Storms Brewing


To market to market to buy a fat pig. The good news is that North Korea didn’t fire any more missiles this weekend, as South Korea had feared. As a result, Asian markets are well in the green this morning. More good news for a Monday morning, Hurricane Irma, which is currently moving over the Florida coast is losing steam. The hurricane has been down graded to a category two storm and is expected to weaken as it moves over land.

Another storm that is just gaining traction though, is who will be the next leader of the ANC and most likely the country. There are rumours of another cabinet reshuffle on the cards, with Cyril Ramaphosa’s Deputy President post in the firing line for a change up (Cele drops bombshell of plan to remove Ramaphosa). As we have spoken about many times, owning large multi-national companies are an easy and effective way to diversify your risk. Owning something like Naspers, which is currently just the Rand price of Tencent, is a way of holding international companies without needing to externalise funds.

We live in a global village, as such you have options further than investing in Rands. For most South Africans the amount you are allowed to transfer offshore without running into exchange control issues, is much higher than they will ever need. Which means owning companies like Apple, Facebook, Johnson and Johnson, Tesla and Visa, is much easier than many expect. Exchange controls are not usual, there are many more countries who don’t have restrictions on capital flows than those who do. Our exchange controls were introduced in 1961, the same year that our currency changed from the South African Pound to the South African Rand and South Africa became a republic.

Friday was unfortunately another red day locally and a mixed day in the US. Here is the scorecard, the Dow was up 0.06%, the S&P 500 was down 0.13%, the Nasdaq was down 0.59% and the All-share was down 0.27%. The concern for US markets on Friday was around Hurricane Irma and North Korean missiles.


Linkfest, lap it up

One thing, from Paul

This week’s Bluners: Wild Dogs vote by sneezing, Fascism on the rise, toy industry doing badly and a dumb product (denim jacket) – Blunders – Episode 72


Michael’s Musings

According to this article, Disney World in Orlando, Florida has only closed its doors twice in the last decade. So closing it now for hurricane Irma, shows how severe the hurricane is – Hurricane Irma has shut down Disney World and will cost the company millions. Another fascinating number is how much money the park makes a day. The park generates $30 million a day in revenue, around R390 million! Having a look at how big Walt Disney World is, you will be astounded to hear it covers 110km squared. That is huge! There are 36 hotels, four golf courses and four theme parks.

Here are two great charts from Visual Capitalist2,000 Years of Economic History in One Chart. The second graph is very significant. Note how the wealth has increased for the average person on the globe. Even though populations have grown exponentially, the wealth created has grown even faster. There are many debates about what our population size should be, how wealth should be distributed and what our relationship with the earth should be. What is not debatable is that the average person today is streets ahead of the average person 200 years ago.

This is truly amazingMeet the 29-year old who was just named CFO of $100 billion giant Kraft Heinz. Appointing someone so young, shows 3G Capital’s approach to shake up old companies who have become stuck in their ways, usually inefficient ways.


Home again, home again, jiggety-jog. We have a big week ahead, tomorrow evening is the Apple vent where we will see the new iPhone and a host of new products. Then on Thursday morning Aspen release their full-year numbers and we get to see how the integration of their fairy recent acquisitions of their anesthetics division is going. Some more good news, Hurricane Irma has now been downgraded to a category one storm. Lastly, congrats to Kevin Anderson on making it to the US Open final.


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