THE GHOST TRAIN
THE FINANCE GHOST: Buy low (multiples), sell high
2023 has served up hard lessons for investors, not least of them being that valuations always matter
The end of 2023 is upon us. We are now in December; possibly even Dezemba if South Africans can find enough coins between the couch cushions to have some fun. Even if we are struggling as a nation to find spare cash to enjoy ourselves, there is no shortage of activity on our shores. All indications are that we are in for an excellent season of inbound tourism, helped by the weak rand. That’s good news not just for the hotel groups, but also for the likes of Zeda as a car rental business.
December is a time for reflection. Inevitably, much of what you read over the next few weeks will be a review of the year. For many investors, there were hard lessons about the importance of doing proper research before taking single-stock exposure. If low interest rates became the rising tide that lifted all boats, then rapidly increasing rates were the icebergs that sank many of them. Some big names and popular stocks were given a hiding by the market, buckling under the macroeconomic press...
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