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Online Share Trading

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Simple portfolio based on budget

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kwagga
Super Contributor
Was thinking over the weekend on how easy it really is to get up a great portfolio for the long term. Really comes down to your monthly budget - What's the big ticket items that you can't go without every month: Primary: Food: (Woolies or Shoprite and Tiger Brands) Long term insurance: (Old Mutual or Sanlam) Short term (Outsurance aka First Rand Bank) Telecom costs: (Vodacom or MTN) Medical aid: (Netcare or Mediclinic or Discovery) Medicine (for the older folk and kids): Aspen Petrol: (Sasol) Scool fees: (Curro or Advtech) Secondary: Smokes: (BATS) Beer: (SAB) Milk and Yogurt:(Clover)
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14 REPLIES 14
BC02
Super Contributor
Its uncanny how similar our portfolios are, I've mostly chosen the same sectors but with some differences, Food: WHL, SHP & AVI (instead of TBS), Insurance was RMI, also FSR, Health care also NTC, DSY but LHC.
The sector Ive included recently that you dont have is technology, with guys like PNC, EOH and DTC.

Very interesting, thank you.
(Not that Im saying my choices are right by any means, just saying its funny how similar they are and funny how few of them are in resources)
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BC02
Super Contributor
As a budget approach you forgot Steers : FBR :)
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kwagga
Super Contributor
FSB would be under secondary. It's right up there with smokes and alcohol. The stuff that makes life bearable. ;-), but won't kill you if you cut it out in hard times.
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partridge
Super Contributor
FBR now rated a hold by OST vs Spur a buy. Would not touch insurance shares with a 40 foot barge pole. Too many snakes and ladders.
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kwagga
Super Contributor
OML was a star performer since buying it @828c at the start of 2009. It's up 190%. Any balanced portfolio would have done well with either Sanlam or OML over the last 3.5 years.
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prancing_horse
Super Contributor
Kwagga, Lot of merit in your thinking, but the one you left out is the maker of a good sunblock, seeing you are going to walk around in the nude, and please don't tell me you buy them at woolies.:)
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prancing_horse
Super Contributor
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SimonPB
Valued Contributor
only because they were priced for bankruptcy in 2008 .. at one point OML was only about 50c above it's M&F and NED holding values ..
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kwagga
Super Contributor
Ja, remember it trading below R5 levels. Amazing how powerful heard mentality can be.
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kwagga
Super Contributor
I'm not a big clothes fan PR. Best on on the market left with Edcon going private. Clothes is not part of my monthly budget. We go big every season and that's about it.
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Not applicable
Nah - at the time nobody knew how bad their US exposure was, and what sory of leverage they were staring at. OML was facing a very real chance of bankrupcy. It was only after their stress tests and clarity on their US operations was received that the share started to recover again
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Not applicable
Nah - at the time nobody knew how bad their US exposure was, and what sory of leverage they were staring at. OML was facing a very real chance of bankrupcy. It was only after their stress tests and clarity on their US operations was received that the share started to recover again
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partridge
Super Contributor
OM WAS a classic case of market disinformation - there was not a real prospect of bankruptcy - but they were oversold -and if you bought at the bottom - you did well. But I think Moneyweb highlighted the destruction in value presided over by its management recently in comparing it with Sanlam - whose return since listing is plus 400% vs OM 's 117 % or so....
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Cherry
Regular Contributor
Most of the stocks you mention are held in funds by various fund managers. However look at this: http://www.moneyweb.co.za/moneyweb-investment-insights/ten-stocks-for-uncertain-times Top 10 stocks for Uncertain Times Old Mutual (JSE:OML) British American Tobacco (JSE:BTI) South African Breweries (JSE:SAB) Richemont (JSE:CFR) BHP Billiton (JSE:BIL) Steinhoff (JSE:SHF) AVI (JSE:AVI) WBHO (JSE:WBO) FirstRand (JSE:FSR) Bidvest (JSE:BVT) Hope it helps.
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