I get out-performing other funds by being in cash, but you cannot earn 17% outright being in cash for a few months..?
Gemini : you have it exactly wrong way around. In the 2008 crash Berkshire rescued several companies. including famously embarrassing forever and all times all investment bankers by bailing out Goldman Sachs to the tune of 5 or 6 billion dollars.
Let me quote an ex-colleague (now retired)- who served in the ACI International for many years!
”In order to maintain orderly and efficient markets, it is essential that dealers and brokers comply with both the letter and the spirit of The Model Code. The General Principles of Risk Management stated in Chapter IX are particularly relevant in this regard. Beginning with the fundamental dealer’s maxim “My word is my bond”, the conduct, practice, and ethics prescribed in this code are the culmination of long experience in OTC exchange, money, and derivatives markets dealing.
The importance, therefore, of adherence to the provisions contained herein, is self-evident and the consequences of breaches of this code are clearly stipulated in chapter IV (No. 4) -Compliance and complaints.
Following a comprehensive review of the situation, the CFP (committee for Professionalism for which I Chaired) concluded that despite the existence of some difficult issues and of differences in structure, there was an urgent need for one international or global code that could cover the essential provisions of all five recognized publications.
The conduct and best practice recommended in the five codes is in general conformity and, with a few notable exceptions, the differences that do exist are mostly those of emphasis and scope. It was, therefore, felt that a Model Code embracing the main provisions of the recognized codes could serve as a valuable guide for the international dealing membership.
It would also serve as practical study material for junior dealers and, with an amended syllabus recognizing the new structure, for examination candidates.
The need for a Model Code is more pronounced in many of the emerging markets where a professional code is lacking. The Model Code had now been replaced with an update but in principle, the historic value for Professional Conduct still remains.
If Authorized Banks, Brokers and Corporates, and the mandated traders/dealers were found to be in contravention of the principles set out in The Model Code then the Law must follow its course.
He he! Fat chance. The ANC investigates itself and finds itself not guilty
An interesting angle is companies with very, very thinly traded shares who implement ‘share appreciation’ schemes, and then pay out to management at the end of the period the number of shares notionally awarded times the increase in stock price (on very small volumes traded). As of course small shareholders watch the stock price sink thereafter.
There is a listed company with very thinly traded shares that implemented such a scheme a few years back and it resulted in the highly indebted co making painful big multiyear cash payments to the execs and/or buying back shares awarded to them in terms of the scheme.
“All eyes are on the ANC leadership to see what, if any, action will be taken against Ekurhuleni Mayor Mzwandile Masina for breaking ranks on Twitter and taunting the party to fire him.”
This means that the ANC’s strategy to bring the economy to its knees (“The White Economy”) has been officially acknowledged, even if it was as a simple sligh remark of what Malema said.
So, there you have it. The ANC’s policy all along is to destroy the economy.
It’s 95% about the weakening of the US Dollar.
The Fed has a balance sheet if about 7Trn and they are printing at a rate of about 1Trn every few weeks now.
Scary.
Thank you Sensei. First we saw Jaapie and then it probably became a bit hot in the kitchen; Now we have Jaapies; Next will probably be Japie-ou-skapie. Being a troll is nothing more than announcing yourself to the world as a first rate loser.
Make no mistake GSFS….its coming. Along with R40 – R60 to the dollar. Eskom is still broken, SA bankrupt, municipalities failing, EWC on the cards, pension funds under attack, massive and increasing unemployment, massive retrenchments and business closures etc. No one is even sure anymore how much power Cyril actually has or who is actually in charge!! This strengthening has nothing to do with the countries fundamentals but is purely a function of the dollar weakening. Use all periods of rand strength to move funds offshore.
George Floyd is going to give us a sub R15/$!
Obviously there is more to it than that. You know this. How many sms’s would you like to have what you already know explained to you?
I appreciate your kind opinion. It serves as a strong motivation to seek the truth.
You’ve got a good point there. If you visit this website regularly, you won’t be a “small timer” forever though.
It seems as if you are trying to say something meaningful but nobody can figure out what you are actually trying to say.
It is true that aggression, whether expressed by humans or animals, and whether it is expressed in physical form or on social media, is always a sign of inferiority and fear. The little man tries to compensate for his negative views about himself, by appearing aggressive and abusive. Every man who beats up his wife is a pathetic lowlife, masquerading as a strong man. Best of all- he knows it and he identifies with his smallness.
