The Wolf of Wall Street movie starring Leonardo DiCaprio was the inspiration for the Wolves of Dorp Street team, which won the high schools speculator category for August in the JSE Investment Challenge.

Team members Milan van der Westhuizen, Nicolaas van der Westhuizen, Christiaan Moolman and Trevor Myburgh are all in Grade 11 this year, and while they are not entirely sure what they want to study post-matric, they are 100% sure they will continue their investing journey.

Paul Roos Gimnasium entered 16 teams, or 64 learners, in this year’s JSE Investment Challenge under the watchful eye of economics teacher Luan van der Vyver. “We have one team that consists of Grade 9 learners, the rest are all Grades 10 and 11,” says the proud teacher.

While they are playing the game by the book, the Wolves of Dorp Street have lofty ambitions and are keen to win the overall game. All four have Easy Equity trading accounts already, and while they may not have R1-million of their own to invest (yet), they are making the most of what they are learning through the virtual trading competition.

“I think our biggest surprise was early on when we decided to invest in Anglo American and we made R30,000 just on that one trade,” says Nicolaas.

Duma Mxenge, business development manager at Satrix, shares five pointers for those starting out on their investment journey:

1. Set aside a manageable principal amount. This can be as little as R10 each month deposited into your savings account. You can gradually increase this amount as you see fit.

2. Learn how the stock market works. Understanding how the stock market is affected by changes in the economy will assist you in managing your investment.

3. Create a detailed plan and timeframe for your investments. Having a clear idea of what you wish to achieve and by when, will keep you grounded and on track to achieve your goals.

4. Have a diversified investment portfolio. Once you have found your footing in the investment space, investing in different asset classes (assets are the different types of things you can invest in, for example: property, shares, bonds, cash) and industries will mitigate the risk of your investments underperforming, should the economy take a downward trajectory.

5. Always be willing to learn. The world of investing is a dynamic and interesting space, with so many niches to tap into. Take the time to learn about how your investment personality is affected by the ups and downs of investing, how to keep your cool during volatile times in the market and knowing which investment is worth committing to.

Investing across asset classes

If choosing a single asset class is too daunting to contemplate, you might want to consider balanced funds, which offer you diversified portfolios investing across all asset classes including equities, property, cash, bonds and offshore investments in a single fund. By diversifying your investments, you lower the risk of some of the higher-risk asset classes in the fund, which means if you are a moderate or conservative investor, you can find a fund that suits your risk profile.  

August winners

The JSE Investment Challenge category winners for August are:

• Income category: MP to Win from Mpumelelo Secondary School in Mpumalanga, with R6,761.64.
• Equity portfolio: EAK Stocks from Kearsney College in KwaZulu-Natal, with growth of 2.41%.
• Speculator portfolio for schools: The Wolves of Dorp Street from Paul Roos Gimnasium in the Western Cape, with growth of 2.24%.
• ETF/ETN portfolio for schools: Red Bull Amaphiko Academy from Acudeo College Crystal Park, with growth of 3.37%.
• Speculator portfolio for universities: VK 29 MMS from the University of Johannesburg for the second consecutive month, with growth of 8.62%.
• ETF/ETN portfolio for universities: Queen of Mechanics from the University of Cape Town, with growth of 0.90%. DM

The JSE Investment Challenge is proudly supported by Daily Maverick.