[imagesource: Reuters / Philimon Bulawayo]
If you chose 2020 as the year that you started investing on the JSE, there’s a good chance you’ve had your fingers burned.
It’s been a very damaging few months for South African businesses, and the repercussions of the coronavirus pandemic on our economy will likely be felt for generations to come.
There are some companies that have come out sitting pretty, both in South Africa and abroad, and Sasfin Securities deputy chairman David Shapiro outlined both of those in a series of tweets earlier this week.
Using January 1 as a starting point, through to May 24, let’s look first at the JSE:
JSE – winners versus losers – value of R100 invested on 1 January 2020. Consider the rand devaluation when comparing with my previous tweet. For example the All Share in dollars would be worth $69.37, Gold Fields $117.68 and Prosus $112.94. pic.twitter.com/rVIohx93Xf
— David Shapiro (@davidshapiro61) May 24, 2020
Mining companies like Gold Fields, AngloGold Ashanti, and Harmony Gold have done well, but down the bottom, it’s been a bloodbath for hotel chains like Tsogo and City Lodge.
Turning his attention to the US, it’s no surprise to see how well Zoom has done, along with the likes of Netflix, Amazon, Facebook, and Microsoft:
The disrupters vs the disrupted – value of $100 invested on 1 January 2020 pic.twitter.com/qO41rSXDkx
— David Shapiro (@davidshapiro61) May 24, 2020
That’s why Bezos, Gates, and Zuckerberg are laughing all the way to the bank.
Not such a stellar (almost) five-month run for Delta and Boeing, and it’s tough to see their fortunes improving all that much whilst people are hesitant to travel amidst the pandemic.
Yet somehow, people still think SAA can be salvaged…
[source:mybroadband]
