A share whose price chart goes from the bottom left-hand corner to the top right-hand corner. There are very few shares which can be described as “diagonals”, especially over the long term. If a share goes up consistently for many years through all the various tribulations of the South African economy with its unique combination of economic mismanagement, aggressive union action, political uncertainty and volatile currency, then we consider it to be a diagonal.  Perhaps one of the best examples is the short-term insurer Santam. Consider the semi-log chart going back 33 years:

Santam (SNT) Semi-Log Chart 1985 to 2018 – Chart by ShareFriend Pro

You can see here that this share has remained a consistently good investment through thick and thin. As a private investor you should simply accumulate such shares on weakness and hold them.

If viewing this term in a pop-up block within a lecture module or article, use the scroll bar at the bottom to see the whole chart or click to enlarge the image.

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