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Essay text:
Imagine you have a lump sum of money to invest. The amount doesn’t matter, as the same principles apply whether you have R5,000, R10,000, R100,000 or R1 million.
Let’s assume you have R100,000. Let’s also assume that you are considering investing either in the stock market or in property. (For the sake of simplicity, let’s ignore all brokerage fees and commissions).
I simply want to pose four questions, first for shares, then for property…
1. How many rands worth of shares can you buy with R100,000 cash?
For most people when you have R100,000 cash, you can buy exactly R100,000 worth of shares...
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