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Capitec is obviously a fairly well know South African bank now and it has been incredible to watch its growth over the years. The one area where we have seen its growth is how we had to pay more and more staff, as well as clients, into their Capitec bank accounts whereas a couple of years ago it was unheard of. I have invested in the Capitec share at a point where it had already grown tremendously, but I did not stay in it for too long, thinking at the time when it was almost at a peak and due to certain investments I made I had to sell all of my shares at that time in any event.
If I remember correctly I bought it at about R28 and sold for a small profit at about R35 or R40 a share. If I look at a chart of Capitec it means that my purchase was in about 2009. Today the share sells for more than R700 a share! In other words, since I bought it, it has still multiplied more than 20 times! That is the kind of return one dreams about – put R10,000 into a share and 5 or 6 years later you get R200,000 back.
As they say in all the adverts though, wait, there is more. I am just telling you about what my losses are for not having held on to Capitec. If you bought into Capitec earlier it was actually available at R2 in 2002, so if you’ve held Capitec shares for 15 years, you would have seen your money multiply 350 times!
On a similar note, Naspers, due to their holding of Ten Cents in China, has increased from R17,50 a share in 1994 to R2,500 now and PSG, who I used to use as my stockbrokers, has seen its share price increase 1,429% between 2006 and the end of 2016!
The question is as to how you spot such shares - and that is hard. It is not as if I have not had both Naspers, which I owned when it was at R800 a share, as well as Capitec and so I think while it is hard to spot them, it is even harder, once negative articles start coming out about how they are too highly priced, to actually hold onto them and just sit through dips and ups and downs so that you can have such a massive hit. Imagine just putting in R10,000 into Capitec in 2009 and now having over R200,000!
So, what smaller companies have you seen out there that are starting to grow?
Posted by Michael de Broglio on Tuesday 18-Apr-17
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Comments
Tamaryn said:
on Thursday 04-May-17 01:18 PM
I'm not sure if they are so small anymore, but Incredible Connection is doing very well and started off as two guys in a one room office. I think it's going to be within the IT and Technology market where you will see the most growth among the smaller type companies.
patrick said:
on Wednesday 03-May-17 01:32 PM
nothing specific but I belief that restaurant in particular will continue to grow to an extend that they will start listing on stock exchange very soon. am specifically referring to the south African Market. look for example at Nandos. If they were to list, I have reason to believe that they will grow even bigger than what they are. their marketing strategy is quite simple, they do chicken which is white meat , which is healthier than read meat.
Nicolle said:
on Wednesday 03-May-17 01:20 PM
I don't know what it is about investments and investments "talk" that makes me yawn. Perhaps it is the fact that in the short span that has been my life, I have never had enough "spare change" to even consider making anymore of a share investment.
Jessica M said:
on Wednesday 03-May-17 01:12 PM
This is no surprise, they have the best rates so far. They very accommodating and plus their app's are also so user friendly. I however must say FNB is very expensive especially if you look at Capitec VS FNB.
Helen said:
on Wednesday 03-May-17 01:06 PM
Listening to our clients and people I spoke to, everyone is extremely happy with services provided by Capitec. Their price politics and strategy on the financial market attracting lots of people to switch their banks. Not even now probably not to late to invest in Capitec's share!
Nikita said:
on Wednesday 03-May-17 01:02 PM
Who would have thought that Capitec would do so well in such a short space of time. I have heard that another company taking over is Afrihost.
Dune said:
on Wednesday 03-May-17 12:52 PM
Even though Capitec is growing at such a fast pace, I don't think I will ever change from FNB. However it would have been nice to have invested a bit in Capitec in 2009.
Cornelie said:
on Wednesday 03-May-17 12:51 PM
I have seen how Capitec is growing more and more. Also in getting more clients and their monthly rates is not that high, they also have al sorts of new functions as FNB and all other banks we must never under estimate small business.
Brenda van den Bergh said:
on Wednesday 03-May-17 12:47 PM
I think people give up too quickly when it comes to the stock markets. If there is one thing i have learned its that you will lose money in the stock market, but if you invest in something and you master that investment and the movements on the stock market, you will eventually make your money. The problem with the stock market is that people give up too quickly when they are losing money. Of course no one wants to lose money, but they dont take the time to master the movement on the specific shares they have invested in on the stock market.
