JSE Power Hour
Build a portfolio from Scratch
Simon Brown
SimonBrown.co.za
@SimonPB
14th August 2013
Disclaimer
The information and opinions stated in this presentation/document/video/webinar are of a general nature, have
been prepared solely for information purposes and do not constitute any advice or recommendation to conclude
any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate
professional advice before acting on any information contained herein. Whilst every care has been taken in
preparing this document, no representation, warranty or undertaking, express or implied, is given as to the
accuracy or completeness of the information or representations. All information contained herein is subject to
change after publication at any time without notice. The past performance of any investment product is not an
indication of future performance.
Creative Commons Licence
http://creativecommons.org/licenses/by-nc-nd/3.0/
twitter.com/JustOneLap
twitter.com/SimonPB
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Simon Brown
www.JustOneLap.com
www.SimonBrown.co.za
What
•Satellite / core
•ETFs
•Costs
•Small amounts
•Stocks
•Value / blue chips / mid cap / small cap
Strategy
•Long term portfolio
•Decades
•Capital appreciation
•Beating Top40
•Cost aware
•Monthly and lump sum
Satellite / core
Exchange
Traded Funds (ETFs)
Core
•Core portfolio of Exchange Traded Funds (ETFs)
•50% - 95% of portfolio
•50% = higher risk
•95% = lower risk
Core
•Gives you market return / security
•Start building this part of the portfolio first
•Monthly debits / lump sum
Size matters
•Easy to start a portfolio with lots of money
•Hard with small capital
Size matters
•Start buying ETFs
•Monthly or lump sum
•When you hit R10k (or more)
•Start with satellite
•Only buy satellite +R5k
•+R10k better (costs)
•When portfolio split right
•Back to ETFs
Size matters
Example
•R1,000 per month (50 / 50 split)
•Every month
•R500 into ETF
•Save R500
•After a year invest R6k into satellite
Size matters
Example
•R1,000 per month (80 / 20 split)
•Every month
•R800 into ETF
•Save R200
•After 2 years invest R4.8k (+interest) into satellite
Core - which?
•BBET40 (Top40 equal weighted)
•50% - 100%
•PTXTEN (10 Prop equal weighted)
•10% - 20%
•RMBMID (MidCap index)
•10% - 20%
•DBXUS / DBXEU (international)
•10% - 20%
Core - which?
•RMBINF (Gov CPI linked bonds)
•0% - 15%
•PREFEX (Preference shares)
•0% - 15%
•NGPLT (Platinum)
•0% - 15%
Core - high
•BBET40 50%
•PTXTEN 12.5%
•RMBMID 12.5%
•DBXUS / DBXEU 5% each
•RMBINF 10%
•NGPLT 5%
Satellite - which?
•Strategy?
•Growth
•Value
•Income
•Small / mid
Satellite - which?
•Be selective
•Buy at right price (cheap)
•An hold
•Basic fundamentals
•PE / DY / NAV / Cash
•Winning stocks
•In winning sectors
Satellite - which?
•Fundamental charts
•Video at http://jol.to/?9K
•Data points at financial year end
Satellite - which?
•Shoprite (great company, but)
Satellite - which?
•Sasol (great company, and)
Satellite - which?
•MTN (great company, but / and)
Satellite - which?
•City Lodge (great company, ???)
Satellite - which?
•Be selective
•Small / mid
•Taste
•Calgo M3
•Adapt IT
•Accentuate
Selling?
• Core ETFs
• HOLD
• S atallite
• Watch key reason for buying
Satellite - which?
My portfolio www.SimonBrown.co.za
•BATS, BHPBill, BGreen, BBET40, Calgro M3, Capitec,
Cityldg, Clover, Fambrands, MTN, OldMutual, PTXSPY,
PTXTEN, RMBMID, Sasol, STX40, STXDiv, STXRAFI,
Shoprit, Stanbank & Woolies.
Re cap
•Keep it simple
•Process not an event
•It will take time
•Decide risk levels
•Decide overall strategy
•Decide which ETFs
•Decide which stocks
@SimonPB
@JustOneLap
Facebook.com/JustOneLap
info@justonelap.com
Disclaimer
The information and opinions stated in this presentation/document/video/webinar are of a general nature, have
been prepared solely for information purposes and do not constitute any advice or recommendation to conclude
any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate
professional advice before acting on any information contained herein. Whilst every care has been taken in
preparing this document, no representation, warranty or undertaking, express or implied, is given as to the
accuracy or completeness of the information or representations. All information contained herein is subject to
change after publication at any time without notice. The past performance of any investment product is not an
indication of future performance.
Creative Commons Licence
http://creativecommons.org/licenses/by-nc-nd/3.0/
JSE Power Hour
Build a portfolio from Scratch
Simon Brown
SimonBrown.co.za
@SimonPB
14th August 2013