The mining industry’s booming past has given rise to price and home bias. This means investors continue to hold single-commodity shares, when really, they shouldn’t.
One of the worrying features of many local portfolios I see is that they hold gold and platinum mining stocks. This trend is often more pronounced in newer and smaller portfolios.
But truthfully, I see these beaten down mining stocks in far too many portfolios, and in every case the stocks are loss making. Sometimes that loss is modest, but it can be massive due to a concentration of these single-commodity mining stocks.
There are a few reasons for these holdings, with the biggest being home bias and price bias.
Home bias, in this case, is that because our local economy was largely built on the back of mining and miners, many still feel an attraction to the dizzy heights the shares once reached. This is despite the fact that the industry has long had its day. Local mining has been in decline for decades and as a percentage of our economy it has been falling for even longer.
ãã®èšäºã¯ Finweek English ã® 19 July 2018 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã ?  ãµã€ã³ã€ã³
ãã®èšäºã¯ Finweek English ã® 19 July 2018 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã? ãµã€ã³ã€ã³
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SAâs manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuruâs mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacqâs Waterfall City.