Lourien said:
on Tuesday 02-May-17 10:33 AM
Capitec is still growing, although I prefer the bank I am banking with. Capitec has certainly grown in a very short time, and we don't know how long they will be growing at the rate. I have heard that a few people who opened accounts at Capitec was scammed and all their details were given out and new accounts were opened on their names and their latest personal details at different stores right after their account was opened. I believe there are always risk when there is a new up and coming company as well.
Sinead said:
on Tuesday 02-May-17 09:57 AM
I have actually heard how good Capitec Bank is. That does not necessarily mean that I will move. I quite like where I am now. It's really nice to know that they are growing though. It would have been nice to invest in it. We just have to keep our eyes open for up and coming businesses that we can invest in.
It really is a game of chance and luck.
Zanell said:
on Monday 24-Apr-17 05:01 PM
I have heard that Capitec is really good but I don't think I will move. I can't really think of any companies but I must agree with Prishani, a lot of franchises are growing and popping up everywhere.
Prishani said:
on Monday 24-Apr-17 04:46 PM
think it all comes down to research and abit of luck every now and then. With so many businesses opening around us every day it is really hard to say which ones will make it and which won't. I suppose after a few months one will have a pretty good picture of where the business is going and that may be the time to invest. I particularly think that any company selling food items will be a good place to invest.
Thabitha said:
on Monday 24-Apr-17 09:21 AM
Someone said sometime its better to invest on smaller business look at Capitec bank, people are moving to Capitec and it is growing.
Liesl said:
on Friday 21-Apr-17 03:27 PM
Michael another one of your talents. I am sure investing money is another thing you can teach many people on
Jolene said:
on Friday 21-Apr-17 12:37 PM
I have to agree, Capitec did a very good job. I don’t think it is always easy to compete with successful banks that have been around for years. Another small company that I think is starting to grow is Tammy Taylor Nails. It is a US nail brand that made its way to SA and is really successful.
Ashleigh said:
on Friday 21-Apr-17 09:39 AM
Capitec is the most affordable bank out there and other banks are losing their clients to Capitec on a daily basis because Capitec has way less bank charges then any bank ever. But I am not really fond of the internet banking with Capitec and nothing beats FNB with that right now.
Mathilda said:
on Friday 21-Apr-17 09:24 AM
Capitec has really grown through out the years my parents are with them and never had any complaints about them
Maybe its time to take a second look in maybe changing Banks
Brenda Du Toit said:
on Friday 21-Apr-17 09:23 AM
Capitec is Growing very strong.They don't over charge you with bank charges . if you swipe they don't charge you .I am with Nedbank and they are overcharging they client.
Sarah said:
on Friday 21-Apr-17 08:51 AM
I agree with Clare ChesaNyama seems to be growing and opening up everywhere these days.
Melissa van Tellingen said:
on Thursday 20-Apr-17 05:38 PM
I've seen capitec grow realy fast in the last couple of years just by looking at their clients. There were no capitec ATM's to be found only one or two here and there. These days the lines are sooo long outside the capitecs. Very interesting read.
Liz said:
on Thursday 20-Apr-17 05:09 PM
Capitec has grown tremendously in a very short amount of time, I read somewhere that is was a staggering 74% in the past two years. The reason for this, I'm sure, is because they have researched and established their customers' needs, mostly in the low-income sector that makes up for a massive client base and have made sure they cater to these needs. Another upcoming company that I think is starting to grow is Chesa Nyama, as Clare said, they are popping up everywhere and have also established their customers' needs by catering specifically to the culinary tastes of South African people.
Juliet said:
on Thursday 20-Apr-17 11:40 AM
I have been with ABSA for 35 years but am keen to move to Capitec because ABSA's bank fees are far too high. I know many people who have moved to Capitec and seem to have no problems thus far.
I don't think this is a small company but a company I have noticed opening shops all over the place over the last few years as well as selling their products in Clicks is Sorbet.
brumilde said:
on Thursday 20-Apr-17 11:00 AM
i think capitec really did their research and made sure to know who their target market is and what their target market will need. low banking details. simple and clean. must say i am happy with my bank, but i think capitec just has allot less of red tape for opening an account. i would say the tata brand has improved from what they used to be. when they came to SA people burned cars and moaned about the the crappy make. now kia and tata are improving and established themselves much better.
