Transcription
Getting Started in SharesStandard Online Share .co.za0860 121 161Go to Master Slide andinsert client logo here
Creating wealth on the JSEKey pointsWe need to be incontrol of ourinvestmentsWealth creationtakes timesWhat this presentation is about Howto create wealth for you and your family Helpyou understand the stock market– Johannesburg Stock Exchange (JSE) Costsand returns– Low costs, high returns Helpyou make informed decisions– How to educate yourself Freedomfrom money worries– Comfortable retirement– Holidays– Children’s educationWealth begins with better knowledge1
Creating wealth on the JSECurrent positionThe stockmarket is forrich people?I don’t knowhow to start?There is toomuch to learn?But where are we? Canwe afford to retire?– Only 6% of South Africans will be able to retire comfortably Whatwill we have to give up in retirement?– We’re changing jobs Nomore 1 job and then pension– We don’t save enough Wesave only 1.5% of income on average– We’re living longer Atage 60, there is a 50% chance you will live to 90The stock market scares us .2
Creating wealth on the JSECurrent positionThe stockmarket is forrich people?I don’t knowhow to start?There is toomuch to learn?But where are we? Wehave investments, but;– Costs are eroding the benefits– Performance is modest (partly due to costs)– We don’t actually know what’s happening to them Thestock market scares us– It is only for professionals– It is for rich people– It is for ‘connected’ peopleThe stock market is not rocket science .3
Creating wealth on the JSEWhere we want to beWe want acomfortableretirement, kidseducation, anexotic holiday4The ideal position Aninvestment portfolio with two key characteristics– Low cost– Market performance (or better) Investmentportfolio offering;– Capital growth (share price increasing)– Income (dividends – your share of profits) Knowledgeable Confident Inenough to make investment decisionsenough to implement a strategy that works for uscontrol of your investments– On the road to financial freedomFinancially independent
How do we create wealth?5Cost are hugely important, they eat away at your profitsStandard OST, 1%upfront, R720/yearR1,347kLow costs 1%/yearR1,205kHigh costs 3%/yearR861kStarting at R100,000, growing 15% a year for 20 years. Different costs.
Creating wealth on the JSEWhere we want to beCosts are criticalKeep them small6Standard Online Share Trading fees and costs AStandard Online Share Trading account costs R60 (in. vat) per month– First month free– You do not need to deposit money UNTIL you want to by shares Brokeragefee of R50 or 0.5% plus fees and taxesProjected costs of sharesSecurities Transfer Tax @ 0.25%STRATE FeesInvestor Protection LevyBrokerageVAT on ChargesTotal Trading CostsCosts as a %You do not need to bank with Standard BankR 10,000.00R25.00R10.92R0.02R50.00R8.53R94.470.94%
How do we create wealth?7Stock market is best performing asset class – over the long termNew high Nov 2013Emerging marketcrisis 1998Financial crisis2008Crash of 1987Dot com bust 2001Crashes are scary at the time, but soon fade into history
Creating wealth on the JSEWhere we want to beExcludesdividends paidout, average2%/yearAnnualisedreturn sinceinception is 17%(MorningStar)All Share Index since 1977 December1977– 243 December1987– 1,819 December1997– 6,202 December2007– 21,509 Current– 45,556All Share Index represents the market overall performance8
Where we want to beWhere wouldyou be if youhad bought 1050SBK @ R4.76on Jan 2nd 1992?R43,600 individendsShares worthR132,000Return of /201201/09/201201/04/2013Creating wealth on the JSE9SBK Dividends since 1.50R20.00R15.00R1.00R10.00R0.50R5.00RR-Cumulative DividendDividend
Creating wealth on the JSEWhere we want to beWhere wouldyou be if youhad bought 1050SBK @ R4.76on Jan 2nd 1992?R43,600 individendsShares worthR132,000Return of 3500%SBK Share price10
The proposalTake control11
Creating wealth on the JSEProposalFormed in 1886Take control Increase GetLocated inSandtonyour knowledge and expertiseinvolved in investing on the JSE– Start managing your investments Builda blue chip investment portfolio– Keep your costs lowThe JSE is totally electronic12
Creating wealth on the JSEProposalLargestexchange inAfricaOne of the top10 exchanges inthe worldThe JSE Over100 years old– /-400 listed shares Offers;– Shares– Exchange Traded Funds/Notes– Derivatives Completely Topelectronicregulated exchange globallyYou have to buy and sell shares via a stock broker13
Creating wealth on the JSEProposalWe want acomfortableretirementWe want to be incontrol of ourinvestments14How? Investingin the stock market– Educate yourself– Low cost structure– Time Investing Exchangeis not a get rich quickTraded Funds (ETF’s)– Like unit trusts Cheaper Trackthe marketThe stock market is not as hard as we think .
