We have done extensive research over the last 3 years to identify the challenges new investors face and formulate solutions on how to address these issues and lower the barriers to entry.
The two biggest concerns we identified are the cost and fear associated with investing. Traditional investments are generally too expensive for the average person to get started with and the educational material available are not sufficient to remove the fear new investors have.
Keeping this in mind we built a do-it-yourself oriented educational finance platform to address the fear and eliminate as much of it as possible. Lowering the cost and removing some of the barriers to entry for new investors was a real challenge, but we were fortunate enough to form a strong relationship with EasyEquities – a low cost broker.
EasyEquities was founded in 2014 by Purple Capital Ltd (Purple Group) which has been in business since 1998 and is listed on the JSE. You won’t find a cheaper or friendlier place to invest in the shares you love. No minimum trade commissions, no monthly account fees and no unnecessary data costs… so more of your money gets invested in the shares you love.
The Platinum Wealth JSE Basket
You can buy our basket on EasyEquities here.
Our basket aims to illustrate what we view as diversified companies. We also have a TFSA basket With this basket, however, we give you exposure to a core group of companies that you can buy with one click. You can explore our ETF threads to decide which ETFs you would like to add on to your portfolio should you prefer to do so in the future.
One way to minimize the risks associated with investing in the stock market is to diversify as much as possible to spread your risk out. Naturally you do not want to over diversify to such an extent that your portfolio exceeds the point where the marginal loss of expected return is greater than the marginal benefit of reduced risk. When adding individual investments to a portfolio, each additional investment lowers risk but also lowers the expected return. Therefore, what we try to do is to find the optimal point between being diversified, but also being positioned to benefit from the growth of individual stock movements.
When you buy a share in Naspers you indirectly own a part of all their operations and businesses for example: Media24, DSTV, TenCent, Luno, OLX, Takealot, Showmax, SuperSport and Udemy.
We also added the PSG Group to our basket, owning a share in PSG gives you exposure to Capitec Bank, Curro private schools and Zeder Investments. Zeder gives you exposure to Pioneer Foods the Capespan Group and Kaap Agri.
Our favourite holding in this basket is Long 4 Life founded by Brian Joffe who founded the Bidvest Group in 1988. Long 4 Life is an investment holding company who focuses predominantly on lifestyle businesses. If you own a share in Long 4 Life then you essentially own a piece of Holdsport who owns Sportmans Warehouse and Outdoor Warehouse. Long 4 Life also owns Inhle Beverages who specialise in the bottling of natural mineral water and carbonated soft drinks. They also own the Sorbet Group of companies which includes health, beauty and grooming outlets situated across South Africa.
Another diversified company in this basket is KAP Industrial Holdings. They have a diversified logistics portfolio owning Unitrans as well as a diversified footprint in both chemical and industrial sectors.
Unitrans (Overview) operates in the following market sectors:
KAP’s chemical division produces high-density polyethylene (HDPE), polypropylene (PP), virgin polyethylene terephthalate (PET), urea formaldehyde (UF) resins and impregnated paper. They also own Hosaf who is the only producer of virgin polyethylene terephthalate (PET) resin in South Africa.
KAP’s automotive components division manufactures and supplies components used in new vehicle assembly directly to all the major vehicle manufacturers (OEMs), and retails branded aftermarket vehicle accessories through its network of franchised dealerships.
They also own PG Bison who manufactures and distributes sawn timber, poles, wood-based panel products, decorative laminates and solid surfacing materials.
How to buy the Platinum Wealth basket
In order to buy the basket you need to have an EasyEquities account. Luckily, this process is very straightforward. First, you need to click here to open an account with them.
The next step is to FICA your account; you can do this by clicking here and then upload your proof of residence and a copy of your ID.
Now you can click here and this will take you to the Platinum Wealth basket on EasyEquities.
When you click on this link you will be taken to the basket where you can see the holdings and choose how you would like to place the order. You can do a once-off payment or set up a monthly recurring payment via a debit order. The debit order can be set up on your EasyEquities account (the funds in the account) or you can do it directly with the bank.
If you choose to do a debit order (Recurring payment) you will be presented with the following screen where you can choose to have it setup on your bank account or to debit it from your funds in the EasyEquities acccount.
If you do not want to set up a recurring payment then you can choose to do the once off payment. This will enable you to buy as much as you want, whenever you want with zero obligations.
After you have purchased the basket you will be taken to the success screen where you can share your achievement with the world and also download the tax invoice - You will also receive an email showing your invoice.
You will now be able to see your holdings in your profile on EasyEquities (Click this link). You will notice some shares show you own zero shares, but have some fractions under FSRs. This is what the real magic behind this basket is all about. With EasyEquities they have enabled us to offer you a basket where you can purchase a share with any amount of money regardless of what the whole share costs. We call this fractionalised ownership. Put simply - when Investors don't have enough money to buy a whole share, Fractional Share Rights (FSRs) give them the ability to invest whatever available sum of money they have in a fraction of the share they want.
This should form a good diversified base for you to start off with. It's highly recommended to register on Platinum Wealth to keep in touch with other investors accross South Africa. You can also ask any question you might have regarding personal finances, investing and business. With the diverse community that exists on Platinum Wealth you are sure to learn a thing or two.
Knowledge is power and you can use that new found knowledge to make finances easier for you and others.
This information is purely educational - if you are unsure, seek help from a professional.
Investments in the stock market may fall as well as rise and are not appropriate for investing for the short term. You may get back less than you invested. All investment carries risk and it is important you fully understand these risks and are willing to accept them. Past performance should not be seen as an indicator for future performance.