Henrietta said:
on Thursday 20-Apr-17 09:31 AM
I must admit that I did not have a lot of faith in Capitec when it started, had a lot of doubt but must say that they have surprised me a lot, they have grown and I also know and see a lot of people using Capitec. Just by the shares alone you can see how much they have grown. I dont know a lot about small companies and their growth but have to agree with Jadine, if you cater for the youth and people's need you will hit it big but does not necessary mean you'll stay there.
Michelle said:
on Thursday 20-Apr-17 08:20 AM
Capitec have really surprised me by the way they have grown. Just by the way their share rates have grown. I will be scared to put my money in a not so famous company name, but I guess that's why it’s called gamble.
Jadine Richards said:
on Wednesday 19-Apr-17 04:42 PM
I would definitely say Vumatel. Any company that works with and understands the communities and the youth that surround them will definitely be hitting it BIG very soon! South Africans only support companies that can identify with their everyday needs. Just like Capitec did by providing a low cost, but excellent service and wow app facilities to match. They studied the youth market, then gave them what they wanted.
Alexis said:
on Wednesday 19-Apr-17 09:28 AM
Capitec is doing outstanding and have grown a lot since I first heard of them - I do not know much about the investment world - so unfortunately not be able to comment on whom would be good to invest in and whom is growing substantially
Daniella said:
on Tuesday 18-Apr-17 02:54 PM
I have a lot of good things about Capitec in regards to their prices and charges. Unfortunately i hardly ever see any ATM's there isnt enough of them in my area. I unfortunately am a very loyal customer to FNB and i have never had any problems with them as yet.
Angelique Jurgens said:
on Tuesday 18-Apr-17 01:33 PM
I keep hearing about good thing regarding Capitec on the radio. I was always skeptical about them as my personal bank etc. Imagine if you just had that faith... I cannot comment on small companies because I really don't know much about that but they are building a huge Cambridge Foods close to clearwater so that may be the sort of company to look out for or possibly. As was as Cashbuild - however they are a large company.I am not too clued up about shares so will leave that to the wall street guys!
Nina said:
on Tuesday 18-Apr-17 12:58 PM
I have also heard many good things about Capitec and clearly it is not a bad option anymore. It is good to see new banks doing so well. It will keep the other more established banks on their toes.
Angelique P said:
on Tuesday 18-Apr-17 11:16 AM
I am thinking about closing my ABSA account and opening a Capitec account. I have heard lots of positive things about this bank for example low cost, excellent service etc.
I know Capitec is becoming a very successful bank with a lot of people moving to this bank.
The people that bought shares a while ago are definitely smiling now.
Suzanne said:
on Tuesday 18-Apr-17 10:12 AM
It is definitely true that they have boomed in the last few years, almost everyone I know has had, or still has, a Capitec account. Investing is always a gamble, but when you see these kinds of returns, one is very tempted to do so.
Bianca said:
on Tuesday 18-Apr-17 10:06 AM
I have said before that I do not know a lot about investing and investing in shares however Capitec has grown tremendously and it must be quite frustrating to have sold shares that could have really made a good profit. I suppose with investing in shares it is a bit of a gamble as to when to pull out and when to stick with it.
Lucretia said:
on Tuesday 18-Apr-17 09:52 AM
I cannot say much for smaller companies but, I can vouch for the amount of our client's who are Capitec holders. The two main banks I have seen has been FNB and Capitec with Capitec slowly starting to come out more and more. Wish I had invested when the going was good.
Clare said:
on Tuesday 18-Apr-17 09:30 AM
I have to say that I ChesaNyama has Grown, they even the Freestate in a little area called Vrede, I have now come across a lot of these franchise now, and I guess this could because they do give you traditional foods that South Africans love like Pup and Meat.
Jessica Apfel said:
on Tuesday 18-Apr-17 08:29 AM
It is difficult to predict the growth of an 'entering business' or rather to predict its likely growth forecast. I guess it is about risk and reward. High risk may come with high reward. Capitec has certainly grown in leaps and bounds! Capitec has been dubbed the 'fastest growing retail bank' and grew headline earnings by 45% in the last financial year! I wish I were a stockbroker to be able to spot these up and comers.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
