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Good Morning Voornaam,

Brait is an investment holding company that has been a horror show for investors over the past 5 years. Only hedge funds could make money on this thing by taking a short position, which means betting on the share price dropping. Over that period, the share price is down a rather spectacular 92%.In the past year, it is up nearly 80%. Timing is everything in the markets, particularly when dealing with companies that take big risks.

To understand more about the business, you need to realise that it involves bread, boets and exchangeable bonds. Premier (the food business) is making Tiger Brands look rather tame at the moment. Virgin Active (you know what that is) has had a shocking experience during the pandemic through no fault of its own and needs to deliver a recovery. At group level, the balance sheet is complicated. To add to all this, the good folk at Ethos Private Equity have been paid an absolu te fortune in investment advisory fees.

Brait isn't a simple business to understand. Despite this, it's well worth making the effort to learn more about the group and its investments. I've made it a bit easier for you with this feature article.

Moving on, regular readers and my followers on Twitter are aware that I've spent time talking and writing about the banking sector this year. In an environment of higher yields and demand for credit, banks experience juicy increases in revenue. Of course, if the economy deteriorates, credit losses become a focus area too. With Absa as the latest bank to release an update, it gave me a good excuse to revisit the banking story in this feature article.

For the rest of the news from the JSE yesterday, pour yourself a bowl of Ghost Bites and enjoy the snippets at this link.

The team at TreasuryONE notes that the rand led the way yesterday among emerging markets currencies, trading at R15.85 which is much stronger than counterparts but still 65 cents away from the stronger levels seen earlier this month. Commodities have been volatile in recent days, clawing back the losses seen since Friday. To give more context to the drivers of the currency markets at the moment and the importance of Fed c hair Powell's testimony at Congress that starts today, Andre Botha (Senior Dealer at TreasuryONE) has given us this excellent article.

You've still got time to register for Unlock the Stock, scheduled for 12pm on Thursday. The management teams from Capital Appreciation Group and Attacq will be in attendance, so there's much to learn about tech and property. Attendance is absolutely free! You just need to sign up at this link.

Get your headphones ready and avoid falling behind on podcast episodes. Episode 80 of Magic Markets was another insightful discussion on US growth stocks with the team from AnBro Capital Investments. For something completely different, the inaugural episode of Ghost Stories was a discussion lasting more than an hour with Charles Savage, the founder of EasyEquities. There was so much to learn about how to build a business and grow it beyond the initial scale phase.

I hope you enjoy today's content!

Ghost Bites Vol 32 (22)

Absa and Brait were the major stories of the day, with the likes of Novus raising a few eyebrows as well.

Brait: bread, boets and (exchangeable) bonds

Brait is an investment holding company with fascinating underlying businesses. Many people are scratching around this group, deciding if there's an opportunity here.

The Fed shows its hand

Despite the public holidays, there's been plenty going on. After a Fed hike and ECB emergency meeting, all eyes are on Powell's Congress testimony on Wednesday.

Absa gives us more banking insights

The banks have been excellent performers this year, though prices have come off recently. What does Absa's update tell us about the sector?

Securing portfolio stability during anxious times

While many investors bias their decisions towards higher returns and a search for alpha, diversification and the inclusion of lower risk options remain an important part of the mix.

Magic Markets Ep80: Hot Stocks vs. Hot Air

Growth investing demands a different approach. Telling the difference between hot stocks and hot air isn't easy, as we discuss with the team from AnBro Capital Investments.

Listen Now

Ghost Stories Ep1: Charles Savage (EasyEquities)

An in-depth conversation with a great founder is a rare opportunity. It was a pleasure hosting Charles Savage to talk about, well, everything really.

Listen Now

EasyEquities is a product of First World Trader (Pty) Ltd t/a EasyEquities which is an authorized financial services provider (FSP no.2225880) and a registered credit provider (NCRCP12294).

EasyProperties is a juristic representative of the First World Trader (PTY) Ltd t/a EasyEquities which is an authorised financial services provider (FSP) number 22588.

EasyEquities does not act as an FSP when allowing you to buy and sell the EC10 bundle as well as any other cryptocurrencies.

Disclaimer

Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.

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