Getting Started in Shares
Standard Online Share Trading
[Link]
securities@[Link]
0860 121 161
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Creating wealth on the JSE
Key points
We need to be in
control of our
investments
Wealth creation
takes times
What this presentation is about
How
to create wealth for you and your family
Help
you understand the stock market
Johannesburg Stock Exchange (JSE)
Costs
and returns
Low costs, high returns
Help
you make informed decisions
How to educate yourself
Freedom
from money worries
Comfortable retirement
Holidays
Childrens education
Wealth begins with better knowledge
Creating wealth on the JSE
Current position
The stock
market is for
rich people?
I dont know
how to start?
There is too
much to learn?
But where are we?
Can
we afford to retire?
Only 6% of South Africans will be able to retire comfortably
What
will we have to give up in retirement?
Were changing jobs
No
more 1 job and then pension
We dont save enough
We
save only 1.5% of income on average
Were living longer
At
age 60, there is a 50% chance you will live to 90
The stock market scares us ..
Creating wealth on the JSE
Current position
The stock
market is for
rich people?
I dont know
how to start?
There is too
much to learn?
But where are we?
We
have investments, but;
Costs are eroding the benefits
Performance is modest (partly due to costs)
We dont actually know whats happening to them
The
stock market scares us
It is only for professionals
It is for rich people
It is for connected people
The stock market is not rocket science ..
Creating wealth on the JSE
Where we want to be
We want a
comfortable
retirement, kids
education, an
exotic holiday
The ideal position
An
investment portfolio with two key characteristics
Low cost
Market performance (or better)
Investment
portfolio offering;
Capital growth (share price increasing)
Income (dividends your share of profits)
Knowledgeable
Confident
In
enough to make investment decisions
enough to implement a strategy that works for us
control of your investments
On the road to financial freedom
Financially independent
How do we create wealth?
Cost are hugely important, they eat away at your profits
Standard OST, 1%
upfront, R720/year
R1,347k
Low costs 1%/year
R1,205k
High costs 3%/year
R861k
Starting at R100,000, growing 15% a year for 20 years. Different costs.
Creating wealth on the JSE
Where we want to be
Costs are critical
Keep them small
Standard Online Share Trading fees and costs
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
Projected costs of shares
Securities Transfer Tax @ 0.25%
STRATE Fees
Investor Protection Levy
Brokerage
VAT on Charges
Total Trading Costs
Costs as a %
You do not need to bank with Standard Bank
R 10,000.00
R
25.00
R
10.92
R
0.02
R
50.00
R
8.53
R
94.47
0.94%
How do we create wealth?
Stock market is best performing asset class over the long term
New high Nov 2013
Emerging market
crisis 1998
Financial crisis
2008
Crash of 1987
Dot com bust 2001
Crashes are scary at the time, but soon fade into history
Creating wealth on the JSE
Where we want to be
Excludes
dividends paid
out, average
2%/year
Annualised
return since
inception is
~17%
(MorningStar)
All Share Index since 1977
December
1977
243
December
1987
1,819
December
1997
6,202
December
2007
21,509
Current
45,556
All Share Index represents the market overall performance
Where we want to be
Where would
you be if you
had bought 1050
SBK @ R4.76
on Jan 2nd 1992?
R43,600 in
dividends
Shares worth
R132,000
Return of 3500%
01/04/1992
01/11/1992
01/06/1993
01/01/1994
01/08/1994
01/03/1995
01/10/1995
01/05/1996
01/12/1996
01/07/1997
01/02/1998
01/09/1998
01/04/1999
01/11/1999
01/06/2000
01/01/2001
01/08/2001
01/03/2002
01/10/2002
01/05/2003
01/12/2003
01/07/2004
01/02/2005
01/09/2005
01/04/2006
01/11/2006
01/06/2007
01/01/2008
01/08/2008
01/03/2009
01/10/2009
01/05/2010
01/12/2010
01/07/2011
01/02/2012
01/09/2012
01/04/2013
Creating wealth on the JSE
9
SBK Dividends since 1992
R45.00
R3.00
R40.00
R2.50
R35.00
R30.00
R2.00
R25.00
R1.50
R20.00
R15.00
R1.00
R10.00
R0.50
R5.00
RR-
Cumulative Dividend
Dividend
Creating wealth on the JSE
Where we want to be
Where would
you be if you
had bought 1050
SBK @ R4.76
on Jan 2nd 1992?
