Presentation on theme: "Share Investing PSG | MONEY MANAGEMENT | 2011. Agenda Overview Why do you want to invest in shares? What happens when you have time on your side? Our."— Presentation transcript:
Agenda Overview Why do you want to invest in shares? What happens when you have time on your side? Our point of view Local Investments Why Overseas Investments? PSG | MONEY MANAGEMENT | 2011
Overview PSG | MONEY MANAGEMENT | 2011 No one knows what will happen over the short term, but there seems to be more clarity about what happens over the long term – An investment in shares has always and will still remain a key component of wealth creation. Although there has been a lot of volatility and bad news lately, such circumstances afford the patient and conscientious investor many opportunities. That is why it is important to stick to your strategy and not to be influenced by your emotions.
Why do you want to invest in shares? PSG | MONEY MANAGEMENT | 2011
What happens when you have time on your side? PSG | MONEY MANAGEMENT | 2011
Monthly interest It is important to notice that the dividend yield on the portfolio (on the initial investment of R200 000) has grown to 6.5% or R13 000. Portfolio on 30 April 2012 PSG | MONEY MANAGEMENT | 2011
Our point of view Stick to quality companies Focus on companies with overseas and emerging market exposure Focus on companies with strong balance sheets Focus on companies that pay dividends PSG | MONEY MANAGEMENT | 2011
Local Investments: PSG | MONEY MANAGEMENT | 2011 Pursuing sustainable value creation Driven by innovation, Sasol is an international integrated energy and chemicals company that creates value through its proven alternative fuel technology and talented people to provide sustainable energy solutions to the world.
Highlights Largest Capital Spender in South Africa World Class Fischer – Tropsch Technology Solid group operational performance Operating profit up by 70% to R20,5 billion Headline earnings per share up by 81% to R23,50 Interim dividend up by 84% to R5,70 per share Cash generated by operations up by 50% to R22,7 billion PSG | MONEY MANAGEMENT | 2011
Overview of operations: PSG | MONEY MANAGEMENT | 2011
Why Overseas Investments? As from January 2012 individuals can invest R1 Million overseas without Tax clearance Investors need to be registered Tax payers Includes International Holiday funds Funds never have to be returned to South Africa Sign 4 forms and we do all the work for you Investors can apply for an additional R4 Million to be invested overseas per year. Comprehensive and Lengthy process PSG | MONEY MANAGEMENT | 2011
Reasons for owning J&J Shares Defensive qualities – less risk to big declines in revenue Increase in dividends uninterrupted the past 49 years Strong balance sheet - $34 Billion of cash and $19.4 Billion of debt Price earnings ratio drops in the past 10 years from 28 to 12 and the share price increased by a mere 7% indicating a fantastic opportunity for a value investor PSG | MONEY MANAGEMENT | 2011