Register here to join the contest: http://www.shareforum.co.za/register/
Welcome to the Investor Challenge. Click on the link above to sign up for the challenge, or head on over to the blog to read about why your car costs you a million dollars, if you should be renting or buying a house , why a second property is a job rather than an investment, and why you should tell your financial adviser to go shove it. I’ll also show you how there’s only one way to get rich, or if you’re feeling too wealthy, how to lose money on the stock market. The one investment I’ve made which had the greatest impact on my earnings was in F-You money. Something I feel it’s important we all work towards. You can also find a post about how to pay less tax, legally and with the help of the tax man!
About the challenge:
In this contest you are the chairman of an investment club. Together with yourself the club collects R100 000 every month which is deposited into a trading account of which you have total control! You need to invest the funds on behalf of your club members, with the goal being to create as much growth as possible before the end of the year. You will have access to all shares and Exchange Traded funds currently on the JSE, apart from penny shares (shares trading under the R1 per share value).
As the club has been collecting funds since the beginning of the year, when you first sign in you will have R100 000 for every month that has elapsed since the start of the year. For instance, if it is now May, your account will have R500 000 ready for you to purchase with. Fees are a flat rate of 0.4%, with a minimum of R120.
Selling of your shares is allowed, however you will be taxed on your profits in the leader-board. For the purposes of the competition, we will assume all competitors are in the in the 30% tax bracket, and all profits will be taxed at that rate. Your net worth is calculated by adding the value of your portfolio at slightly delayed prices, to your cash on hand, and then subtracting 30% from the net profit of sales. Share prices are taken from the JSE public site, and are delayed by 15 to 25 minutes. Dividends are maintained by our users here, taxed at 15% and added to cash on hand.
The contest is part of ShareForum, so if you haven’t yet signed up for an account on ShareForum, now is the time to do so. The registration link is at the top of this page. Once you’ve registered, come back here and click on “Your Holdings” to begin.
If you need any help you can post a topic in the forum, or email the admin on: [email protected]
Good luck and have fun!