Page 1

Issue #1 2014

This is everyone’s game Valentine’s Day | Mzoli’s | Samsung vs Apple | Bitcoin | Startup Bus



Scholarship Award Get started, work hard, up your performance and receive one of the following prizes from JM BUSHA Investment Group, the student partner:

University (i) Full Scholarship (Tuition and Accommodation) (ii) Tuition Grant (iii) Textbooks Grant High School The best performing Grade 11 student receives (i) R1,000 Prize money (ii) Two library books and (iii) Qualifies for entry into the JM BUSHA Scholarship Award The Future A good education, a good career, a better life, and the best investment portfolio are equal to a secure financial and happy future. For that, talk to JM BUSHA Investment Group. Invest wisely. It’s your performance. or



ealth creation is not exclusive to a certain kind of person; in a world where money is the medium of exchange, wealth creation becomes an imperative for any participant in the global economy. This is everyone’s game. BullsnBears is a comprehensive financial information platform created by students for students. It is a platform where the aspiring investor and/or trader can have specific access to investment and stock marketrelated knowledge presented in a student-friendly way, either to get them to start learning about investing and trading, or to further complement their investment or trading careers. The BullsnBears platform contains educational and experiential learning tools to facilitate the process of teaching about investing and trading and empowering our users, through the site, to gain enough experiential learning to actually start to invest or trade in reality. Student Investor is a product of BullsnBears and is oriented specifically towards students. The Student Investor is conceived as the young, ambitious maverick keenly investing into his or her future. These mavericks hunger for knowledge, with one eye on the present and one eye on the exciting future they are creating. These are the leaders, the role models, the radical students, the overachievers – all with a hunger for the pursuit of progression. They may be future photographers, writers, traders, entrepreneurs, lawyers, or on any other career path, but the thing they have in common is this hunger – and the willingness to be bold. With all necessary resources, the BullsnBears platform helps students right from the stage of not knowing what investing is, all the way through to becoming an advanced day trader themselves.

Together with our educational resources; our affordable and efficient entry to the market; our daily newsletter; our fundamental and technical analysis reports; our Student Investor Game and now The Money Tree magazine, we aim to make the financial and investment world a more student- and userfriendly place to be. We are incredibly proud of what the team have managed to put together over the last few months. A lot of students are afraid to step out of their comfortable world of study and do something big – but not this team. And now, with this launch issue of The Money Tree, our own magazine, we roll out yet another bold new project. The Money Tree pays tribute to the exciting world of business in which we all live. Over the last few years, business and finance has lost its appeal to many of the youth, and our vision is to change that. – Steve Jobs Our vision is to make business fun, youthful, exciting and accessible. We plan on revolutionising financial education, with a touch of creativity. The Money Tree has the unique appeal of being able to satisfy this vision, while also opening up the exciting world of wealth: how to create it, what to do with it, and how to operate in a world dominated by it. We are all lifetime students, and in a world where money is necessary, and being able to make it work for you is entirely possible, being a Student Investor is imperative. Benjamin Franklin puts it perfectly when he says: “An investment in knowledge pays the best interest.” So sit back and enjoy your journey towards financial freedom with the The Money Tree. Imagine having so much money as if it was growing on trees…

“The people who are crazy enough to think they can change the world, are the ones who do.”

Matthew Piper & Chad Daniel Bushnell





24 BitCoin: The Next TulipMania? 34 Of Military Secrets & Spies 44 Market Overview:

2014 Outlook





THE NEW INVESTOR 30 Schools of Thought:

Soros vs Buffett

32 Money & Emotion 33 Know Where to Invest




scoop ISSUE #1 2014


Make Mzoli’s a Franchise

46 Young Women in Business:

Sandi Mbutuma

48 Focus on Societies:

45 What Are Hedge Funds?

49 Start Saving Soon

50 Opportunities:

64 Fundamental Report: Woolworths




markets & ANALYSIS


Ákro Organisation

StartupBus Africa

Ad Space

















12 Food: Romantic Picnic


Gadgets and Apps

18 Health: 10 Fitness Myths

10 Films & Games

36 Adrenaline: Wakeboarders


40 Feature: 20 Books To Read

14 Guest Columnist:

The Two Apples

16 Ask the Elder 17 By the Numbers 22 News Report

On Ice

Before You’re 30

54 Motoring: Lamborghini

Veneno Roadster

58 Fashion: The Ties that Bind 60 Accessories:

Ulysse Nardin Watch

62 Travel: Have Sailing License;


Will Travel


money tree


A BullsnBears and Student Investor Publication Issue 1 2014

For Corporate

General Queries Chad Daniel Bushnell 072 410 2035

For BullsnBears

For Student Investor

Chad Daniel Bushnell 072 410 2035

Matthew Piper 071 293 4409

Matthew McElligott 083 232 2022

Tokologo Phetla 073 684 8874

For The Money Tree Magazine Publisher Chapel Lane Media Charl du Plessis 082 452 8110 Managing Editor Tanya Goodman

Consulting Editor Mitch Prinsloo

Art Direction White Space Invaders 082 959 3263

Advertising Sales Tokologo Phetla 073 684 8874

Chad Daniel Bushnell (“Bushy”) is Founder & CEO of BullsnBears (Pty) Ltd. Born in Durban, South Africa, Chad’s enduring passion for the markets has seen him through the years, and he would like to share that with the world – whether you know this passion, or if you want to explore it. He is committed to making BullsnBears the best possible platform to help change the fortunes of students forever, and he wants every student in this country to be a part of this revolution.

Tokologo Phetla lives to serve Africa and awaken it to its beauty and significance in what he terms “the quest to giving the world a more African face”. When he is not focused on business and entrepreneurship, he is either writing his book, reading or learning Mandarin (his newly found passion). “All men are great. The difference lies in those who realise it and those who don’t.”

Matthew McElligott is a serial entrepreneur, tech enthusiast and is crazy about start-ups and business. Starting his first business at age 15 he has always had that thrill for entrepreneurship and making money. Currently involved in four startups ranging from the technology to the financial services industries he enjoys the challenge in developing a business from scratch out of an idea.

Matthew Piper is passionate about entrepreneurship, art and making money. He has always been drawn to the education space and has worked extensively in tutoring projects aimed at uplifting disadvantaged communities. As the Founder of Student Investor, this trend in empowering others is apparent. Matthew aims to be at the forefront of change in South Africa, through entrepreneurial spirit and leadership.

News Tips:


Free distribution at major university and college campuses, and at premier high schools across South Africa. To find out where to get your copy, contact Print by Business Print, Pretoria Stock Photos from The Money Tree magazine is published quarterly by Chapel Lane Media on behalf of BullsnBears and Student Investor. Opinions expressed in this publication are not necessarily those of Chapel Lane Media, BullsnBears, Student Investor or any of its clients. Information has been included in good faith by the Publisher and Editor, and is believed to be correct at the time of going to print. No responsibility can be accepted for errors and omissions. No material (articles or photographs) in the publication may be reproduced, in whole or in part, without specific written permission from the Editor. Submissions of articles and photographs for the publication are to be arranged in advance and will be published at the discretion of the Editor. The Publisher, while exercising all reasonable care, cannot be held responsible for any loss or damage. Please ensure that all enquiries for material submission are mailed to Copyright © 2014. All copyright for material appearing in this magazine belongs to Chapel Lane Media in conjunction with BullsnBears, Student Investor and/or contributors. All rights reserved.

How to read QR-codes First, you need a QR-code app and a smartphone or tablet equipped with a camera. Then, go to the App store and search for a free QR-code app. Some examples of free QR-code apps: RedLaser for iOS; RedLaser or QR Droid for Android; QR Code Scanner Pro for BlackBerry.

When you launch your app, you’ll see that your phone’s camera is activated. Next, line up the camera on your device with the QR code you want to scan and hold the device steady until the app can read the code. Then, most apps automatically take you to the relevant website; some you have to click or tap. Have fun!


events 6-9 MARCH


Cape Town, Johannesburg and Durban Ramfest is short for Real Alternative Music Festival, and that’s exactly what you’ll get. Three stages across five cities showcase the country’s best in Metal, Blues, Indie-Rock and Electronic music, with a handful of international acts each year. Past bands include In Flames, Pendulum, Rise Against and Alkaline Trio. They offer camping and all the shenanigans that go with it and is also the only festival of its size in South Africa with a dedicated metal stage to cater for the more underground audience. Great organisation, people and music make this a must-attend for any music lover.


28-29 MARCH

Cape Town International Jazz Festival

Cape Town The name says it all. Every year thousands flock to the mother city and drive the locals mad with traffic jams, as the smooth sounds of jazz, blues, RnB, soul and even hip-hop echo off the side of Table Mountain. Internationally recognised as one of the premier Jazz and Blues festivals (number four in the world by Melodytrip) the festival has attracted acts like the Buena Vista Social Club, Lauren Hill, Earth Wind and Fire and Youssou Ndour. Tickets go fast and in large numbers. More than 30,000 people attended last year, so get your tickets well in advance.

17-21 APRIL


KZN The oldest of the big festivals in South Africa, Splashy Fen is also one of the most diverse. It offers everything from folk to dance to traditional to rock music, all taking place in the shadow of the magnificent Drakensberg Mountains. Started in 1990, Splashy Fen attracts about 10,000 people every year and has a multitude of activities in addition to live music. It is also regarded as one of the more family-friendly festivals with a separate family camp site. Make the journey; you won’t be disappointed.

26 Feb & 1 March

15 & 19 Feb

Cape Town and Johannesburg Eight-time Grammy award winners Santana will be touring at the end of summer, performing three shows in Cape Town on 25, 26, and 27 February before finishing the South African leg of their world tour with an all-out spectacular at the Calabash in Soweto on 1 March. Led by Carlos Santana, who is among the world’s most celebrated guitarists, the band first gained commercial success after their 1969 Woodstock performance and the 1970 release of the album Abraxas, which included the now classic hits “Black Magic Woman” and “Oye Como Va”. Santana will be in good company this summer as the announcement comes shortly after Eminem also announced his first visit to the continent, with shows scheduled for Cape Town’s Stadium on 26 February and at Johannesburg’s Ellis Park Stadium on 1 March. Choices! Choices!

Cape Town, Johannesburg and Durban Want to see some of the biggest and most dangerous stunts in freestyle motocross, skate and BMX with over 40 of the world’s best action sports athletes performing their biggest and best tricks? Then you won’t want to miss the Nitro Circus Live’s tour, coming to South Africa for the first time in 2014. “This is truly an exciting, adrenaline-charged, live action sports show featuring an insane group of athletes who push each other to new extremes every single show,” says action sports legend Travis Pastrana, a 10-time X Games gold medallist in Freestyle Motocross, who heads up the tour. These guys also push their limits on a range of whacky contraptions, including a drinks cooler, Barbie car, toy trike, shopping trolley, boogie board and more. One of the craziest stunts is the extraordinary “hole-in-one” where riders launch 50 feet into the air off the Gigant-A-Ramp and attempt to land with pinpoint accuracy inside an inflatable Zorb ball. Nitro Circus Live will perform on 15 February at Cape Town Stadium, 19 February at Moses Mabhida Stadium, Durban and 22 February at FNB Stadium, Johannesburg.

Santana Live in SA

29 APRIL – 5 MAY


(Klein Karoo Nationale Kunstefees) Oudtshoorn, Klein Karoo, Western Cape If you haven’t heard of the KKNK, you haven’t lived in South Africa long enough. Basically it’s the Grahamstown festival in the Karoo, but its Afrikaans version. The KKNK has more of an emphasis on the live music aspect, with shows like Kaktus Op Die Vlaktes, but there is a bit of everything for everyone. Theatre, craft markets, beer tents, copious amounts of brandy – it’s all here. Don’t be put off by the Afrikaans moniker if you’re not so linguistically inclined, you’ll be made to feel at home and find something to your liking.

Nitro Circus Live

Watch Travis Pastrana nail his first double back flip at the X Games in 2006.



gadgets App-Controlled Wifi Spy Tank R2,299 The App controlled SPY-C Tank is designed to work with Apple or Android smart phones or tablets and creates its very own Wi-Fi space for control and live view. The built-in digital camera transmits a live image back to your device and its moving head allows you to control and view what’s happening in one place while you’re in another. We still think there’s much that is better left unseen, but we’re sure you’ll come up with some great applications.

Parrot AR Drone 2.0 Quadricopter


All New Elite Edition R4,199 The new Elite Edition now includes one 1,000mAh lithium polymer battery to provide up to 12 minutes of flying time, plus a convenient mains charger with international adaptors. Featuring a high definition camera with a video recording facility, plus flight data sharing, a patented piloting mode, and an innovative pressure sensor for increased stability at any altitude, Parrot's amazing AR.Drone 2.0 Elite Edition quadricopter can even perform four axis flips on command!

TERMINAL VELOCITY MOBILE The Terminal Velocity mobile app allows you to access your trading account on the move. The simple and convenient interface allows you to keep an eye on the market and manage your positions while you are away from your desk. Why do we like it so much? BullsnBears clients, through our strategic partnership with Anglorand Financial, provide a platform for traders to trade and monitor their portfolio, on the go! You can view, analyse and trade right on your phone or tablet. Once you have opened an account through BullsnBears, we give you your login details and you’ll start building that portfolio in no time! What makes this package even more special, is the fact that all prices and data are live, unlike most other platforms that run with 15-minute delayed pricing.


Belkin Rockstar R199 The Belkin RockStar makes it fun to create your own music experience. Connect up to five headphones, and your iPod, to start sharing. Or, add another iPod to mix songs and listen together. Works with all MP3 and DVD players, as well as other portable media devices. For more information visit

Jagermeister Drunken Drizzler R395 Are you the sort of person who calls a sandwich a focaccia, a sauce a jus or a piece of toast a tostada? Well, you’re either Italian/Spanish or inclined towards culinary pretension. Either way, have we got the bottle for you!

RescueTec Water recovery solution for pocket electronic devices R265 The RescueTec will bring your device back to life with a tried, tested and trusted restoration pack. The RescueTec pack comprises of a re-sealable multi-layered aluminium foil pouch, providing a complete moisture barrier.



Get comprehensive access to global business and finance news, market data and portfolio tracking tools from the world’s most trusted source. Personalise the information that matters to you most and access it instantly.

Sharenet provides Johannesburg Stock Exchange (JSE) share prices, graphs and news. International indicies and forex quotes are also available.

Why do we like it so much? Whether you are looking to buy your girlfriend a new piece of jewelry and want to check out the gold price before doing so, or thinking about that Eurotrip you want to book and currency markets are your going concern, Bloomberg has it all. Bloomberg TV+ allows users to watch live Bloomberg TV for free, right on their iPad!


