Investor patience has been sorely tested in the last few years: the local equity market has put in one of its worst five-year return performances in history. Yet in these testing times we would all do well to remember Warren Buffett’s comment on such matters: “The stock market is a device for transferring money from the patient to the impatient”. Buffet is 10% behind the S&P over the last decade, so his own investors are also exercising patience, remembering that over the past 30 years Berkshire Hathaway has tripled investors’ money relative to the return from the S&P 500. At Prudential we believe there’s good reason to be patient with the SA equity market, as importantly it’s representing excellent value at current levels (as at the end of October 2018), and the economic cycle appears to be in the early recovery phase. We believe there is genuine potential for an improvement in GDP growth and a concomitant recovery in equity returns if even a subset of the government’s plans come t...

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