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.Disclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index