ABOUT OLD MUTUAL
📊 Old Mutual Ltd is one of the most trusted and well-known premium financial services group based in South Africa. Its portfolio consists of a broad spectrum of financial solutions in markets across 14 countries including Africa and China. Services include investments, insurance, savings and banking for retail as well as corporate customers.
📊 Old Mutual is listed on the Johannesburg Stock Exchange, Zimbabwe, Malawi, Namibia and London Stock Exchanges. Today it has more than 12 million customers and in December 31, 2017, the company has R 1.2 trillion in funds.
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HISTORY OF OLD MUTUAL
- Old Mutual is created in 1845 as a mutual insurance trader. Founder John Fairbairn names it The Mutual Life Assurance Society of the Cape of Good Hope. The company starts with no initial capital except for the premiums of its 166 policyholders. In 1885 it is renamed to the South African Mutual Life Assurance Society. The company grows impressively and expands to the rest of Africa, China and Latin America.
- In 1970 the company acquires a large quantity of shares in Mutual & Federal (the remaining shares are later required in 2009). In 1973 Old Mutual acquires shares in Nedcor Bank, which is renamed in 2005 to Nedbank Group. In 2000 the financial group Gerrard Group is purchased for a price of $857 million. In 2003 the company is sold to Barclays Bank PLC. The company acquires Skandia, a Swedish insurer, in 2006 for a price of $6.5 billion. The acquisition creates the opportunity for Old Mutual to expand to the United Kingdom, several countries in Europe, Latin America and Australia. Numerous more acquisitions take place during the next few years.
- In June 2018 Old Mutual Limited lists on the Johannesburg Stock Exchange, as well as the London, Zimbabwe, Malawi and Namibia stock exchanges.
VISION & VALUES OF OLD MUTUAL
- Old Mutual’s vision is to enable its customers to achieve their financial goals by investing their funds to ensure a positive future.
- Old Mutual uses its values to guide the way it conducts business. It acts with integrity and respects the communities, environment and each other. The company is innovative, believes in the power of diversity and prides itself in being trustworthy and accountable to its customers and shareholders.
- Old Mutual is an active environmentally conscious company and trades with care and responsibility. The company is well known for the manner in which it conducts business and this plays an important role to attract new business opportunities.
MARKET PERFORMANCE OF OLD MUTUAL
- Old Mutual Ltd. trades on the Johannesburg Stock Exchange under the JSE stock symbol OMU.
- Analysis data for the company’s annual results for 2018 reports adjusted headline earnings of R11 512 million. Results from operations are R9 963 million. IFRS profit after tax attributed to equity holder R36 566 million. Final dividends are 72 cents per share.
- The 2019 forecast for the company’s shares predicts success for potential investors and shares can be bought at a fair price. Investors enjoy a high level of security with these shares.
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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 OLD MUTUAL 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 OLD MUTUAL 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 OLD MUTUAL 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 OLD MUTUAL 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 OLD MUTUAL 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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