Best shares to buy on FNB

Overview

First National Bank (FNB) provides investors with access to the top 100 companies on the Johannesburg Stock Exchange (JSE). Additionally, investors with FNB can also diversify their portfolio and buy global investment products on more than 15 exchanges around the world.

As such, having access to a wide variety of asset classes is an important component for an investor, as suitable diversification allows you to reduce the overall risk of your investment portfolio.

A well-diversified portfolio should consist of some well-placed growth stocks, such as companies that are likely to provide strong returns going forward, as well as more stable entities with a longstanding history of strong performance.

With such a wide selection of investment options, it can be difficult to decide which shares to buy on FNB in 2025. In this article, we break down the best shares to buy which will provide diversity, stability, and growth to your portfolio.

British American Tobacco (BAT)

Even though British American Tobacco has its primary listing on the London Stock Exchange, this leading cigarette company also has a listing on the Johannesburg Stock Exchange (JSE) under the ticker symbol BTI.

Despite British American Tobacco stocks flattening since its major spike in 2017, the group remains one of the largest stocks on the JSE in terms of market capitalization.

Added to this, the dividend yield of 7% from BAT shares makes it one of the most lucrative investment options.

In terms of long-term growth, it is important to note that tobacco products are considered a staple good, meaning that demand will remain relatively constant over the long run, providing a great amount of stability to your portfolio.

The company also boasts a strong cash flow, meaning that it is well-positioned for future acquisitions, which could also bolster growth in its shares going forward.

Naspers

South African media giant Naspers has become one of the most compelling investment options in recent times, particularly due to the company’s diversification into several different market sectors, most notably through its major asset distribution to Chinese media giant, Tencent.

While almost 90% of Naspers’ shares lie in Tencent, the company trades at a major discount to its Tencent stock, even with the value of Tencent stock having climbed to an incredible 89.6 percent recently.

In other words, the stock of Naspers has gotten cheaper in relation to the company’s primary asset, allowing its stockholders to realize substantial benefits.

Access to Tencent’s market growth through Naspers shares allows for major opportunities going forward, with the Chinese media sector being one of the fastest growing on the planet and Tencent holding large minority stakes in many of the best emerging tech start-ups in that country.

Aside from Naspers stake in Tencent, the company’s diversification into other market sectors also make it a great investment option. These include other international e-commerce and internet-related businesses such as OLX group, India’s PayU, Udemy, Skillsoft, and Brainly, amongst others.

Finally, Naspers has made an interesting foray into the online food delivery sector with investments in India’s Swiggy, Brazil’s iFood, and Europe’s Delivery Hero. This sector saw significant growth during the pandemic period and continues to be a major economic sector globally.

Netflix

Shares in movie streaming giant Netflix can be purchased for just R10 on FNB. A large part of Netflix’s success is due to the company’s concentration on producing original and more profitable programming.

Added to this, there is a high probability that Netflix will start to pay dividends in the near future. A great future for Netflix’s content streaming business is therefore possible, making it one of the best investment options for growth investors seeking greater yields over the long term.

In order to generate good returns, growth investors look for companies with earnings growth that is above the industry norm.

To this end, even though Netflix’s past EPS growth rate is 83.5 percent, investors should pay attention to the company’s forecasted growth instead. A 74.1 percent increase in the company’s EPS has been forecast, much exceeding the industry average of a 25 percent increase in EPS.

Added to this, the company has enjoyed an annual cash growth of 22.3%, exceeding many of its peers in the industry.

Anglo American PLC

Gold, platinum, diamonds, coal, base and ferrous metals, industrial minerals, lumber, and coal are all produced by Anglo American PLC, which has operations in Africa, Europe, South and North America, and Australia.

Anglo American provides a superior investment opportunity. Increasingly focused on a low carbon economy and a broad base of consumer demand, the corporation offers a diverse range of high-quality products.

Together with Anglo American’s integrated approach to technology and sustainability, which will also help the company achieve carbon neutrality across its operations by 2040, the company’s diverse portfolio of world-class competitive operations, development projects, and undeveloped resources provide it with much additional high quality and high returning growth opportunities.

There is a wide range of possibilities for metals and minerals that contribute to a cleaner, greener, and more sustainable environment, including copper, platinum group metals (PGMs), and agricultural nutrients.

As such, Anglo American PLC is well-poised to provide continual and stable growth in its existent market sector, while also being able to become an important supplier of the metals required for the production of green energy goods, allowing for a compelling diversification going forward.

As it stands, Anglo American is on track to deliver sector-leading volume growth of 20-25% over the next three to five years which includes the first copper production from Quellaveco in 2025.

Along with the company’s technology improvement initiatives, the company is set to deliver its targeted $3-4 billion run-rate of incremental annual improvement by the end of 2025.

Shoprite Holdings Ltd

With more than 2800 outlets in 14 African countries, Shoprite is Africa’s largest food retailer. Currently, Shoprite employs more than 140,000 people, making them one of Africa’s top employers.

