10 Shares to Own in 2019

If you are new to investing money, then there are a couple of things you should know before you just jump in and buy the first, best shares that come your way. There are rules, or maybe guidelines is a better word, for investing your money. The first and most important rule is not to put all of your eggs in one basket. Diversify! Don’t invest all of your savings in that one bright spark company that you heard of. It can cost you dearly if that company runs into trouble. Rather invest in various companies across the whole spectrum of the board.

Let’s face it, investing money always carries an element of risk. But we want to help you to decrease the risk factor when you start buying shares this year. So whether you are new to investing, or an old hand at the game, keep reading to find out which SA shares are a must have this year!

Diversify

When we said that you need to diversify your portfolio, we were quite serious about it. Having great interest in one company can not only be bad for your financial standing, but it can be detrimental to your wellbeing. If you are constantly worried about how that one company you invested all of your money in is faring on the Exchange, you are bound to go crazy at some stage. So for peace of mind, get shares in more than one company.

Target stable sectors

When looking at solid investment options, you need to ask yourself a couple of questions like; What do humans need to survive? What is essential to continued development? Are there any things that humans want, even though we don’t necessarily need it? We encourage you to pause and think about this. Done thinking? Did you come up with a list that looks something like this:

  • Question 1: Food, beverages, medicine and buildings
  • Question 2: Energy and the resources required to generate it
  • Question 3: Money, jewellery and all sorts of consumables

Okay, so now you know which sectors are likely to keep on growing (or at least stay stable) under most economic environments. From here on out it is just a simple matter of finding out which companies in these sectors have a good track record. Luckily, we already did that job for you! Below are 10 shares (in no particular order) that you should definitely own in 2019!

Sasol Ltd.

Sasol is South Africa’s flagship petrochemical company! They were the first company to produce oil from coal and subsequently they went on to create a very well developed system to convert gas to liquid. Currently, Sasol has multiple international projects where they are building gas to liquid plants for the production of energy. Sasol is one of the few companies on the JSE Top 40 that showed continued growth through the last quarter and even though the company had its ups and downs, it has grown significantly over the past ten years. Getting Sasol shares might be well worth it.

Sirius Real Estate Ltd.

Sirius Real Estate is listed on the main boards of both the Johannesburg Stock Exchange (JSE) and the London Stock Exchange (LSE). The company focuses on developing commercial property for the small and medium business enterprises sector in Germany. Sirius is listed on the Small Cap section of the JSE, meaning that the company still relies on investors to fund their expansion. It can be well worth your buck to invest in such a company, especially if they show a good track record like Sirius’ – The company showed continued growth throughout the past ten years and have created a name for quality commercial space in Germany. It seems like Sirius Real Estate is here (or there) to stay, so get your shares today!

Adcock Ingram Holdings Ltd.

Adcock is a leading South African pharmaceutical company that is listed on the JSE. The company manufactures and distributes a large variety of medication to a large market. They have recently expanded into the Sub-Saharan and Indian pharmaceutical markets and so far the company has done remarkably well in those new ventures. Shares in this company have grown by 18.39% from the 52 week low. Over the past three months, the company grew by a good margin, but we all know that the real proof lies in the fact that over the past ten years, Adcock has shown steady growth. It might be worth a mention that the group is a level 4 B-BBEE contributor. Also a small cap listing, this pharmaceutical company has a lot of growth potential for would-be investors.

Vodacom Group Ltd.

Vodacom is a well-known telecommunications provider in South Africa. The group also provides mobile network coverage in Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho. Even though the company’s shares dropped over the past year, the general growth trend over the past decade is strongly positive. Vodacom is expanding operations to include providing fibre internet to homeowners in most major cities in South Africa. Vodafone, a worldwide leader in mobile communications owns 65% of the Vodacom Group Ltd. Mobile internet and communications is rapidly expanding across Africa and as such it might be worth it to get some shares in this communications giant.

Capitec Bank Holdings Ltd.