Creating wealth on the JSEProposalTrade on theJSETrack abenchmarkLike unit trusts,but cheaperExchange Traded Funds/Notes IndexETF’s– Top40, Resi10, Indi25, Fini15, MidCap, Property Energy– Coal, WTI Oil, SB Africa Commodity Index Metals– Gold, silver, platinum, palladium & copper Agricultural– Wheat, corn International– Emerging Markets, US, EU, UK, Japan, China, Africa DebtThe Top40 ETF’s out perform 85% of general equity unit trusts15
Creating wealth on the JSEProposalYou do not needto bank withStandard BankSouth Africa’slargest onlinestock broker16Standard Online Share Trading Makingit easy– Education Faceto face classes Onlineclasses (webinars) OnlineVideos (YouTube)Wealth creation starts with education
Creating wealth on the JSEProposalThese coursesare FREE toclientsStandard Online Share Trading - face to face courses 5hours, Saturday– Introduction to investing– Understanding company financials and announcements– Derivatives courseYou arewelcome tobring a friendalong 8hours, Saturday– Technical analysis 90minutes, week day evening– Introduction to CFD’s– Trade to Trade Well– Trading index futuresStart with Introduction to Investing17
Creating wealth on the JSEProposalThese coursesare FREE toclientsWebinarsrequire a PCwith internet andspeakersAttend fromanywhereStandard Online Share Trading – online live webinar’s 60minutes, weekday lunch time and evening with live Q&A Someexamples of recent webinars– Direct Exposure to commodities on the JSE– Fundamental Investing - Intrinsic Valuation– Technical Analysis - where is the price most likely to go next?– Listed property quarterly review– Understanding warrantsThey last an hour or less18
Creating wealth on the JSEProposalStandard Online Share Trading – Online Videos (YouTube)Get shown thebasics onproducts andfeaturesAttend fromanywhereTrading TipsThey last an hour or less19
Creating wealth on the JSEProposalCompany andeconomicresearchFree for clients20Standard Online Share Trading Makesit easy– Education Faceto face classes Onlineclasses (webinars) OnlineVideos (YouTube)– ResearchQuality research is important
Creating wealth on the JSEProposalCompanyresearchupdated asrequiredStandard Online Share Trading - Research CompanyanalysisConsensusresearchupdated weekly ConsensusforecastsQuality research is important21
Creating wealth on the JSEProposalUse the researchto add to yourviewStandard Online Share Trading - Research EconomicoutlookBuild ainvestment casefor a stock FXreport Technicalanalysis reportQuality research is important22
Creating wealth on the JSEProposalHistoricinformation onall listedcompaniesPrice andfundamental23Standard Online Share Trading Makesit easy– Education Faceto face classes Onlineclasses (webinars) OnlineVideos (YouTube)– Research– Company information, newsand annual reportsA listed company has to keep investors informed
Creating wealth on the JSEProposalStandard Online Share Trading – Company informationYou have to go through a stock broker24
Creating wealth on the JSEProposalEverything youneed to makethat decision25Standard Online Share Trading Makesit easy– Education Faceto face classes Onlineclasses (webinars) OnlineVideos (YouTube)– Research– Company information, newsand annual reports– Online charts & live pricesEverything you need to make your investment decision
Creating wealth on the JSEProposalEnd of dayonline chartingStandard Online Share Trading – Online charting, end of day Endof day chartsData back to 199426
Creating wealth on the JSEProposalFull range ofindicators andoscillatorsStandard Online Share Trading – Online charting, intraday charting Intradaycharting (R99 per month)Used by traders1, 5, 15, 30 and 60 minute charts on all stocks and indices27
Creating wealth on the JSEProposalEverything youneed to makethat decision28Standard Online Share Trading Makesit easy– Education Faceto face classes Onlineclasses (webinars)– Research– Company information, newsand annual reports– Online charts & live prices– Search/filter toolsEverything you need to make your investment decision
