Don't sit on cash, Shapiro urges
If you do, you're losing wealth.
Chris Blaine
10 July 2009 13:20
Sasfin's David Shapiro urges investors not to hoard cash. Speaking at the Discovery Invest seminar on Thursday night he noted that real interest rates are negative. As a result, if you sit on cash you're getting poorer. In other words, the interest rate you earn on cash is not as high as the inflation rate.
Moneyweb CEO Alec Hogg and Head of Investment Strategy for Discovery Kerrin Howard urged investors to remain within their circle of competence - invest in what you know and do your homework. Hogg noted that Andrew Carnegie (the second richest person in history) built his fortune by the mantra "buy when others are panicked".
Here are some of the stocks that were recommended by the seminar's experts:
•· City Lodge (JSE:CLH) (consumers downgrading accommodation).
•· British American Tobacco (JSE:BTI), South Africa Breweries (JSE:SAB), Richemont (JSE:CFR) (foreign earnings and exposed to emerging markets).
•· MTN (JSE: MTN), Naspers (JSE:NPN), Shoprite (JSE: SHP), Aspen (JSE: APN), Tongaat (JSE:TON) (defensive, exposed to emerging markets, expanding information availability).
•· Standard Bank (JSE:SBK), Metropolitan Holdings (JSE:MET), JSE (JSE:JSE), Discovery Holdings (JSE:DSC) (exposure to Africa, monopoly financial services).
•· Pick n Pay (JSE:PIK), Mr Price (JSE:MPC), Truworths (JSE:TRU), Tiger Brands (JSE:TBS), Nampak (JSE:NPK) (cash retailers).
•· PPC (JSE:PPC), Basil Read (JSE:BSR), Raubex (JSE:RBX). (infrastructure investments in Africa).
•· Sasol (JSE:SOL) (China has only 10m cars versus USA 1 car to 3 people. As China grows should increase demand for cars and therefore fuel).
Write to Chris Blaine: chris@moneyweb.co.za |