Why do we like it so much? This platform is designed for the South African market and, unlike some other apps, it is not cluttered with data that is irrelevant for our local conditions. Whether you are looking for local news, prices or charts, Sharenet has it all for you, for free.

Visit us on Facebook at




12 Years a Slave

12 Years a Slave is the film adaption of the 1853 autobiography written by Solomon Northup. The film tells the incredible story of one man's fight for survival and freedom. In the pre-Civil War United States, Solomon Northup (Chiwetel Ejiofor), a free black man from upstate New York, is abducted and sold into slavery. Facing cruelty, personified by a malevolent slave owner (Michael Fassbender), as well as unexpected kindnesses, Solomon struggles not only to stay alive, but to retain his dignity. In the twelfth year of his unforgettable odyssey, Solomon’s chance meeting with a Canadian abolitionist (Brad Pitt) alters his life forever. Release date: 17 January


American Hustle

Much like Russell’s other films, American Hustle defies genre, hinging on raw emotion, and life-and-death stakes. A fictional film set in the seductive world of one of the most stunning scandals to rock the nation, American Hustle tells the story of brilliant con man Irving Rosenfeld (Christian Bale) who, along with his equally cunning British partner and lover, Sydney Prosser (Amy Adams), is forced to work for an unhinged FBI agent, Richie DiMaso (Bradley Cooper). DiMaso pushes them into a world of New Jersey powerbrokers and mafia that is as dangerous as it is enchanting. The passionate and volatile New Jersey political operator, Carmen Polito (Jeremy Renner) is caught between the con-artists and the federal agents, and Irving’s unpredictable wife Rosalyn (Jennifer Lawrence) could just be the one to pull the thread that brings the whole world crashing down. Three-time Academy-Award nominee Director David O Russell is still bathing in the glow of Silver Linings Playbook, which was nominated for eight Academy Awards and which coincidently also starred both Bradley Cooper and Jennifer Lawrence (who, in fact, won the Best Actress Oscar). Russell also had success with his 2010 10

film The Fighter, which earned seven Oscar nominations, one apiece for both Christian Bale and Amy Adams. Hence, with such a starstudded cast, and a director of this calibre who holds a vast amount of experience with these actors, American Hustle is widely anticipated to make headway in the box office. Release date: 14 February


300: Rise of an Empire

300: Rise of an Empire is based on Frank Miller’s latest graphic novel Xerxes and is told in the amazing visual style of its predecessor, the blockbuster 300 . This new chapter in the epic saga takes the action to a fresh battlefield – the sea – as Greek general Themistokles (Sullivan Stapleton) attempts to unite all of Greece by leading a charge that will change the course of the war. The film pits Themistokles against the massive invading Persian forces led by mortal-turned-god Xerxes (Rodrigo Santoro) and Artemisia (Eva Green), the vengeful commander of the Persian navy. Other well-known actors taking part in the action include Lena Headey reprising her role from 300 as Gorgo the Spartan Queen, Hans Matheson (Clash of the Titans) starring as Aeskylos, and David Wenham (Van Helsing) as Dilios. Release date: 7 March


Acclaimed independent videogame developer Respawn EAntertainment, along with Electronic Arts, prepare to release their debut game, Titanfall on 14 March 2014. Already the winner of more than 80 coveted awards from critics around the world, Titanfall has smitten its fans with its thrilling, dynamic first-person action gameplay featuring elite assault pilots and agile, heavily-armoured, 24-foot titans. Crafted by one of the co-creators of Call of Duty and other key designers behind the Call of Duty franchise, Titanfall delivers a brand-new online experience that combines fluid, fast-paced multiplayer action with heroic, set-piece moments found in traditional campaign modes. Set in the near future on a distant frontier torn apart by war, Titanfall drops players in the middle of a conflict between the Interstellar Manufacturing Corporation (IMC) and the Militia. The action is rapid and varied – featuring parkour-style wall running, massive double jumps and the ability to hijack titans. The freedom to shift back and forth between pilot and titan allows players to change tactics on the fly, attacking or escaping depending on the situation and extending the action vertically to new heights. Titanfall will be available for Xbox One, Xbox 360 and PC.


e c n a m o R valentine’s

By Megan Kinnaird

Preparing For


s a 20-something-year-old dying to express to that special someone just how much they mean to you, planning Valentine’s Day on a limited budget always seems like a daunting task. We’re here to tell you that it can be done, and quite easily in fact. All you need is a bit of planning, a smidge of cash, and an adventurous spirit. Forget crowded restaurants where the level of intimacy and personal touch is zilch. This year, take advantage of the glorious summer sunshine and spend your Valentine’s Day outdoors. There’s a reason romantic poets won’t stop harping on about the beauty of nature. Much like there is a reason Dante Alighieri wrote “nature is the art of God”. Taking that lucky someone out into nature to declare, or reaffirm, your love is the best way to do it. Valentine’s Day picnics are personal, beautiful and, let’s face it, cheaper than splashing out on a fancy dinner. The three spots we have chosen to highlight are accessible, affordable and well within an average budget.


Silvermine Nature Reserve Cape Town The Silvermine Nature Reserve, just a 20-minute drive out of the city, forms part of the Table Mountain National Park. It costs only R30 to get in, and the reserve boasts beautiful picnic spots surrounding the massive reservoir, extensive birdlife for those nature-lovers and hiking/biking trails for the adventure-couple.

Walter Sisulu Botanical Gardens Johannesburg Situated only 6km from the city centre, the Johannesburg Botanical gardens are one of eight botanical gardens in South Africa. Part manicured lawn and part nature reserve, the focal point of the gardens is the waterfall, a popular leisure spot among locals. There are three dams to walk around within the gardens if you fancy strolling hand-in-hand with your sweetheart, like a character out of some cheesy RomCom. The Silvermine Nature Reserve

You won’t be able to miss the 220 species of birds and range of 600 plants, but make sure to look out for small mammals such as antelope and jackals. In terms of fame, the site was voted by Huffington Post as the second best botanical garden in the world, which, as you know, is no mean feat. For all this, a minimal fee of R27 is required at the entrance. And for a student, well, that is really only the cost of two beers anyway. Durban North Japanese Gardens Durban Complete with a valley of lakes, waterfalls, cobbled pathways, and weeping willows, the Japanese Gardens on Tinsley Road are the setting for that picturesque kind of picnic. Walk over rustic bridges and settle-down on lush green lawns for a day that’ll make you think of Mulan or Memoirs of a Geisha. There are even traditional koi ponds and frog statues to complete that “conventionally” Japanese ambience. And even better, for the “conventional” student, is the lack of entrance fee.


PLANNING THE PERFECT PICNIC What to pack in your basket • Blanket and pillows – for that extra padding under the bum and a soft place to rest your head when staring at the clouds, though hopefully a lap is offered. • Knives, forks, plates – unless you’re into the rustic thing. If you’re opting for finger foods, take along a box of toothpicks to use as skewers. • Glasses – good champagne tasts better from a glass, or you can swig out of the bottle. We’re not fussed. If you are taking glasses, long-stemmed look fancier but better to opt for lower-gravity vessels. • Suncream – sleeping off sunstroke is not a fun way to spend the evening of Valentine’s Day. Plus, what’s more intimate that rubbing lotion on someone’s shoulders? • Book/magazines – just in case conversation runs dead. But leave your cell phone turned off no matter what. Basics • Savoury biscuits (R13) • Cream cheese (R21) • Carrot sticks (R16) • Ham or salami (R20) • Mini Italian tomatoes (R9) • Gherkins (R21) (Total < R100) Desert • Grapes (R20) – great for feeding your lover by hand. • Strawberries (R15) and whipped cream for dipping (R12) – it is Valentine’s Day, you know. There is always space for a bit of kinkiness. (Total < R50) Wine/Champagne/Beer We recommend you spend what you can on decent quality wine or champagne. Remember to pack ice in that cooler box. Feeling like a bit more of a splurge, then add these delicacies to your hamper • Loaf of French bread • Caviar • Chunk of Brie or Camembert • Figs • Smoked salmon • Prosciutto • Dark chocolate



By charl du plessis

Samsung vs Apple


A Tale of Two Apples; Big & Small

reaching to the choir. Yes, when it comes to arguing for either Samsung or Apple, people go deaf. They know what they like. They like what they know. And they could not care anywhere on the rats’ anatomy what others know or like, as long as it is the same as theirs. So, save your breath on comparing features and functionality. Substance follows prejudice when it comes to choosing your tech-tribe. Here’s a different kind of story to help put the final nail in the Apple coffin (now, surely there can be no doubt where I stand on this!). And for the sake of transparency, let me declare myself a Blackberry nut that is in early mourning for the terminal decline of the company that has served me pretty much just fine for almost eight years. This is the story of the two apples – one big and one small, both blown completely into mythical proportion. Let’s start with the Big Apple. I lived there and loved it and totally bought into the mythology of “making it in the City”. At several stages, I reflected upon my time in New York as the coolest period of my life. I saw upcoming bands in my local dives that later went platinum. I saw favourite artists who would never make it to South Africa because they were too platinum already to suffer the distance and aggravation. I learnt to roller blade and snowboard. The subway map was imprinted in my mind. Au pairs from back home, scattered across the filthy rich North East suburbs, came to town over weekends to play.

I could find food from each continent within five minutes of my doorstep. As good as it gets? No. Sorry to rain on the parade. It was cool only because enough people wanted to believe it, and kept on telling one another the same thing: how cool it was to be living in New York. In reality, it is absurd that eight million people live on top of each other in the world’s most expensive shoeboxes. That they walk to work dodging taxis, blizzards and homeless people and still have the energy to schlepp dry cleaning and groceries home in pitch dark (read: “4:30pm in mid-winter”). They have to queue for anything marginally worthwhile (Madison Square Gardens tickets?). The fact that New York bravado or machismo is part of this self-feeding vicious cycle also does not make it any more pleasant. It’s a tough way of living. Period. The Big Apple works, in my view, only because enough people buy into this myth; namely that it is cool. If you had to consider real human nature, then comfort and kindness would likely rank much higher than the NYC experience. And if enough people can make others believe the Big Apple is worth it, how much the more so with the little Apple – the i-generation of products some people cannot live without? I had my first Apple Mac in the 1980s. On three occasions I found good enough reason to dump Mac and join the PC-masses. Let’s face it, Apples were cool and have reinvented cool quite often. I felt like a pimp-withvirtue showcasing my orange Mac in public.

The Big Apple works, in my view, only because enough people buy into this myth; namely that it is cool.


And I would love to have one of those old, first-generation Apple Macs somewhere on my shelf. It was history, and its drop-down menu idea single-handedly killed off the future sales of 10 million Computing for Dummies books. Steve Jobs had vision and genius. He lived in the right place at the right time. When he died, I reread his 1985 interview with Playboy Magazine. It was evident that his technology vision had come to fruition. It was even more striking that his social vision for the role of technology in society did not come to fruition. He would likely have freaked out in 1985 if people told him then that his toys would become elitist. In a post-Jobs era, the future will be determined by regular economics. Half the magic was the man. The rest was just people and process. It is hard for the leapfrogger to leapfrog itself, and having jumped IBM with a surprise once before, Apple will likely remain on high alert until infinity so as not to be surprised in similar fashion. Thus, it is regular economics that will tell us which tribe will eventually trump. In my mind, that is Samsung by a mile. And then some. Here are four reasons to dump Apple now:


MASSCLUSIVITY has its limits. You sell Louis Vuitton bags at a premium. When every woman owns one, it is no longer special and no one will pay the premium. This idea will forever keep the too-trendy, too-expensive and too-regularly-in-need-of-upgrade Apple short on scale. It will never have the numbers.


Numbers x Margin = RESEARCH & DEVELOPMENT. Let’s not consult the dictionary to find the Korean word for “creativity” just yet. But as several industries can

attest, when a category has been established and can be re-engineered to perfection, we all know where to go and where to source quality and value. And it’s decidedly not looking West.


PRICE, PRICE AND PRICE. The global economy is in a deep slump. And it will remain in that slump for a considerable while. Value counts. And since Samsung’s smart marketers have managed to undermine the one key competitive advantage of Apple, namely its cool factor, nobody needs to look like a cheapskate when buying on price. Where is the Apple wristwatch/phone?


TIPPING POINT AND SCALE. At some point in most product lifecycles and industries, fortune and trend favour the one or the other and create a certain momentum vis a vis competitors. Samsung is experiencing that momentum and is doing enough smart things, and often enough, to keep the momentum going. And if derivative industries, such as app developers, throw their money behind where momentum is showing, a virtuous cycle appears. More apps, more users. More users, more apps. So, spare a thought for the two apples. The Big Apple has shown it resilience in reinventing itself. But, often, that has been because people had nowhere else to go. Moving to Des Moines or Buffalo is a complex affair. By comparison, walking across the street and buying a Samsung and downloading gazillions of free apps? That’s a walk in the park…



Ask the elder Elder Tree: a genus, Sambucus, of flowering plants in the family Adoxaceae. Ornamental varieties are grown in gardens for their showy flowers, fruits and lacy foliage.