Creating wealth on the JSEProposalStandard Online Share Trading – filter functionSearch for;shares,warrants,installmentsOver 50 search criteria29
Creating wealth on the JSEProposalStandard Online Share Trading – filter functionSearch for;shares,warrants,installmentsReturns a list of stocks to start investigating30
Creating wealth on the JSEBenefitsLet’s quicklylearn somethingPE example Priceearnings ratio (PE ratio) Priceis the share price on the JSE Earnings Price Useis profit per sharedivided by earnings PE or valuationPE ratio as a simple tool to indicate valuePE is one of the most widely used ratios31
Creating wealth on the JSEBenefitsPE is a simpletool to helpdetermine value“Price is whatyou payValue is whatyou get”W Buffett32PE exampleCompany ABCCompany XYZShare priceR24.00R75.00EPS (profit/share)R2.00R15.00PE (price/earnings)12x5xSeems cheap, butPE suggestsvaluation is highSeems expensive,but PE suggestsvaluation is lowPE is one of the most widely used ratios
BenefitsWhat’s in it for you?33
Creating wealth on the JSEBenefitsYou do not needto bank withStandard BankSouth Africa’slargest onlinestock broker34Benefits Wealth Save Becreationon costsin control Empowered Helpto make informed decisionsyou family, friends and colleagues– Especially your children Leavethem an inheritance Impartinvesting knowledge to themYou have to go through a stock broker
Creating wealth on the JSEBenefitsInvesting is notrocket scienceConcerns Don’thave enough;– MoneyAnybody can bean investor Startsmall, but start today– Knowledge We’llhelp you– Time required for research and learning's Doesnot need to take lots of time Jargon– Big words meaning simple things Tax– Tax is a by product of successful investingSounds great, but.35
Creating wealth on the JSEBenefitsStandard OnlineShare Tradinghas all the toolsand informationyou need36Concerns Toolsrequired– Standard OST offers; Everythingyou need Courses(face to face and webinar’s) Research Charts Alerts Historic Alldata ( 20 years)financial reports of listed companiesTrader or investor, Standard Online Share Trading has the tools for you
37Let’s takesome Q’s
Creating wealth on the JSEConclusionTake control ofyour wealthcreationConclusion Itis easy– Anybody CAN do it– Everybody HAS to do itRetire in style Itis important– Take control of your future Thetools are available Educationis criticalRemember time is your biggest asset38
Where to now?Take the plunge . Take control .39
Creating wealth on the JSENext stepsThe website isvery much likeonline bankingplatformTrade any JSElisted productsStart your investment journey Opena Standard Online Share Trading accountwww.securities.co.za Firstmonth is free– There after R60 per month– No deposit needed Only Dowhen you want to buy sharesnot need to bank with Standard Bank– All new clients will need to be FICA’dOpen a Standard Online Share Trading Account40
Creating wealth on the JSENext stepsSouth Africa’slargest stockbrokerOpen a Standard Online Share Trading Accountwww.securities.co.za41
Creating wealth on the JSENext stepsWealth beginswith educationAttend a free courseAll courses can be bookedonlineWidesteducationofferingHeld regularly inJohannesburg,Cape Town &DurbanBook to attend the next course (Introduction to investing)42
Creating wealth on the JSENext stepsPart of StandardBank InternetBankingPurchase on 25thof every month(next tradingday if holiday orweekend)43A simpler DIY investing option AutoShare Invest– Minimum R500 per selected share per month /-100shares to select from IncludingExchange Traded Funds– It is a monthly recurring purchase order and payment online.– Sales done weekly - Friday– The proceeds of the sale will automatically be paid into your bankaccount after five business days.Easy way to start
Contact detailsStandard Online Share .co.za0860 121 16144
