Where to invest?

[#1]

Hi people. I was hoping to get some more opinions on this. I have a quite a large amount of money that I would like to put away now and take out in about 3-5 years hopefully. Could you please give me some helpfull advice on where to invest or in what account to put it for the best return. In short.... I'm looking for a safe investment with some good annual returns. Thank you.

[barry_1]

i'll be forwarding my account number in the morning!

[barry_1]

Seriously,get some money out of the country if possible with a safe institution ,or if u are uncertain buy Rand-hedged shares with a veiw to the longer term.It is most likely that the Rand will stary to fall post-2010....A share like LBT and SAB held for at least ten years should give u good rewards....and as always only my opinion.

[barry_1]

In local property for extra safety consider property unit trusts in place of physical property as we donn't know how laws will change,or in the case of squatters invading certain areas,at least u will then be able to get your money out at the drop of a hat.

[Appietrader]

I would suggest you pick 5 to 6 counters, ie, 1 mining,1 or 2 industrial, property shares, 1or2 retailers, and stick with them, should give good divident and growth. Wessel

[barry_1]

Just an aside,safety and good returns don't go together!....For instnace if u bank it,then your return must exceed the inflation rate of 8%,otherwise at the end of five years your purchasing power will be deminished by that amount and of course there taxes to be payed on it.Dividends on shares kept for five years or longer are tax free.Property trusts attract tax as you receive interest on th eunits.How ever there should be capital growth as well.

[#7]

Thanks a lot you guys. So far you've really given me some really valuable info. I really appreciate it. And please keep the ideas coming if you think of anything else!

[#8]

If you read this article
http://www.moneyweb.co.za/mw/view/mw/en/page138222?oid=302163&sn=Detail
you could see that using good investment guys like Allan Gray and even Investec will out perform the banks and inflation by a big margin and you are not taing on serious risks either. Consider however the fees and charges that will be associated with this style of investing.
The question I would ask myself is do I want to learn about markets and cycles etc and be a daily/weekly/monthly look at my shares kinda guy or do I take a less active roll and let some better investment houses do the work for me (at a fee)
so it will depend on your level of involvement in what you ultimately want to achieve.
Just as a note from next year sometime dividends will be taxed so take that into account when deciding on a stratergy.

[john_1]

Safe...SAB (people will always drink) BATS (people will always smoke) MTN (people will always complain no matter how bad things get) Shoprite (people will always need to eat) Biliton ( People will always need power and petrol and basic materials, well at least for the next 10 years) Oh and then there is the lazy way....Buy SATRIX top 40....we are in a bear market at the top of a bear market rally so I would wait a couple of weeks until we get the next down leg..and yes we will get another down leg!

[kwagga]

Tiger Brands, Sasol, MTN, British American Tabacco, Standard Bank, JSE, Old Mutual

[john_1]

I agree with SASOL and the JSE..

[kwagga]

and Tiger Brands is one of the best defensive stocks in recessionary times. Expect regular divi's and a steady share price.

[john_1]

Sure food is food..I prefer shoprite, but that just prefrence..

[kwagga]

nothing wrong with Shoprite. I'm a big Whitney fan. Just wondering if the growth is sustainable, but then again, half their products are Tiger Brands products, so I guess is almost six of the one and half a dozen of the other.

[john_1]

ya I supose the question then is who has the pricing power...The retailer or the supplier... I believe its the retailer.

[#16]

So for investments, every fund manager will tell you that diversification is the best way of spreading your risk. Buffet will tell you to do your homework and make a few extremely well placed strategic investments in undervalued companies. The problem with the former, is you need huge pots of cash to overcome transaction costs, and very few people beat the index. So you can't beat satrix for diversification and transaction costs. If you want rand hedges, then look at the DB indexes (DBXEU, DBXFT, DBXUS). The Buffet way requires a lot of effort and patience and the only advise that a forumite can offer is where to start looking

[kwagga]

yes, the retailer would definitely have more pricing power than the supplier.

[#18]

https://secure.rsaretailbonds.gov.za/ 9.5%/yr

[john_1]

I cant rememeber is that return before or after tax?

[john_1]

Hey Kwagga.. send me your email to [email protected] I have some TA for you on the Food retailers if you are interested.