STUDENT HOUSING Dear Mr Money Tree, I am paying through my ears for my apartment. My landlord (should I call him slumlord?) owns half of our street close to campus, and we are squeezed very tightly for rentals. When something breaks down, he takes forever to fix it. My housemates and I have been talking about using our money to buy our own place instead of making him rich. Do you think it’s a good idea? Andrew, UCT Dear Andrew, A wise real estate agent once told me “the dear Lordie ain’t making no more of this stuff.” It was his way of saying that there will always be more demand than supply when it gets to real estate, and that in the long run, prices will always go up. So, yes, in principle, it is always a good investment. But, there are risks. Things break and need maintenance. One bad tenant’s lost rental can set all your investment projections back. Keep an open mind to these risks and also consider hidden costs like insurances and rates and taxes. The next step is to get financing. As students, without fixed income, you will need someone to act as guarantor for your mortgage loan. If all else fails, look at investing in socalled REITs (Real Estate Investment Trusts) where you can trade in and out of the property market very quickly. That may be your best alternative. Mr Money Tree GOOD GIRLS GO WHERE? Dear Mr Money Tree We sat next to each other in class for months and then struck up a conversation at our church picnic. She is obviously just as shy as I am, but once we break the ice, we can talk up a storm. My problem is that I feel incredibly physically attracted to her. We are both 18 and I suppose we are legally entitled to have sex, but she claims on the one hand that she wants to marry as a virgin, yet on the other hand, she plays along when I try to make my moves. I find this all very confusing. How do I get her to have sex with me in a way where she does not hate herself or me the next day? Xolile, NMU Hi Xolile, What you two seem to have is quite special. Most 18-year olds would have jumped in bed by now, outed the other on social media, never 16

spoken to one another again and spent the rest of their lives feeling guilty. So, nurture what sounds like a good relationship that is developing. If she believes some deity wants her to abstain, you might have to respect that or try and persuade her to change her religion. I will accept bets on which one is easier to achieve. Your basic dilemma seems to be that your normal instincts are being hindered by ideology. Now, you can either be as serious a believer as she is and therefore abstain, or else you are likely not matching her requirements in terms of spirituality, so why would she think of spending her life with you one day? Maybe, she is just confused because you are so dashing and charming! My suggestion is to respect her ways, accept that no means no, yet always keep a condom handy in case she chooses to succumb to the temptation. Mr Money Tree CUT ABOVE THE REST Mr Money Tree, I worked hard to get a scholarship and am the first one from my family to enjoy my current level of education. It has been tough but I am now firmly in my second (academic!) year. My strongest subject has been physics, since early days, and I am involved with a bunch of really cool extracurricular programmes. This is where my problem started. I get plenty of invitations to some of my teachers’ homes and also to public restaurants close to some of our events when we have summer programmes or events like that. And every time I sit down at one of these fancy spots, I am stunned by the amount of cutlery, and I never know when to use what. Help me out man. Luka, Wits Dear Luka, It looks daunting, yet there is a simple method. You work your way from the outside in, each set of knife and fork with each next course. Of course, if you skip out on one course, for instance the fish, you pass up the fish knife and fork (they are the easiest to spot with their broad blade and neck). Make the waiter your friend, asking him or her to remove what you do not need. Dessert utensils sit atop your plate – a spoon and fork – and it’s worth looking at a YouTube video or two to see how best to use them together. More conspicuous, of course, are all the choices of glasses you will have in a similar setting. Big – red wine; medium – white wine; flute – bubbly. Tumblers will do for water and hard drinks, and it sounds to me like you might need a stiff shot so that you can relax and rather eat and talk physics next time. Mr Money Tree.




te is


n pa

m co


tl es gg bi




1, R F














1. rR



Your daily cappuccino may cost R25-R35 a day, but in one year that will add up to over R5,000! Save money by making your own. By the time you graduate from a four-year degree programme you will have saved over R20,000! Drinking plain tap water compared to iced tea and cold beverages is not only healthier for you, but lighter on your wallet too! You should be drinking eight glasses of water a day.

9 40


l tri







Th tra e d th de ai R7 is t on ly a 0 o A th ve r bi lli pp e J age on le SE pe , w . C valu r d hic om e ay h t p of al rad are on e e. s


Th e m Ap valu ca ark pl e at pit et e’s 20 its aliz 12 pe at . ak ion in of


74 .


tu or

$ billion 52 R 5 billion 1




28 1, 0 ,0 0 00 0 %

As R1 T ,0 an th of J 00 list he e d G e k 18 anu a d fi r re 0 a sh now ou leve sh rst p in 0s ry ar n l a S ve , 2 e fo Ltd is t re out st ac 01 i n h h t r . ed co 3, Fa M M at o re Af , US rd th ul os o r c a in er e ti c ic t f su bo cho co Nas h t an st g to e w oc bs ok ic mm pe he e ks the re id th e ( r 1 ia ro DST onl s ha Ge 6 r u y y p ve ro e M gh V) in nto op ai its l cr l.r e ea log le u. se y R ft in d e 28 se th ,0 ar e w 00 ch o -fo G rld ld rou w du p. ho rin W w g i e th th d re b ei ar r l ivid orn th ticl ife e in n e e tim d D D t m es s lo ece ec itle aga . an st 7 mb ad d “ zin al 4. er e” 10 e ys 3% 2 in S pu 01 A to b tB ar of 2, ugu cks lish ry its th s e Ri va e p t 2 To L d a th lu o 00 a n ol e, rtf 0. st tz o . acc lio By or ha di d ng to

by the numbers


10 health


exercise and training about

Have exercise misconceptions prevented you from starting an exercise programme? Clear up any confusion and let these exercise tips improve your workout routine.

By Prof Elmarie Terblanche, Chairperson of the Department of Sport Science at the University of Stellenbosch. Prof Terblanche writes about research of a practical nature and addresses questions that are of relevance to athletes at all levels.



I will burn more fat if I exercise longer at a lower intensity So you’ve heard about the “fat burning zone”. In other words, if you want to lose weight, you need to exercise at a low intensity (a low heart rate). What few people realise is that you actually burn the highest proportion of fat while at rest (around 70% of your energy comes from fat) and by now we know that being a couch potato doesn’t make you thin. The most important focus in exercise and fat weight control is not the percentage of energy coming from fat during exercise, but the total energy cost of exercise, or how many calories are burned during the activity. The faster you walk, step or run, for example, the more calories you use per minute. Therefore at low exercise intensity, you need to exercise for a very long time (far more than an hour per day) to match the total energy expenditure of a high intensity workout. There is a growing body of research supporting the use of highintensity interval training for fat loss. This form of “cardio” takes less than half the time (typically 12 to 20 minutes) of traditional long duration cardio and leads to better results, i.e. faster and greater fat loss, more rapid improvements in fitness and better exercise adherence.


Go hard or go home! If this is your kind of thinking, you will never start or maintain an exercise programme. There is overwhelming evidence from research that one should rather do something than nothing, and that every little bit helps. For example, regular walking or gardening for as little as an hour a week has been shown to reduce the risk of heart disease. You will not necessarily be able to run a marathon or bench press 100kg, but both your body and soul will be much happier.


I can get my dream body if I just train hard enough Both weight gain and loss is impacted by many factors, including dietary intake, your environment and genetics. All individuals will not lose the same amount of weight on the same exercise programme. Some individuals will actually respond very little to a regular exercise regimen in terms of losing fat weight (these individuals are called non-responders). You have all seen runners finishing the Comrades marathon not looking the part. Now you will be mistaken if you think they have not trained hard and long hours to finish that race, because nobody can just step up to the starting line and run more than 90km. This is good evidence to show that exercise per se doesn’t make you thin, especially if you’re not endowed with the right genes. Losing body fat is a complicated matter (if not, we wouldn’t have rising obesity rates), and it goes far beyond a regular training programme. The good news, however, is that research has shown that being overweight and fit is much better than being thin and sedentary, as fitness is directly related to a lower risk of allcause mortality. Furthermore, regular physical activity is one of the most important factors for successful long-term weight management.


Weight training makes women big and bulky Weight training can make you bulk up – if you have the XY chromosome and it is your distinct

Research has shown that most people misjudge both the number of calories burned during exercise and the number of calories in food eaten.

intention to build huge muscles. Even then, it is no easy feat to gain muscle. It takes time and effort, a carefully compiled scientific training programme and finely tuned nutritional strategies. For women, however, these sound strategies will not be enough. The reason being that women have nowhere near the required testosterone levels to put on any significant amounts of muscle mass. If you do see women with bulky muscles, you know for sure that their dietary habits include illegal substances such as anabolic steroids, growth hormone and many other designer drugs. There is just no other way. The truth is that strength training approximately two to four times a week, doing a variety of exercises for the major muscle groups, will help women to achieve a lean and toned appearance, and strengthen bones and joints. In fact, since women are more prone to osteoporosis, it could be said that women might actually benefit more from weight training than men.


I’m way too old for this Age is just a very bad excuse. Studies have shown that it is never too late to start working out – you can reap benefits at any age. Exercise can help reduce the risk of bone and muscle diseases and help enhance daily functionality even later in life. This means you will be more independent as you get older, not to mention being admired by your grandchildren for completing the odd fun walk/run every now and then.


Pass the puff pastry, I went to gym today You are in for a big surprise. You will probably gain weight, as the exercise will increase your metabolism and give you a healthy appetite. Research has shown that most people misjudge both the number of calories burned during exercise and the number of calories in food eaten. So never use exercise as an excuse to overindulge. If your goal is weight loss, you must learn to eat more without increasing your calorie intake. This means healthier choices of foods, smaller portion sizes and eating regularly during the day. 19


If you’re not drenched in sweat, you’re not working hard enough The harder you work out, the more calories you’ll burn within a given period and thus the more fat you stand to lose, but how much you sweat does not necessarily reflect how hard you’re working. Some people tend to sweat bucket loads while others don’t sweat much at all, regardless of their fitness level or degree of exertion. Your sweat rate is related to your body weight, your genetic makeup and external factors such as environmental conditions and clothing. Exercising in extremely hot weather or in a plastic “weight loss” suit will indeed make you sweat heavily and lose weight immediately. That lost weight, however, is almost entirely water and the kilos will return when you replenish your fluids by drinking after the workout.


Sit-ups burn the boep Not... a… chance. There’s no such thing as spot reducing or burning fat off a particular body part, it is physiologically impossible. When you lose body fat, it comes off the body in a predetermined genetic pattern similar to how you gain the fat except in a reverse order. When your body is in fat burning mode, fat comes from all over the place – your arms, calves, thighs, abdominals, face, forearms, big toe, etc. If spot reducing really worked, people who chew gum would have skinny faces. Spot toning, on the other hand, does work, and resistance exercises will strengthen the targeted muscles. Look at the dominant arms of professional tennis players, and you’ll see the difference in their muscle tone and size. The best method for reducing overall body fat is the age-old tried and true combination of cardiovascular training, resistance training and limiting your calorie intake. Results come from doing these three things with persistence and consistence.



The best time to exercise is the time you want to do it, and are most likely to do it, whether it's morning, afternoon or evening.

Morning workouts are better for your metabolism Proponents of this piece of wisdom say that if you exercise in the morning, you jump-start your metabolism and therefore burn more calories during the day. There’s absolutely no evidence that this is true. The best time to exercise is the time you want to do it, and are most likely to do it, whether it’s morning, afternoon or evening. The only exception is for those with high blood pressure. Research has shown that your blood pressure remains low for up to nine hours after an acute exercise bout. This phenomenon is called post-exercise hypotension. So for those with hypertension, exercise in the morning is advantageous, as it will keep your blood pressure low during the day when you need it most.


Electrolyte sports drinks will enhance your workout This is another one of those myths that are costing the average person a lot of money. Theoretically, a sports drink should be beneficial for those who exercise. It contains sodium, which helps the body to retain water and keep you hydrated, and it contains sugar which your body burns for energy. However, contrary to what you may think, very few people exercise hard enough to sweat away significant amounts of sodium. There is even some research that suggests consuming popular sports drinks during or after exercise does very little to add to sodium levels in the body. Furthermore, one has to train for more than two hours continuously before your carbohydrates stores in muscles will start to run low. Thus, for the average Joe, plain water is all you need.


News report OFFER More than $77 billion in IPOs were announced in the US in 2013, including Twitter’s 6 November offering, making it the busiest year since at least 2010. 


than R4,000 a month on rent. Research by First National Bank (FNB) shows all sectors of the economy benefit from a growing middle class, but “the biggest beneficiaries are likely to be retail (especially luxury and durable goods), finance, vehicle and the construction industries”. To get the report in its entirety, visit


Recently released studies by the University of Cape Town’s (UCT) Unilever Institute of Strategic Marketing found that the black middle class population had grown to 4.2-million. This increase from the 1.7-million in 2004 goes hand in hand with increased spending power. The black middle class spends R400-billion annually, far more than the R323-billion spent by the historically wealthier white middle class. The study classified middle class as households earning between R15,000 and R50,000, with their own transport, a tertiary education, employment in a white-collar job and owning their home or spending more

The Micro Enterprise Development Organisation (MEDO) incubator was opened by the Department of Trade and Industry (DTI) in November 2013. Housed at Maboneng in Gauteng, it is the first youth incubator in the DTI Incubator Support Programme and will focus on the information and communication technology (ICT) sector, as well as having an Internet TV studio that can facilitate Internet TV broadcast. There is capacity for the permanent incubation of approximately 20 ICT businesses and virtual incubation across industries, allowing small businesses to use the facilities and benefit from the full suite of shared services. In 2014 MEDO expects to open 19 incubators to serve the mining, manufacturing, energy, ICT and hospitality industries. For more info, see

TAPER According to Credit Suisse, there is widespread agreement about the biggest risk to nearly every forecast for 2014 – global monetary policy. They recently sponsored the fourth annual Emerging Market Leadership Forum (a gathering of top business leaders in Istanbul in November), and the emerging consensus was that the perceived risks all centre around tapering – the if, the when, and the how much – and its aftermath.

TOP STOCK According to Bloomberg, the best performing international stock in 2013 was Chongqing Changan Automobile Co. With sales of automobiles surging in China, car makers are building factories to meet the demand. Ford Motor Co´s main partner in China – Chongqing Changan Automobile Co – had sales in the third quarter that were up 33% from a year earlier, and its adjusted earnings per share rose 400%. The worst performing international stock was Brazilian oil company MMX Mineracao e Metalicos SA. To see the rest of the Bloomberg picks, go to

ROUND UP 2014 CNBC reports that Oppenheimer expects the US stock market to continue its bullish behaviour into 2014, with the S&P 500 index finishing the year at the oddly coincidental figure of 2,014. The P/E model puts the price target at 2,060 while the dividend-discount model prices the index at 1,96. If you calculate the resulting actual average (2,013.5) and round up, you get 2,014 in 2014. 22


he winner of First National Bank´s (FNB) inaugural Ideas Can Help competition, Michael Suttner, has come up with a solution – The Lightie – to replace paraffin as a light source. Across Africa 600 million people spend up to 25% of their income to light their homes with paraffin, and more than two million deaths a year are caused by paraffin-related accidents. His test tube-shaped solar light bulb is brilliant not only because of its design, but because of his distribution concept. Piggy-backing on the most efficient distribution network in Africa, namely via Coca Cola, Suttner’s invention fits into the neck of a two-litre plastic Coke bottle, using the container as a sturdy stand-up lamp.

An eight-hour charge provides 40 hours of light at 120 lumens, enough to brighten a 120m² room. Once in full production the Lightie should cost between R80 and R90 per unit, the cost of an hour´s worth of paraffin. The award from FNB includes a R500,000 prize plus a year of business services help from the bank's Vumela Enterprise Development Fund. Suttner is getting a lot of (deserved) attention. He also won the Design Indaba Citizenship Competition (ABSA social entrepreneur of the year award) and earned R100,000 towards his invention as well as the National Sasol/TIA Step-Up contest in the Green Energy Sector which is providing him with almost R1,000,000 worth of value. He is also still in the running for two big competitions in 2014. Watch this space. To find out more about The Lightie, go to

The Lightie is a patentpending Picosolar light bulb, which screws into a soda bottle creating a clean, lowcost lantern.

SWEET SPOT Along with Citigroup, a number of major international investment banks, such as Deutsche Bank, UBS and Morgan Stanley, are forecasting that European equities will rise by double-digit percentage gains in the coming year, outstripping the gains for their US counterparts. Low valuations, continued strong central-bank support and anticipated solid earnings growth are all likely to lead the benchmark indexes to multiyear highs in 2014. The Wall Street Journal’s says, “Forget about weak economic growth in the Euro zone, deflation worries and political turmoil – now it’s Europe buying time.” Follow The Tell on Twitter @thetellblog 23


Bitcoin By Parushan Moodley

Alternative Currency of the Future or the World’s Next “Tulipmania”?


