Heystek on the JSE and Why You've Suffered Financial Wipe-Out
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PAGE 3 PAGE 4 PAGE 5 PERSONAL FINANCE// COVID-19// BN POWER HOUR// PERSONAL FINANCE// FREE LUNCH OF THE ADRIAN GORE ON THE FARM MURDERS, INVESTING OFFSHORE INVESTING WORLD VACCINE ROLLOUT CYRIL & FAKE NEWS ALWAYS A GOOD IDEA BizTHE RATIONAL PERSPECTIVENewsDigest WWW.BIZNEWS.COM SATURDAY 22 MAY 2021 BIZNEWSCOM Heystek on the JSE and why you’ve BRIEFS Bitcoin claws suffered financial wipe-out back to Magnus Heystek, a journalist who started his own investment advice company, Brenthurst Wealth Management, has boldly $40,000 been one of the most high-profile investment advisors who have recommended offshore diversification. Heystek has been very after market vocal about just how wrong it has been to keep all your money in South African assets, in particular Johannesburg stocks. In this comprehensive article, he arms himself with an abundance of data to bring home the point that “the decade 2010 to 2020 was, meltdown by almost any measure, a financial disaster.” – Nadya Swart IFC to invest By Magnus Heystek probably permanent loss of – on average – a quarter of your global $2bn t’s been a while – OK, a very wealth. long while – since I dared to Unless there is a dramatic change to support get onto a surfboard and catch in the current wealth trajectory Ia giant wave that would take me in SA—will this gradual wipe- Africa's recovery all the way to the shallow waters. I out become permanent. This was never a good surfer and more fact is already evident in the often than not, I experienced a long-term decline in a range of wipe-out of gigantic proportions, dollar-sourced consumer goods with more water and sand up my which are increasingly unaf- Ninety One reports facial orifices than is considered fordable to a greater number of healthy. South Africans. Think new motor 27% Most South Africans – from cars/cellphones/laptops/medical the very rich to the middle-class equipment/medical treatment, rise in AUM – have over the past decade to just for starters. Sales of new mo- 2020, suffered a financial wipe- Magnus Heystek is the founder of Brenthurst Wealth Management tor cars as an example are down out of almost unprecedented to levels achieved 12 years or so proportions. levels of society and the econo- In USD terms the average South ago. Despite record-low interest my gets number-crunched and Africans lost about 25% of their rates, fewer and fewer South Afri- Read also: analysed, it’s clear that the decade aggregate wealth in this peri- cans can afford to buy new cars. Inflation reaches Also, don’t expect foreign travel Offshore investment advice: 2010 to 2020 was, by almost any od, even some of the very rich, Magnus Heystek reveals how measure, a financial disaster. Not according to the latest wealth sur- to recover to pre-Covid-19 levels. 14-month advisors are vilified in SA even during the financial lock- vey done by New World Wealth. The disposable income of most down of SA by the international South Africans, even the very high in April Perhaps we should be playing community during the State of Read also: rich have been severely impacted that one-hit wonder by the 60’s- Emergency in the mid-80s under Magnus Heystek: Investing in by the sharpest decline in GDP band The Surfaris, called Wipe the rule of PW Botha, did the ‘cheap’ JSE is still a bad idea, (-7%) in over a 100 years during Out, which features one of the country as a whole see so much no matter how you slice it 2020. most popular drum features in personal wealth evaporate. Read the full article here history. Go and search for it on The effect of such a dramatic Unless you had 100% of your City of Joburg YouTube or Spotify and see what collapse in personal wealth will be assets in private wealth invested Making the most of your I mean. long-lasting. Purveyors of luxury in US dollars or Euros, you’ve money in 2021 – insights sets As financial data from various goods beware. experienced a very sharp and from Heystek, Segall 35% renewable target Subscribe here for your weekly BizNewsDigest Subscribe now 2 | SATURDAY 22 MAY 2021 WWW.BIZNEWS.COM SA INVESTING Amazon Africa headquarters faces legal opposition mazon, the retail and tech multinational founded by Jeff DOWNLOAD THE FREE Bezos, is facing legal opposition Afrom a number of environmental and BIZNEWS.COM APP heritage protection groups. Earlier in the year, the City of Cape Town gave the go-ahead for the commencement of the development. The 150,000 square metre development will create over 5,000 direct jobs and up to “19,000 indirect and induced BN jobs would be supported”, said the City of Cape Town. According to MyBroadband, the LLPT (Liesbeek