Why a Mutual Fund’s Like a Herd of Cattle

A mutual fund is like a herd of cattle.

Dear Ryan,

I have a unit trust that I track every day. One day it goes up R5.00 or more. The next day it’s lower. I fail to understand how that works. What makes the price change? Say I want to sell my units. What determines the price I will receive?

Sincerely,
Brenda from South Africa

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5 Deflation-Busting Zimbabwean Stocks (and 2 to Avoid)

Deflation

With memories of hyperinflation still fresh, Zimbabweans now wrestle with a deflationary economy.

Here are five stocks that can help blunt its impact, and two more that investors would do best to avoid.

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Why Cadbury Nigeria’s Sugar Rush Could Be Harmful to Your Wealth

Cadbury Nigeria: Sugar Rush?

Get ready for a stomach ache.

Investors’ big binge on Cadbury Nigeria shares may be nearing an unpleasant conclusion.

Like a sugar rush, the stock’s meteoric 372% rise over the past 24 months was fun while it lasted, but judging from the company’s 2013 results, the stock’s valuation is now sickly sweet.

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Here’s How to Profit From Tanzania’s Quiet Rise

CRDB Bank and Tanzania's Growth

It might be time to brush up on your Swahili.

Tanzania looks to be one of the world’s biggest economic success stories over the next five years. While its dynamic neighbor to the north grabs most of the headlines, the unassuming East African nation has strung together 12 consecutive years of +6% GDP growth. And there’s no end in sight.

Here’s a stock that both local and foreign investors can buy to participate in the country’s expansion.

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9 Ways Smart Africa Investors Avoid Losing Their Shirts

Graham's Tips for Not Losing Your Shirt

Benjamin Graham, one of the best stock investors in history, provided some great tips for moderating speculative urges in his essential tome, The Intelligent Investor.

Here are nine from the first chapter alone, that can make you a better Africa investor.

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So Long, BRICs! Make Way for the KINGs

Photo by Jason Train

You’ve no doubt heard of the BRICS countries, the emerging market quintet comprised of Brazil, Russia, India, China, and South Africa.

Now, get ready for a new acronym that captures the dynamism of Sub-Saharan Africa’s frontier economies – the KINGs (Kenya, Ivory Coast, Nigeria, and Ghana).

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How to Invest on the Malawi Stock Exchange

Photo by Ismail Mia

A number of readers have been wondering about how to open a brokerage account on the Malawi Stock Exchange.

I can understand why. The little market in Blantyre posted the best return of any sub-Saharan stock exchange in 2013. Its All Share Index is up 75.2% over the past 12 months in US dollar terms. Performance like that would make even the most jaded of investors take notice.

So, what do you need to do to put money to work in the warm heart of Africa?

Here’s how to get started.

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African Governance Scores: Who’s Up, Who’s Down (and Why Investors Should Care)

Photo by Choofly

This post is sponsored by Veventis – Risk Solutions for Emerging and Frontier Markets.

Key to Africa’s growing popularity among both portfolio and direct investors is its improving governance. But that progress hasn’t been even.

Here’s an overview of where governance is up, where it’s deteriorating, and how it impacts investment returns.

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Will Kenyan Bank Stocks Sizzle or Fizzle in 2014?

Bullish

Bank stocks made Nairobi Stock Exchange investors much richer in 2013.

A stable political environment, regional growth, good profits, and a relatively steady interest rate environment kept the bulls running.

But all of that’s in the rear view mirror. What we really want to know is whether these stocks are worth banking on this year. Will their shares pop or drop? Sizzle or fizzle? Jump or slump? Rise or… Well, you get the idea.

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Nigeria’s 10 Best Stocks of 2013

Nigerian Stock Exchange

It was a remarkable year for the Naija exchange. The All Share Index surged 44.6% in US dollar terms thanks to impressive profit growth and a raft of market reforms.

Let’s take a closer look at the year’s best performers.

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