ABOUT RMB HOLDINGS
📊 RMB (Royal Merchant Bank) Holdings, an investment company, is one of southern Africa’s premium banking groups. The group’s history can be traced back to the consolidation of Rand Merchant Bank and Rand Consolidated Investments in South Africa in 1987.
📊 RMB Holdings is the biggest shareholder in FirstRand, the largest banking group in South Africa, in which it has a 34% stake which translates into a market capitalization of R300 billion. The group views FirstRand as its core asset and is represented on all the company’s strategic and governance forums.
📊 FirstRand Bank currently controls First National Bank, Wesbank, Royal Merchant Band and Ashburton Investments. RMB Holdings also plans to expand its single investment in FirstRand Bank by purchasing a 25% stake in the leadings South African property group, Atterbury.
📊 RMB Holdings’ major shareholders are Financial Securities, Royal Bafokeng Holdings, Public Investment Commissioner, LL Dippenaar and Foord Asset Management. The company trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “RMH”.
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VISION & VALUES OF RMB HOLDINGS
- The company’s liveonline stock chart shows that the RMB Holdings shareprice has been quite stagnant on the JSE. This can be ascribed to the very tough economic climate in South Africa.
- RMB Holdings focuses on being a value-adding long-term partner to FirstRand Bank in a quest to enable strong leadership and innovation in the banking and financial services sectors. It therefore strategically positions itself among key shareholder in order to buy heavily into decision-making on corporate level.
RMB Holdings’ strategic priorities comprise portfolio optimization, growth and structural benefits. Its portfolio optimization strategy focuses on holding investments as long as needed to optimize their value.
- The company creates value through growth and paid dividends in an effort to enable its share performance to be above market average. It actively seeks to accelerate the diversification of FirstRand’s portfolio, both in South Africa and globally. This enables the company to maintain balance between growth, yield and consistent RMB share price, adding value for its investors. Shareholders can therefore buy or sell company shares in the expectation of sound dividends and returns.
- Despite the challenges of a weak local and international economic environment, FirstRand managed to perform consistently, with FNB, RMB and Wesbank all outperforming the market. The group’s investment in technological innovation has successfully attracted many new customers and investors.
- Through its investment in Atterbury, RMB Holdings aims to develop a diverse portfolio of entrepreneurial and owner-managed businesses with sound track-records of managing and building property portfolios in the retail, commercial and industrial markets.
MARKET PERFORMANCE OF RMB HOLDINGS
- RMB Holdings has consistently delivered satisfactory performance, despite the economic downturn by reporting profit growth and distributing higher dividends.
- FirstRand Ban is continuously attracting new customers, making it one of the most stable financial institutions in the South African banking industry. This fact boosts investor confidence and adds value for shareholders.
- Analysts predict a rise in RMB Holdings share price in the near future. They therefore recommend RMB shares as a good buy, especially in light of the fact they are currently hovering at a lower than normal price due to the recession.
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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 RMB HOLDINGS 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 RMB HOLDINGS 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 RMB HOLDINGS 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 RMB HOLDINGS 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 RMB HOLDINGS 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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