Bitcoin World’s Next “Tulipmania”? Alternative Currency of the Future or the

magine you are an advocate of women’s rights in Egypt and, as a highly controversial and ground-breaking journalist in your country, it is vital that you remain anonymous so as to avoid harm because your articles are slowly gaining traction and making waves internationally. You spread your message via your WordPress blog and the time has come to evolve, to expand your reach, upgrade your back-end and take your blog to fresh eyes. How do you do this without a credit card or avoid having a payment traced back to you? In November 2012, Wordpress started to accept Bitcoin, and so too did Baidu, before the Chinese Government imposed its ban. Bitcoin is a new-age “digital crypto-currency” that is gaining wider acceptance by retailers and individuals by the day. Some companies have even started installing physical ATM machines for Bitcoin transfers. Bitcoin is an alternative currency that involves zero government regulation and no Central Bank interference. Good-bye to the Federal Reserve? Not necessarily – although Bitcoin is gaining recognition and the amount of negative press is decreasing, it was initially condemned by Central Banks and deemed a “scam”, simply because it undermines traditionally accepted financial authorities and Central Banks. Currently the Chinese government has declared its non-tolerance of the virtual currency, which was followed by Baidu halting its acceptance of the currency. Alan Greenspan recently discussed Bitcoin in an interview aired on Bloomberg TV where he stated he has nothing against it; however, he personally cannot ascertain how to find “intrinsic” value in a Bitcoin. All in all, Central Banks around the world do not seem to be too optimistic about the currency.

WHO IS SATOSHI NAKAMOTO? Satoshi Nakamoto is the Japanese creator of this digital currency who vanished with absolutely no trace in 2010.


Some argue that “Satoshi” is an organisation or some sort of pseudonym. Satoshi uploaded a comprehensive document to the web in 2008 in the middle of the financial crisis in which he outlined the advantages and effects of a non-regulated digital currency. Whoever Satoshi is, Satoshi “mined” the first block of Bitcoins which consisted of 50 Bitcoins.

LIMITATIONS, SUPPLY & DEMAND There is a limit of 21 million Bitcoins which are mined in blocks at a rate which halves every four years. Currently 25 Bitcoins are mined every 10 minutes. At this rate, we expect the limit to be reached by 2140. This limit is reached as “miners” solve complicated crypto-puzzles in order to receive rewards in the form of Bitcoins. The process of “mining” Bitcoins is extremely complicated and technical and can be researched extensively online. The essence of Bitcoin is that it involves zero Central Bank or authoritative regulation, but is controlled by a network of users who add transactions to a chain every time a Bitcoin is used. In October 2012 the European Central Bank released a report titled “Virtual Currency Scheme” in which it states that with Bitcoin, fraud is quicker than the law.

Advantages • Zero government regulation. • Minimal transaction costs compared to those associated with credit card transactions or bank charges when wiring money. • The limitation on the number of Bitcoins in existence prevents manipulation by way of a large influx or supply of the cryptocurrency. • Allows transactions that weren’t possible for many reasons, mainly political, to happen anonymously. • The currency is rather secure if you consider the complex, military grade cryptography involved.

photo by


Disadvantages • It is quite a complex currency, which requires some getting used to and learning at first, especially for non tech-geeks. • There is some uncertainty as this is the first widely accepted virtual currency of its kind and hence has no guarantees. The currency is only as strong as the system through which it operates and the confidence the users have in the product. • The anonymity has also allowed a number of illegal transactions to take place, especially on the “deep-web”. Cases have included crimes such as the ordering of illegal substances and the hiring of a hit-man. • Still not widely acceptable.

CAN I MAKE A DOLLAR TRADING THIS THING? The value of a Bitcoin is extremely volatile and is affected substantially and, in some cases, arbitrarily by global economic and political events. Starting out in early 2009 with virtually no value, to setting a benchmark value of $1 a few months later, Bitcoin made waves when it hit $100 at the time of the Cyprian crisis. It then crashed to about $2 and recently rallied to $1,200. There are many who believe this is nothing more than a speculative bubble that is likely to burst anytime between next week, next year or five years from now. In addition, there is no way to conduct any form of reliable fundamental analysis; there is no residual value or physical value in the tender. Its value is derived purely from speculation and the acceptance of this currency globally. Some even compare it to “tulipmania” (see sidebar).

LOOKING FORWARD Bitcoin is still in an evolutionary stage, or perhaps part of an evolution of the global payment system. There is no sound method of valuating this currency or predicting its movements. It is extremely volatile and, in my opinion, illiquid – which makes it dangerous. The fact that Bitcoin has taken off and accrued value is amazing; however, no single entity seems to be able to understand it entirely. Maybe you can make sense of its virtual currency and let the rest of the world know how it is going to perform in future, or if it even has a future.


Tulipmania was the first major financial bubble. In 1637, investors began to madly purchase tulips, pushing their prices to unprecedented highs; the average price of a single flower exceeded the annual income of a skilled worker. Tulips sold for over 4,000 florins, the currency of the Netherlands at the time. As prices drastically collapsed over the course of a week, many tulip holders instantly went bankrupt. Investopedia says: Tulipmania reflects the general cycle of a bubble: investors lose track of rational expectations, psychological biases lead to a massive upswing in the price of an asset or sector, a positive-feedback cycle continues to inflate prices, investors realize that they are merely holding a tulip that they sold their houses for, prices collapse due to a massive sell off and many go bankrupt. A similar cycle was witnessed during the dotcom bubble.

market price (usd)

1,250 1,000 750 500 250 0 January 2009 - September 2013 Source:


market price 1,500

1. Read the European Central Bank 2012 report, “Virtual Currency Scheme” 2. Watch a quick tutorial on BitCoin 1



Photo by cape town tourism

Entrepreneurial Edge


By Tsepiso Secker


Mzoliâ&#x20AC;&#x2122;s a Franchise 26

ownships are often seen as South Africaâ&#x20AC;&#x2122;s constant reminder of a painful past; they are the ultimate representation of economic inequality and disenfranchisement. This view needs to be replaced with one that portrays South African townships as pots of gold filled with opportunity for competition and economic growth. The informal economy constitutes approximately 28% of the Republicâ&#x20AC;&#x2122;s overall economy, still very high due to a consistently high unemployment rate, but the lowest among subSaharan countries. The impact of such a large informal sector are, among others, underutilisation of resources and the abandonment of potential tax income for government. In order for South Africa to experience a growth in proportion to its potential, both the public and private sectors need to implement structures that will integrate the informal sector with the mainstream economy and boost the competitiveness of the market.

Fruit vendors, meat sellers, car washes and spaza shops (mini convenience stores) are all enterprises that are commonly found in townships. Mzoli’s Place – a hot tourist and local’s destination point for “braaied” meat and social gatherings – started as one such township venture in Cape Town’s Gugulethu in 2003. The owner, Mzoli Ngcawuzele, started cooking and selling meat from his backyard with just R2,000 as start-up capital. With the increasing popularity of his business, he acquired a loan from the South African Development Bank. These new funds enabled Ngcawuzele, better known as Mzoli, to become the meat mogul that he is today. In addition to running the enterprise that is Mzoli’s Place,

development were outlined. Issues such as township residents not working and spending in their residential areas were identified. Also discussed was the victimisation of township entrepreneurs that used to occur in the townships before South Africa’s political transition. Before the mid-1990s, the ANC was strongly identified with communist ideology. This created a threat against all potential entrepreneurs in townships as they represented a capitalist approach which did not coincide with the powerful ANC movement at the time. This, along with the repressing economic structures of the National Party, created potholes in township enterprise. However, in the last 10 years there has been an increase in efforts

“Bringing people together from all walks of life through a piece of meat.” Mzoli is also a big stakeholder in the one of the few malls in Gugulethu, Gugulethu Square. Mzoli is not the only one to get involved in township development. Richard Maponya, owner of Maponya Mall in Soweto, has also invested millions into what is fast becoming a money tree for Soweto residents. Maponya Mall has more than 150 stores and employs more than 1,800 people. Initiatives such as Maponya Mall keep income and expenditure in Soweto, further enriching the community. At the University of Johannesburg conference themed “Transforming Black Townships Into Economic Powerhouses” in 2010, problems that deter township

to support Small and Medium Micro Enterprise (SMME) development. Initiatives such as the Gauteng Township Enterprise Hubs (TEHs), which launched in 2012, and the Youth Entrepreneurship Development Programme are specifically designed to counter youth unemployment by encouraging and financing small enterprises. Another venture is the Gauteng Enterprise Propeller, which has announced that it intends to produce at least 1,000 new businesses that are youth-owned in the 2013/14 fiscal year. The reason the focus is directed mainly towards the youth is that they form the bulk of the unemployment

Photos by Chris Kirchhoff/


statistics and they are also the majority demographic concentrated in the townships. This is not a negative thing if entrepreneurship is the main agenda instead of the attempts to mass-produce unskilled or semi-skilled labourers, which has clearly not worked as a government policy. Where government has succeeded is with the National Small Business Act, which aims to protect small enterprises. Simplistically, the Act classifies businesses according to their employment numbers and annual turnovers. For example, small businesses are ones that employ under 50 people and have an annual turnover of between R150,000 and R2 million. It is important to establish the number of potential SMMEs that could flourish if given the guidance and aid. In 2006, hawkers (those who sell fruits etc on the side of the road) had about 210,000 outlets and employed about 415,000 workers. Small shops had 127,000 outlets and a total employment of over 320,000 people, roughly the same amount as shebeens. These statistics have increased and within them lies the greatest potential for entrepreneurship

and profit; and, thus, even greater potential for large-scale economic growth. It’s the kind of growth that can only occur through large-scale competition. A competitive economy is a healthy economy; a healthy economy is a growing economy. The structures that private and public sectors should create need to empower small business owners with skills and fresh approaches towards enterprise. They also need to create a platform for networking and greater exposure for these small business initiatives. We need to build more channels that enable loans to be awarded to business owners on the outskirts of Central Business Districts: those in rural areas and underdeveloped townships. This will build the economy from the bottom up, a method that has proven to work better than trickledown economics, especially in African nations. So, for an economy that is succulent and rich, let’s start by giving Mzoli’s some competition through increasing the number of formal meat vendors in Gugulethu. More so, we ought to inject competition into the chain restaurant market and make Mzoli’s a nation-wide franchise.

Watch an interview with Mzoli 28

Photo by cape town tourism

Entrepreneurial Edge


the new investor

Investment Schools of By Mathew Piper



ommunism vs Democracy, Classical vs Keynesian, Chocolate vs Vanilla, Cats vs Dogs: Humans seem to find a way to disagree about almost everything in life, and investing is no different! So how do we pick sides when it comes to managing our money? What philosophy do we invest by? In a field that seems so vast and complex, what are the investing schools of thought? There are two obvious methods over which investors have been locking horns for years. One side loves the thrill of luring the bull up the stairs just long enough to see the bear drop out the window. The other side immerses itself in business, financial statements, and buying companies at bargain prices, just in time to see the value come pouring in. There are two men who epitomize both of these mindsets. Fundamental vs Technical. Value vs Profit. Investing vs Trading. Warren Buffett vs George Soros.


Pete Souza/The White House

Photo courtesy International Monetary Fund

Warren Buffett

“If a business does well, the stock eventually follows.”

The Value Investor • The richest man in the world. • Over 20% average return per year for over 40 years. • Is known for his love for Cherry Coke and McDonalds burgers – both companies in which he owns stock. Fundamental Analysis is the technique used by investors to determine how much a company is worth, and what growth there may be in the future. This form of analysis focuses on the “economic well-being” of the company, rather than just the movement of its stock price.

George Soros

Known as “The Man who

The Technical Investor broke the Bank of England”. • Doubled his $1 billion hedge fund in one week with the devaluation of the Pound. • Invests using a method called “Reflexivity” – which attempts to predict market psychology. Technical Analysis is regarded as the opposite of fundamental analysis. This kind of analysis can be used on shares, bonds, forex, or any other instrument. Technical analysis can be defined as the study of three things: 1. Price movements 2. Time 3. The volume of shares traded Over time, these three things together have created patterns that many traders use to try and predict how the price of an investment

instrument will change. What technical analysts are trying to do is understand what other traders are thinking, and then outsmart them in order to make a profit. They support the view that the market and, therefore, the price of a share does not move up and down because of how well or poorly the company performs, but rather by how much traders like or dislike that share. So, instead of understanding the company, technical analysis attempts to understand people and what they will do in different situations. The field of technical analysis is based on three assumptions: 1. Prices move in trends: Most strategies in trading assume that prices move in trends, and continue on that trend until broken. 2. The market discounts everything: They believe that all fundamental factors, along with human psychology, are already built into the price of the instrument, and thus do not have to be analysed separately. 3. History has a tendency to repeat itself: People tend to react to certain market conditions in the same way over time. If you can predict this typical human psychology, you can, in some way, predict the outcome of an event. In 2000, traders mocked value investing, buying overvalued Internet stocks claiming that it was a new era in business – right up until the great Internet bubble burst, with companies losing over 90% in just days. Evidently, investors from both schools of thought have regular and sufficient investment success stories among their followers, otherwise it would have been a slam-dunk as to which school of thought one should subscribe. Which young investor would not be happy to end up having the success of either a Buffet or a Soros?

