Author Topic: SAtrixindi (Read 68216 times)

Orca · « **Reply #60 on:** September 20, 2013, 10:31:37 am »

I totally agree with you Patrick and would not wait to invest. The market could stay happy for another 6 months and then correct to a value higher than today. Then you will kick your butt for staying in cash. Believe me as I did that quite a few times.
I vaguely recall a post of mine where I stated that had I just bought CML and stayed in, I would have made 1200% gains but scary pants me kept going into cash at every mention of a market correction. Ended up with 320% less tax at 40%.
We might even have a few smaller corrections keeping the markets flat for some time and as you say, the growth will sort out the high PE ratios. You also don't want to loose divies.

gcr · « **Reply #61 on:** September 20, 2013, 03:46:52 pm »

The old adage sell in May and go away never tells you when to come back into the market. But I recall (on another forum) someone doing an exercise on our particular market and it seems to perform best between September and February. However we have experienced some significant drops in exchanges world wide in September and even October. So unless someone can produce data that shows how each month in the year has performed over the life cycle of the JSE and looking at high, mean and low per month I don't think we will be any the wiser. So maybe buy into a share over an extended period so that you can buy on dips

yozzi · « **Reply #62 on:** September 21, 2013, 03:16:27 pm »

Thanks guys! Appreciate your advice and cheque's in the post!

yozzi · « **Reply #63 on:** October 04, 2013, 06:12:10 pm »

Bought a good wack of Stx indi shares today at just over R51 each so onwards and upwards!

Satrix INDI · « **Reply #64 on:** October 04, 2013, 06:58:26 pm »

Good choice

Orca · « **Reply #65 on:** October 06, 2013, 08:06:32 pm »

This May we had a good month. Better than most. So that saying is now defunct and kaput. As to the Indi. All technicals show that a correction is looming for that sector. Then again, the markets are confusing. Happiness prevails with the US closing shop???

Patrick · « **Reply #66 on:** October 11, 2013, 12:08:41 pm »

Quote from: Orca on September 05, 2013, 03:31:08 pm

You will want to keep your stocks for at least 3 years for tax sake. So here is a 3y chart. You can either pick 60% or 120%. Whichever suits your pocket.
I just cannot see the other indexes beating the Indi. Even the method used to pick the Rafi stocks should make it the best performer but it is not.
If one can use the Rafi stock picking method on the Indi stocks, you will have superior stocks.

Interestingly, someone has tried, the ABSA eRafi Industrial 25:

Quote

The eRAFI™ Industrial 25 Index ETF is compiled using the innovative enhanced Research Affiliates Fundamental Index™ (eRAFI™) approach to portfolio construction pioneered by California-based Research Affiliates. The methodology weights shares based on fundamental valuation metrics - sales, cash flow, book price and dividends, as well as two additional filters (the quality of earnings screen and the financial distress risk screen) - rather than traditional market capitalisation.

Sounds good, but take a look at the chart. Seems the California-based Research Affiliates also got spanked by the market for trying to be clever

Orca · « **Reply #67 on:** October 11, 2013, 01:38:46 pm »

And I thought I was onto something original there. Nearly took a © on the method.

Delusionsofgrandeur · « **Reply #68 on:** October 30, 2013, 06:14:10 am »

Here's a random question.Will buying property(example,a flat) in South Africa be a better investment that the Satrix Indi in the longer run(3 years or more)?

franz · « **Reply #69 on:** October 30, 2013, 10:39:09 am »

A good article on industrial's on MoneyWeb

Nios · « **Reply #70 on:** October 30, 2013, 01:42:11 pm »

Quote from: Delusionsofgrandeur on October 30, 2013, 06:14:10 am

Here's a random question.Will buying property(example,a flat) in South Africa be a better investment that the Satrix Indi in the longer run(3 years or more)?

I think you need to ask yourself what your strategy is. Are you investing for growth or income? If you invest in the property, are you bonding it or paying cash? If you're investing for income. You need to do the calculations. If you're purchasing the property cash your ROI is going to be crap. The more of your own funds you put into the transaction the worse your ROI will be. However, compare the income you'll receive from it if purchased cash to an INDI25 portfolio of the same purchase value and the yield you're going to receive should outweigh the income you'd receive on the ETF. I do my calculations, based on a 4% draw down so it can safely continue growing.

