Interview with Tim du Toit of EuroshareLab

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Interview with Tim du Toit of EuroshareLab

How did you get started in investing?

From a young age I had an interest in business, I was always trading and selling stocks during my school years. In high school I took accounting and that really fascinated me. In 1986, shortly after finishing school, I enrolled in a stock market correspondent course that really got me started thinking about investing from mainly business previously. A year or so later I pooled my limited funds with an investment from my father and started to apply my investment knowledge in the real world.

Can you talk about your investment approach and how it has developed over time?

Massif Capital’s Top Short Bets In The Real Asset Space [Exclisuve]

Screenshot 2022 08 10 18.57.51 1Since its founding by Will Thomson and Chip Russell in June 2016, the Massif Capital Real Asset Strategy has outperformed all of its real asset benchmarks. Since its inception, the long/short equity fund has returned 9% per annum net, compared to 6% for the Bloomberg Commodity Index, 3% for the 3 MSCI USA Infrastructure index Read More

I made all the classical mistakes a beginning investor could make. I lost a substantial part of the money my dad invested with me using technical analysis to purchase gold shares. This taught me two important lessons. One, be very careful of companies that have no control over the price their products and secondly, technical analysis was not the Holy Grail I though it was.

I then lost even more money investing in ideas from ”helpful” brokers who of course wanted me to trade as much as possible. With none of my ideas working I continued to read as much about investing as possible. I somehow stumbled onto a book called “ Winning on the JSE” by Karl Posel, an engineer and former Professor of Applied Mathematics.

This book was my introduction to value investing. It broke investing down into a logical process with the following steps:

  • If an investor does not know what he is doing then the stock exchange is no place to be doing it
  • Purchase only after the announcement of interim or final results
  • Buy only where interim or final results indicate an increase in earnings per share and/or dividend per share
  • Only purchase shares where the calculated value is more than the market price using sector price earni