There are many different names for the same thing in investing. Shares are the same as securities, and instruments refer to all types of investments, such as shares, bonds, commodities, and forex. 31

the new investor


ust the other day I was sitting in my Economics tut listening to Dan Linegar ramble on. Ok, he quite eloquently rambled on to the next economics model and then the rather controversial Tokologo Phetla raised his hand. We all knew this meant another long and philosophical question, but that day he raised a very important point: “Why do we study all these models in economics when what really influences economics is the way people act? Surely we should just study people and human emotion?” Dan, a little ruffled after his beloved Economics had come under attack, set out to answer this question. He suggested that although Economics was shaped by the way people acted, he reiterated that economic models were used to simplify reality and help economists make decisions. He did, however, allow Tokologo the privilege of agreeing that more time should be spent learning how people make decisions. By analogy, think of how financial markets work and how the prices of companies in the stock market fluctuate as a consequence of human behaviour more than anything else. How else can one explain the years leading up to 2000 where the prices of Internet-related companies soared through the roof, even though a large majority of the companies were losing money? Why is it that the prices of South African stocks precipitated during the Financial Crisis in 2008? One would have expected the share prices to have dropped because of the exposure of some companies to the US and European markets, but the actual speed at which they fell surely had to have arisen more from just the technical and fundamental analysis that usually precedes an investment decision. The way people make their decisions has a lot to do with the way they feel. Emotions – such as greed and excitement – can push the price of companies up

Money and By Jack Newby


Nasdaq Points

source: Bloomberg


much higher than their intrinsic values. It has been scientifically proven that when a share price in an investor’s portfolio goes up it stimulates the part of the brain called the nucleus accumbens, which is also stimulated when having sex. This encourages humans to buy more of this stock even though it could be overpriced. This happened during the “Dot-Com Bubble” where investors saw the prices of their shares rocketing and just kept buying more to stimulate that nucleus accumbens. Eventually people realised that the prices of these companies were overpriced and a tremendous sell-off ensued. But this sell-off was not slow and accompanied by thorough analysis on why these companies were no longer the hot thing. They occurred due to fear. As investors saw these prices fall sharply, the part of the brain called the amygdala was stimulated, which triggered the fight or flight response. So, biologically humans were selling stocks because their brains saw them as a danger to their health. What ensued was a massive sell-off. What makes this even more interesting is that the companies’ intrinsic values didn’t change much during this period of time. Companies such as Yahoo!, whose share price reached US$118.75 in 2000 and then dropped to US$8.11 in 2001, earned more profit in 2001 than in 2000. The graph on this page shows the United States’ Nasdaq index, which is heavily weighted in technology stocks and where that huge spike around 1999 was predominantly caused by the surge in human emotions. So, it appears that Tokologo did raise a good point and that we should pay more attention to human emotion. If the role of emotion in the investment game intrigues you at all, read Your Money And Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich by Jason Zweig (Simon & Schuster, 2007).

the new investor


t is often quite daunting trying to choose a company to invest in when there are so many out there, especially when you are just starting out. Shopping around for a stock is much like shopping around for anything else, like clothes, or a new car. You need to shop around for a bit until you find the right one. It

is not a good idea to be that compulsive shopper who buys the first thing that you see. Just like shopping for anything else, it is always important to consider your options. With this in mind, we will go into a few easy things you can do to start getting into the stock market, and choosing your first company.

By Mathew Piper

INVEST IN WHAT YOU KNOW Considering the amount of time it would take to browse through every company on the JSE, it is always easier to invest in something you know. If you are a fashion guru, why not try out some retail companies? If you are a UCT student and love drinking beer, why not try a beer company like SAB Miller? This is a good place to start – with what you know! Once you pick a company, you can then do the relevant analysis. Warren Buffett definitely invests in what he knows – Cherry Coke and McDonalds Burgers – two of his favourite foods, and companies.


www THE INTERNET IS YOUR FRIEND There are so many websites out there that make the investor’s life easy. A good example of this would be Under their personal finance and watchlist tracker, you will find a lot of useful data in the form of a stock quote. There are other websites such as, which do all the analysis for you in a neat daily newsletter.

f latest newS

SOCIAL MEDIA With the amount of time you spend on Facebook or Twitter, it can be more convenient to follow sources such as @JSEwatch or “like” the BullsnBears Facebook page to get constant information on the market. Twitter was valued at over $14 billion after going public in 2013.

THE NEWS The world of news can always spark an idea about what to invest in. Keeping a keen eye on the market by watching shows such as CNBC’s Hot Stoxx could be a good place to start. There are so many investors out there giving their opinion, that it may just spark a trade idea for you.

Always make sure you do proper research into a company before you decide to buy their stock. There are many techniques you can use to find an attractive company. The only way to learn these techniques is by reading as many books as you can about investing, or to start talking to people who have more experience than you do. You can visit to browse through some very easy-to-read articles to start you on your way. The only way to begin is to take the plunge, and start learning now! 33


the next big thing By Gavin Dolley &



e live in an opportunistic world. Ask any student who has ever had half a chance of getting a two-week extension on any project deadline. We all know that 99% of them would have taken the gap to hand in late. Some may even try for more time. It is this opportunism, when we look at it in a more positive manner, that gives rise to arbitrage or, in simpler terms, the ability to fill a gap to your own benefit. If Nigeria sells whiskey at $50/litre, and Cameroon at $40/litre, someone will buy

it in Cameroon, trek across the border and sell it at a profit. People are great in scoring that way. Much of success in business depends on the ability to spot arbitrage moments: To see gaps where others miss it, and to come up with cost-effective ways of servicing that gap for profit. If you are a keen investor, you should really be on the look-out for dual arbitrage moments; firstly, to spot those companies or products that are really good at finding gaps in their own industries. Secondly,

to find gaps in the way investors miss valuing the stock of these kinds of companies and buying in early. The management guru, Peter Drucker, around the middle of the 20th century, identified seven major shifts in society that tend to lead to innovation. The one area that he somehow missed has been the role of the military in developing products that would later become commercial successes. Here are some of those success stories where the world of the generals, spies and spymasters eventually crossed over.


photo by

Panerai was deep in bed with the Italian navy from the late 1800s. It patented luminescent material (Radiomir) whereby divers during both World Wars could read depth, pressure and time underwater. They pushed the envelope on depth and water resistance. Panerai remained a militarystyle watch until 1997, when South African luxury goods entrepreneur, Johann Rupert, who owns Richemont, one of the worldâ&#x20AC;&#x2122;s foremost luxury brand companies, saw the potential to cross-over Panerai into the public commercial area. Sylvester Stallone (always on right wrist) and Arnie both wore Panerai in popular movies and soon all of Hollywood wanted Panerai. Today, it is one of the most sought-after luxury watches, and only a very limited number are produced each year.

JEEP (1940s) Driving a Jeep has become a kind of status symbol. It shows a combination of rugged outdoorsy style with urban panache â&#x20AC;&#x201C; quite the modern person. But, it was in the war arena where the original Willys-Overland MB first showed its mettle as an advanced scout vehicle that had speed, versatility and the ability to navigate across most terrains. The famous general Dwight Eisenhower gave Jeep the ultimate compliment when stating that without it, the Allied forces would not have won the war. Jeep still manufactures for the military, even as it fills up school parking lots with trendy suburban mummies behind the wheel. 34

DUCT TAPE (1942) There is a truth behind any jest, and you have all heard the saying that one can fix any problem as long as you have duct tape. There cannot be a household in the universe that has not at one time or the other turned to this magical roll of ugly, sticky grey tape to fix a problem. Yet, duct tape first started out in military green colours during World War II, when Johnson & Johnson’s Revolite Permacell division developed the multi-purpose tape known for its ease of use, durability and waterresistance. It was used to seal containers and fix windows and equipment during the war. Post-war, duct tape got its boost from the construction industry.

Much of success in business depends on the ability to spot arbitrage moments. To see gaps where others miss it, and to come up with cost effective ways of servicing that gap for profit.

GPS (EST 1959) If you have to lob bombs and missiles over long distances and into areas that you cannot see, geographical accuracy becomes a kind of necessity. But first, the US Navy and Air Force developed this system in order to be able to navigate better. As satellite technology improved, and the triangulation of positions anywhere around the globe became increasingly possible with more and better satellite signals, the sophistication of these systems also improved. Today, you can locate your Aunt Betty’s flat in Kempton Park’s old age home when you combine your GPS and some of the modern mapping systems. And, it is also possible for us to know where you are! Next big thing – tracking your teenage kids through the GPS positioning of their cellphones. No more sneaking off to parties pretending to be busy with homework at a sleepover.

MICROWAVES (1945) Its use for food preparation was accidental. A Raytheon employee, working on military contracts, realised that the chocolate bar in his pocket had melted. That opened up a new universe for the magnetron, originally the result of research conducted on radio transmission and radar detection. The magnetron produced much smaller radio waves, known as microwaves, and was small and powerful enough to be used in airplanes. Its detection capabilities helped solve the persistent problem of accurately bombing towns. In 1954, the first microwave oven came to market.



Wakeboa 36

courtesy of red bull

rding On Ice

Four of the worldâ&#x20AC;&#x2122;s best wakeboarders, including legendary American rider Parks Bonifay, recently embarked on a mission to Patagonia in a quest to take the sport of wakeboarding to the next level.



he stunning Lake Argentino in southern Patagonia was the stage for the unique adventure featuring American riders Parks Bonifay and Adam Errington as well as the Argentinian duo of Cutún Martín and Tomas Karagozian. Fed by the Upsala Glacier high above, Lake Argentino is the largest freshwater lake in Argentina and home to many icebergs that formed a perfect natural playground for the intrepid athletes. “I studied the behaviour of the icebergs carefully before coming to Patagonia and it was pretty clear that they are dangerous because they can break or rotate at any moment,” commented Bonifay, X-Games champion at the age of 14 and the first wakeboarder in the world to land a 1080. “They are huge and uncontrollable. But this incredible place makes you try to leave your fears behind and enjoy this amazing experience with your board.” The weather in the region is characterised by freezing temperatures and winds of over 40 knots. The icebergs, some of which are up to nine times larger than the section emerging from the water, are in perpetual motion and can rotate at any time. Unperturbed by the risks involved, the athletes searched for blocks of ice with shapes that would allow them to slide their boards, progressing from simple obstacles to more challenging ones as their confidence grew. The tricks also quickly became more sophisticated, with Parks laying out a huge 360 off a 45-foot iceberg and his compatriot Errington stepping up to the plate with a beautiful Switch Tail Press Backside 180. However, it soon became clear that what mattered most was not doing the best trick but being creative and taking the sport of wakeboarding to the next level in an environment as beautiful and unique as it is inhospitable and uncontrollable. Los Glaciares National Park is located in the province of Santa Cruz in Argentina. It was created in 1937 to preserve the Patagonic ice fields and has been UNESCO World Heritage since 1981.


The icebergs, some of which are up to nine times larger than the section emerging from the water, are in perpetual motion and can rotate at any time.




BOOKS thirty TO READ BEFORE YOUâ&#x20AC;&#x2122;RE

Every generation faces its own issues and pushes out the social frontiers to some degree, yet the human condition remains remarkably similar whether it be war, famine, moonwalks or social media that define a generation. Here follows a list of must-reads that give some insight into this journeyâ&#x20AC;Ś


Slowness Milan Kundera (1995)

Through his portrayal of two tales of seduction separated by more than 200 years, Kundera links “slowness” with memory, and hence encourages us to reduce the pace of our lives in order to truly live our lives and appreciate them. The following quote captures the inherent beauty of this novel: “The man hunched over his motorcycle can focus only on the present instant of his flight; he is caught in a fragment of time cut off from both the past and the future; he is wrenched from the continuity of time... in other words, he is in a state of ecstasy; in that state he is unaware of his age, his wife, his children, his worries, and he has no fear, because the source of fear is in the future, and a person freed of the future has nothing to fear.”

Guns, Germs & Steel Jared Diamond (1997)

Through Guns, Germs and Steel Diamond attempts to explain just why it is that some civilizations have survived, and succeeded in conquering others. He argues against the idea that any domination is due to forms of intellectual, moral or inherent genetic superiority, but is due rather to geographic differences such as prime agricultural land, and genetic differences such as the development of resistance to endemic diseases. All in all, it is a global account of the rise of civilization and provides an explanation for the development of humans across the globe.

Heart of Darkness Joseph Conrad (1899)

A reading of Heart of Darkness is essential to understanding the depth and complexity associated with colonialism and imperialism on the African continent. The story of Charles Marlow’s journey as an ivory transporter down the Congo River is in part an exploration of the definition of a ”civilized” man versus a “barbarian”. Conrad paints an intrinsically harsh picture of colonialism and justifications for it. However, Marlow’s objectification of Africans within the novel is cause for concern and reveals the imbedded nature of racism.

One Hundred Years of Solitude Gabriel Garcia-Marquez (1967)

This reverential and comical novel tells the story of the rise and fall of Macondo through the multi-generational history of the Buendía family. It is a vivid and brilliant account of life and death exposing the variety of human experience. Garcia-Marquez effortlessly weaves the personal with the political, and the amazing family at the centre of the tale provides an allegory for the history of the human race. The skill of this author lies in the deep impression his characters have upon our lives and the intense sadness we feel when we reach the end.

Jitterbug Pefume Tom Robbins (1984)

If you choose to read only one book out of this list, pick this one. You either “get it” or you don’t. If you’re not hooked within the first few chapters, move on – this book is not for you.

The Little Prince Antoine de Saint-Éxupery (1943)

If your parents didn’t read this book to you as a child, you have been done a great injustice. This poetic tale, although arguably only a children’s book, makes several profound observations about life as a whole and about human nature at its simplest. A young prince from another world falls to earth and meets a pilot stranded in the desert. While the plot is simple, the novel exposes the narrow-minded perspective we come to adopt as adults, and the inherent open-mindedness of children which is ultimately invaluable to everyday life. Similarly, this book teaches that enlightenment can be gained from exploration and a key sense of curiousity.

Zen and the Art of Motorcycle Maintenance Robert Persig (1974)

Quality and small things matter. Summed up in the following line from the novel: “Sometimes it’s a little better to travel than to arrive.”



The Last Lecture Randy Paush and Jeffrey Zaslow (2008)

In 2007, Randy Paush, a Computer Science Professor at Carnegie Mellon, gave his last lecture entitled “Really Achieving Your Childhood Dreams”. Surprisingly, even though he had recently been diagnosed with terminal cancel, his “last” lecture wasn’t about dying. Rather, it was about living, about seizing the moment and about overcoming difficulty. The lecture was widely popular and, in 2008, a book was written to cement the inspiring words he spoke. Famously, it contains the quote: “We cannot change the cards we are dealt, just how we play the hand.”

For Whom the Bell Tolls Ernest Hemingway (1940)

In much of Hemingway’s work, he constructs what he deems to be a pre-metro idea of “the alpha male ”, the characteristics of which include an involvement in war, hunting, fishing, fist-fighting and a fair amount of womanizing. As a novel set during the Spanish Civil War For Whom the Bell Tolls does not disappoint. It tells the story of Robert Jordan, a dynamite technician who is assigned to blow up a bridge during an attack on the city of Segovia. It is Jordan’s strong sense of duty which sets this story apart from others. Ultimately, however, it teaches us of courage and loyalty, sacrifice and true love. If you read one Hemingway novel in your life, we suggest that it’s this one.

Dune Frank Herbert (1965)

Although not conventional or renowned in the way that sci-fi authors such as Clarke or Asimov are, Frank Herbert uses Dune to do just what a sci-fi novel should do, and that is to construct an incredible world outside anything we could possibly imagine ourselves. Through his story of a family living on the desert planet Arrakis 21,000 years in the future, he explores the multi-layered dynamics of religion, technology, politics and human emotion. Given the political upheaval in the oil-rich Middle East, global warming and our increasingly consumer-driven culture, it is 42

possible that Dune is even more relevant now that when it was in 1965.

