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Online Share Trading

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Annual Performance

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Not applicable
If you look at the historic chart of the MF portfolio that powerstocks.co.za runs you'll see that their MF portfolio corrected less in the 2008 crash than the index (I only started my MF portfolio mid 2009), so the only deduction I can make is that a good cash generating company already at a low PE drops less during a correction than say a Naspers with a PE going through the roof.
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BoburUncle
Regular Contributor
PE of less than 14? And value ROCE do you look at?
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Not applicable
Add PE > 0, ROCE, and marketcap > 1 bill to share filter on this platform. Copy results out and paste in Excel. Order by PE ascending. Add column you call PERank and number from 1 to x. You now have a rank for PE from lo to hi. Now order by ROCE descending and add a column that you rank ROCE with. Add a third column that is the sum of PERank and ROCERank. Order this from lo to high and you have the highest ranked MF candidates at the top. Buy 5 candidates from the top 10 or 15 that diversifies over sectors (don't buy 5 construction companies, as that would be - well - shortsighted). Keep these share for a year, and then rebalance portfolio. repeat until you die (rich).
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BoburUncle
Regular Contributor
Thanks! ROCE value also >0?
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BoburUncle
Regular Contributor
Thanks! ROCE value also >0?
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Not applicable
Yes, but it does not matter if its negative as it will end up way down on the list. The big ROCEs will end on top and that's where you pick your candidates from.
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BoburUncle
Regular Contributor
Awesome thanks! HAve a great Christmas!
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swa
New Contributor
After a very dismal 2008/2009 I hung in there to see a 30.9% year end return, gains led by NPN @ 100.6%, PIK 58.3%, GND 25.2%, good long term returns on Satrix 40, stuck with WEZ and looking forward to a better future with them as well as a profitable recovery on AMS.
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jo_soap
Contributor
Interesting thread. Ok. so maybe I am dorf but how do you work out the "compounded" growth on a long term portfolio? According to my calculations I have done 30% this year (including dividends and taking costs into account). Main contributor is Mr price but also Satrix 40. I work out the annual return by apportioning the gain (both capital and dividend) over 365 days. How do I convert this figure to a compounded return so that you can compare to money market etc? By the way, I am a long term investor with 7 different shares/ETFS. Been investing in shares since June 2009.
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Werner_1
Super Contributor
Calculating Compound Annual Growth Rate (CAGR) can be done is several ways, but I found this link as it is best to explain it to you rather than me trying to write something out here. http://en.wikipedia.org/wiki/Compound_annual_growth_rate http://www.investopedia.com/calculator/CAGR.aspx http://www.ehow.com/how_2063214_calculate-compound-annual-growth-rate.html
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Werner_1
Super Contributor
most financial calculators can get this value very easily.
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DR_1
Super Contributor
ACL dropped me big time. had a few millions invested in it, when it dropped due to the KIO issue
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Werner_1
Super Contributor
DR, that really sucks! I hope you managed to regain the lost funds or have a plan how to in the next bull market?
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jo_soap
Contributor
Thanks Werner. Have got the calcs now. Compounded annual growth pretty much the same (28%).
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zwi
Occasional Contributor
Myself i ended up in a negative of -7%, i have been really a follower of trend, so much panics. Could not stay in a portfolio for more than a year. I could have made more than 20% gain had i stayed with my intial portfolios. But the love of money and too much eager for quick bucks really killed me especially on trading the ALSI. I am not worried though, i know i am a novice in the trading and investing business, experience (which i lack) will count in my favour come next year, gotta learn from my mistakes.
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Not applicable
Zwi, my guess is that you suffer from the most common trading / investing affliction that affects 99% of us, a lack of discipline and no discernable system. A system doesn't have to be mechanical (I for one am a discretionary trader), but it does have to have rules. If you were not able to write down your plan everytime you made a trade, and stick to that plan, then you will be taken out every time by market volatility and sideways movements. Try to get a copy of 'Trading in the Zone'by Mark Douglas. It is the traders bible, IMO. It focuses on psychology, not systems.
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MichaelR
Regular Contributor
14% excluding div.
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