My 2 Cents

Nobody Knows!!

Howard Marks is arguably one of the top investment managers and his Memo’s are followed by most investment advisors. The link below is to his Memo on the Coronavirus. He muses that not a lot is know about the virus and experts are still learning and exploring. He emphasis that people with out knowledge in…
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What do you do if the markets drop 20%?

Posted March 9, 2020 by Joshua M Brown (the reformed broker) Good morning. Stocks were halted after a 7% drop, which triggered the first of three circuit-breakers designed to give buyers and sellers a chance to regroup during moments of extreme volatility.The system is clearing itself of over-leveraged players, forced liquidators and panic sellers. There are people selling…
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Warren Buffett: Coronavirus should not affect long-term investors

Investors should welcome falling stockmarkets as a “chance to buy”, according to Warren Buffett, who said coronavirus fears should not affect stocks over the longer term. World markets continued to fall on Tuesday (25 February 2020) as the coronavirus spread, with the S&P 500 extending losses for the week to 6.3%, while the UK’s FTSE…
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Fundsmith Annual Letter

The table below shows performance figures for the last calendar year and the cumulative and annualised performance since inception on 1st November 2010 and various comparators. % Total Return       1st Jan to Inception to 31st Dec 2019         31st Dec 2019 Cumulative Annualised Sharpe ratio5 Sortino ratio5          …
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The ‘real’ value of the rand in 2020 according to the Big Mac Index

The latest update to The Economists’ Big Mac Index for 2020 shows that the South African rand is one of the most undervalued currencies in the world. The Big Mac Index is an initiative created by The Economist that aims to measure whether currencies are priced at their “correct” level. It is based on the theory of…
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36One: Rand View

2019 saw a surge in emigration statistics, stage 6 load shedding and business confidence bumping along 20-year lows. South Africa is just one notch away from a downgrade to junk status. Local sentiment was not good at the start of 2019 and considering the additional negative news throughout the year, it got worse. Yet the…
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Anchor Capital: Where the money will be made

Anchor Capital’s view of where the money will be made: The 12 month assumed returns: Compared to the world RSA real yields are attractive: The 10 year bond yield 12 month before and after downgrade: Fed stimulus:  

Asset Class Returns January 2020

Global markets started the year well, but the spread of the coronavirus out of China became the dominating market concern, and developed and emerging equity markets declined. The worry about the epidemic outweighed the positive news; the signing of a partial US-China trade deal and the Fed leaving rates unchanged. The UK finally managed to…
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South African Asset Class Returns 2019

Global markets ended the year higher as a US-China trade agreement to partially roll back tariffs, increase agricultural purchases, and ensure intellectual property protection was reportedly reached, while the UK?s elections delivered political stability, clearing the way for Brexit. Positive sentiment buoyed emerging markets, including ours. However, South Africa was once again plunged into darkness…
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