Share Forum - Discuss JSE shares and join the Investor Challenge

Satrix charges fees every single year on the full amount invested. The brokersonly charge when you buy or sell. ABSA has a 0.4% or R120 minimum charge, so it make the most sense if your transactions are R30k or more at a time.

What made you by Mr Price?

Argentina's stock market is tanking after the country said on Wednesday night that it would voluntarily default on $1.3 billion of debt owed to a group of hedge funds

 

A year ago they were at 3500. This morning they're at 8150. That's a crash I'm happy to join!

Also forgot to mention that interest is taxed as income (after the small exemption), dividends are traced before they get to you and if you sell shares you only pay capital gains tax after R30k and is a third of income tax.

Bank interest will practically never exceed inflation. It's a guarenteed loos over time regardless of how it's compounded. The indi most likely will beat inflation by a fair margin.

Aside from that, growth in shares takes two forms, share price increases, and dividends. The dividends for the indi are paid every three months, but growth takes place at any time, and does compound just like interest. If you gain 2% this month, and 2% next month, the growth this month would be from say R60 per share to R61.20 a share, a gain of R1.20. Next month though, the same 2% would be from R61.20 to R62.42, a gain of R1.244.

If that keeps up, and it has for some time, you'll be faaaaaaar better off than some type of cash account earning you 6% p/a.

Here's your R1000 a month (increasing with inflation) in the bank at 6%: http://www.investorchallenge.co.za/calc_compound.php?initial_deposit=0&monthly_deposit=1000&yield=6&years=20&inflation=6
Balance of R749 516,77

And here the same R1000 a month (increasing with inflation) in shares at 15% (the indi has done 20% since inception): http://www.investorchallenge.co.za/calc_compound.php?initial_deposit=0&monthly_deposit=1000&yield=15&years=20&inflation=6
Balance of R1 894 004,61

So the difference is huge. Cash is not a good place to keep cash! http://investorchallenge.co.za/the-only-way-to-get-rich/

It's crazy, I've got some flights coming up soon that I'm not so keen on right now...

Yes, it should make registration really quick. You can also link your FB account to your current forum account. Hopefully this would encourage the many browsers to sign in and post!