By Idris Seedat (Manager: CSI of the Johannesburg Stock Exchange)

Five for first-timers 

Five for first-timers
The world of investment can be daunting. Faced with unfamiliar concepts and the thought of potentially losing hard-earned cash, many would prefer to hide their money under the proverbial mattress.
While stashing your cash away may seem like the wise option you’re actually not doing yourself any favours by not giving your money the opportunity to grow. Through investing, specifically in the stock exchange, you open yourself up to some exciting possibilities which could ultimately lead to financial freedom. The following are the five concepts that every first-time investor should understand before taking the leap.

By Idris Seedat (Manager: CSI of the Johannesburg Stock Exchange)
The world of investing is made a lot more complicated by the vocabulary used. In this article we look at common but often misunderstood financial information – the share pages that are found in the business sections of many national newspapers. These pages give vital information on companies listed on the JSE as well as many other investments including Kruger Rands, Exchange Traded Funds, preference shares, unit trusts.

Managing risk

Q: Hi there, do you guys have a basic formula for diversifying one’s assets into various classes based on age and/or other criteria and what do you believe to be the main asset classes? Also, what portion of equities do you suggest that a South African resident should hold in international shares and should these be split between developed and emerging economies? I know there is no “one size fits all” formula but I am looking for some guidance.
Thanks for your assistance.
A: Totally unexpected set of questions sent to - so we tracked down Daniel Weston (Founder and Chief Investment Officer of Aimed Capital) to answer it for us!
Daniel Weston: There is no one size fits all of course, but in my opinion the conventional portfolio asset allocation model has got it all wrong....I don't allocate assets by dollar amounts, I do it by risk....
Risk in my eyes is essentially volatility. So you want to have equal spreads of volatility. Meanings much more bonds (less volatile), less equities (more volatile), and small amount of commodities (very volatile). So it could for example be, 60% bonds, 30% equities, 10% commodities, for EXAMPLE! What this would do is put "positive economic data" and "negative economic data" assets in equal amounts of risk (volatility) - does that make sense?

Idris Seedat (Manager: CSI of the Johannesburg Stock Exchange)

Idris Seedat
By Idris Seedat (Manager: CSI of the Johannesburg Stock Exchange)
Those who start learning about finances at a young age are more likely to become responsible adults capable of making sound financial decisions. Teaching your teenagers about finances and the fundamentals of investment strategy is extremely important to help them gain the necessary skills to understand various financial options available to them throughout their lives. This could range from saving for retirement, to understanding interest on a car or house loan and of course how to invest. Here are five tips to consider when teaching your teen about investing:
The building blocks
You can help your teen build the blocks in their financial development by teaching them about investment. But in order to do so you need to empower yourself first by learning more and getting your financial house in order. Look at your own spending, saving and investing habits and what messages these send to your children. Start purchasing financial publications to learn about investments.

An Education Revolution

The Big Question - why are students and scholars not getting it right the first time?

Be it the classroom, lecture or seminar room – wherever the place may be – individuals often struggle to grasp complex concepts the first time around. Though the reasons may vary sometimes...from external factors to basic attention spans, there are a whole list of given factors!

For a long time parents, guardians and even teachers/lecturers have been pushing on students and scholars to engage with extra/private tutoring outside of the normal education setups (schools, universities, colleges etc.). Sure an extra bit of grounding helps but concepts not being grasped the first time around opens up a lot of questions. With so many people to cater for in one venue, the concept of capturing an individual's attention can be tricky.