Berkshire Hathaway 2023 AGM
The Berkshire Hathaway 2023 AGM Q&A was fantastic. Charlie and Warren were in great form and answered questions for almost 6 hours. Click Berkshire Hathaway 2023 AGM to download the summary notes from the AGM.
Valuing a company using EBITDA
Ever wondered how much your own company is worth? Let’s find out by learning how to value a private company using earnings multiples. There are many different multiples and you need to use the right one in each situation. In particular, earnings multiples are appropriate to value mature businesses with: sustainable earnings, low capital expenditure, […]
Economic Value Added®
Economic Value Added (EVA) is the most powerful concept in finance and investing, but most people are unfamiliar with it. Problem As every investor knows, it is easy to tell if a company has done well in the past – all that information is available in financial statements and reports. The real challenge is to […]
Five JSE-listed companies that have produced high returns despite tough conditions
1. Compagnie Financière Richemont Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Market cap: 1484 billion 10 year price growth = 14.94% ROCE = 14.4% PE ratio = 34 […]
Coronation Fund Managers: Analysis of the SCA judgement and market reaction
Cross-border tax is tricky, it has subtleties that are sometimes not apparent and will eventually have to be decided in a court of law. This appears to be the situation with Coronation. The Supreme Court of Appeal judgement handed down ordered that: Coronation has to pay the additional tax imposed by SARS. Coronation has to […]
Thungela Resources – M&A analysis of the Ensham deal
While geographic diversification to circumvent infrastructure challenges in South Africa sounds good on paper, in general, mergers and acquisitions (M&A) are tricky. In particular, South African companies have a poor track record when it comes to cross-border M&A. Hopefully Thungela can buck the trend. Points of concern from the Ensham acquisition: Contributing 98.53% of the […]
Three companies with dividend yields above 10%
Exxaro Resources DY = 12.73% FCF = 44.12 (ZAR per share) P/E = 4.04 P/B = 1.69 Coronation Fund Managers DY = 11.21% FCF = 10.65 (ZAR per share) P/E = 9.4 P/B = 5.9 African Rainbow Minerals DY = 10.59% FCF = 45.20 (ZAR per share) P/E = 5.22 P/B = 1.47 Subscribe […]
DRD Gold Limited
Amazingly, a company called DRD Gold Limited, sells for less than the value you could get if the company were liquidated (numbers are in ZAR per share). Liquidation value = R16.77 Share price = R14.15 Earnings = R1.31 Free cash flow = R10.65 Ratios: Dividend yield = 4.15% PE ratio = 11.06 Return on equity […]
Five JSE companies with positive liquidation value
5 JSE companies with positive liquidation value (numbers are in ZAR per share) Hudaco Industries: Share price = 144 FCF = 20.66 Book value = 95.41 Astral Foods: Share price = 166 FCF = 23.90 Book value = 124.65 Omnia Holdings: Share price = 63.94 FCF = 6.03 Book value = 61.55 JSE Limited: Share […]
Wealth is inevitable
Introduction Have you ever thought, “if only I had bought Apple stock 20 years ago, I could be rich right now” (Apple is up 445 times in 20 years). That thinking is exactly why you get poor results from investing. You’re always looking for the next big thing. You buy a stock, it doesn’t perform, […]
How to access funding
The thought of raising investor funding can be daunting. Where do you start? Step one – Don’t panic, it’s not as bad as you think While raising investor funding has many requirements, most of which are spelt out in jargon that only they understand, it is usually simple information which is required. If you are […]