HISTORY OF BARLOWORLD
📊 Barloworld Limited was first established in South Africa in 1902 and has gone on to become a leading multinational brand operating in 16 countries. The company was founded by Major Ernest Barlow under the name Thos, later to be rebranded as Barlow & Sons in Durban. As one of South Africa’s oldest brands, most of their approximately 18 000 employees live in South Africa, with head offices in Johannesburg as well as Maidenhead in the United Kingdom.
📊 While the company divisions are many – including car rental, motor retail, fleet services, used vehicles, disposal solutions and logistics management – it also gained the lucrative status as the sole dealer for CAT earthmoving equipment in South Africa.
📊 In 2010 the company acquired 50% of Wagner Equipment’s share in the Russian Caterpillar equipment joint venture. Then in 2011 the company entered a second joint venture with Tractafric, the French CAT Dealer, which supplies the mineral-rich Katanga mining region in the Democratic Republic of Congo. As a result of these lucrative deals and Barloworld’s successful logistics management of its on-going operations, the Barloworld Power division became the first Caterpillar dealers to be awarded Gold-level Marine Service Assessment status in Africa in 2016.
📊 Barloworld’s operational diversity was cemented with the opening of its Customer Centre in Isando. It was furthered by the company’s R130 million investment in their training academy which opened in Isando in 2009 – offering skills training to hundreds of people.
📊 This commitment to sustainable practices in the field, coupled with their sound logistics in supply and delivery, as well as their strong economic performance, has worked to make Barloworld an important listing for those who wish to buy shares on the Johannesburg Stock Exchange (JSE).
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- Despite a fluctuating global economy, Barloworld has continued to report strong earnings and a powerful performance. This has mainly been due to expansion in Equipment Russia, largely as a result of on-going industrial growth in the region, as well as hefty associate income from the Bartrac enterprises in the Katanga region – a major supplier of global mineral wealth. Added to this, the company’s focus on its logistics division has meant not only growth in that area of its operations but also successful supplier performance on the ground.
- Positive outcomes in the South African mining industry, due to quality commodity fundamentals, have reflected positively on the company performance, while continued demand for equipment in the mining industry in Mozambique and Zambia have meant a firm delivery book for large surface and underground mining operations.
- These earnings were reflected in 2018 data, which showed the Group’s 12.3% return on invested capital for 2018, an increase from the company’s 11.2% return for the year of 2017. This growth chart also reflected an 11.4% return of equity for 2018 above the 10.5% gained in 2017. Added to this, their headline earnings (based on operational and capital investment activities) were 1151 cents per share, a further 18% increase from 2017.
BARLOWORLD INVESTOR TIPS
- The quality of Barloworld’s operations, its top-level logistics management and its strong reported operational growth are important price and profit drivers that have bolstered the company’s share value.
- This has meant a solid price-to-earnings ratio for buy-ins on the Johannesburg Stock Exchange, where the company currently trades under the stock symbol – BAW with a market cap of over R28 billion.
- Coupled with the Group’s strong headline earnings on their share prices, the Barloworld portfolio shows a positive 2019 forecast, yielding strong dividends for those who wish to buy or sell shares on the JSE today.
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Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy BARLOWORLD Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN BARLOWORLD STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE BARLOWORLD STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of BARLOWORLD stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy BARLOWORLD stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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