Investors lose patience at precisely the wrong time

Investors lose patience at precisely the wrong time

Most investors are losing patience with the JSE as returns have been non-existent. The JSE All-Share index is back in it’s previous trading range and effectively where it was in 2014. 


The problem with investors losing patience and selling, is they do it at precisely the wrong time.  


The Magellan fund managed by Peter Lynch achieved a remarkable 29% annualised return between 1977 to 1990 but the average investor in that fund lost money. They did the hard work of selecting the best performing fund, but the easier task of riding out the bad times was too much for them. This adds substance to the adage it’s not TIMING the market but TIME IN the market that delivers the best returns for investors. 


Investors can enhance their returns by accumulating quality shares in periods of pessimism. And investors looking to generate significant returns over time can look at a number of small caps that are trading below intrinsic value like Sygnia, Wescoal, York, CSG and Adapt IT. 



The week ahead: 

  • Local Data:  Annual Financial Statistics (20/11), CPI (21/11), Interest Rates (22/11) 
  • Results Due APF, RLO, RFG, TCP, DAW, MRP, SSS, CML (20/11); CIL, GPA, GRP, IDQ, HPB, HPR, LEW, PGR, TAS (21/11); TBS, HCI, NIV, PPC, PMV, SAR, STP, TSH (22/11); LHC, CSG, EMH (23/11) 


Other Economic data releases of interest… 


  • Tuesday: Inflation Report Hearings (UK) 
  • Wednesday: Core Durable Goods Orders, Consumer Sentiment, Crude Inventories (USA) 
  • Thursday: ECB Monetary Policy Meeting Accounts (EU) 
  • Friday: CPI, Retail Sales (CAN) 


 Short Term Ideas 

  • Goldfields: 18.5% open gain, Target remains R45.25, stop loss remains a daily close below R38.25 


Long Term Ideas 

  • AB InBev:  Buy below R1,100 with a target of R1,500 
  • Richemont: Buy dips below R95. Target R130.00. 
  • Dischem: Up 13.9%, and target of R37.05 remains in place. 
  • Remgro: A break above R210 is needed to open up R230. Accumulate below R185.00 
  • Coronation: At a glance, results this AM look positive. Buy dips below R50.00 for a move back to R80 
  • Shoprite: Failed to break above R200. Hold. 
  • Aspen: Bottoming out. Add below R165.00, keep exposure appropriate. 
  • Sygnia: Add below R8. Add 
  • MTN: Range bound until finalisation of Nigeria issues. Accumulate on dips below R75.  
  • Glencore: Pulled back with commodity prices. Hold 
  • Naspers: Bounced strongly on Tencent’s results. Buy on dips below R2,500. 

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