Best Shares to Buy in South Africa in 2024

Research from Credit Suisse Research Institute and London Business School confirmed the value of resources in the South African economy. For more than a century, from 1900 to 2016, the country’s resource market outperformed larger economies.

Resources made South Africa a safe investment destination and helped build a diversified economy. With a wider range of options for investors, the country is still considered a safe and profitable destination whilest leaving the question of which shares to buy right now in South Africa, open. 

Is Now a Good time to Invest in Companies in South Africa

Are there opportunities for investors in South Africa’s volatile market? Or should caution prevail? Is now the time to sell to lim it losses or should you continue to invest? Or even, which companies to invest in South Africa at the moment?

The loudest voices advise against investing without acknowledging that market volatility or even a downturn offers opportunities to brave investors.

It may seem counterintuitive to invest as your portfolio loses value, but investing now is an opportunity to buy low and sell high later. To put it another way, buying in good times only means you will pay more, and you lose the opportunity for higher gains earned over the long term.

Are South African companies a solid investment? The short answer is yes. One of the major reasons is the strength of the JSE, one of the world’s premier exchanges. Its earned reputation provides investors with the confidence to know they are investing into a well-regulated and controlled market. While the market has not matched the pre 2016 annualised 7.2% return, investing remains the best way to secure your financial future.

Should you invest now? The question you need to ask yourself is: What is the opportunity cost of not investing in a volatile market?

Graphical Overview

Best companies to buy shares in JSE

Naspers (NPN)

Naspers, best known as a media company, has diversified into e-commerce, food delivery and early-stage funding that generated R22 billion in revenue in 2021. It is one of the largest JSE listed companies, representing 15% of the total value of all the listings on the exchange. Despite losing 9.19% in value over 12 months and being one of the more expensive shares on the JSE, South African asset managers believe that it may be one of the best performing shares on jse in 2022-2025 period.

Shoprite (SHP)

Shoprite saw the value of their holdings grow 47.83% over a year that included the tail end of a pandemic, lower consumer demand and rising food inflation. With more than 2 800 stores in 14 African countries, a Shoprite or one of its other brands is easy to find. Accessibility has entrenched brand loyalty and earned the company a bullish reputation among analysts. 

Best companies to buy shares from: comparative tables

Cheapest shares to buy on the JSE

Below is the list of relatively cheap shares to buy in South Africa at the moment

JSE shares moving up

A list of best jse shares to buy in 2022-2024 in accordance with their positive growth shown over the last 12 month

NAMEPRICEBACKGROUNDPepKor HoldingsR22.41A low 11% of Pepkor’s shares are held by individual investors. The building, clothing, general retail and fintech company is favourite of institutional investorsSibanye StillwaterR44.10With a price-earnings ratio of 6.1 and 13.3% profit margin on $8.5 billion, the mining and processing company has had a Buy rating over the last year.MTN GroupR12.16Over 12 months to June 2022, MTN improved HEPS fr om R3.87 to R5.67 as it grew its customer base to 282 million.

JSE shares moving down

A list of so-called “shares for sale” in South Africa in 2022 to be weary of. 

Top 10 in South Africa by volume

A list of South African shares to buy or at least worth considering in 2024 in accordance with their total trading volume. 

Top 10 shares to buy by price

Related Investing Topics

How to Use Compounding Interest Accounts

Compound interest enables investors to build wealth faster by earning interest on their interest, and the principal. Investing is a good habit to acquire, compounded interest turns a good habit into financial security faster.

For investors there are three ways to benefit from the power of compounded returns.

There are predictable ways to benefit from compounding. Savings accounts, for example, are a low-risk option. However, with the lowered risks come lower returns. Investors balance the increased risk that comes with trading against the enhanced earnings.

How to Research Stocks

Due diligence is the key to determining which South African stocks are best for acquisition in 2022 and onwards. The vocabulary of the market can make investing seem complex, research makes trading simpler. Successful investors appreciate that any strategy is built on leg work, on researching an asset, understanding its performance, and deciding how it fits into a growth strategy.

Analysis through research gives investors the insights they need and guides the decision on whether it fits into their strategy.

Access to the resource’s investors need are easily accessible. BROKSTOCK give traders access to tools like Consensus Forecasts, analysis from asset experts and asset fundamentals.

What do the numbers mean?

Traders can measure an assets financial health and compare different assets by looking at a series of key criteria.

Understanding the numbers is the first step. Deciding on the value of a share to you depends on several criteria that are not easily measured. These include:

Leadership: Does the leadership have a track record of success? Does their management philosophy correspond with your investment strategy?

Strategy: What are the company’s strategies to remain competitive?

The following are not market benchmarks, but they do impact company performance. A McKinsey study in 2019 found that companies that ranked high in the following measurements had above average profitability.

Culture: What reputation has the company earned? Is it ranked among the best places to work? Wh ere does it rank on equality indices?

ESG: Does the company prioritise environmental, sustainability and governance initiatives?

This information can be found in public sources, like the business media, or fr om analysts’ reports.

What is a Good Return on Investment?

A 7–12% return would be considered a good return on any investment. Without the context however this means very little. What investors need to monitor is how their returns match against:

Inflation: Investors need to manage their portfolio to hedge against rising inflation. Smart investors understand that inflation lowers returns as money loses buying power. To counter this, traders will add high return investments or assets with inherent value, like real estate, to their portfolio.

Taxes: South African investors can manage the tax effects on their returns by deducting tax owed yearly or at the end of the investment’s life. Charges levied on annual deductions include taxes on earned interest and capital gains which would lower the value of the portfolio and the benefit earned from compound interest.

Fees: As an investor, awareness of the cost of trading is important. Choosing professional help comes with costs that will impact portfolio value. Even a small percentage difference can have a huge affect on the value of a portfolio. With Brokstock is a low-cost option that allows you to trade and invest for the long term.

Where to invest $1,000 right now

There is direct answer to the question of what shares to buy now south africa

if you have only $1000. One of the key things to remember however is that time is an investor’s friend. The longer you invest, the better your returns. If you had invested $1000 in Amazon shares 10 years ago, that investment would be worth $19 000 today.

In his book ‘A Random Walk Down Wall Street,’ economist and Princeton University professor Burton Malkiel argues that a random market can’t be timed. Instead, he advises, “trust in time rather than timing, start saving early and save regularly.”

Investing $1000 won’t make you rich, it is an important step in reaching financial goals. The world of financial markets is changing, discover the options available for investors no matter their risk profile on Brokstock.

Final takeaways for using this best stock in JSE list

The market is an intricate system that offers complicated investment options. This is not a list of recommendations but is offered only to highlight the opportunities and to reinforce the view that investing is a better option to grow your nest egg. Investing is always a better option to saving to build financial security.