TOP INVESTING STRATEGIES

VALUE INVESTING                                           

Benjamin Graham:  ~20% CAGR over 20 years
Warren Buffett:  19% CAGR over 50 years
Benjamin Graham:  ~20% CAGR over 20 years
Joel Greenblatt:  48% CAGR over 10 year

Get value at a fair price or even cheaper price let your investment returns compound in the form of dividends and high returns on invested capital. Buy your stocks as you would buy your groceries he says, not like when you buy goods with a snobbish effect like jewelry. You wouldn't buy your grocery list at a price higher than the established price, you go to the next retailer for better offers. 

A key point is that Buffett likes to wait with cash for a big opportunity. In good economic times, Buffett likes to accumulate cash that he consequently deploys when there is blood on the streets (in the exact words of "Rothchild") like he did in 1999 2005 to 2007 and he has been accumulating cash since 2008 waiting for opportunities. Currently, he has what he calls his elephant gun at 110 billion free cash flow. 


ALL WEATHER PORTFOLIO

Ray Dalio: 10% CAGR over  30 years

The goal is to be diversified across various asset classes so that you can do relatively well no matter what happens in the economy. If gold goes up you sell a little bit you buy more of what went down. He has invested in over 150 countries 20 asset classes derivatives options whatever you can imagine leveraged hedge all of faith.  

"Big Companies Have Small Moves; Small Companies Have Big Moves."

Peter Lynch:  29% CAGR over 13 years

Small Cap companies are 

1. Not given much attention given to big blue chips
2. Institutional investors tend to avoid them.
3. Price of Small Cap companies tend to jump aggressively once these companies start expanding

Summary

Part of the very nature of human beings is having different temperaments and different ways to approach situations. It's usually best to either choose one of the above strategies or mix up all of them to come up with your own. Below we will put references to resources that can help you study each strategy in depth and choose one for yourself.

References:
Value investing

1. Intelligent Investor by Benjamin Graham
2. The little book 

Peter Lynch

1. One up On Wallstreet

“Risk comes from not knowing what you're doing.”

All investments involve some degree of risk. If you intend to purchase securities - such as stocks, bonds, or mutual funds - it's important that you understand before you invest that you could lose some or all of your money. ... That's true even if you purchase yourinvestments through a bank.


                                                                                             

Earnings per share- EPS

How #EPS is broken down should never escape your sight. Ratios amongst #Capex #dividends, #FCF are crucial for projected future growth. Is the proportion high on the Capex side relative to dividends & Free Cashflow? Do dividends leave a healthy Cashflow? https://t.co/gZiYvmKukC

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Zimbabwe faces exclusion from S&P Dow Jones Indices on inflation fears

Finance

It's not all lost. In the face of expulsion from what is typically disseminated by mass media to be the benchmark for African markets, I not only feel regretful but I also empathize with every stakeholder of Zimbabwean Stock Exchange.

 However we should remain positive about the future, while we step back to explore our options, we as Zimbabweans should keep the market above the water, the market has to be always liquid atleast in the conventional sense of the word. Even as we dig for other solutions, we must sort our house and return to be part of S&P African Indices, stock exchange strives on what is called the "network effect"; a phenomenon whereby a service gains additional value as more people use it, S&P All African Indices provides that effect and being part of it is what we need.

Whilst we are still at it, we have an intelligent platforms like C Trade; an innovation developed to promote participation in financial and capital markets, through mobile and internet based platforms. This service is available to everyone and its time we break down network effect to our level and have Zimbabweans not leaving building of wealth through financial markets only to a few individuals, its time Zimbabweans take interest in ZSE and C Trade is the golden key. This is not a substitute of being part of S&P All African Indices but atleast it will kill two birds with one stone; teach Zimbabweans investing education and keep the market liquid. 

In conclusion, this should be seen as the opportunity to rope in everyone for the benefit of the market, the economy and for locals too. In the face of harsh economy where inflation eats away savings, people can increase their earning power through stock exchange. 

-------- The Prestige Group Network

2c for every dollar tax- What does it mean to you as an investor?

According to SI 205 of 2018, “transaction on which the tax is payable does not include any of the following transactions — the transfer of money for the purchase or sale of marketable securities; the transfer of money for the purchase or redemption of money market instruments; the transfer of money on payment of remuneration; the transfer of money to or from the Zimbabwe Revenue Authority (ZIMRA) for the payment or refund of any tax, duty or other charges, and the intra-corporate transfer of money between the Treasury account and any trading account held in the name of the same company.

The Prestige Group Network 

October Effect- month of stock market panic

It turns out not only humans and animals suffer psychosomatic trauma effects, so does the stock market. The market in the past century has suffered repetitive overwhelming crushes in the month of October that has led to serious, long-term negative consequences.

Diagram showing the last week panic 

September and October has notoriously became a short period of panic selling. Since the greatest depression of October 1929, the Stock market has had the ability to store, retain, and subsequently retrieved the extreme distressing financial losses that caused severe emotional grief to countless investors.

88 years is a very long time but still the market seems not to forget, investors still panic. Last week Dow Jones Industrial dropped by 800 points, could have this be caused by the rise in bond yields, 10 year treasury note, or just because its the month of October, we can never know.

Pundits have in the past pointed out that "October effect is just a psychological expectation rather than actual phenomenal as most statistics go against it, in a way it would be wonderful for investors if financial disasters, panics, and crashes chose to occur only on one month of the year"(sic).

The Prestige Group Network