Trading Shares & the Stock Market

Money Monday on The Bridge: Trading Shares & the Stock Market

Upon returning from my trip to France,  my Monday started off on a good note as I joined Lerato Kganyago and Dineo Ranaka in the Metro FM studios for Money Monday. Studio interviews are my favourite as they allow the message to come across much clearer. I had the opportunity to discuss the equities market and how simple it is to become a shareholder for a fraction of the price. Below is a summary of the 10 minute conversation:

Equities, shares and stocks are the exact same thing. Owning shares in a company allows you to have a ‘piece of the pie’. When the company does well, so does your investment but when the company’s share price drops, then your investment will also drop. Being a shareholder makes you part of the business and the best way to benefit from this is through dividends. No company is obligated to issue its shareholders dividends but its in the best interest of any company to keep its stakeholders happy and financially satisfied. Depending on the type of shares you have and the amount or value of the shares, you can get a dividend payout monthly, quarterly, bi-annually or annually.

When deciding if equities are a good fit for you, we look at 3 things:
1) Diversification: any investor knows that having a diversified portfolio balances out the overall heath of their investments.
2) Voting rights: ordinary shareholders can vote at shareholders meeting for change of management or major corporate affairs. Shareholders that own preference shares do not have voting rights.
3) High return: owning shares has proven to be a great form of investing as the return can be insanely high especially if its a company that was recently listed on the stock exchange and happens to do incredibly well (e.g.: Capitec, SnapChat shares).

Below are a few of the top companies that you can choose from:

  • Anglo America
  • Aspen Pharmacare
  • Barclays Africa
  • BHP Billiton
  • Bidvest Ltd
  • Brait
  • British America Tobacco
  • Capital & Countries Properties
  • Capitec Bank
  • Compagnie Financière Richemont
  • Discovery Ltd
  • Firstrand Ltd
  • Growthpoint Properties
  • Into Properties
  • Invested Ltd
  • Kumba Iron Ore
  • MMI Holding
  • Mondi Ltd
  • Mr Price Group
  • MTN Group Ltd
  • Naspers Ltd
  • Nedbank Group
  • Old Mutual
  • Rand Merchant Investments
  • Reinet Investments
  • Remgro Ltd
  • RMB Holdings Ltd
  • Sanlam Ltd
  • Sasol Ltd
  • Shoprite Holdings Ltd
  • Standard Bank Group Ltd
  • Tiger Brands Ltd
  • Vodacom Group Ltd
  • Woolworths Holdings Ltd

Don’t forget the golden rule: “Don’t invest with money that you cant afford to lose”!!!

For any trading and investing related questions, please send them to my team info@bearruninvestments.co.za or info@nelisiwemasango.com

 

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