In addition to its consumer items, the corporation controls a number of well-known brands, such as the MediRite pharmacy chain and the LiquorShop liquor store chain.

Lockdowns lessening and increased foot traffic in key cities have contributed to Shoprite’s recent expansion, which has resulted in a significant boost in sales for the company.

Due to projected increases in African consumer spending of up to $2.1 trillion by 2025, Shoprite is currently a solid investment opportunity.

Shoprite is well-positioned to gain from this growth in expenditure because of its well-known brand and efficient supply chain. In addition, the company’s revenue and EBIT figures are improving year over year.

These features, along with Shoprite’s long history of dividend payments, make the company an excellent investment at the current price.

Compagnie Fin Richemont

Richemont is the world’s second-largest luxury goods company, specializing in high-end jewelry, timepieces, writing instruments, and other high-end items.

Cartier, Piaget, Vacheron Constantin, Alfred Dunhill, Van Cleef & Arpels, Jaeger-LeCoultre, Panerai, Montblanc, and IWC Schaffhausen are some of the most prestigious watch brands under the umbrella of the group.

Richemont’s global footprint extends across the Americas, Europe, Asia, and South Africa, where the company is headquartered. The company has a long history of being on the Johannesburg Stock Exchange’s (JSE) Top 40 Index.

Richemont is one of the most valuable firms on the Johannesburg Stock Exchange, with a market capitalization of R479 billion.

Compagnie Financière Richemont’s future looks bright, as profit is predicted to rise by 46% over the next two years. It appears that the stock will generate more cash in the future, which should lead to an increase in its share price.

As such, Richemont’s stock rose by 26.73 percent at the end of last year and is up by 46.38 percent in 2025 alone. The S&P 500, on the other hand, had only shifted by 0.39 percent and 25.26 percent.

Manufacturing and distribution facilities are nearing completion, which is expected to be a major driver of growth in the foreseeable future, particularly as markets begin to re-open following the downtrends brought on by the global Coronavirus pandemic.

BHP Group

Both oil and gas exploration and production are conducted by the BHP Group, which has its head office in Australia’s Melbourne. The BHP Group also mines for a variety of metals and energy coals such as copper silver and zinc and molybdenum uranium gold.

It was only a month ago that the miner got regulatory approval for the consolidation of its organizational framework. After merging with Billiton in 2001, BHP intends to keep its primary headquarters in Sydney, which should be completed by the end of the month.

In addition, the Australian Competition and Consumer Commission has approved Woodside Petroleum’s merger with BHP’s petroleum unit, which is scheduled to be completed in the second quarter of 2025, according to the company.

Higher-margin oil assets are expected to be part of the combined company’s portfolio. The sweeping shift away from fossil fuels has increased demand for copper, nickel, and cobalt around the globe.

Due to the increased use of nickel and copper in EVs and other renewable energy infrastructure, these metals are in greater demand than ever.

As such, the growing demand for BHP Group’s mining products as well as its recent lucrative acquisitions makes it an excellent option for growth investors.

Frequently Asked Questions

Which stock exchanges are available on FNB?

With FNB, investors have access to the Johannesburg Stock Exchange (JSE), as well as over fifteen global stock exchanges.

How do I invest through FNB?

Participants can buy shares on FNB through the bank’s share trader account. To do so, you will have to be an existing FNB account holder, and then take the following steps:

Log in to your online banking account
Select the Shares + Gold tab
If you have existing share investment accounts, select the Share Investor account that you would like to use to purchase shares.
Your Share Investor portfolio will be displayed. Select Buy, next to the share you want to purchase. If you would like to purchase shares from the JSE listing, select the menu button on the left, select the Buy Shares option and search for shares.
Capture the details regarding your shares and select Buy. You will be required to choose the pricing option for your purchase, either Best or Limit (if you select Limit you will be required to enter the rand limit for your purchase).
Review the quote, accept the terms and conditions and select Confirm

What is the best investment strategy when buying shares?

A sound investment strategy for long-term growth should include the following aspects:

Determine what type of approach you would like to take, whether you would like to focus on long-term growth or profit more from short-term volatility
Decide which types of shares you would like to invest in, such as individual stocks, index funds, or Robo-advisors, for example
Decide how much you wish to invest in your portfolio
Open an investment account and select the stock you wish to purchase

Should I diversify my investment portfolio?

Yes. Investing in a wide range of financial instruments, industries, and other categories is known as diversification. To optimize returns, investors focus on a variety of sectors that will all react differently to the same event.

As such, in order to achieve long-term financial objectives while avoiding risk, the majority of investment professionals think that diversity is the most critical component.

The price fluctuations of an asset might be less volatile when an investor uses diversification to control risk.

That said, it is important to remember that no matter how well-diversified your portfolio is, risk will always be an issue.

Although particular stock risks may be reduced, overall market risks influence nearly every stock, therefore it is necessary to diversify your investments among several asset classes.