Philippus de Witt (Pty) Limited, known as PPM, is a Johannesburg-based stockbroking firm and a JSE Limited Member. Operating since 1983, this family-owned business takes pride in delivering personalized stockbroking services to a diverse clientele. PPM focuses on providing cost-effective access to the South African stock market, aiming to help clients achieve their financial objectives. The firm’s office is conveniently located in Linden, Randburg, Gauteng, serving as a central hub for its operations. With a reputation for expertise and exceptional service, Philippus de Witt offers a trusted partner for navigating the complexities of the South African stock market.
Stock Broking Services
Investing in Shares
What are shares?
When companies seek to raise funds for growth, they have three options: borrowing from a bank, issuing bonds, or issuing shares. Issuing shares offers the advantage of not requiring repayment of capital or interest. The funds generated from share sales fuel business expansion and project financing. Owning shares means owning a portion of the company and being a shareholder. Dividends can be received if profits allow, and shareholders have voting rights on company decisions. Shares can also be termed equity or stock.
Who can invest in shares?
Shares are accessible for purchase on the exchange with no investment minimum. Yet, trading mandates a stockbroker as investors can’t directly engage. These licensed exchange members execute securities trading and offer investment advice. Transactions encompass brokerage charges, VAT, securities transfer tax, and settlement fees. An Investor Protection Levy (IPL) is also applicable.
Why invest in shares?
Stocks have consistently outperformed bank deposits and property, offering superior long-term returns. Investing in stocks provides a strong chance to outpace South Africa’s 3-6% inflation target, with historical data showing JSE share returns often exceeding this range for a century. Share values tend to appreciate over time, yielding profits upon sale. Some companies also share profits via dividends. Investment is an effective strategy for retirement and unforeseen expenses. Diversifying with shares from various firms mitigates risks, safeguarding investments.
Are there risks?
Engaging in investing can yield substantial profits when managed effectively, yet it’s crucial to recognize the inherent risk of potential losses in any investment endeavor. The unpredictable and volatile nature of markets means that some trades will result in financial setbacks; this is an inherent aspect of the investment landscape. Moreover, economic and political developments can significantly impact share prices.
It’s advisable to allocate only disposable funds for investment purposes. To navigate this landscape:
- Assess your risk tolerance.
- Decide between investing and speculating.
- Determine your preferred investment horizon (long-term or short-term).
- Clarify your objectives in entering the stock market.
- Define your risk appetite as conservative, moderate, or aggressive.
Educate yourself about the stock market and conduct thorough research on the companies you intend to invest in. Engaging with a stock broker is advisable for guidance. We’ve observed that approximately 70% of clients experience losses through online trading, leading to disillusionment. Consequently, we abstain from offering online trading services.
If you possess trading expertise, we encourage you to reach out to explore tailored options.
Clients can entrust share portfolios to skilled managers for optimal investment opportunities and results.
Managed Accounts
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