Moneyweb and Sanlam iTrade have joined forces to bring you a trading challenge where the winner walks away with R100 000. With investing being scary for even the pros, Moneyweb has split its office into a team of novices and experts who will give different perspectives as they try to navigate a choppy market.
The two teams will be writing about their respective portfolios and the decision-making process they undertook to add or subtract shares. This should allow insights at both a high-level as well as provide a starting point for investors keen to dip their toe into the world of the JSE.
How the novices position themselves
As investing is intimidating, with many different strategies one could take, using common sense can often be the best starting point. A couple members of the Moneyweb team who don’t regularly trade the market have made some share picks and gave us some insights into their thinking.
Lexi Monzeglio (@leximonz), publisher at Moneyweb, explains how the novice team (#MWTeamNovice) lines up:
Being avidly loyal Woolworths customers, we thought: what better way to start than to invest in the companies that we believe in? Taking small steps by picking a company that we have come to love and trust outside of the share world seemed like a good route to take.
We figured that holding a company that has multiple assets under it was a semi-safe approach. If one doesn’t do too well over the next few weeks there is safety in the performance of the others. We hope…
Our ‘wild card’ pick. Looking at the performance of Fairvest over the last five years, the company has increased value by 50%. So although the past 30 days’ performance has been weak, it seems to be on the rise again and we are hoping that upward trend continues.
How the Moneyweb ‘expert’ team shapes up
Captained by Moneyweb MD Marc Ashton (@zamarcashton), the ‘expert’ team within Moneyweb comprises the more active investors and traders from our team. Our strategy is to use our access to market commentators to try and pick quality businesses.
We were flirting with the idea of picking Grindrod as the share seems to be cheap but with recent market gyrations, it might make more sense to focus on the blue-chips for the moment. They don’t come much bluer than Remgro and with the share under pressure, we have decided to back it for a recovery.
This is the selection of Moneyweb editor Ryk Van Niekerk, who says: “I believe the imminent European listing of Steinhoff assets will unlock value in the group. The company’s share price has also declined in recent weeks and I think it is one of the few blue-chip stocks that currently offer value.”
To find out more about the competition please click here to see if you can get into the challenge to win R100 000.