Once-in-a-Crisis Opportunity

Never waste a good crisis and the so-called ‘SA Inc’ equity market is currently at that point. While SA Inc share prices have been flat for years, the capitulation has been negative this year with major indices on the JSE … Continue reading

Why Momentum Exists in Businesses

A while ago I wrote about how “Good Businesses Tend To Stay Good“. This article is an extension of that thought. Say, for example, that I invent a really great piece of technology. Perhaps it allows people to teleport. Yay! … Continue reading

‘Scale’ is a Two-edged Blade

I have heard many people cite ‘scale’ as a business’s barrier to entry or even its competitive advantage. Normally, the argument goes along these lines: ABC Company is XXX big, thus they can afford numerous overheads/compliance/regulatory costs and/or certain capex and/or … Continue reading

Warning Signs: Retailers, Shopping Centres & Retail REITs (Part 2 of 2)

See ‘Part 1’ of this series here. There are three harmonious parts to a Real Estate Investment Trust (REIT): Income: These are predominantly rentals from tenant renting space from the REIT. The lower the vacancy rate and the faster rentals … Continue reading

Active vs Passive: The Current Narrative is Wrong

The current narrative of the “Active versus Passive” (AVP) debate is wrong. It has been cleverly dominated by the ETF providers and their salespeople to focus the consumer solely on costs. Coupled with a singular focus on costs, the ETF providers … Continue reading

Three Pointers for Small Cap Portfolios

I have previously spoken about why one should allocate at least a portion of your portfolio to small cap investments (Why Invest in Small Caps?). I have also considered some key aspects to look for in selecting these investments (Key Attributes of … Continue reading

The Real Cost of Out-performance

African Bank (ABIL) is no more and everyone is writing articles either celebrating how they saw this coming or lambasting the fund managers that were invested in the bank and/or its debt. Both miss the point. The first type is the classic … Continue reading