00 | 76674.85 | -100.85 | -0.13% | JSE Indust 25 | 17:00 | 68450.30 | -92.17 | -0.13% | JSE Resource | 17:00 | 37580.52 | -37.19 | -0.10% | DJ Futures | 19:48 | 17804.00 | -199.00 | -1.11% | DJ Ind | 19:58 | 17882.98 | -217.43 | -1.20% | SP 500 | 19:58 | 2117.31 | -10.97 | -0.52% | Nasdaq | 19:58 | 5205.68 | -13.18 | -0.25% | FTSE 100 | 17:35 | 6769.07 | -19.62 | -0.29% | DAX | 18:08 | 11604.80 | -130.92 | -1.12% | CAC40 | 18:08 | 5106.57 | -35.92 | -0.70% | Nikkei | 08:32 | 20841.97 | 191.05 | 0.93% | Shanghai | 09:28 | 4017.67 | 25.56 | 0.64% | Hang-Seng | 10:30 | 25536.43 | 131.62 | 0.52% | All Ords | 08:46 | 5688.50 | 19.50 | 0.34% | NZSE 50 | 07:48 | 5876.91 | 14.99 | 0.26% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:59 | 1102.75 | 4.30 | 0.39% | Gold R | 19:58 | 13602.14 | -48.89 | -0.36% | Gold R/kg | 19:58 | 437031 | -4348 | -0.99% | Silver $ | 19:59 | 14.8070 | .1520 | 1.04% | Platinum $ | 19:59 | 979.17 | 5.17 | 0.53% | Palladium $ | 19:59 | 626.20 | 23.20 | 3.85% | R186 | 16:59 | 8.16 | -.01 | -0.06% | R204 | 16:59 | 7.46 | .00 | 0.07% | R207 | 16:59 | 7.67 | .01 | 0.13% | Brent Crude | 19:48 | 56.84 | -.88 | -1.52% | USD / ZAR | 19:59 | 12.3324 | -0.0965 | -0.78% | GBP / ZAR | 19:55 | 19.1588 | -0.1558 | -0.81% | EUR/ ZAR | 19:55 | 13.5020 | 0.0480 | 0.36% | NZD/ ZAR | 19:58 | 8.1948 | 0.0411 | 0.50% | AUD / ZAR | 19:55 | 9.1669 | 0.0039 | 0.04% | USD / JPY | 19:59 | 123.8490 | -0.4610 | -0.37% | EUR / USD | 19:59 | 1.0948 | 0.0125 | 1.16% | GBP / USD | 19:59 | 1.5559 | -0.0000 | 0.00% |
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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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21/07/2015 | 177 | 161 | 61 | 399 | 237,916,026 | R16,708,692,734 | 209294 | 1235956 | 20/07/2015 | 175 | 160 | 58 | 393 | 216,130,722 | R13,798,920,720 | 213154 | 1302430 | 17/07/2015 | 186 | 177 | 54 | 417 | 212,679,879 | R14,815,631,087 | 209942 | 1265286 | 16/07/2015 | 190 | 156 | 53 | 399 | 269,766,207 | R20,347,332,682 | 278785 | 1301427 | 15/07/2015 | 219 | 109 | 67 | 395 | 236,652,655 | R16,520,743,402 | 212183 | 1591926 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 47,256.32 | -132.35 | -0.28% | Industrial | 76,674.85 | -100.85 | -0.13% | Mid Cap | 69,475.23 | 343.03 | 0.50% | Small Cap | 59,884.49 | 109.46 | 0.18% | Resource 20 | 37,580.52 | -37.19 | -0.10% | Industrial 25 | 68,450.30 | -92.17 | -0.13% | Financial 15 | 17,380.15 | -79.24 | -0.45% | Financial & Ind. 30 | 73,718.07 | -189.28 | -0.26% | All Share | 52,901.42 | -86.90 | -0.16% | Oil & Gas | 12,021.03 | 601.05 | 5.26% | Mining | 22,470.28 | -23.13 | -0.10% | Gold Mining | 869.80 | 22.87 | 2.70% | Platinum Mining | 23.54 | .18 | 0.77% | GENERAL MINING | 6,862.19 | -32.86 | -0.48% | Oil & Gas Producers | 64,634.85 | 3231.74 | 5.26% | Basic Materials | 22,020.23 | 12.34 | 0.06% | Chemicals | 22,394.13 | 216.96 | 0.98% | Forestry & Paper | 47,069.16 | -309.13 | -0.65% | Industrial Metals | 7,531.27 | 114.75 | 1.55% | Industrials | 45,475.93 | 56.33 | 0.12% | General Industrials | 162.51 | -.58 | -0.36% | Consumer Goods | 67,950.39 | -461.26 | -0.67% | Automobiles & Parts | 7,921.08 | 108.70 | 1.39% | Household Goods | 544.29 | -4 | -0.74% | Health Care | 10,036.68 | -31.52 | -0.31% | Beverages | 229.37 | -2.47 | -1.07% |
