Golden eggs and golden visas

Feel free to reach out to PSG Wealth Manager Morné Oosthuizen directly.

To explain, let us take a look at some of the ‘golden eggs’ (as well as some of the ‘rotten ones’) over the last decade:

Naspers: 386%

Facebook: 733%

Apple: 837%

Microsoft: 913%

Amazon: 959%

Capitec: 987%

Nvidia: 5 411%

Bitcoin: 7 644%

Here are some of the rotten eggs:

Pick n Pay: -56%

Sasol: -72%

Kodak: -85%

Credit Suisse: -95%

Steinhoff: -100%

The names above illustrate why it is so important to have a diversified share portfolio, in order to reduce the risks of getting some stock picks wrong. The fact remains that you only need to get 51% of your choices right in a well-managed portfolio.

The next question we currently get asked quite often is whether the US tech shares are now something of the past, or should investors still invest in them? Let us take a look at some of these companies:

• Nvidia: Nvidia has a 90% share of the artificial intelligence market for microchips. The company has grown its income by 200% in the last year, with a projected annual income growth rate of about 42% over the next few years.
• Meta: Analysts expect income growth of over 20% a year for this company over the next few years.
• Amazon: Amazon looks expensive on a price-earnings basis. However, it is trading at 22 times operating profit, which is about 20% below Amazon’s average over the last decade.
• Alphabet: The expected earnings growth for Alphabet is approximately 18%. Both Google and YouTube are optimising targeted marketing campaigns using the masses of data at their disposal. This company can be described as a boring ‘money printing machine.’

Given the above, we are still positive about these counters as part of your diversified portfolio.

The second aspect we will touch on, is the conversation about golden visas. We think the benefits of these visa programmes are extremely attractive from a travel point of view. The other advantage, of course, that it is a ‘plan B’ for many South Africans.

However, there are many good reasons why all of us still live in South Africa. Surrounded by negative news, and with our media also focusing attention on it, we often forget about all the wonderful things we still cherish about our country.

I recently read a document drafted by a company in the UK giving 25 reasons for Britons to relocate to South Africa. I would like to highlight a few:

1. Panoramic views and landscapes:

Whether you are on the coast, in the Drakensberg Mountains, in the Highveld or the Lowveld, unforgettable panoramic views await you

2. Your money goes further:

 In a 2022 survey of the most expensive cities around the globe (227 cities participated), Johannesburg ranked 193^rd, Cape Town 194^th and Durban 216^th. In a subsequent study, it was found that accommodation is 63% cheaper in South Africa than in the UK, and dining out would cost you 51% less.

3. Sunsets:

Thousands of South Africans travel to places like the Greek island of Santorini to see the sunsets. But where would you find a more beautiful view than sitting with a glass of wine around a campfire in a game park enjoying the sunset painting the sky in shades of pink and orange?

4. Sense of humour:

We have this incredible ability to laugh at ourselves and the challenges we face. Just consider how often, when bad news breaks, hilarious jokes on the subject emerge within a matter of minutes.

5. The Big Five:

We do not have to say much on this. While foreign tourists pay thousands of rands to do a safari in Africa, we have the wildlife on our doorstep.

6. Most beautiful beaches:

 Again, as South Africans we travel to Mauritius, the Maldives, Thailand, and various European countries, but where would you find beaches with a more scenic view than Bloubergstrand?

7. Best weather:

The highest average temperatures in our coldest month are warmer than the highest average temperatures in the UK’s warmest month. Enough said…

8. Cultural diversity:

 Politicians enjoy focusing on cultural differences and fanning the flames of hatred. But isn’t it amazing, when a South African pulls a Springbok jersey over their head, there is no colour, cultural or religious divide? After all, this is what most South Africans want.

To conclude, in the words of Desmond Tutu:

“Hope is being able to see there is light despite all of the darkness.”