The decade's top shares

2010-07-04 08:36

Johannesburg - It is possible to make money with shares – and big money.

But the shares that show phenomenal growth will surprise many investors.

Data from research group McGregor BFA show that the best-performing share over the past 10 years has been small stock African Media Entertainment [JSE:AME].

Had you invested R1 000 in AME on July 3 in 2000, it would today be worth R566 667.

The next best performer was Absolute Holdings [JSE:ABO], a mining investment company which over the 10 years would have ballooned a R1 000 investment to R500 000 today.

McGregor BFA’s data are calculated by taking a fictitious investment of R1 000 on July 3 in 2000.

Any income that the company concerned has distributed to shareholders – such as dividends, special dividends and the unbundling of interest in other companies – is taken to have been reinvested in the share. All broker fees are excluded.

Total yields have been calculated on closing prices on June 30 this year.

The data show that small- and medium-sized shares have done particularly well, compared with some of the veterans.

Big performers include Rainbow Chicken [JSE:RBW], Group Five [JSE:GBF], Netcare [JSE:NTC], Murray & Roberts Holdings [JSE:MUR], City Lodge Hotels [JSE:CLH] and Trencor [JSE:TRE], with yields ranging from R17 120 to R10 003.

Investors in the four big banking shares would have lost out, because the best-performing financial share over this period was that of Sasfin Holdings [JSE:SFN], a niche group that focuses on trade finance, with limited exposure to asset management and stockbroking.

An investment of R1 000 in Sasfin in 2000 would have grown to R7 420 today.

The best performer among the large banks was Absa Group [JSE:ASA] (R4 727), followed by Standard Bank Group [JSE:SBK] (R3 864) and FirstRand [JSE:FSR] (R2 580).

Nedbank Group [JSE:NED] would have been the share to avoid, because over the 10 years you would have received a smaller return than your original R1 000 – namely R843.

Sanlam [JSE:SLM] is clearly the performer among the life insurers, yielding R2 854.

Metropolitan Holdings [JSE:MET] would have delivered R1 815 and Liberty Holdings [JSE:LBH] and Old Mutual [JSE:OML] would have produced negative returns.


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  • Property beat shares - 2010-07-04 09:27

    Property would have been a better investment in most of these cases.

  • Interest - 2010-07-04 11:13

    Would be more informative to include the interest earned with a bank on R1000 over the same 10 year period (Risk free). This would put the return on the above shares into perspective.

  • Analyst - 2010-07-04 17:06

    So LBH and OML have not just lost money for policyholders, but also for their shareholders - LBH managed to loose it all in SA while OML lost it all overseas. Better being a LBH policyholder than shareholder (only marginally though), but much better being a LBH broker or exec.

  • Resource legend - 2010-07-04 18:10

    Where is the mining shares. Thought it was a resource cycle?

  • pearl - 2010-07-05 07:41

    For a R1000 you would have gotten a zozo hut

  • thabiso paatjie - 2010-07-05 13:43

    i never thought AME is doing that well, for me it was just one of those companies that are trying, but wow. i should've known maybe i would have been one of the people benefited from it.

  • Langvingers - 2010-07-06 11:37

    Yeah - how can an article get issued where the research is incorrect. Of course companies that have had share consolidations would show stupid increases in market price

  • james - 2010-07-07 10:44

    Shares beat property cause higher risk therefore should =higher return and normally peoples properties are geared anyway so not comparing apples with apples.

  • Ninja Ryu - 2010-07-07 11:24

    Guys, Can one answer the property investment thing? Pleople say you buy property and rent it to someone. My problem is the equation does not seem to give you profit, if there is any, till you sell as the bond installment is always more than any amount you will get in rental income. Any answer's?

  • Property Idiot - 2010-07-07 21:14

    Real returns of 3 different investments made in the commercial and industrial sector : 1. Property bought 2006 for R712 000 (R142 000 own equity or deposit) sold 2010 R 1,4 mil profit after costs R 600 000 return on own equity in 4 years 422% 2. Invested R150 000 in property company over 10 year period small monthly amounts contributed with capital contributions of between R5000 and R20 000 periodically to make up R150 000 Nett asset value currently R850 000 3. Bought Property 2007 R2,4 mil (own Equity R500 000) sold 2010 R4,2 mil profit after costs R1,7 mil return on own equity 29 % in 3 years All about buying right and selling at the right time

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