WHAT will an unbeatable stock portfolio look like? Fin24.com's Marc Ashton, Marc Hasenfuss and Leani Wessels put forward their dream teams.
Marc Hasenfuss - The Hasenfuss Hotspurs Defence wins World Cups. Well, I hope this old rugby adage also applies to soccer as my World Cup Stock squad is going to hold strong defensive qualities. What with European economies liable to score own goals, I'd like to see my net being kept clean and hopefully score the odd goal on counter-cyclical attacks.
I will be playing a 4-3-3 formation with an emphasis on a defensive mid-field.
Here's my World Cup Stock XI (plus three substitutes):
Goalkeeper:
New Gold: These Gold Debentures are probably the best last line of defence in jittery economic climes. If the debt-laden Europeans start taking desperate shots from everywhere, there can be no better stock protecting your longer term investment goals.
Central defenders:
Remgro: A defensive stock that, like German legend Franz Beckenbauer, has everything. The first man picked for my squad. Will wear the captain's arm-band, and is expected to give no quarter in and around the box.
British American Tobacco (BAT): A big presence at the back, intimidating and unflappable. BAT has its detractors, especially those who believe its tactics are harmful. But (cough) it gets the job done in tough times.
Right back:
Reinet: Initially viewed as a slightly more nimble version of BAT. Recent exercises to increase the company's repertoire (mortgage investments in the US and other specialised investments) add a new dimension to the defensive role, although its defensive temperament may start being questioned.
Left back:
Richemont: A top class player. An uncanny ability to "bling" it on when it really matters. Not only can Richemont call on great brands, but it can also look for support from a huge heap of cash should recessionary conditions keep kicking.
Mid-fielders:
PSG: Classy, under-valued and inspirational. A great play-maker in situations when most players think there's nothing on, and very solid on defence. My very own "boere" John Terry.
Advtech: Is there a more educated boot? A near-perfect player boasting great margins, superb brands, heaps of cash flow and strong management. Advtech is very difficult to bring down in the tackle, and particularly good at passing price increases in tough times.
Foord Compass: Not the flashiest mid-fielder - but an incredibly reliable player in terms of netting above-average returns. Will provide extra cover on defence, and can be trusted to bring value to the front.
Left wing:
HCI: Armchair critics will argue HCI is too big and lumbering for a left wing. But HCI has shown an ability to pounce quickly on opportunities. And don't forget the company's reputation for being a "hard lad" in 50/50 situations.
Right wing:
Gold One International: Some might argue this is a streaky choice. Gold One is inexperienced and untested on the big stage. Still, nothing runs faster than a junior gold miner – especially one that has recently shifted into a more productive phase.
Striker:
JSE Limited: More a Peter Crouch than a Ronaldo. But what other player is able to shrug off market volatility as well as the JSE Ltd? If things get hairy, I expect there's a good chance JSE could score against the run of play.
Reserves:
Brimstone (for HCI): The classiest of the empowerment players, although lacking HCI's physical presence. Could enjoy a dashing cameo on the left wing now that the company's Health matters are in order.
Wescoal (for Gold One): Like Gold One, this counter could do some sprinting around a tiring opposition. The company is a lot more skilful than its market statistics suggest.
BHP Billiton (for Reinet): Reinet's selection – now that the company has delved into subprime mortgage scavenging - may be uestioned as part of a stoic defence line. BHP Billiton will slot into the back four easily should I require a mid-match re-shuffle.
Leani Wessels - Wessels Wanderers Goalkeeper:
Remgro. This stock is a cornerstone of many portfolios – and the way things are going it shouldn't be scoring own-goals anytime soon.
Defenders:
BHP Billiton, MTN, Exxaro and BAT. These companies are the good old reliable ones you can always count on. They're experienced and won't let an opportunity slip past them, and it's safe to assume their mistakes are not catastrophic. The mining industry is also set to really take off again as China steamrollers ahead with its economic growth.
Midfielders:
Capitec, Basil Read, Aveng and Foord Compass. These companies are the all-rounders – they're showing great growth but at the same time known for how well-run and defensive they can be.
Capitec is an expensive player (at R101, some say too expensive) but its still-strong performance and potential for growth makes it a great addition to the team. Basil Read and Aveng are favourites among portfolio managers – and the potential for growth in SA and the rest of Africa is still there, especially once the government starts its infrastructure spend. These guys know their game and have been around the block, twice.
Strikers:
We have new kid on the block RE:CM & Calibre, the closed-end fund managed by Piet Viljoen. There's a chance of inconsistency, but the opportunity for stellar growth is there. Much like Siphiwe Tshabalala pulling off another great goal.
It is partnered upfront by brewing giant SAB Miller.
Marc Ashton - Ashton VillaGoalkeeper:
As England keeper Robert Green showed, its imperative to have a safe pair of hands in goal. For that reason I would anchor my portfolio with the Foord Compass debentures.
Defenders:
I've gone with an all-exchange-traded fund (ETF) backline with Satrix40, Absa Capitals' eRAFI, Deutsche Bank X-Tracker World and Investecs Z-Govi to get me off on the right footing.
Midfielder:
In the middle of the park you need to have hard workers. I've gone with the newly-listed RE:CM & Calibre and private equity firm Brait.
Strikers:
My strikers are all-out risk takers with Buildmax, African Dawn Capital, Paladin Capital and resource firm Pallinghurst. All offer something a little different - you only need one of them to come right and the tournament is yours for the taking.
Reserves:
On my subs bench I have gone with Gold Fields and Reinet to give me a bit of variety, depending on the match situation.
- Fin24.com