R43,600 in
dividends
Shares worth
R132,000
Return of 3500%
SBK Share price
10
The proposal
Take control
11
Creating wealth on the JSE
Proposal
Formed in 1886
Take control
Increase
Get
Located in
Sandton
your knowledge and expertise
involved in investing on the JSE
Start managing your investments
Build
a blue chip investment portfolio
Keep your costs low
The JSE is totally electronic
12
Creating wealth on the JSE
Proposal
Largest
exchange in
Africa
One of the top
10 exchanges in
the world
The JSE
Over
100 years old
+/-400 listed shares
Offers;
Shares
Exchange Traded Funds/Notes
Derivatives
Completely
Top
electronic
regulated exchange globally
You have to buy and sell shares via a stock broker
13
Creating wealth on the JSE
Proposal
We want a
comfortable
retirement
We want to be in
control of our
investments
14
How?
Investing
in the stock market
Educate yourself
Low cost structure
Time
Investing
Exchange
is not a get rich quick
Traded Funds (ETFs)
Like unit trusts
Cheaper
Track
the market
The stock market is not as hard as we think ..
Creating wealth on the JSE
Proposal
Trade on the
JSE
Track a
benchmark
Like unit trusts,
but cheaper
Exchange Traded Funds/Notes
Index
ETFs
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
Debt
The Top40 ETFs out perform 85% of general equity unit trusts
15
Creating wealth on the JSE
Proposal
You do not need
to bank with
Standard Bank
South Africas
largest online
stock broker
16
Standard Online Share Trading
Making
it easy
Education
Face
to face classes
Online
classes (webinars)
Online
Videos (YouTube)
Wealth creation starts with education
Creating wealth on the JSE
Proposal
These courses
are FREE to
clients
Standard Online Share Trading - face to face courses
hours, Saturday
Introduction to investing
Understanding company financials and announcements
Derivatives course
You are
welcome to
bring a friend
along
hours, Saturday
Technical analysis
90
minutes, week day evening
Introduction to CFDs
Trade to Trade Well
Trading index futures
Start with Introduction to Investing
17
Creating wealth on the JSE
Proposal
These courses
are FREE to
clients
Webinars
require a PC
with internet and
speakers
Attend from
anywhere
Standard Online Share Trading online live webinars
60
minutes, weekday lunch time and evening with live Q&A
Some
examples 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 warrants
They last an hour or less
18
Creating wealth on the JSE
Proposal
Standard Online Share Trading Online Videos (YouTube)
Get shown the
basics on
products and
features
Attend from
anywhere
Trading Tips
They last an hour or less
19
Creating wealth on the JSE
Proposal
Company and
economic
research
Free for clients
20
Standard Online Share Trading
Makes
it easy
Education
Face
to face classes
Online
classes (webinars)
Online
Videos (YouTube)
Research
Quality research is important
Creating wealth on the JSE
Proposal
Company
research
updated as
required
Standard Online Share Trading - Research
Company
analysis
Consensus
research
updated weekly
Consensus
forecasts
Quality research is important
21
Creating wealth on the JSE
Proposal
Use the research
to add to your
view
Standard Online Share Trading - Research
Economic
outlook
Build a
investment case
for a stock
FX
report
Technical
analysis report
Quality research is important
22
Creating wealth on the JSE
Proposal
Historic
information on
all listed
companies
Price and
fundamental
23
Standard Online Share Trading
Makes
it easy
Education
Face
to face classes
Online
classes (webinars)
Online
Videos (YouTube)
Research
Company information, news
and annual reports
A listed company has to keep investors informed
Creating wealth on the JSE
Proposal
Standard Online Share Trading Company information
You have to go through a stock broker
24
Creating wealth on the JSE
Proposal
Everything you
need to make
that decision
25
Standard Online Share Trading
Makes
it easy
Education
Face
to face classes
Online
classes (webinars)
Online
Videos (YouTube)
Research
Company information, news
and annual reports
Online charts & live prices
Everything you need to make your investment decision
Creating wealth on the JSE
Proposal
End of day
online charting
Standard Online Share Trading Online charting, end of day
End
of day charts
Data back to 1994
26
Creating wealth on the JSE
Proposal
Full range of
indicators and
oscillators
Standard Online Share Trading Online charting, intraday charting
Intraday
charting (R99 per month)
Used by traders
1, 5, 15, 30 and 60 minute charts on all stocks and indices
27
Creating wealth on the JSE
Proposal
Everything you
need to make
that decision
28
Standard Online Share Trading
Makes
it easy
Education
Face
to face classes
Online
classes (webinars)
Research
Company information, news
and annual reports
Online charts & live prices
Search/filter tools
Everything you need to make your investment decision
Creating wealth on the JSE
Proposal
Standard Online Share Trading filter function
Search for;
shares,
warrants,
installments
Over 50 search criteria
29
Creating wealth on the JSE
Proposal
Standard Online Share Trading filter function
Search for;
shares,
warrants,
installments
Returns a list of stocks to start investigating
30
Creating wealth on the JSE
Benefits
Lets quickly
learn something
PE example
Price
earnings ratio (PE ratio)
Price
is the share price on the JSE
Earnings
Price
Use
is profit per share
divided by earnings = PE or valuation
PE ratio as a simple tool to indicate value
PE is one of the most widely used ratios
31
Creating wealth on the JSE
Benefits
PE is a simple
tool to help
determine value
Price is what
you pay
Value is what
you get
W Buffett
32
PE example
Company ABC
Company XYZ
Share price
R24.00
R75.00
EPS (profit/share)
R2.00
R15.00
PE (price/earnings)
12x
5x
Seems cheap, but
PE suggests
valuation is high
Seems expensive,
but PE suggests
valuation is low
PE is one of the most widely used ratios
Benefits
Whats in it for you?
