Vestact’s local and international share recommendations

Vestact has published a list of fifteen international and seven JSE-listed stocks it recommends. This list includes many well-known companies, including Apple, Google, Naspers, and Discovery.

Vestact is an active investment management firm that manages assets in rands and US dollars on behalf of private clients through individualised investment accounts.

The company has shown significant growth and had R10.5 billion in assets under management in February 2024. It has achieved exceptional returns over the last decade, significantly outperforming the market.

The compound annual return of its model New York portfolio in the last decade is 16.2% in US Dollars.

This is significantly higher than the average annual return of the S&P 500 index over the same period of 9.9%.

It has a simple investment strategy – they buy good companies and avoid the noise of the daily market news cycle.

“Winners can emerge from established industries but are much more likely to arise in winning industries. They very rarely occur in industries in terminal decline,” the firm said.

Vestact’s favourite sectors are technology, healthcare and consumer. “We are looking for what we call transformative investments,” it said.

These include well-run companies set to change the world or benefit from a decisive, permanent shift in the economy’s structure or consumers’ spending patterns.

They pick companies that have the ability to double and redouble their sales and profits in the decades ahead.

“We don’t trade in and out of our selected holdings just because their share prices go up and down,” Vestact said.

“We follow the market news very closely but prefer inaction. We are patient because that is how we make you money in the markets.”

“We provide capital to real businesses with bright prospects, and we get paid with dividends and with rising share prices.”

Vestact’s unique qualities include its small team and exceptional customer service. The company has only six employees: four investment specialists and two support staff.

• Founder Paul Theron
• Byron Lotter
• Michael Treherne
• Bright Khumalo
• Howard Mashego
• Mavis Bande

The table below shows Vestact’s list of fifteen international and seven JSE-listed recommendations.

United States shares

• Alphabet (Google) dominates online search, advertising and video-hosting.
• Amazon sells everything online and has the leading web-hosting service.
• Amgen makes biotech drugs for heart disease, cancer and arthritis.
• Apple supplies iPhones, Watches, Macs and iPads, and services on the App Store.
• CrowdStrike is an AI-powered cybersecurity company that fights hackers.
• Eli Lilly is a research-driven pharma company selling a weight-loss drug called Zepbound.
• Johnson & Johnson makes health products, medical devices and pharmaceuticals.
• Meta Platforms owns top social media apps; Instagram, WhatsApp and Facebook.
• Microsoft owns the MS Office applications, Windows software and Azure hosting.
• Netflix creates content and owns a subscription-based streaming service.
• Nike designs and retails running shoes and swoosh-branded sports equipment.
• Nvidia makes leading chips for AI, cars, data centres and gaming computers.
• Stryker makes hip and knee joints, surgical tools and hospital equipment.
• Tesla makes top-selling electric vehicles, charging stations and batteries.
• Visa runs a payment network that connects banks, merchants and cardholders.

JSE-listed shares

• CSP 500 is a JSE-listed and Rand-denominated ETF that tracks the S&P 500 index.
• Aspen manufactures sterile anaesthetic and thrombosis pharmaceutical products.
• Bidcorp is a food services company with operations in Asia, Europe and the UK.
• Discovery uses technology to provide healthcare, insurance and banking services.
• Naspers is the South African holding company for Prosus (see below).
• Prosus owns food delivery, classifieds and gaming businesses, plus 30% of Tencent.
• Richemont owns luxury brands like Cartier, Montblanc and Van Cleef & Arpels.