| | Index Name | RP | Move | % Move | Food Producers | 8,772.43 | -1.22 | -0.01% | Personal Goods | 1,038.11 | -4.40 | -0.42% | Consumer Services | 17,188.65 | 64.11 | 0.37% | General Retailers | 86,525.34 | 613.51 | 0.71% | Travel & Leisure | 6,268.85 | -43.31 | -0.69% | Media | 421.32 | 1.56 | 0.37% | Support Services | 3,298.67 | -11.99 | -0.36% | Telecommunications | 10,576.67 | 16.98 | 0.16% | Financials | 45,865.95 | -130.90 | -0.28% | Banks | 79,663.26 | -113.72 | -0.14% | Non-life Insurance | 57,019.16 | -507.90 | -0.88% | Life Insurance | 43,144.62 | -338.41 | -0.78% | General Financial | 4,815.54 | -39.38 | -0.81% | Technology | 63,989.02 | -882.74 | -1.36% | SHARIAH TOP40 | 3,533.05 | -6 | -0.17% | FTSE/JSE SHARIAH ALL | 3,733.74 | -1 | -0.04% | COAL MINING | 9,696.23 | -68 | -0.70% | FTSE JSE Fledgling | 6,744.26 | -1 | -0.02% | FTSE/JSE Alt X | 1,341.76 | 6 | 0.48% | SA LISTED PROPERTY | 651.09 | | 0.44% | CAPPED PROPERTY | 570.67 | | 0.24% | RESOURCE | 20,408.93 | -20 | -0.10% | DIVIDEND PLUS | 220.17 | 0 | 0.11% | FTSE/JSE RAFI 40 | 9,607.16 | -16 | -0.16% | Capped Top 40 | 25,196.24 | -71 | -0.28% | Capped All Share | 26,832.56 | -44 | -0.16% | JSE TABACO | 8,991.92 | -41 | -0.45% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | KIO | KUMBA IRON ORE LTD | SELL | 17/07/2015 | AMS | ANGLO AMERICAN PLATINUM C... | BUY | 16/07/2015 | SGL | SIBANYE GOLD LIMITED | HOLD | 14/07/2015 | MND | MONDI LIMITED | BUY | 14/07/2015 | BVT | THE BIDVEST GROUP LIMITED | HOLD | 14/07/2015 |
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Results Expected** Expected | Company Name | Fin. Date | 24/07/2015 | ANGLO | June 2015 (Interim) | 24/07/2015 | ANGLO-P | June 2015 (Interim) | 24/07/2015 | STELLAR | February 2015 (Interim) | 27/07/2015 | HULAMIN | June 2015 (Interim) | 27/07/2015 | HULAMINA | June 2015 (Interim) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | ARGENT | 30/06/15 | 25/09/15 | 05/10/15 | ZAR 0.0900 | NASPERS-N | 29/06/15 | 11/09/15 | 21/09/15 | ZAR 4.7000 | TRUSTCO | 29/06/15 | 24/07/15 | 21/08/15 | NAD 0.0400 | PRIMESERV | 26/06/15 | 02/10/15 | 12/10/15 | ZAR 0.0100 | HUDACO | 26/06/15 | 06/08/15 | 17/08/15 | ZAR 1.8000 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | ILPREF2 | 30/06/15 | 17/07/15 | 27/07/15 | ZAR 13.8847 | ILRPREF1 | 30/06/15 | 17/07/15 | 27/07/15 | ZAR 12.8930 | AMECOR | 30/06/15 | 17/07/15 | 27/07/15 | ZAR 0.0800 | NAMPAK 6.5 | 22/06/15 | 17/07/15 | 27/07/15 | ZAR 0.0650 | NAMPAK 6%P | 22/06/15 | 17/07/15 | 27/07/15 | ZAR 0.0600 |
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Upcoming AGMs** Code | Company Name | Date | Status | SPA | Spanjaard Ltd. | 21/07/2015 | Unconfirmed | VUN | Vunani Ltd. | 21/07/2015 | Unconfirmed | EQU | Equites Property Fund Ltd. | 21/07/2015 | Confirmed | MDC | Mediclinic International Ltd. | 23/07/2015 | Confirmed | CRG | Cargo Carriers Ltd. | 23/07/2015 | Confirmed |
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