Everything you write here tells us what is going on in your mind. That is a pitiful, small, dark, self-loathing and destructive space. Keep on posting, I want to monitor you journey to enlightenment. Don’t give up. Where there is life, there is hope.
This is Madness. I’m quoting from the article: “Should this rescue plan be adopted government will agree to fund this R21 billion plan.
This is of course incorrect. The Government does not have one cent. The line should read “Should this rescue plan be adopted government will force Taxpayers to fund this R21 billion plan.’ Radical Airline Transformation is not needed. We do NOT need a National Carrier. Australia hasn’t got one. Our Ministers and President can travel First class on another Airline.
Agree – utter, utter madness. This airline has wasted billions upon billions. Yet we still have schools without proper toilets or even water. Only a crackpot Socialist government could dream up such a totally irresponsible scheme.
This level of payments for a CEO is disgusting. Remind me to avoid anything to do with OM.
Warren Buffet is on record as saying never ask a barber if he thinks you need a haircut. A few seconds into this article and I am thinking this guy has a vested interest. I am sure Nedbank would love to finance the SAA phoenix rising Airbus like from the ashes of Dudu and company’s decades-long malfeasance. Of course, the risk would be shouldered by the SA taxpayer in the form of government guarantees.
You can’t spin SAA being ‘about delivering on shareholder objective’ after state capture. Neither can you try claim it has been been the shareholders objective to make such losses for over 10 years in a row.
The objectives of the corrupt cadres is only to steal and have free flights forever. That is not in dispute.
It must be 15 years since I last flew SAA. BA and Nationwide a much better choice. I will NEVER fly SAA or its affiliates (and that includes Mango).
Thank you for the general lecture Mr. Geldenhuys. You might not have noticed that through a mix of racist BEE policy limitations and through the general quality of the remaining cadre candidates it seems impossible in South Africa for government owned enterprises to create a board of sufficient capable and non corrupt persons. So in the end , considering these glaring limitations there is only one option : Close this tax bleeding charade of an airline down.
@Colson. I’ll forgive you, as you seem to completely miss my point.
Local investors are led to believe the notion that if you invest in the JSE Top 40 for example, you’re (almost) “as good as investing directly abroad”, since a number (but not the majority) of large corporations derive earnings globally. Yet those same companies have still a fairly sizable exposure to imploding local economy.
Local asset managers have a vested interest (commissions & fees) to prefer to manage your respective funds locally, instead of chanelling it off abroad to a foreign management arm, giving up portion of fees.
Fact is, the local equity market (even with dual listed companies among them) is FAR MORE DISCONNECTED to the rest of the world’s equity markets that one is led to believe!
This manifest itself the the consistently poor local equity returns lagging the growth of global Emerging Market peers.
Not bashing local asset managers either, which are on equal professional level with global peer standards (pity about the local Auditing/ Accounting profession dropping the ball…Steinhoff, EOH, Tongaat…on which local analysts rely on)….but it doesn’t help much if SA has good asset managers, but have to manage assets on a slowly sinking ship.
I’d rather take my chances and invest with a mediocre asset manager, managing one’s funds in a persistently high-growth region/country. The rising tide lift all the boats….or the all the boats flow down-stream without much effort.
Conversely in SA, we have championship rowers, but are required to row upstream & not making any progress. Yes you’re correct, you can’t blame our ‘championship’ asset manager teams (SA’s fund pool is shrinking compared to other EM)…but a drunken boat captain will do better easily flowing down-stream.
Maybe the leader dressed in an Army uniform showed the intention and the shift in mindset.
His lack of oversight as a “Legal mind” and constitutional expert especially as he was NO1 in drafting the constitution could not have been accidental.
Lets not forget he came out “IN FULL SUPPORT” of that woman in the doek when she arrogantly dictated a new bill of rights that supports her family interests at the expense of South African citizens rights.
We must not let “Our Leader” get away with a nice smile and his likable manner. His promises are empty.
NOBODY IN THE WHOLE GOVERNMENT AND ANC KNEW BETTER THAN HIM THE RIGHTS OF CITIZENS WERE TRAMPLED UPON. NOBODY.
