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I don't necessarily concur that we should exclude penny stocks. Also if Patrick can look at his system in the sense that if someone buys/sells penny stocks and there are no physical trades on the real market then the buyer/seller would not be permitted to buy/sell that particulate counter. Similarly if you have a large holding of one of the penny stocks you can't dump your holdings in Patrick's system until there is a physical sale and your sale would be limited to the physical sale. Similarly if someone on day 1 of the competition places an order for a 1 cent stock with the first allocation of R 100,000 and the physical sales are not there then the order to purchase is limited to the physical volumes of the day. Some penny stocks can give good returns and can be a company of tomorrow - in the '90's I bought Tiger Wheels for R.57 cents and sold them 8 years later at around R 21.00 before they expanded to rapidly and got into financial difficulties. Maybe Patrick can create an exception report and each of the cases is looked at on its merits rather than using a blanket approach, after all why penalize a person who buys a penny stock early in the year and then sits the ride out to end of year and the tax aspect may well prove to be a great leveler 

Orca - maybe I am looking at this issue too simplistically but my tax form requires that you provide "proceeds" and "base costs". So if you buy more shares now you are likely to be buying at a higher price than your first parcel, thus when you buy subsequent parcels the base cost would rise - so in 3 years when you sell you would then have a higher base cost and you proceeds would be diminished by this higher base cost and as such your CGT would be less. However the problem comes in when you buy a second parcel of the same shares at a lower price than the 1st parcel as this would depress your base cost. To play it safe I would print a copy of your brokers portfolio listing which evidences your base costs, and then make purchases and do a screen print again - hold these prints in a tax file until the 3 year period has elapsed on the first parcel and the second printout when the 2nd parcel gets to its 3 year window. I have a brilliant financial package which mirrors all my accounts and I capture every transaction on it be it current, cards, savings, investments ,shares mutual funds as it gives me one figure net worth. The package is Quicken but you can't acquire it anymore as the American bought it from the South African company and they won't open the system to multi currencies - only available in US$. One of its components is shares and a share portfolio and it logs dates of purchases and sales so I can always check dates of purchases, base costs and then upon sales date of sale proceeds (less brokerage) etc. This Quicken is one of the best home finance packages I have ever seen and it has the capability of absorbing data from your internet banking and daily share prices etc. It has a budgetary component where you can set budgets into the future, produce pie charts interrogate your income and expenditure and it was available in the early 2000's - I am running on the 2004 version and hope that it never crashes (did once in 2005 but recaptured and put in another hard drive on my computer as back up) 

I agree with Orca.

Using fund managers you always start below 100 with the factor of their fees. If they charge 2.5%, you start at 97.2% of their benchmark.  It is easy to find out their top shareholding be it whatever type of fund.  Look at the best performers and choose your direct investments from the shares that the best performing fund managers hold in their portfolios.  At least you save their fees.

Some fund managers go so far as to also charge a fee for every transaction they make in your portfolio! Just think about the conflict of interest they have to manage - and who do you think normally comes out as the winner?

Very few fund managers consistently manage to even only equal the index, so at best they generate returns for you below what you can do yourself.

Also many U/T only pay out once a year in terms of dividends and purchase of more units - with these index funds they normally pay out quarterly, you have to reinvest the funds though. I myself are reviewing all my U/T's (other than Coronation T20) with a view to switching the funds into the Indi and maybe the Divi

Quote from: yozzi on November 26, 2013, 01:46:08 pm

Many thanks guys! Capitec looks good with 5.75% for 6 mths and 6% if you keep it there for 7-9 mths

That's not bad, pretty much the same as the inflation rate. What sucks though is even though you're not making any money (relative to inflation), the taxman will still want to take it's share of the interest at your marginal rate...

There is a rebate on interest earned and in my age category it is R31,000 p.a. so interest earned is not at marginal tax rates

Two others who seem to operate under the radar as their shareholdings are private are Allen Grey and the majority shareholder of MacSteel

Well just back from holiday and see that my order for GLN was executed while away, but on Friday it dropped to just under R 51 so bought some more - now will wait over the next 3 years for the company to rationalise its holdings, change its structure, set its strategy and hopefully get handsome dividends and capital gains. May have to take the pain on Goldfields and switch the funds into GLN, though I still have a belief that GFI could do so much better if they reverse their BEE deal and chop Holland

I have no idea gcr.

Ticker: GLN

So far volume 8 042 146 Value 438 662 231, trading around 54.60

I am hoping that when the euphoria wears off that the price will settle back and maybe I get some. Will wean myself off GFI onto GLN