JSE Power HourBuild a portfolio from

ScratchSimon Brown

SimonBrown.co.za@SimonPB

14th August 2013

DisclaimerThe information and opinions stated in this presentation/document/video/webinar are of a general nature, have been prepared solely for information purposes and do not constitute any advice or recommendation to conclude any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate professional advice before acting on any information contained herein. Whilst every care has been taken in preparing this document, no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or representations. All information contained herein is subject to change after publication at any time without notice. The past performance of any investment product is not an indication of future performance.

Creative Commons Licence

http://creativecommons.org/licenses/by-nc-nd/3.0/

twitter.com/JustOneLaptwitter.com/SimonPB

facebook.com/JustOneLap

Simon Brownwww.JustOneLap.com

www.SimonBrown.co.za

What•Satellite / core•ETFs•Costs•Small amounts•Stocks•Value / blue chips / mid cap / small cap

Strategy•Long term portfolio•Decades•Capital appreciation•Beating Top40•Cost aware•Monthly and lump sum

Satellite / core

Exchange Traded Funds

(ETFs)

Core•Core portfolio of Exchange Traded Funds (ETFs)•50% - 95% of portfolio•50% = higher risk•95% = lower risk

Core•Gives you market return / security

•Start building this part of the portfolio first

•Monthly debits / lump sum

Size matters•Easy to start a portfolio with lots of money

•Hard with small capital

Size matters•Start buying ETFs•Monthly or lump sum•When you hit R10k (or more)•Start with satellite•Only buy satellite +R5k•+R10k better (costs)

•When portfolio split right•Back to ETFs

Size mattersExample•R1,000 per month (50 / 50 split)•Every month•R500 into ETF•Save R500•After a year invest R6k into satellite

Size mattersExample•R1,000 per month (80 / 20 split)•Every month•R800 into ETF•Save R200•After 2 years invest R4.8k (+interest) into satellite

Core - which?•BBET40 (Top40 equal weighted)•50% - 100%•PTXTEN (10 Prop equal weighted)•10% - 20%•RMBMID (MidCap index)•10% - 20%•DBXUS / DBXEU (international)•10% - 20%

Core - which?•RMBINF (Gov CPI linked bonds)•0% - 15%•PREFEX (Preference shares)•0% - 15%•NGPLT (Platinum)•0% - 15%

Core - high•BBET40 50%•PTXTEN 12.5%•RMBMID 12.5%•DBXUS / DBXEU 5% each•RMBINF 10%•NGPLT 5%

Satellite - which?•Strategy?•Growth•Value• Income•Small / mid

Satellite - which?•Be selective•Buy at right price (cheap)•An hold

•Basic fundamentals•PE / DY / NAV / Cash

•Winning stocks• In winning sectors

Satellite - which?•Fundamental charts•Video at http://jol.to/?9K

•Data points at financial year end

Satellite - which?•Shoprite (great company, but)

Satellite - which?•Sasol (great company, and)

Satellite - which?•MTN (great company, but / and)

Satellite - which?•City Lodge (great company, ???)

Satellite - which?•Be selective•Small / mid•Taste•Calgo M3•Adapt IT•Accentuate

Selling?• Core ETFs• HOLD

• S atallite• Watch key reason for buying

Satellite - which?My portfolio www.SimonBrown.co.za•BATS, BHPBill, BGreen, BBET40, Calgro M3, Capitec, Cityldg, Clover, Fambrands, MTN, OldMutual, PTXSPY, PTXTEN, RMBMID, Sasol, STX40, STXDiv, STXRAFI, Shoprit, Stanbank & Woolies.

Re cap•Keep it simple•Process not an event• It will take time•Decide risk levels•Decide overall strategy•Decide which ETFs•Decide which stocks

? @SimonPB Facebook.com/JustOneLap info@justonelap.com @JustOneLap

DisclaimerThe information and opinions stated in this presentation/document/video/webinar are of a general nature, have been prepared solely for information purposes and do not constitute any advice or recommendation to conclude any transaction or enter into any agreement. It is strongly recommended that every recipient seek appropriate professional advice before acting on any information contained herein. Whilst every care has been taken in preparing this document, no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or representations. All information contained herein is subject to change after publication at any time without notice. The past performance of any investment product is not an indication of future performance.

Creative Commons Licence

http://creativecommons.org/licenses/by-nc-nd/3.0/

JSE Power HourBuild a portfolio from

ScratchSimon Brown

SimonBrown.co.za@SimonPB

14th August 2013