Assets & Investments

The strength of the Rule of Law in a country ranks among the top three considerations when multinationals make decisions about where to locate foreign direct investment – above considerations such as the cost of doing business and access to national and regional markets. 

We live in a society of instant gratification. Google and Uber have become verbs – showing how accessible it has become to find information instantaneously and get a taxi to your doorstep in minutes. Click for takeaway food. Download a movie. Shop online. We post or tweet and are instantly heard by hundreds or even thousands of people. 

If I were to ask you what your business assets are, you would most probably list your computer equipment, your vehicles, your furniture and the like. You will have read all the books on how important people are, so you would probably identify your people as your most valuable asset. If you were marketing inclined, you would list your brand as an asset. And, if you were really smart, you would no doubt also include your company’s reputation as an asset.

We are an investment manager investing in South Africa. Our capital comes exclusively from American investors. Being based in New York and Johannesburg gives us a useful perspective on how SA is perceived by the international investment community.

The rise of new technologies and fin-tech has made investing simpler, more transparent and cheaper than ever before, leading many to adopt a DIY-approach to their finances. So, in a world where investing is as easy as ordering take-out, what are the dangers of self-managing your investments, and why should you consider seeking professional financial advice?

The Bureau of Economic Research released the Business Confidence Index (BCI) for third quarter of 2019. The index plummeted to a 20 year low of 21 index points. The BCI remained unchanged between the first and second quarter of 2019, before weakening in the third quarter. The BCI has trailed below the 50 neutral mark (a value above 50 signals optimism and pessimism is indicated when the value dips below 50) for the 19th consecutive quarter.

Trusts are well known as tools for estate planning but often misunderstood in terms of their role and usefulness in preserving wealth for family and heirs.

In South Africa we are fortunate to have freedom of testation, or simply put, if you are 16 years and older, you can choose whom the beneficiaries of your earthly possessions will be after your demise. As such, it is important that your Will is properly executed. 

With GDP up 3.1% in the second quarter of 2019 (seasonally adjusted, annualised) and 0.9% for the year to June 2019, the markets have responded positively. The rand appreciated by some 10 cents on publication of the data and bonds yields declined by about 10 basis points.

There are numerous ways to value a business, but which one can help me arrive at a useful approximation – specifically if I want to sell my business?