Share Forum - Discuss JSE shares and join the Investor Challenge

I'm curious as to how that will affect the STXIND. SAB currently makes up 18.7% of the index, so it will have a significant impact.

Source: http://www.moneyweb.co.za/moneyweb-radio/safm-market-update/understanding-the-markets-101-simon-brown-justonelap

PETER: Hi Siki. I’d like to ask the panel by how many points the JSE index will fall if SABMiller is delisted from the JSE, because every point is about R215m. In my estimation it should be about 11 000, about R2.3trn or R2.3bn – I’m not quite sure.

WAYNE McCURRIE: What’s the difference between a billion and a trillion between friends? [Chuckles]

PETER: I’m wondering – what’s the main thing?

SIKI MGABADELI: Thanks, Peter.

WAYNE McCURRIE: Interestingly the index won’t fall because SAB is removed from the listing. It doesn’t mean that money has disappeared or is lost, it’s just now possibly going to be listed somewhere else. So SA Breweries will come out of the index, but the index value won’t fall. So simplistically, if SA Breweries is 10% of the index and it cancels its listing on our stock market – its primary listing is already in London, this is only a secondary listing – then every other company in the index will become 10% bigger. But the index will not fall. So the index is only about price movements, the same as when British American Tobacco, which is bigger than SAB, listed on our market. The market didn’t go up 12%. Just the movement of that share from the day it lists affects the index.

@Patrick, thanks for helping out a noob 

@Orca, I hope for your sake you bought more cheese, yesterday. 

The roles of the "model" and the "doctor" are irrelevant to explaining compound interest.  I would have preferred if you used two siblings having the same career.

You have ignored the higher earning potential of the doctor and the implied higher savings rate.

Hmm, (I subscribe to the moneyweb newsletter) how did I miss this?  This looks interesting and deserves further analysis.

@gcr, Thanks for explaining (in detail)

Nice article  .  I'm not going to make the 40 year old deadline, trying for 50.

Slight OT (ETF vs individual share holdings)
Satrix Indi top holdings

            SHARE       No Units   Value (Rm)  % of Fund
            NASPERS-N   185 665    347.19      17.65%
            SABMILLER   504 034    320.57      16.30%
            RICHEMONT   2 573 579  251.46      12.79%
            MTN GROUP   901 761    184.86      9.40%
            SASOL       283 881    117.01      5.95%


I don't think it's a big leap to assume that most investors maybe be holding these shares individually.  Satrix Indi ETF Fees: 0.45 to 0.75% and Easy Equities: 0.67%

Are you a Mustachian? http://www.mrmoneymustache.com/