That sink­ing feel­ing (not)

Finweek English Edition - - COVERSTORY -

THE “DOWNER” PORT­FO­LIO com­prises Fin­week ’s se­lec­tions of stocks we feel are likely – for a va­ri­ety of rea­sons – to take a tum­ble in the year ahead. This year – and it was bound to hap­pen some time – the downer port­fo­lio ac­tu­ally holds our best per­form­ing stock: Capitec (+112%). I re­mem­ber dis­cussing the in­clu­sion of Capitec in the downer port­fo­lio with a col­league (who shall re­main anony­mous) at year-end 2009. We both felt the share had run too hard, too fast. Say no more… The other big sur­prise was Lon­rho plc, the pan-African con­glom­er­ate. The share was up 50%. SABMiller was thank­fully only some­what frothy (up 10%).

But the downer port­fo­lio (much to our re­lief) took a past­ing, thanks to the mas­sive re­treats in the share prices of WG Wearne (down 55%) and cash shell Cen­mag (down 50%). Still, the downer port­fo­lio re­turned 13,4% – which is un­ac­cept­ably mod­est. Con­se­quently, for 2011 we’re go­ing back to ba­sics with some no-non­sense se­lec­tions.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.