From a capital growth perspective, the INDI historically has outperformed capital growth of residential property. But is it giving you the same income yield of the property on a 4% annual drawn down?

Go and look at my post on paying off property before investing equities. I did some calculations of which you can see the results on historical 5 years INDI25 prices.

You also need to factor in tax, expenses, SARS refunds etc.

Delusionsofgrandeur · « **Reply #71 on:** October 31, 2013, 09:12:59 am »

I would most likely be investing in property for income or a place to live when I need it.I do not own property,but I do work abroad.

I read your thread Gios.
Correct me if I am wrong,from what I read it appears that the INDI is the way to go for the highest return on financial/time/effort investment.

The Downside
Off course, this would mean I would have to rent and will not have an income should I return to S.A .I could always sell some of those stocks should I need them,cheers for the advice.

Orca · « **Reply #72 on:** October 31, 2013, 03:40:05 pm »

To get tax relief, one has to hold the shares for at least 3 years. No matter how good the stock might look now and it's future prospects for further growth, a time will come when it stops performing or tanks. This mostly happens before the 3 years are up and you are forced to make adjustments. You will be extremely lucky if all your stocks keep going up for 3 years. Almost half of your gains will go to tax. That is a waste of your time and money.
For that very reason I would just go for the Indi and chuck it in the bottom drawer.

Nios · « **Reply #73 on:** October 31, 2013, 08:55:39 pm »

Quote from: Delusionsofgrandeur on October 31, 2013, 09:12:59 am

I would most likely be investing in property for income or a place to live when I need it.I do not own property,but I do work abroad.

I read your thread Gios.
Correct me if I am wrong,from what I read it appears that the INDI is the way to go for the highest return on financial/time/effort investment.

The Downside
Off course, this would mean I would have to rent and will not have an income should I return to S.A .I could always sell some of those stocks should I need them,cheers for the advice.

I'm not offering advice, you need to draw your own conclusions. I too lived overseas for a few year while renting my props out. I can tell you it was a freaking nightmare letting agents do it. You are so far away with no control. The minute I got back I started managing them myself and things improved. Still quite a pain though, especially when tenants vacate. Frankly had I invested in the Indi instead I would have much more capital today. There's so many variables with property though. Your case you're looking to purchase for yourself to live in one day, so different scenario. You never mentioned whether you were going to bond or not?

If you were going to buy cash, why not bond the property to a point where you'd break even every month once rented, let the tenant pay the bond while you abroad, claim the tax rebates on expenses and bond interest and then invest your cash lumpsum/monthly surplus in the indi. Like orca says, 3yrs holding period you'll only pay cgt. So if you going to be abroad for that period longer you'd probably be in a position to pay the bond off with your gains if it continues to grow as it has historically.
There's no guarantee that the indi will continue to grow at the pace it has over the last 5 years. But if it does, it will most definitely outpace residential property growth.

Delusionsofgrandeur · « **Reply #74 on:** November 04, 2013, 02:47:44 pm »

Quote from: Orca on October 31, 2013, 03:40:05 pm

To get tax relief, one has to hold the shares for at least 3 years. No matter how good the stock might look now and it's future prospects for further growth, a time will come when it stops performing or tanks. This mostly happens before the 3 years are up and you are forced to make adjustments. You will be extremely lucky if all your stocks keep going up for 3 years. Almost half of your gains will go to tax. That is a waste of your time and money.
For that very reason I would just go for the Indi and chuck it in the bottom drawer.

1-Am I correct in assuming this advice is for someone who has no knowledge at all in investing in stocks aka me?Or is this just general info?

2-By "adjustments" do you mean selling?

3-This may be a silly question, Is there a small chance that the INDI will plateau in value in under 3 years?

Also,what is the price of the INDI per share right now?I still haven't figured out my interface as yet.

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Author Topic: SAtrixindi (Read 68216 times)

Orca

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gcr

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yozzi

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yozzi

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Satrix INDI

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Orca

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Patrick

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Orca

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Delusionsofgrandeur

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franz

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Nios

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Delusionsofgrandeur

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Orca

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Nios

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Delusionsofgrandeur

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