Choosing stocks for a good cause

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Choosing stocks for a good cause

 

Sasfin Wealth’s Rob Towell and David Shapiro were the big winners in the 2016 Sharenet StockPick challenge. The challenge was sponsored by Kia and saw a carefully selected group of financial media personalities as well as certain high profile business people and who were asked to play StockPicks for charity.

Rob and David were required to pick five stocks (although it was possible to double up on two stocks) at the start of every month from the full list of liquid JSE stocks. The date and time of picking determines the ‘buy price’ of the shares based on actual market pricing at the time (15-minute delayed). The ‘sell price’ is defined by the closing price of the shares on the last day of the month.

“I tried to stay within the share universe Sasfin Wealth uses for its model portfolios but did add one or two Alpha stocks like a gold share (Goldfields) or Corporate Action Events (Distell) which we would not normally have in our portfolios. Ultimately, our choice of large-cap shares proved the correct choice with multiple choices of the same stock, Distell, BHP Billiton and Naspers providing the out-performance,” Rob said.

The celebrity winners (Rob and David) won the R100 000 grand prize to give towards a charity of their choice, with Wits Hospice and Hatzolah Ambulance Services being the shared recipients of the prize.

 

Side bar (1):

What is StockPicks?

A simple stock based trading game run and hosted by Sharenet that is designed to familiarise players with the basic principles of trading.

StockPicks is a free, zero risk, fun and low stress introduction to trading on the stock market. It introduces players to the basic principles of risk, research, strategy and returns without having to invest real money. This gives them the opportunity to observe and learn, and to develop their market knowledge and trading skills.

How does it work?

Players’ five-share portfolios are pitted against each other and the one with the highest average percentage return at the end of the month is deemed the winner for that month.

Points are then allocated based on the number of players who recorded a positive return. All players with a positive return get points based on their relative ranking. For example, if 100 players make a positive return the winner gets 100 points and the lowest return gets 1. No points are awarded for negative returns. Points are then added up over the months to determine the overall winner. The top 10 players each receive an additional 10 points.

 

Sidebar (2):

Shares chosen

  • Tiger Brands

  • ABInbev

  • Sasol

  • RMI

  • SuperGroup

  • Naspers

  • Bidvest

  • Investec PLC

  • Distell

  • KAP Industrial

  • BHP Billiton

  • Naspers 2nd time

  • Goldfields

  • Distell 2nd time

  • Pick n Pay

  • Capevin Holdings

  • Omnia

  • BHP Billiton 2nd time

  • Distell 3r time