The Handmaid’s Tale Margaret Atwood (1985)

This dystopian novel explores the life of Offred, a handmaid in the fictional Republic of Gilead, a totalitarian state which has replaced the USA. Because of low human fertility and reproduction rates, handmaids are assigned to bear children for the elite and thus are merely vessels in a world in which women are taught to be completely subservient to men. This novel stands both as a contrast to and, in some cases, as a mirror for social life in the 21st Century. It speaks of a rigid political hierarchy, of minimal women’s rights, of personal freedom and of language as a tool of power.

Catch-22 Joseph Heller (1961)

To use the phrase “Catch-22” with any degree of confidence, it is essential to read this novel in all its complexity. Set during WWII the novel follows Captain John Yossarian, a US Army Forces B-25 bombardier as he struggles with the absurdity of war and the absolute power of bureaucracy. The ultimate Catch-22 within this novel is that the only way to be discharged from the army is to be declared insane, and proving that one is insane requires a degree of sanity. The novel also explores such themes as the inevitability of death and the loss of spiritual faith.

Brave New World Aldous Huxley (1932)

Brave New World is a novel set in London AD 2540; a fantasy far in the future which seems to cast a critical light on the present. This enduring work of art anticipates technological developments that allow for the creation of “the ideal society”, a supposedly perfect human race manufactured within laboratories. It is so essential to read this novel in today’s day and age because of the likeness between their society and ours, in terms of consumerism, the ubiquity of technology and the dangers of obtaining too much power.

The Grapes of Wrath John Steinbeck (1939)

Set during the Great Depression in America, this novel tells the story of the Joad’s, a poor family of farmers driven from their Oklahoma home by drought, economic hardship and changes in the agricultural industry. The Joad family represent so many other families who made the Western migration and suffered as a result of a crumbling economy. The book’s enduring legacy lies in the universal themes of poverty and hardship, as well as the often enduring capacity of human beings when they are placed under pressure.

On the Road Jack Kerouac (1957)

Through On the Road the wanderings of Sal Paradise and Dean Moriarty have come to embody the Beat generation and a counterculture which was prevalent at the time of publication. The novel is considered to be not only Kerouac’s defining work, but a defining work of the time; a partly autobiographical story of two friends travelling the North American continent. It tells of the value of detachment from society, as well as the loneliness that accompanies the spirit of a wanderer.

Hell’s Angels Hunter S Thompson (1966)

From one counterculture hero to another, Hell’s Angels depicts the two years Thompson spent living with the controversial motorcycle gang in the mid-60s. His book also serves as a snapshot of a particular time in American history, when countercultural movements were gaining momentum. Thompson, the creator of Gonzo journalism, writes with fierce honesty and without inhibition, and his style of writing oozes vibrancy. You want to read a book by a guy who believed in euthanasia and arranged to have his own ashes blasted from a cannon.

Slaughterhouse Five Kurt Vonnegut (1969)

Kurt Vonnegut’s absurdist classic is a satirical novel about WWII told through the life of Billy Pilgrim, a soldier and later American prisoner

of war who is witness to the bombing of Dresden. While the story is complex, and not told in chronological order, it is worth a read due to it’s exploration of intricate themes such as free will, human senselessness and fate.

The God Delusion Richard Dawkins (2006)

The question “Who is God?” is often asked. In reply, Dawkins ask why there should be a God at all. An evolutionary theorist, Dawkins gives a voice to atheism explaining that it is not that atheists are devoid of belief, it is just they don’t believe in personal gods. He argues that belief in a personal god qualifies as a level of delusion which he defines as an enduring, yet incorrect belief held in the face of strong contradictory evidence. He accuses religion of causing not only discord, but war and narrow-mindedness. Perhaps the most daring thought in the book is when he asks, in a world where different religions battle to identify their purpose and meaning, whether there need be any purpose.

Fear of Flying Erica Jong (1973)

An iconic novel that documents the life of Isadora Wing, a 29-year-old author of erotic poetry. Unhappy in her marriage, she indulges in her sexual fantasies with another man while on vacation in Vienna. Through Isadora, Jong creates an eternal tale of liberation, womanhood and self-discovery, which is still an inspiration to women everywhere.

Siddhartha Hermann Hesse (1922)

In this novel, a young man named Siddhartha embarks upon a spiritual journey of selfdiscovery, leaving his family for a restless life of contemplation. Through his search for enlightenment he comes to the revelation that the only way to achieve this is to experience life in its entirety, taking the good with the bad. Just as the water of the river flows into the ocean and is returned by the rain, so everything in life is interconnected in the classic circle-of-life sense. 43

ANALYSIS by chad bushnell


As we enter the new year, it is best to have a view going into 2014 and position yourself accordingly. The truth of the matter is that it does not look good, at all.


going to destroy our economy from a growth standpoint. But efore looking at the technical picture, let’s take note as it has to be done. to what happened in 2013 in terms of supporting the market. First, we need to consider the phenomenon of Let’s put this all into context. Our local market has had things easing money in the form of Quantitative Easing (QE). Second, very easy but this is going to change in the next year: we need to look at the fact of a weak Rand against all major 1. International free money will flow out of our market. trading pairs (USD/GBP/CHF/EUR), to the tune of around 25% 2. The Rand may strengthen from here, thereby pressuring the on average. With a market that has 60% of its capitalisation dual listed which are a huge portion of the weighting. that is dual listed, there is no doubt that this has been a huge 3. Higher interest rates locally, when GDP is below 1%, could benefit. Third, with interest rates being kept on hold locally at very well send us back into recession.  fairly low levels, this has prompted big equity buying not only by institutions, but also the largest retail investor allocating capital So where does this leave us to invest looking into equity funds in 2013. into 2014? So what’s going to change? QE is expected to start slowing Well, one area we would not like to be involved in is that of our in March, and personally I had a more dovish view on this industrials. Industrials are meant to be the heart and soul of before, but with recent economic data coming out of the US of representing an economy, and due to the very lacklustre data we late, especially in October/November even with a government are receiving, along with the cold front expected to blow through shutdown, the data was extremely good. The US 10-Year Yield next year, it is wise to be taking some chips off the table. If is currently around 2.8%, you’ve played roulette, you’ll and once the slightest hint of know to keep your last chip on Due to the very lacklustre data we are tapering comes in again, this the last winning number – this, will push yields through the 3% receiving, along with the cold front expected in a market sense, would be mark, which should add heavy your last profitable trade in the to blow through this year, it is wise to be pressure to the equity market. sector. taking some chips off the table. So what else? The global story still most certainly seems like the place For three years the Rand to be. But how does one get has been spinning out of exposure without the Rand punishing you on the downside? control and has been down on average 60% against all One way to trade in 2013 was to buy Global ETF’s (Exchange major trading counters in that time. This has caused inflation Traded Funds), as these give you exposure to a basket of to increase to above the SARB target band of 3-6%, where markets, currencies and, in turn, economies. But let’s get a currently we are at 6.7%. This CPI figure, coupled with a little ahead of ourselves and look for a punt. The tech story Rand that is out of control, is going to force the SARB to seems a bit frothy, but not bubbly, just yet. Social media, online start hiking rates this year. So this would be a good thing, gaming and online entertainment are still on the up, big time. So right? Wrong. South African GDP came in at a dismal 0.7% a multinational play such as Naspers could still be great and, for the third quarter of 2013. Compare this to the US, which more likely than not, it’s going to be one of the better performing is growing at 3.6% with inflation more than half of that figure. stocks in the coming months… again! But hey, everyone’s got So, although a raise in interest rates is going to have a their own crystal ball; that’s what makes a market, right? positive effect on our currency market and inflation rate, it’s


Contributed by

the new investor

A Hedge Fund is a private investment vehicle that markets to only a few select institutions and or high net worth individuals, for which it then charges a performance fee and an administrative fee, traditionally 20% and 2% respectively, to leverage its trade ideas. Hedge Funds may make use of short selling, leverage and derivatives to assist in developing an alternative investment strategy, to generate absolute returns that should in essence be uncorrelated to the markets.[1]

What are Hedge Funds? Hedge Funds are pools of private capital generally structured as a limited partnership with the objective of consistently achieving returns exceeding the market by investing in a variety of asset classes and by using non-traditional investment strategies, including short selling, leverage, derivatives and arbitrage.[2] To “hedge” is to lower overall risk by taking on an asset position that offsets an existing source of risk. A “fund” is a reserve of money set aside for special purposes. A Hedge Fund may, therefore, be defined as an information-motivated fund that hedges away all or most sources of risk not related to the price-relevant information available for speculation.[3] The primary aim of Hedge Funds is to deliver above market average returns while simultaneously reducing volatility and risk. Hedge Fund managers are always on the lookout for opportunities that might bring impressive returns at a reduced risk.

How Do They Work? The term Hedge Funds is used to describe a diverse group of financial institutions, which play a vital role in our financial system. Hedge Funds are an aggressively managed portfolio of investments that uses advanced investment strategies such as leverage, long, short and derivative positions in both domestic and/or international markets with the goal of generating

high returns (either in an absolute sense or over a specific benchmark). Hedge Fund managers have tremendous freedom to invest in just about any area where they believe they can outperform the market. This freedom gives them the ability to trade different securities simultaneously in several markets to maximize opportunities for returns, improve risk management, and spur on innovation in financial products, services and strategies.

What Strategies Do Hedge Funds Use? Hedge Funds have been described as funds that make use of skill-based investment strategies. Skill-based strategies obtain returns from a unique set of skills or strategies of the fund manager. As a result, hedge funds have also been described as funds that run absolute return strategies. Since Hedge Funds are actively managed, manager skills are certainly very important, as are the basic trading strategies behind most Hedge Fund investments. However, more recently, Hedge Fund returns have been shown to be driven largely by market factors, such as changes in credit spreads or market volatility. This leads some academics to believe that a Fund’s returns are a combination of both a manager’s skill level and the underlying investment strategy. With the increased use of Hedge Funds, industry practitioners and academics have created a set of strategy performance measurements that can be used as benchmarks for investors. Investors should note that each strategy has its own approach to performance presentation, manager selection, and investment style.

Sources: [1] Jacques Joubert. 2013. [2] Karin van Wyk, Ziets Botha, Ingrid Goodspeed, et al. 2012. Understanding South African Financial Markets. [3] Gregory Connor and Mason Woo. 2003. Introduction to Hedge Funds.



Young women in business


MBUTUMA She just hit 33, yet has been an Executive Director of Pentad Quantity Surveyors since 2011, a position she reached after joining the profession a mere 13 years ago. Sandi Mbutumaâ&#x20AC;&#x2122;s star shone even brighter when she recently took top honours at the 10th annual Top Women Awards 2013 held in Johannesburg and walked away with the Young Achiever Award. Mbutuma is a shareholder in Pentad and the first female Director at her company in an industry where a mere 1% of executive management is female.



hat makes Sandi Mbutuma’s rise so interesting are two things. Firstly, to study to become a Quantity Surveyor (QS) requires real mathematical aptitude, and our society tends to think women do not have that talent. Mbutuma’s success evidently belies that. Then, secondly, Mbutuma’s workplace is by and large in the construction environment, yet another male domain, and here too she is helping to shatter the glass ceiling. In fact, she is on the speaker circuit discussing this very topic. In an interview just after receiving her award, Mbutuma explained that her company is at the forefront of building development, specialising in corporate head offices and office park developments; retail developments, including refurbishments and fit-outs; hotel and leisure projects; and residential facilities, nationally and internationally. “A typical day at the office for me,” she says, “entails ensuring that my projects are adequately resourced and efficiently running, meeting clients to ensure client satisfaction, and meeting potential clients. I’m constantly in communication with the other shareholders about matters of the business.” It is a dynamic set-up and one can see where Mbutuma’s abundant energy obviously works in her favour. “My role is to attract business from clients we have never engaged with for business transactions. In a space of six months, I managed to secure projects to a value of over R1.5 billion with various clients. At Pentad, I have also introduced Women Events to create a networking platform for women who have been forced to accept the landscape of how men socialise.” It had been a long academic slog for Mbutuma to reach her current position. She started with a national diploma and followed it with a B Tech in Quantity Surveying at the University of Johannesburg. She then did a Programme in Management Development at the Gordon Institute of Business Science (GIBS) in Jozi and thereafter completed a Programme in Property Development at the University of Cape Town’s Graduate School of Business (GSB). Mbutuma is no stranger to awards, previously having been nominated as a Rising Star in the Women in Property Network. If one was looking for a good case study of how networking – professionally, privately and in public life – may enhance your career and profile, Mbutuma would be it. During her time in the industry she established a network through her involvement with an impressive list of professional and other membership bodies. Amidst her professional responsibilities, Mbutuma has

also been involved with social responsibility initiatives whereby she used to volunteer at a place of refuge in Midrand, acted as a donor for inner city missions dealing with homeless and terminally ill children, and through yet another organisation, NNAQS, she has been involved with the Johannesburg Welfare Society. In 2010, she started a partnership with two primary schools – Mdanstane and Zukisa Primary School, by donating funds to assist the schools on their projects – such as for the installation of burglar proofing to the computer laboratory at Mdanstane and the sponsorship of Grade 1 students’ uniforms, sports equipment, and more at Zukisa. In 2014, Mbutuma and the schools will be organising an awards event to celebrate the achievements of the students and teachers in an attempt to instill a culture of excellence. Mbutuma is on record that her professional success is driven by and large by her passion for the development of South Africa’s infrastructure so that employment and economic opportunities can be boosted. The balance she maintains between charitable work and professional time bears testimony to her deep commitment to our society. In 2014, she will be part of a new TV show on a satellite Christian TV station educating people about property matters and residential issues, as well as problems they experience with retail or municipal services. This is putting her passion into practice. Has all this success gone to Mbutuma’s head and changed her into another Jozi Bling Queen? On her Facebook wall, she posts the following, “I have a very bad relationship with cars. My car of almost 7 years has some elements that are due for replacement, very costly if I may add. I drive cars until they are deemed unsafe or not roadworthy. I hate spending money on cars.” Yet, she also seems to have her eyes on a diamond ring, hangs around in cool spots and travels out of the country (likely for work). Pentad has clients all over Africa as well as the Indian Ocean islands such as Seychelles and Mauritius. She comes across as a young professional dedicated to her career and working hard at making time for her family, friends and some social life. In juggling all those roles, she is very typical of the modern woman, who seems to believe one can have it all. Mbutuma signed off the day on Facebook recently with the following message, which we believe may set the tone for the new year: “I’ve always worked very very hard, the harder I worked the luckier I got... Opportunities avail themselves to those who always show up...”

