Allan Gray cautions investors on risk of JSE’s ‘value traps’
Chief investment officer Duncan Artus says SA Inc stocks look cheap — but perhaps there’s a reason
02 May 2023 - 05:00
Allan Gray, the privately held asset manager that oversees about R560bn in assets, is worried that certain domestic stocks risk becoming “value traps”.
In a value trap investors buy an asset that appears cheap only to discover instead of appreciating in value, it continues to underperform as the share’s fundamentals deteriorate. That is particularly true for SA Inc stocks relying heavily on the local economy’s performance. ..
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