jse power hour build a portfolio from scratch

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JSE Power Hour Build a portfolio from Scratch Simon Brown SimonBrown.co.za @SimonPB 14 th August 2013

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JSE Power Hour Build a portfolio from Scratch. Simon Brown SimonBrown.co.za @ SimonPB. 14 th August 2013. Disclaimer. - PowerPoint PPT Presentation

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Page 1: JSE Power Hour Build a portfolio from Scratch

JSE Power HourBuild a portfolio from

ScratchSimon BrownSimonBrown.co.za

@SimonPB14th August 2013

Page 2: JSE Power Hour Build a portfolio from Scratch

DisclaimerThe information and opinions stated in this presentation/document/video/webinar are of a general nature, have been prepared solely for information purposes and do not constitute any advice or recommendation to conclude any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate professional advice before acting on any information contained herein. Whilst every care has been taken in preparing this document, no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or representations. All information contained herein is subject to change after publication at any time without notice. The past performance of any investment product is not an indication of future performance.

Page 3: JSE Power Hour Build a portfolio from Scratch

Creative Commons Licence

http://creativecommons.org/licenses/by-nc-nd/3.0/

Page 4: JSE Power Hour Build a portfolio from Scratch

twitter.com/JustOneLaptwitter.com/SimonPB

facebook.com/JustOneLap

Page 5: JSE Power Hour Build a portfolio from Scratch

Simon Brownwww.JustOneLap.com

www.SimonBrown.co.za

Page 6: JSE Power Hour Build a portfolio from Scratch

What•Satellite / core•ETFs•Costs•Small amounts•Stocks•Value / blue chips / mid cap / small cap

Page 7: JSE Power Hour Build a portfolio from Scratch

Strategy•Long term portfolio•Decades•Capital appreciation•Beating Top40•Cost aware•Monthly and lump sum

Page 8: JSE Power Hour Build a portfolio from Scratch

Satellite / core

Exchange Traded Funds

(ETFs)

Page 9: JSE Power Hour Build a portfolio from Scratch

Core•Core portfolio of Exchange Traded Funds (ETFs)•50% - 95% of portfolio•50% = higher risk•95% = lower risk

Page 10: JSE Power Hour Build a portfolio from Scratch

Core•Gives you market return / security

•Start building this part of the portfolio first

•Monthly debits / lump sum

Page 11: JSE Power Hour Build a portfolio from Scratch

Size matters•Easy to start a portfolio with lots of money

•Hard with small capital

Page 12: JSE Power Hour Build a portfolio from Scratch

Size matters•Start buying ETFs•Monthly or lump sum•When you hit R10k (or more)•Start with satellite•Only buy satellite +R5k•+R10k better (costs)

•When portfolio split right•Back to ETFs

Page 13: JSE Power Hour Build a portfolio from Scratch

Size mattersExample•R1,000 per month (50 / 50 split)•Every month•R500 into ETF•Save R500•After a year invest R6k into satellite

Page 14: JSE Power Hour Build a portfolio from Scratch

Size mattersExample•R1,000 per month (80 / 20 split)•Every month•R800 into ETF•Save R200•After 2 years invest R4.8k (+interest) into satellite

Page 15: JSE Power Hour Build a portfolio from Scratch

Core - which?•BBET40 (Top40 equal weighted)•50% - 100%•PTXTEN (10 Prop equal weighted)•10% - 20%•RMBMID (MidCap index)•10% - 20%•DBXUS / DBXEU (international)•10% - 20%

Page 16: JSE Power Hour Build a portfolio from Scratch

Core - which?•RMBINF (Gov CPI linked bonds)•0% - 15%•PREFEX (Preference shares)•0% - 15%•NGPLT (Platinum)•0% - 15%

Page 17: JSE Power Hour Build a portfolio from Scratch

Core - high•BBET40 50%•PTXTEN 12.5%•RMBMID 12.5%•DBXUS / DBXEU 5% each•RMBINF 10%•NGPLT 5%

Page 18: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•Strategy?•Growth•Value• Income•Small / mid

Page 19: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•Be selective•Buy at right price (cheap)•An hold

•Basic fundamentals•PE / DY / NAV / Cash

•Winning stocks• In winning sectors

Page 20: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•Fundamental charts•Video at http://jol.to/?9K

•Data points at financial year end

Page 21: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•Shoprite (great company, but)

Page 22: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•Sasol (great company, and)

Page 23: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•MTN (great company, but / and)

Page 24: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•City Lodge (great company, ???)

Page 25: JSE Power Hour Build a portfolio from Scratch

Satellite - which?•Be selective•Small / mid•Taste•Calgo M3•Adapt IT•Accentuate

Page 26: JSE Power Hour Build a portfolio from Scratch

Selling?• Core ETFs• HOLD

• S atallite• Watch key reason for buying

Page 27: JSE Power Hour Build a portfolio from Scratch

Satellite - which?My portfolio www.SimonBrown.co.za•BATS, BHPBill, BGreen, BBET40, Calgro M3, Capitec, Cityldg, Clover, Fambrands, MTN, OldMutual, PTXSPY, PTXTEN, RMBMID, Sasol, STX40, STXDiv, STXRAFI, Shoprit, Stanbank & Woolies.

Page 28: JSE Power Hour Build a portfolio from Scratch

Re cap•Keep it simple•Process not an event• It will take time•Decide risk levels•Decide overall strategy•Decide which ETFs•Decide which stocks

Page 29: JSE Power Hour Build a portfolio from Scratch

? @SimonPB Facebook.com/JustOneLap [email protected] @JustOneLap

Page 30: JSE Power Hour Build a portfolio from Scratch

DisclaimerThe information and opinions stated in this presentation/document/video/webinar are of a general nature, have been prepared solely for information purposes and do not constitute any advice or recommendation to conclude any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate professional advice before acting on any information contained herein. Whilst every care has been taken in preparing this document, no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or representations. All information contained herein is subject to change after publication at any time without notice. The past performance of any investment product is not an indication of future performance.

Page 31: JSE Power Hour Build a portfolio from Scratch

Creative Commons Licence

http://creativecommons.org/licenses/by-nc-nd/3.0/

Page 32: JSE Power Hour Build a portfolio from Scratch

JSE Power HourBuild a portfolio from

ScratchSimon BrownSimonBrown.co.za

@SimonPB14th August 2013