Disclaimer SBG Securities Presentations DisclaimerThis document together with any associated verbal presentation are provided on the express understanding that the information contained thereinwould be regarded and treated as proprietary to SBG Securities (Proprietary) Limited (“SBGSec”), registration number 1972/008305/07. Thisdocument and associated presentation shall not be reproduced or used, in whole or in part, for any purpose other than for the consideration of theinformation set out therein, without the prior written consent of SBGSec. This document and any associated verbal presentation have been prepared solely for information purposes by SBGSec and accordingly do notconstitute an offer, a solicitation of an offer, invitation to acquire any security or to enter into any agreement, or any advice or recommendation toconclude any transaction (whether on the indicative terms or otherwise) and must not be deemed as such. Any information, illustrative prices, disclosure materials or analyses provided to you have been prepared on assumptions and parameters thatreflect good faith determinations by SBG Sec and do not constitute advice by SBG Sec and it should not be relied upon as such. The information,assumptions and parameters used are not the only ones that might reasonably have been selected and therefore no guarantee is given as to theaccuracy, completeness, or reasonableness of any such information, quotations, disclosure or analyses. The past performance of any securitiesor other products is not an indication of future performance. No representation or warranty is made that any indicative performance or returnindicated will be achieved in the future. This document together with any associated verbal presentation are not an official confirmation of terms, do not represent an express or impliedoffer, nor do they create any liability or obligation on SBG Sec. Any rates, levels and prices quoted herein or verbally presented are indicative onlyand although reflective of market conditions prevailing at the relevant time do not constitute an offer to transact at such levels and are supplied forillustrative purposes only. Any transaction or agreement to perform certain services that may be concluded pursuant to this document and/or anyassociated verbal presentation shall be in terms of and confirmed by the signing of appropriate documentation, on terms to be agreed between therelevant parties. The information in the document and any verbal presentation accompanying it are also subject to change without notice. SBGSec, or an associated company, may have effected or may effect transactions for its own account in any investment outlined in this document orany associated verbal presentation or any investment related to such an investment. Prospective investors should obtain independent advice inrespect of any product detailed in this document and/or associated verbal presentation, as SBG Sec provides no opinion or advice includinginvestment, tax or legal advice and makes no representation or warranty about the suitability of a product for a particular client or circumstance.Transactions described in this document and any associated verbal presentation may give rise to substantial risk and are not suitable for allinvestors. SBG Sec will only provide investment advice if specifically agreed to by SBG Sec in appropriate documentation, signed by SBG Sec.This information is to be used at your own risk, and SBG Sec makes no representation with regards to the correctness of the information herein.By accepting this document, you agree to be bound by the foregoing terms and limitations. SBG Sec is a subsidiary of the Standard Bank Group Limited, an authorised user of the JSE Limited and an authorised Financial ServicesProvider45
6 Standard Online Share Trading fees and costs Creating wealth on the JSE A Standard Online Share Trading account costs R60 (in. vat) per month -First month free -You do not need to deposit money UNTIL you want to by shares Brokerage fee of R50 or 0.5% plus fees and taxes Where we want to be Costs are critical Keep them small You do not need to bank with Standard Bank