“Opportunities avail themselves to those who always show up...”





ur nine-member core of Ákro Organisation are all running successful Startups of their own across various sectors, including operations from social tech initiatives, mobile applications and community websites to real estate, consulting services and even mobile petrol sales. In fact, some have formed holding companies to house multiple subsidiaries. One member runs a property group, Basday Properties. Another is taking on a tech initiative. Others are consulting to the Lesotho government through their corporate consulting group, and another runs a group of companies in the tech and education spheres. We aspire to motivate and inspire the youth of South Africa to challenge the status quo and develop their entrepreneurial character. Ultimately, we aim to address some of the most fundamental and central issues faced by our country – the slow state of entrepreneurial initiative and the rate of youth unemployment. Our organisation believes in passion. Our intention is to become South Africa’s entrepreneurial engine, fuelling entrepreneurs and businesses by presenting opportunities to learn, network and leverage off each other’s knowledge, resources and enthusiasm.


Ákro is a non-profit organisation that seeks to bring together some of the brightest entrepreneurial minds in South Africa, with a collective goal of inspiring youth entrepreneurship and innovation by building powerful business networks.

Ákro seeks to involve itself in anything that will add value towards our members’ entrepreneurial exposure. We see our members continuously involved in activities such as talks, seminars, entrepreneurial courses, blogging, consulting and business coaching. Last August, Ákro hosted its annual Young Leaders Summit at the Colosseum Hotel in Century City. The event saw a number of impressive industry leaders and ambitious entrepreneurs coming together to teach, learn and inspire each other. The day was a huge success, seeing our members light up with motivation and the desire to begin their own entrepreneurial adventure. Our ancillary events have seen involvement from Ernst & Young, Acsis Fund Managers, Traders Corner, Legacy Hotel Group and venture capitalists such as UStart. We are all connected by a passion for business and entrepreneurship, constantly encouraging each other to be as brilliant, innovative and hard working as possible.

WHY YOU SHOULD JOIN US Essentially, we are a society for the people of entrepreneurship. Ákro would like our members to realise their entrepreneurial qualities and find ways to pursue their own endeavours. Ákro aims to grow small steps at a time, with the fundamental vision of inspiring and guiding young leaders to bring out the passionately curious entrepreneurs inside all our members. The true measure of one´s education is not what one knows, but how one shares what one knows with others. We encourage young entrepreneurs with ideas to act upon their thoughts with conviction and we aim to assist these actions in any manner possible. We wish to create a community based on principles of goodwill, growth and sharing. And, if we have inspired just one member, then we are profitable in the rightest sense.

Ákro [uhkróu] – Ancient Greek translation: “Extreme”. The Ákro Organisation is a collective of the most brilliant entrepreneurial minds within its reach. Our goal is to be the fabric of change in the world, to create our own economy through entrepreneurialism.


Ákro is based at University of Cape Town. If you want to join or find out more, contact Tom Raviv 083 292 2733 | Jason Basel 079 073 9860 | f Akro Organisation

The Benefit Of Starting To

Save early W

going to do next. In all but the most extreme situations, the cost of putting off saving exceeds the benefit of starting at the bottom. This is because even money that has decreased in value is a better contribution to a long-term objective than money that has been spent on short-term gratification. And while it is easy to justify spending now, with the rationalisation being that you’ll save more later when you can afford it, it is very difficult to get into the habit of saving if you’re used to having all of your income at your immediate disposal.

hether you are saving towards a short-term goal, perhaps an overseas trip, or something that seems to be a long way away, like a deposit on your first house, or your retirement, it’s a good idea to start now. Each month that you put off saving in favour of spending either increases the amount that you will have to save in the remaining months, or pushes out the date at which you will reach your goal. Starting to save earlier allows you to extract maximum benefit from compounding – i.e. that powerful phenomenon that explains how investments can grow so remarkably if given time. Like many people you may have questions about the “right time” to invest. The right time is now, because you can’t get time back once you’ve spent it.

Make a start The easiest way to get on track to meeting your goals is to start as early as possible. If you start from your very first paycheque, you’ll never feel like you’ve lost something by saving instead of spending now. And the little bit of short-term gratification that you miss out on will be worth it when you are on that overseas trip with your friends, or are handed the key to the front door of your new home. To learn more about investing visit www.allangray/investingexplained/.

Time in the market vs timing the market It is true that you receive better value for money if you invest after the market has fallen, rather than at its peak. However, this doesn’t mean that you should put off saving if you are unsure what the market is

Graph 1

shows that if investments are returning 9% per year and you need to meet your savings goal in 10 years’ time, delaying saving for just 18 months will increase the amount you need to save per month by more than 25%. With less time on your hands, the cost of a delayed start is naturally even more pronounced. The red line on the graph illustrates that when your timeframe is five years, an 18-month delay results in more than a 50% increase in the amount required per month of saving.

5 year obtective

Required increase in monthly contribution

10 year obtective

Delay before starting to save (months)



StartupBus is an annual entrepreneurial road trip during which the “Buspreneurs” conceive, build, and launch a start-up. In November 2013, for the first time, the StartupBus travelled through Southern Africa, bringing together 15 African and 15 international entrepreneurs along with 10 mentors. It was a truly unforgettable journey...


WHAT IS STARTUP BUS AFRICA? StartupBus Africa brought together 40 highly experienced African and international entrepreneurs on a 5-day road trip from Harare, Zimbabwe to Cape Town, South Africa. The goal is to support entrepreneurs in Africa, help international entrepreneurs understand the African market and create lasting ties between both – and finally, of course, the founding of new start-ups in the areas of interest. Participants were coders (50%), designers (25%) and business developers (25%), all focused on the areas of mobile, healthcare and energy. During the trip they paid visits to local start-up hubs and worked with mentors from across their focus fields. At the end, they presented their work to a panel of highly esteemed investors and entrepreneurs at eKasi, Khayelitsha. The proceedings raised from the event are being used to help fund the StartupHouse in Africa, another first for the continent and which will offer space for entrepreneurs and their teams. From an app that can help determine the cost of bribes to an initiative that wants to help solve Southern Africa’s unemployment issues, all initiatives presented at the end of StartupBus Africa aimed at solving local issues.

The winner was an innovative initiative called “Workforce”, which can simply be described as being a mobilepowered planning app for connecting workers and employers. Runner-ups were funeral management app and Bribed, which has a really interesting way of tackling bribery issues across Africa. Take a look at all eight start-up pitches below: Workforce is a mobile-powered planning app for connecting workers and employers. The platform is meant to link unskilled worker teams with potential employers through an SMS-based communication system. This application intends to bring innovation to the unskilled labour force and both bridge and identify the gap between employee and employer in Africa. is committed to revolutionising mobile education for young Africans in remote locations through reinforced learning via a simple phone call from a teacher. Teachers can pre-record lessons and give students a unique SMS code which gives them access to learning material or a quiz. One of the runner-ups, is described as wanting to be the Everbrite for funeral management. The app focuses on providing and simplifying streamlined event management for families.

HumAid wants to make aid delivery efficient. The app aims to use the data of different organisations, such as on-the-ground NGOs, to help focus aid delivery and organisation decision-making so that it becomes more efficient.

Bribed The other runner-up, Bribed is a crime-solving app with a twist. The aim is to crowdsource the price of bribes to provide real-time market prices. By doing this, the team not only hopes to help victims of bribes pay a “fair amount”, but also to capture and provide data that should help authorities prevent corruption.

GreenBack is an app-powered points scheme that lets people raise funds and pay for clean, solar energy for families across Africa. This eco-friendly initiative wants to reward carbon savers in the developed world by providing credit to Africans to help access clean energy.

Pela24 wants to help people from rural areas to diagnose symptoms and better identify disease. This would be done through a mobile diagnosis tool that will then give users information about a disease they may be suffering from and show them where the nearest doctor or clinic is to seek treatment.

Pitch Me If You Can is a mobile matchmaking app for Start-ups to pitch their ideas to potential investors or co-workers. Similar to a dating site, the app aims to serve as a platform to match investors with entrepreneurs’ good ideas in a quick and easy manner.

“Participants will tell you that StartupBus is the mother of all hackathons... Imagine building a real start-up in a compressed time capsule traveling at 60 miles per hour.” – Falon Fatemi, Partner at MkII Ventures, VentureBeat Contributor

“StartupBus isn’t just a hackathon on a Greyhound bus. It’s also a self-starter alumni organization that’s isn’t only about who you know. It’s built on ambition, ingenuity, and rest-stop hot dogs. StartupBus might not yield the next Instagram, but it just might build the ecosystem for it.”

“The intensity develops lifelong relationships,” Bizannes said. “Ten years later with the trust and responsibility people developed can bring them into new businesses together.”

– Greg Voakes, Huffington Post

– Tomio Geron, Wall Street Journal




Q&A with Busprenuer, Matthew McElligott, who is also a cofounder of BullsnBears, Student Investor and The Money Tree magazine. THE Money Tree (TMT): What team where you on and what was your role? MATTHEW MCELLIGOTT (MM): I was team lead for Pela24. I was doing the business sides of things but also helping out in the development where I could.

JOIN THE MOVEMENT The first StartupBus toured the USA in 2010. Since then, more than a dozen buses a year have visited a variety of cities all over the world. In the aftermath of other StartupBus tours each year, participants have not only founded successful companies but also identified new employers, employees, co-founders and business partners. With this first initiative having come to an end, it’s yet to be determined what the future holds for these start-ups and their participants. One thing’s for sure, the connections made will have a deep impact on Africa’s tech scene and the lives of each of those who embarked on this journey. StartupBus Africa 2014 is already accepting applications on a rolling basis – and space is extremely limited... so apply ASAP! Go to To get a sense of what it’s like on the bus, check out this video:


TMT: What experience did you have before the StartupBus that got you chosen to be a participant? MM: I am currently involved in four different start-up companies in sectors ranging from the financial industry to the low-cost smartphone manufacturing industry to the software and app development industry. TMT: What do you think was the greatest experience on the bus? MM: The best experience I got out of the bus was being able to work with a diverse group of people from all over the world. This has enabled me to create a great network of people across the globe. TMT: Were there any problems or difficulties on the bus? MM: Yes! Most difficult was having no wifi or power for most of the bus trip, which made it extremely difficult to actually get stuff done. A lot of the teams had to resort to programming on pieces of paper and then transferring the code as soon as we got power back. TMT: Would you do it again or recommend other people to apply? MM: I would definitely go on the bus again. They are planning to do another African one in 2014 so I highly recommend people apply for it.




The new Lamborghini Veneno Roadster recently made its public debut on board the Italian naval aircraft carrier Nave Cavour in December when the limited edition super sports car, of which only nine will be produced, was formally unveiled on the flight deck of the 240-metre ship while docked in Abu Dhabi’s Mina Zayed port.

Veneno Roadster T

he Lamborghini Veneno Roadster is a fully roadlegal, open top car, bringing the aerodynamic efficiency of a racing prototype to the road, with extreme design and breath-taking performance. The nine units will be built during 2014, priced at €3.3 million, excluding taxes. With a maximum power output of 552kW/750hp, the V12 Veneno Roadster accelerates from 0 to 100km/h in just 2.9 seconds, with a top speed of 355km/h. It is driven by a 12-cylinder engine with a displacement of 6.5 liters and is equipped with the extremely fast-shifting ISR transmission with five modes, permanent allwheel drive and a racing chassis with pushrod suspension and horizontal

spring/damper units. Shown in Abu Dhabi in the specially developed colour – “Rosso Veneno” – each client will be able to individualise the colour of his Veneno Roadster to suit his or her personal preference. The Veneno Roadster is extreme and guarantees an intense driving experience – because open means truly open. There is no roof, just a strong rollover bar for optimum safety. The design is focused on optimum aerodynamics and stability through fast corners – with handling akin to that of a racing prototype. Yet it is fully road-legal. Every detail of its form pursues a clear function – exceptional dynamics, optimum downforce with minimal drag and perfect cooling of the high-performance engine.

Therefore the Veneno Roadster is unmistakably a Lamborghini; it sticks firmly to the consistent design philosophy of all the super sports cars from Sant’Agata Bolognese. That includes the extreme proportions, as well as the powerfully arrow-shaped front end and the interplay between razor-sharp lines and precise surfaces. The entire design of the Veneno Roadster has been laid out for perfect airflow and downforce. The front end works as a large aerodynamic wing. The visual division of the rear fenders from the car body is a reference to the world of racing cars and optimizes the aerodynamic flow. The smooth underbody transitions into a substantial diffuser framing the four sizable exhaust pipes divided by a splitter.


Every detail of its form pursues a clear function – exceptional dynamics, optimum downforce with minimal drag and perfect cooling of the high-performance engine.

Large openings serve to ventilate the engine bay and direct airflow to the rear wing. The design of the adjustable rear wing is the product of motorsport experience and extensive aerodynamic simulation to ensure optimum airflow in the interaction of the rear wing with the rear diffuser. The design of the exclusive alloy wheels is also determined by aerodynamic functionality – a carbonfibre ring around the wheel rim works like a turbine to deliver additional cooling air to the carbon-ceramic brake discs. The Veneno Roadster is further proof of Lamborghini’s unique competence in CFRP-based lightweight design. A monocoque made from carbonfibre reinforced polymer forms the


basis of the Roadster. All exterior parts are made from CFRP. The Veneno Roadster meets all safety and registration requirements worldwide, and naturally also incorporates a full complement of safety systems from airbags through to the adapted ESP handling system. Carbon fibre dominates also the interior of the Veneno Roadster. The carbon fibre monocoque is visible inside the car around the central tunnel and the sills. The two lightweight bucket seats are made from Lamborghini’s patented Forged Composite. The woven carbon-fibre CarbonSkin is used to clad the entire cockpit, part of the seats and the headliner. Like a hi-tech fabric, this extremely fine-looking carbon-fibre

matting fits perfectly to any form and reduces the weight of the vehicle. The systematic, carbon-fibre, lightweight design of the Veneno Roadster is not only visible, it is also evident on the scales: with a dry weight of just 1,490kg (3,278 pounds), the Veneno Roadster benefits from a power-to-weight ratio of just 1.99kg/ hp (4.38lbs/hp) which guarantees a performance that is nothing short of mind-blowing. Even the stunning acceleration figure of 2.9 seconds cannot adequately describe it. Despite an aerodynamic setup configured for extreme downforce, the Veneno Roadster possesses exceptionally low wind resistance which is what allows it to reach that top speed of 355km/h. Order yours now!



THE OLD MUTUAL OPPORTUNITY THE MUTUAL OPPORTUNITY You getOLD support from the day you matriculate, throughout your actuarial studies to qualification and beyond. Our Paul Hanratty,throughout began his journey as actuarial a bursary student. Wetonow offer you a bursary study at You Chief get Executive support Officer, from Long-Term the day Savings, you matriculate, your studies qualification and to beyond. the University of Cape Town or the University of Stellenbosch – ifbegan YOU his think you have it takes, use the opportunity to to SHINE! Our Chief Executive Officer, Long-Term Savings, Paul Hanratty, journey as awhat bursary student. WeOld nowMutual offer you a bursary study at the University of Cape Town or the University of Stellenbosch – if YOU think you have what it takes, use the Old Mutual opportunity to SHINE!