Moyo was way too light for the job at hand ,and seldom was seen or heard of during his tenure at OM.I can only imagine the chaos that would have ensued if he was still in charge during CO-VID.Chasing his bonus when business has come to a grinding halt.Fortunately he was found out at a relatively early stage.Some of his interviews following his court appearances was a complete embarrassment .Walk away Peter
People use the word equity a lot. Like as in “employment equity”. What does this mean? it means fairness. It has nothing to do with equality. People often ask what is a fair price. Economists argued for centuries and then concluded that a fair price was one agreed upon by a willing buyer and a willing seller. In South Africa there is a huge amount of cross subsidisation. This is equivalent to if I walked into the local supermarket and I paid R40 per litre of milk whereas the indigent dude behind me paid R5 per litre, some other dude gets it for free. The cost to the company would be R10 per litre. Unfortunately there are so many freebies the company is bankrupt. This is how municipalities are run. Soweto gets Eskom power for free but as Milton the Magic Midget says “No free lunch”. The taxpayer pays to subsidise Eskom which provides the freebie. What does Soweto supply in return? they vote ANC to perpetuate the theft. Whatever you call it, this is neither equitable nor fair for the power buyers in SA. The ANC has thus made parasitic thieves out of a large part of the community. A parasitic underclass who cannot or will not create wealth and consume wealth created by others. As a “right”. The debt racked up will never be repaid (it cannot as the wealth producing capability of Soweto is simply not enough to service let along repay a debt of this magnitude). A parasite can continue to exist as long as there is a host in attendance. I would nurture the host but the ANC have made them the enemy. They have declared war on the private sector, whites and white capital. Skills and capital have fled and will continue to do so. Yesterday Cyril called the economy “racist and colonialist”. Business and people who produce wealth are the enemy. Socialists always have a ready scapegoat for their multitudinous inherent economic failures. This cannot end well. When the ANC run out of other peoples money the infrastructure will collapse and the cradle will fall. The time is nigh. The SARB has lowered interest rates ridiculously. They have pulled out all the inflation control rods. Before Chernobyl blew up the, thermal power output of reactor four was a few MW and then all control rods withdrawn. Then the power rose exponentially in a few seconds and a multi billion dollar catastrophe unfolded. It is not negative and unpatriotic to protect yourself. Get your wealth out the country while you can. Arrogant Magnus with all his vested interests is bang on the button, folks. If you cannot, buy gold. Australian equities are incredibly cheap. I have just piled in. There are many ASX ETS and REITs in a stable well-run first-world democracy.
Guys, I am just a fellow traveller on the same road as you. I try to make sense of things in order to profit from them. When we try to figure out where to invest and what to buy we should keep in mind that Emerging Markets, like South Africa, outperforms the developed markets during times of a weakening dollar, and underperforms during those times when the dollar moves stronger. To a certain extent, the health of the economies of the Emerging Markets is a function of the Dollar Index then.
The US economy is that largest and the dollar is the major reserve currency. Commodities are priced in terms of the dollar. When the dollar moves weaker over a period of a decade or longer, it results in wider profit margins for commodity producers and increased tax revenue for their governments. A weaker dollar also makes it easier for Emerging Markets to service their dollar-denominated debt. Even local currency debt is easier to service under conditions of a weakening dollar.
During times of sustained dollar strength, we experience Emerging Markets financial crises. We saw the Latin American Debt crisis in the late ’80s after the dollar strengthened by 70%, and the Asian Financial Crisis of 1997 and the Russian Crisis of 1998 after the dollar strengthened by 50%. Now we have an Emerging Markets crisis once more. Venezuela, Argentina, Brazil, Turkey, most African and South American countries and South Africa are in bad shape after the dollar strengthened by 35% since 2001.
Inflation and Deflation are manifestations of credit expansion or contraction. The US enjoys the exorbitant privileged of printing the reserve currency. That means they can print fake money to buy real goods from the rest of the world. Through the petro-dollar system, the US “exports” their inflation to everyone who needs dollars to buy commodities. In a similar fashion, during times of credit contraction, they “export” their deflation to everyone who uses the dollar as reserve currency. By keeping our interest rates relatively high, South Africa acts as a deflation magnet. Our currency is relatively strong relative to the state of the economy and we lose our ability to compete on the world market.
The socialist spending, the detrimental political policies of BEE, cadre-deployment, SOE monopolies and the nationalisation op property plus the criminality of the ANC force South Africa to be a deflation magnet for the world.
Agree. Need to boycott this airline.
When does she get a room to herself??????
Damn, forgot we still have 5 years of state funded appeals ahead of us.
Sorry Geldenhuys, no. The ANC’s sole concern is party political (as with everything else) to not be known, come election time, as the party that destroyed SAA.
I get out-performing other funds by being in cash, but you cannot earn 17% outright being mainly in cash for a few months..?