This month, I’m reviewing my Africa portfolio and preparing a new one.
|EQX||Equatorial Resources Ltd||125.78%|
|MLBAT||Batla Minerals SA||2%|
|TBG||Tiso Blackstar Group SE||-31.58%|
|AEE||African Equity Empowerment Investments Ltd||-48.42%|
|BUI||Barbara Bui SA||-27.52%|
|CMB||Cambria Africa plc||-63.24%|
|ERBOS||Erbosan Erciyas Boru Sanayii ve Ticaret A.S.||42.9%|
|IEC||Intra Energy Corporation Ltd||-66.67%|
|LON||Lonmin Plc (acquired by Sibanye-Stillwater)||137.35%|
|SVB||SilverBridge Holdings Ltd||18.18%|
Overall, the portfolio did quite ok. Nothing spectacular, but I could live with this every year.
As predicted, the portfolio results are all over the place. Two companies did extremely well, others did spectacularly bad.
Lonmin was acquired for a very good price (1 LON = 1 SSB), which is why they did so well.
Last year’s portfolio was a nice selection of African companies, but it was a pure simulation and did not take into account that you may actually want to buy the stock. Most of the stock is on the Johannesburg stock exchange, which is not exactly easy to access for most people.
This year, I wanted to fix that issue. After some deliberation, the best solution seems to be to look into African stock that has an ADR or similar DR that is traded on an easier accessible stock exchange.
J.P. Morgan has an extensive list that I used as my basis. I did some pruning on that list to only keep the ADRs that have a reasonable trading volume. I also only kept companies for which I could easily find some of their financial numbers.
Last year, I used Joel Greenblatt’s magic formula to select the top 10.
This year, I’m going to replace the second parameter with something slightly different:
With that in mind, here are the criteria for this month’s selection:
|MDC||M.D.C. Holdings, Inc.||32.73|
|SGBLY||Standard Bank Group Ltd.||5.92|
|TBLMY||Tiger Brands Ltd.||11.05|
|EXXAY||Exxaro Resources Ltd.||7.45|
|BDVSY||The Bidvest Group Ltd.||16.57|
|KIROY||Kumba Iron Ore Ltd.||9.08|
|MRPLY||Mr. Price Group Ltd.||8.55|
|ANGPY||Anglo American Platinum Ltd.||11.72|
This month, I started to automate some of my portfolio management using IEX Cloud. This is an affiliate link, so I will make a little bit of money if you sign up using that link. IEX Cloud is an easy to use API that can be quickly integrated into, for instance, Google Sheets. You can use the “IMPORTDATA” formula with any of their datapoints very very easily.
My philosophy: If you want to invest and your goal is to try to beat the market, you need a system. You need a system that can decide for you what to buy, when to sell and not to panic when things go down. Everything starts with selecting stock. You should not just select random stock here and there based on whims or things you read. No, create a system that suites your style and follow it. These posts give you example of what such a stock selection could look like.
Disclaimer: Don't believe anything I say or write. Always do your own research before making any investment decisions.