The bursary covers TheTuition bursary fees covers

Tuition fees Accommodation with meals Accommodation with meals Travel and book allowance Travel andfor book allowance Incentives good performance Incentives performance Academic for andgood emotional support Academic and emotional support Good networking opportunities Good networking Vacation work fromopportunities second year Vacation work from second year

The Old Mutual edge to keep you going TheOne-on-one Old Mutual edge to experienced keep youqualified goingactuary mentoring by an One-on-one byafter an experienced Guaranteed mentoring employment university qualified actuary Guaranteed employment afterexposing universityyou to various aspects In-house rotation programme of our business In-house rotation programme exposing you to various aspects of our business Working with acknowledged industry-leading experts in

omms 01.2014 omms 01.2014 L6651 L6651

different fields, shaping South industry-leading Africa’s financialexperts future. in Working with acknowledged different fields, shaping South Africa’s financial future.

The challenge

Being an Actuary requires: The challenge Sacrifice, dedication and hard work Being an Actuary requires: Proven numeracy skillsand (Mathematics) Sacrifice, dedication hard work Communication Proven numeracyskills skills(English) (Mathematics) An appetite for challenge Communication skills (English) Drive, energyforand initiative An appetite challenge That that proves you’re a cut above the rest! Drive,special energyx-factor and initiative

That special x-factor that proves you’re a cut above the rest!

The reward the end of the journey you will join an elite, talented pool. TheAtreward

You willend beofrecognised a top-earning with specialised At the the journeyasyou will join anniche elite, professional talented pool. skills in be riskrecognised management a range of professional financial arenas – finance, You will as aacross top-earning niche with specialised fund management, investment product design, solution development and skills in risk management across a range of financial arenas – finance, consulting, and retirement and risk planning – among others. fund management, investment product design, solution development and consulting, and retirement and risk planning – among others.


Preference will be given to black South African learners i.e. Africans, Coloured and Indians (ito of EE Act). Preference will be given to black South African learners i.e. Africans, Coloured and Indians (ito of EE Act).

For more information, contact Banele Dondolo at 021 509 2656, email or call more 021 504 7285. For information, contact Banele Dondolo at 021 509 2656, email or call 021 504 7285.

Old Mutual is a Licensed Financial Services Provider Old Mutual is a Licensed Financial Services Provider


by luka vracar


f you think for one moment that you can get away with being one of those men who refuses to wear a tie, and that this gives a unique rebelliousness to your individuality, you fail to realise that ties have been a fundamental element of men’s attire for centuries. You can thank the Croatians for inventing the cravat, a precursor to the modern day necktie, some 350 years ago. We ought to wear ties with pride, as they are one of the few items of fashion that men can truly call their own. But fear and ignorance of style has made us snub the tie, and for decades it has been butchered by used car salesmen and highschool teachers for this very reason. Ties should not be seen as some grey symbol of the corporate world – a set of reins for your boss to yank. The tie is essentially a fashion accessory that is meant to be fun and worn together as part of a suit in order to show off mood and style – that’s why they come in such an endless variety of colours and designs. And all of these colours and patterns are permissible as long as you use them the right way. Use complementary colours and make sure the pattern on your tie does not match the pattern on your shirt. But do not be afraid either to do your own thing. Yes, they can be uncomfortable, we do get that, but they also look good – and it’s not like you are being asked to wear 7-inch heels for a whole night. Man up. Chances are that if it is uncomfortable, you’re wearing it wrong. It might not be entirely your fault, though, as there are some 85 ways to knot a tie, and that excludes bow-ties, ascot ties and bolo ties – it seems the


average man needs nautical training just to be able to make it to work in the morning. Having said that, as a South African male you have probably endured at least five years of compulsory tie-wearing during your highschool years, so you should be familiar with the common Four-in-Hand knot at least. In fact the Fourin-Hand together with a Half-Windsor are the only knots you will ever need. That’s good enough. Get a mirror and get practising.

Stray from these suggestions and people will prefer to talk to your supervisor:

images courtesy of label orange

• The bottom of your tie should just touch the middle of your belt buckle. Styles and shapes change, length doesn’t. • Skinny ties are only for fitted and personallytailored suits that are in proportion with the tie. • The material tag on the back of the tie does not need to be used to tuck in the thinner end of the tie. In fact, let it fly loose! • Ties are fragile. Take them off gently and never ever leave them knotted. • Roll your ties. If the tie is creased, hang it for a day to let the crease fall out, then roll the tie loosely around your hand. Never hang knitted ties, as they will stretch. • Matching the colour of your tie to the colour of your shirt, even if they are slightly different shades, is dated. Don’t do it. • The only embellishments you are allowed are a solid gold or sterling silver clip. That’s it. No exception. The guys at Cravatta Pelliano have taken a bold step forward in resurrecting the tie with a product range of striking Italian knitted ties named after some of the most stylish fictional characters. The young Dutch company even offers a range of colourful bowties for those brazen enough. They are now available in South Africa and you can purchase one of these badass yet stylish ties at



999 Ways 999 Ways to navigate the seven seas


or over 166 years, Swiss watchmaker Ulysse Nardin has been creating some of the most reliable marine chronometers in existence. With its addition to the Marine Diver collection, the Blue Seas, this manufacturer from Le Locle firmly establishes its reputation as a cutting-edge watchmaker. For the novice luxury watch follower, allow us to explain some terminology. A timepiece does just that â&#x20AC;&#x201C; it keeps time. A chronograph has some advanced movements â&#x20AC;&#x201C; watchspeak for additional functionality â&#x20AC;&#x201C; that allows it to measure distinct elements of time, for instance how fast Usain Bolt can run the 100 metres at the London Olympics. Most often, this functionality is controlled through pushing stop and start buttons added to the watch. A chronometer, as produced with regularity by Ulysse Nardin, is a chronograph of extreme accuracy. Now you should understand in what company of watchmaking we are with Ulysse Nardin. Resolutely anchored in aquatic sports, the brand new Blue Sea is designed to tackle extreme conditions. It perfectly combines its dual function as a diving instrument and a beautiful watchmaking piece. Blue Sea has a


self-winding movement featuring a 42-hour power reserve indicator, oversized small seconds and large date display. Its stainless-steel case, 45.8 millimetres in diameter, has been specially treated with a sophisticated vulcanisation process giving it a blue rubber coating with a remarkable appearance and a truly comfortable feel. Its exhibition case-back reveals the self-winding movement, also blued. The non-moving metal parts of the movement have been treated with a stainless blue titanium based alloy. To enhance its look, a wave pattern adorns the structured strap and dial. The hour markers and hour and minute hands are covered with blue luminescent material for improved readability. Fitted with a unidirectional rotating bezel and screwed crown, the case is water-resistant to 200 metres. The reliability of the Blue Sea is further strengthened by an exclusive black ceramic folding clasp and a blue rubber strap with ceramic components. This edition is limited to 999 pieces, each individually numbered and, at the heavy price tag of approximately R90,000 plus travel costs, you will have to work fast before they are gone.

The exhibition case-back allows Blue Sea owners to show their friends the guts and glory of a real chronograph classic. Each of the 999 limited pieces are individually numbered. • Reference 263-97LE-3C stainless steel

• Movement Calibre UN-26, 11 ½’’ • 28 jewels • Power-reserve: approximately 42h • Winding: self-winding • Functions: chronometer with power-reserve indicator at 12 o’clock • Small seconds and large

date at 6 o’clock • Case: stainless steel specially treated with a blue rubber coating using a sophisticated vulcanisation process. Unidirectional rotating bezel • Diameter: 45.8mm • Water-resistance: 200m


• Crystal: anti-reflective sapphire crystal • Crown: screw-down • Case-back: anti-reflective sapphire crystal • Strap: rubber strap with two black ceramic elements and folding clasp • Limited Edition 999 pieces 61


HAVE SAILING LICENSE, will travel by charl du plessis

South Africa’s big wave surfer and 2010 Mavericks champion, Chris Bertish, recently explained in an interview with a famous men’s magazine how he used his sailing skills to get around the world and to earn the money that he needed for his surfing exploits. Now, admittedly, Chris grew up in a sailing familywith his dad having built the first catamaran in Cape Town (Chris recalls how, in those early days, people would ask why his dad had two yachts stuck to one another). Chris virtually learned to sail and walk at the same time. Years later, once he finished school at Rondebosch Boys High School, he confidently skipped abroad armed with his sailing skills and determined to compete and to earn. Time abroad post-school or post-varsity is an important rite of passage. The more so if you consider that longevity forecasts for today’s 20-somethings suggest they may live to over 100 years old and may, therefore, have to work up to a mandatory retirement age of 75 or 80. With that long of a working life ahead, it makes all the more sense to take a few years off to travel and experience the world while you are still young and beautiful. Your parents’ generation had their own rites, too, and they likely backpacked around Europe with a passport filled with tough-to-get visas due to the Apartheid-laden stigma South Africa carried at the time. Then, post-Madiba’s release, when


our own continent finally welcomed us, the overland, Driftersstyle tour guide jobs become de rigueur. What a tough job guiding 20 scared blonde Scandinavian beauties through hostile terrain! After the Commonwealth invited us back in and offered our under 26s special working permits, London housed more South Africans than what one Mrs Balls Chutney factory could handle. We once spent a week in London where a “Seffie” served every meal we had. But, then came corrupt Home Affairs and 9/11 fears, and suddenly the SA passport and the youthful London segue was no longer that easy. Enter the world of the skipper’s license, obtainable regardless of whether you grew up in the Namib desert or on the water like Bertish above. All one needs is a good sailing school, of which there are several in both Durban and the Cape. We first found out about this super-cool work and lifestyle option in a truly bizarre fashion. A few years ago, walking around Monaco’s harbour, and gawking at some of the world’s most expensive yachts, my eye caught one particularly spectacular vessel called Tooth Fairy. (Go Google the yacht to see what I am speaking of.) Even more bizarre was the guy wearing the Springbok rugby jersey climbing the mast. I hung around until he came on shore and we struck up a conversation. He was a young Afrikaans guy from Pretoria who became bored with his job and studies, enrolled for his skipper’s license, and ended up working around the world on the back of this exquisite yacht. (There is also a great story about how the yacht got its name.)

On different trips to the Seychelles, we often encountered cliques of tanned and healthy youngsters hanging around sweeping the decks, yet having the run of these luxury toys for most of the year as they sailed from harbour to harbour waiting for the yacht’s rich owners to jet in for a day or two once in a while. Paul Allen’s Octopussy came through there once, with its own helicopter, basketball court and movie theatre. This is the kind of neighbourhood where you want to work. Of all the young South Africans we met alongside the quays of the worlds’ exquisite marinas, Alex takes the cake. She graduated from UJ with a general BA. She au paired abroad for a while in the north-eastern US, and then started working on yachts. She also learnt to cook. Really well. In fact, so well that a famous Australian media mogul and his wife decided that Alex should cook for them on-board their yacht, regardless of where in the world they sailed, as well as at each of their multiple homes across the globe, even if that meant she had to constantly travel with them on their private Boeing 737 to be on call at their next location. It is hard work, but it pays well and she gets to travel and network with great people.

With that long a working life ahead, it makes all the more sense to take a few years off to travel and experience the world while you are still young and beautiful. So, altogether it’s not a bad idea to get yourself certified at any one of several reputable local sailing academies and, upon graduation, you can set off to see the world. Moreover, if you plan on being a future investment guru or real estate tycoon in your own right, it’s never too early to get to know the glamorous world of large yachts and sailing boats. Each sailing academy tends to reflect its owner’s character, so do check out each of them carefully to find the ideal match. You also need to verify the quality of training, so do ask for several alumni references and make a point of phoning or messaging alumni and asking their opinion. Odds are, once they have sailed for a few years past graduation, they will have a wellinformed idea of what was good or lacking in their training. Finally, pick up a magazine such as SA Sailing, a long-standing institution among local sailors, and see what they have to say about each potential sailing school. The courses can be quite expensive and your life and limb may depend some day on the quality of your training. So, do the homework upfront. Anchors away.



Stock pick


Woolworths Holding Ltd

oolworths is involved in the retailing sector in South Africa. It offers quality clothing, food, home-ware, beauty and financial services under its own brand name. It also operates in Australia via its investment in Country Road and more recently Witchery (ASX: WOW). Woolworths targets the higher income market by providing customers with the top-quality products. It is also now targeting the upper echelons of society through its comparative advantage in the retailing sector. Despite the recent turmoil in the credit markets, Woolworths has come out fairly unscathed. With rising petrol and electricity prices and inflation growing faster than wage prices, people’s disposable income has shrunk. This has resulted in the increase in bad debt and the tightening of credit. With the tightening of credit comes a decrease in consumption expenditure. Now, while this credit tightening has severely affected stores such as Shoprite that target lower-income households, the credit turmoil hasn’t affected Woolworths’ sales. Recently they announced an increase in sales of 20% while analysts were predicting an increase within the range of 12%. With the ever-growing middle and upper classes in South Africa there is an ever-growing customer base to be served

and Woolworths face little competition in their niche of targeting higher income households. Woolworths also demonstrates a serious commitment to sustainability.* This often undervalued trait gives companies a big comparative advantage against those who don’t. Woolworths was recently included in the Dow Jones Sustainability Index and is the only South African company to be recognised by the World Economic Forum’s “New Sustainability Champions”. Woolworths has recently been sold off and value can be found in this share at current prices. A few quick stats that depict this value can be found in the price to earnings which has dropped from 26 times to 22 times; the debt to equity is only 0.3; and the return on capital has averaged around 30% over the last six years. The only downside in this stock is its NAV to Price which is over 11 times, and with this comes a degree of risk. The chart depicting the share’s recent performance shows how well it has done. But the question is whether it can continue its splendid run. With its solid and sustainable performance thus far, as well as its relatively low price to earnings (compared to Pick n Pay at 42 times, and Shoprite at 26 times), there still may be great things to come from “Woolies” in the next few years.

[JSE ticker: WHL]

Woolworths 3 years (6,900c +174.90%) 8741 6952 5163 3374 1585 2011



*If you are interested in learning more about the importance of sustainability, we recommend this rather long, but important article:


To: All Investors With about ZAR5.00 billion under management and a good track record, why not invest with us. Invest wisely. Contact:

A bs o l ut e ly P o s i t i v e P e rf o rma n c e

The MoneyTree #1  

February 2014. The first edition of South Africa's freshest, most exciting finance, business and lifestyle magazine.

Read more
Read more
Similar to
Popular now
Just for you