Capitec is a relatively young bank in the South African banking scene. Since the company was founded in 2001, it has grown to be the second largest bank in South Africa, customer wise. Capitec provides all of the regular banking services such as house loans, savings accounts and so on. The reason why we suggest Capitec is because the company just seems to keep on growing. Capitec shares have increased by 59.48% over the last year, which is an amazing feat in the business world. Furthermore, over the past ten years the company grew significantly. With a track record like that, why wouldn’t you want to invest in Capitec?

Anglo American Plc

Anglo American is a well-known name in global mining circles. This mining giant is listed on both the JSE and the LSE and has operations in Africa, the Americas and Australia. Anglo American is the world’s largest platinum producer, and also produces diamonds, copper, nickel, coal, iron ore and manganese. After taking a dip in 2016, Anglo American has recovered remarkably well, pushing up the value of shares by 44.9% from the 52 week low. The company employs more than 69,000 people across the globe and prides itself in the fact that it not only provides emerging and stabilised economies with the resources that they need to continue growing, but that they also leave a social legacy behind through empowering the communities in which they operate their mines.

For the foreseeable future, the resources produced by Anglo American will stay in high demand. So why not add Anglo shares to your portfolio?

The SPAR Group Ltd.

The SPAR group is a wholesale company that provides warehousing and distribution facilities to companies operating under the SPAR name. The most well known brands that fall under this group is the SPAR supermarket chain and TOPS liquor. In 2018 SPAR had the largest independent supermarket retail network in the world, with 12,800 stores globally. The group also had the biggest presence in suburban South Africa, beating all of their competitors with the number of stores they have in urban residential areas around the country. The SPAR group has licences to operate in Angola, Botswana, Mozambique, Namibia and Zambia in Africa. Then they also operate supermarkets in Ireland, Sri-Lanka and Switzerland. The group has shown stable growth over the past ten years.

Food will always be a necessity, and SPAR seems to know its business about distributing it. That is why we think it might be prudent to get some SPAR shares in 2019.

British American Tobacco Plc

British American Tobacco (BAT) has been around for more than a hundred years. They are one of the largest consumables producers in the world with factories in 42 countries. BAT employes over 55,000 people and are partnered with more than 90,000 farmers globally. The company provides market leading cigarettes such as Dunhill and Peter Stuyvesant. Throughout the company’s history it has shown successful growth and a knack to adapt with the market. They see the current fad to move away from conventional cigarettes to vape type smoking as an opportunity to grow their business. BAT is one of the largest companies on both the JSE and LSE in terms of market capitalization and shows steady growth over the past decade. Getting shares in this company can be a good boost for your portfolio.

Bid Corporation Ltd.

Bidcorp is a foodservice group that operates in more than 34 companies across five continents. The group is always on the lookout for new acquisition opportunities and as such they have gone through quite a few up and down cycles over the past ten years. Even though they have had their ups and downs, the group is stable and their shares are currently on an upward trend. Bidcorp believes that each of their supermarkets should be run according to the owners preference. As such the group does not enforce a specific culture on the shopping environment. This gives the group’s shops a nice vibe that speaks to the locals, wherever the shop might be. Bidcorp shares are up by 25% from the 52 week low, so don’t miss out on this growth opportunity!

BHP Group Plc

BHP Billiton is one of the world’s major producers of highly sought after commodities such as iron ore, copper and uranium. The company also has extensive interests in oil and gas extraction for the production of energy. BHP Billiton is listed on the Australian Securities Exchange (ASX), the New York Stock Exchange (NYSE), the JSE and LSE. The company is one of the largest mining companies in the world, ranking in second place when it comes to revenue production. With over 60,000 employees world wide, BHP Billiton is definitely not going to fade away anytime soon. After the global mining knock in 2016, BHP has recovered remarkably well, doubling its share value over the past 10 years. Getting shares in BHP will be a good addition to your portfolio in 2019.

And that is the 10 shares we think you should own in 2019!

We hope that this guide to some of the top shares that the JSE has to offer helps. Just keep in mind that this is only a guide and that we can in no way take responsibility for your investment choices. If you are unsure of where or how to invest, please get in touch with one of our investment brokers!

Posted in JSE