A sideways share price

Good Morning Voornaam,

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Ghost Bites

There's a wonderful learning opportunity for you in Ghost Bites th is morning. Dis-Chem is performing well and has released really strong results, yet the share price is practically flat over the past 12 months.

How is that possible?

Remember, an investment is always a function of what you bought and how much you paid for it. When people buy a house, they take great care in making a sensible offer. Yet when buying shares, investors often just choose a company based on its brand or a personal experience with the company, rather than its fundamental valuation.

When trading at a high valuation multiple, a company needs to keep producing great results to justify the current share price. Achieving meaningful share price growth is difficult, with greater risk of disappointment rather than a strong outcome for investors.

If investing was easy, everyone would be rich.

Speaking of investor disappointment: Big Tech earnings

In Ghost Global this week, we pulled together a highlights reel (or perhaps a bloopers reel) of earnings from Alphabet, Amazon and Meta. As always, I would encourage you to subscribe to Magic Markets Premium if you are looking for detailed, high-quality research on global stocks.

For those of you who just enjoy staying up to date with the latest trends, this morning's Ghost Global is a treat.

75bps in the US

The FOMC hiked by 75 basis points in the US, raising base rates to 4% for the first time since 2008. Jerome Powell hinted that policy change could be on the cards at meetings to come, which put the dollar under pressure. Even though markets had priced in a 75bps hike, the rand still traded stronger at R18.06 to the dollar.

This update was brought to you as always by TreasuryONE.

Podcasts for your Thursday

Here are two great shows for those who are serious about increasing their investment knowledge:

Have a terrific day!