33
Creating wealth on the JSE
Benefits
You do not need
to bank with
Standard Bank
South Africas
largest online
stock broker
34
Benefits
Wealth
Save
Be
creation
on costs
in control
Empowered
Help
to make informed decisions
you family, friends and colleagues
Especially your children
Leave
them an inheritance
Impart
investing knowledge to them
You have to go through a stock broker
Creating wealth on the JSE
Benefits
Investing is not
rocket science
Concerns
Dont
have enough;
Money
Anybody can be
an investor
Start
small, but start today
Knowledge
Well
help you
Time required for research and learning's
Does
not need to take lots of time
Jargon
Big words meaning simple things
Tax
Tax is a by product of successful investing
Sounds great, but..
35
Creating wealth on the JSE
Benefits
Standard Online
Share Trading
has all the tools
and information
you need
36
Concerns
Tools
required
Standard OST offers;
Everything
you need
Courses
(face to face and webinars)
Research
Charts
Alerts
Historic
All
data (+20 years)
financial reports of listed companies
Trader or investor, Standard Online Share Trading has the tools for you
37
Lets take
some Qs
Creating wealth on the JSE
Conclusion
Take control of
your wealth
creation
Conclusion
It
is easy
Anybody CAN do it
Everybody HAS to do it
Retire in style
It
is important
Take control of your future
The
tools are available
Education
is critical
Remember time is your biggest asset
38
Where to now?
Take the plunge .. Take control ..
39
Creating wealth on the JSE
Next steps
The website is
very much like
online banking
platform
Trade any JSE
listed products
Start your investment journey
Open
a Standard Online Share Trading account
[Link]
First
month is free
There after R60 per month
No deposit needed
Only
Do
when you want to buy shares
not need to bank with Standard Bank
All new clients will need to be FICAd
Open a Standard Online Share Trading Account
40
Creating wealth on the JSE
Next steps
South Africas
largest stock
broker
Open a Standard Online Share Trading Account
[Link]
41
Creating wealth on the JSE
Next steps
Wealth begins
with education
Attend a free course
All courses can be booked
online
Widest
education
offering
Held regularly in
Johannesburg,
Cape Town &
Durban
Book to attend the next course (Introduction to investing)
42
Creating wealth on the JSE
Next steps
Part of Standard
Bank Internet
Banking
Purchase on 25th
of every month
(next trading
day if holiday or
weekend)
43
A simpler DIY investing option
Auto
Share Invest
Minimum R500 per selected share per month
+/-100
shares to select from
Including
Exchange 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 bank
account after five business days.
Easy way to start
Contact details
Standard Online Share Trading
[Link]
securities@[Link]
0860 121 161
44
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would be regarded and treated as proprietary to SBG Securities (Proprietary) Limited (SBGSec), registration number 1972/008305/07. This
document and associated presentation shall not be reproduced or used, in whole or in part, for any purpose other than for the consideration of the
information set out therein, without the prior written consent of SBGSec.
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constitute an offer, a solicitation of an offer, invitation to acquire any security or to enter into any agreement, or any advice or recommendation to
conclude 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 that
reflect 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 the
accuracy, completeness, or reasonableness of any such information, quotations, disclosure or analyses. The past performance of any securities
or other products is not an indication of future performance. No representation or warranty is made that any indicative performance or return
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and although reflective of market conditions prevailing at the relevant time do not constitute an offer to transact at such levels and are supplied for
illustrative purposes only. Any transaction or agreement to perform certain services that may be concluded pursuant to this document and/or any
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any associated verbal presentation or any investment related to such an investment. Prospective investors should obtain independent advice in
respect of any product detailed in this document and/or associated verbal presentation, as SBG Sec provides no opinion or advice including
investment, 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 all
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Provider
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