Using Benjamin Graham’s original concept of value investing, Simon Brown searches for value stocks on the JSE. Turns out they are hard to come by on our local bourse.
Back in March, I wrote about Barloworld* in one of my ‘House View’ columns. I picked this stock because it is the only local stock that meets the classic value investing definition.
Value investing is a phrase thrown around with abandon in the investment world, but in truth we have very few true value investment managers. Even Warren Buffett, who studied under the father of value investing, Benjamin Graham, is no longer a value investor in the classic sense.There is also an argument that value no longer has a place in investing, but I disagree with that. But at the same time, finding true value stocks, especially on the relatively small JSE, is often difficult.
The original concept of value investing is Benjamin Graham’s book, The Intelligent Investor. First published in 1949, it remains the default guide for value investing.
In the book Graham details the criteria a stock must meet in order for it to be considered a defensive value investment (he also deals with enterprise stocks, but for the purpose of this article, I am focusing on the defensive side).
This story is from the 15 August 2019 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the 15 August 2019 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
How do I protect the value of my investments against inflation?
It is not easy to find the right balance, but a portfolio should be well-diversified and structured to the environment.
Expectation versus reality
Consider the potential outcomes when buying stocks.
Don't panic, but be cautious
The current energy crisis unfolding in the UK is an example of slow-motion market action. Will it resolve itself?
Don't outlive your money
Make the right choices in retirement by keeping a keen interest in your post-retirement investments.
Rebuilding from the unrest
South Africa is exposed to an enormous economic security risk by concentrating most of its trade in KwaZulu-Natal, and the Eastern Cape offers an opportunity to deconcentrate trade.
The lure of retiring abroad
Dreaming of retiring in an exotic destination? Here’s what you need to know.