Some highlights after 6 weeks in the Investor Challenge

Investment growthIt looks like everyone is enjoying the competition. In May we reached the 300 competitors mark. Not bad for something that’s only been running for 6 weeks. I’ve created a new page to show some statistics as you can see here. Up to now, the most purchased share in Rand terms has been Coronation with over R9m purchased. Next up is the worlds second largest brewer, SAB with over R6.5m and in third Capitec with R5.5m.

You can also see which shares have gained the most in value since first purchase. Aside from the penny shares, the largest gains in regularly traded shares are Richemont gaining 25.5%, Arcelor Mittal at 22.5%, and then CML and Naspers, both at 21.8%. Note that CML has paid a dividend which counts in it’s favour.

Then we get to the biggest losers! Top of this pile was African Bank which lost a whopping 39.4%, and there were a lot of losers backing it, just over R3.3m was spent on this share. Impala platinum also took a 15% knock, and the other big unsecured lender Capitec has also taken punishment losing 14.5%. Capitec has had over R5.6m spent on it during the contest, so clearly it didn’t live up to it’s reputation.

As the leaderboard shows, two thirds of the investors have made some money, but the market has been quite kind as can be seen with the ETFs on the list. The SATRIX 40 portfolio which should be what most investors aim to beat, is up 5.2%, beating all but the top 14% of competitors. The other ETF fund, the SATRIX indi is doing even better, currently sitting in 15th place out of the 300+ competitors. Possibly a good tip to most people here who are thinking about buying real shares at some point, is if you can’t beat the index (and studies show most people can’t) buy the index.

On to another new feature. I was looking for a compound interest calculator that would let me do two things: 1) Let me email the numbers around, and 2) Show me the value of my future investment in today’s money. Well after quite some searching I couldn’t find one so had to make my own. Click here for some example figures I’m using to show a collegue how much money she’d have after 20 years if she gave up smoking and DSTV, and invested the savings on the JSE. The total in case you don’t feel like clicking, is R2million in today’s money!

Still a long way to go before the December 20th competition closing so keep playing, and tell your friends/colleagues to join in too. You can also start your own group if you feel like having a mini-contest inside this one.

Cheers,

Patrick

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