Leisure Property Trust) – who own the land on which the Click on the links below to development is to be built – planned to begin download your own free construction in mid-June. The Observatory BizNews.com App Civic Association labelled the development © Image published courtesy of MyBroadband as “profit-driven” and “at the expense of environmental protection and respect for The city said the development – which will (OCA) plans to launch legal action seeking heritage.” In response, the LLPT has said be built on a 15-hectare piece of land in a court order to set aside the environmen- the association’s claims were “potentially Observatory next to the Liesbeek River – is tal and land-use authorisations for the area delaying the creation of thousands of jobs expected to boost the Cape Town economy in which the development will be built. and environmental rehabilitation.” This and create 5,239 direct jobs. The site for the project was rezoned from article was first published onMyBroadband . In addition, up to 19,000 indirect and a conservation space to commercial use – Jarryd Neves induced jobs would be supported, the city earlier in 2021. stated. This move faced significant opposition to Commence Construction along with By MyBroadband The development will comprise of 150,000 from organisations like Heritage Western a grievance process for disputes from the square metres of mixed-use space – 59,600 Cape, which said the area was recognised public earlier in May. Online shopping giant Amazon’s plan for square metres for offices, 20,700 square as a “sacred space”. LLPT stated that it planned to start con- a new African headquarters on a piece of metres for retail, an 8,200 square metre The city claimed its decision was based struction at the site in mid-June. prime real estate in Cape Town is facing hotel, and a 4,100 square metre gym. on the need to balance investment and job In response, OCA has sent a letter to opposition from a coalition of environmen- The new precinct will include restaurants, creation, along with heritage and planning LLPT in which it asked the company to tal and heritage protection organisations. conferencing facilities, a school, and events considerations. stop earthworks until its case was heard in The City of Cape Town recently approved space, and is set to be built over the next According to a blog post on the OCA’s court. the R4bn River Club mixed-use develop- three to five years. website, Liesbeek Leisure Properties Trust ment, for which Amazon will be the anchor According to a report from The Sunday (LLPT) – the owner and developer of the tenant. Times, the Observatory Civic Association land – had issued a Notice of Intention Click here for the full article Solidarity takes Minister Lindiwe Sisulu to court olidarity is a South African trade don’t want to unnecessarily litigate on this can be dealt with. union that negotiates on behalf of matter. Let’s have a discussion. They took That would have been given to us last its members and attempts to protect up the offer of a discussion and we had that week Friday (14 May). They asked for a Sworkers’ rights. They are taking Minister meeting about a week ago. In that meeting, it postponement, to the end of business 18 Lindiwe Sisulu to court, amid the hiring of was agreed between the parties – I won’t go May. Unfortunately, we have received no Cuban engineers to assist with our water into detail of what was discussed as it’s off the substantive proposals as to how the matter infrastructure – while local engineers sit record – but the delegation made the specific can be settled.” unemployed. The head of legal at Solidarity point that they will answer our questions and Listen to the full interview told Alec Hogg that they want answers. give some proposals as to how this matter Anton van der Bijl on the Cuban engineers “The minister made an announcement that she’s going to appoint approximately 24 Cuban engineers to do some water and sanitation infrastructure engineering works. That was Anton van der Bijl is the head of Solidarity’s BizNews 360 Potgooi made a public announcement and we decided Centre for Fair Labour Practices to investigate the matter. At the end of the day, we are inundated with South African for South African engineers prior to bringing (met Charl Botha) engineers [who are sitting] without work and in Cubans income. They gave us a mandate to investigate “The minister stated in an interview that the matter. It seems, to a certain extent, that there was a call to action for South African Schalk Louw - die Rand, en “Jaws 2” the decision by the minister is not only illegal, engineers to come forward and to work on but most certainly irrational or immoral as this specific project.