The MoneyTree #2 by The MoneyTree

Issue #2 2014

tHE INVEST IN THE

mONEY TREE Issue #2 2014

Invest in the

Sweet Life

JM BUSHA

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. Itâ&#x20AC;&#x2122;s your performance. www.jmbusha.com or invest@jmbusha.com

EXECUTIVE REPORT Dear Student Investor, This issue of The Money Tree marks a very important step in making an impact on the lives of young South Africans, and South Africans as a whole. A shift in mindset is happening, young people are beginning to realize the possibilities of financial abundance, and the future is blossoming. With the brilliant success of the first issue, The Money Tree has now begun to fulfil its vision of becoming an iconic youth-oriented Lifestyle, Business, and Finance magazine. Our national Roadshow saw over 5,000 excited learners ready to start investing and saving. This achievement has been the catalyst to an exciting journey for Student Investor, and The Money Tree. See the roadshow article on pg 39 for the whole story. In the second edition of The Money Tree magazine, you can expect even more exciting content. Did you know that Candy Crush makes almost $700,000 a day? We start to explore the less conventional businesses out there, as well as provide some easy to read tips on portfolio strategy and how to start investing. Our lifestyle content brings you some more awesome events happening this year in South Africa, and up and coming trends such as microbreweries. Youth entrepreneurship is definitely on the rise this year, and we like to celebrate this in our Entrepreneurship section. Thousands of students have now become young investors, with The Money Tree magazine in hand. The distribution on campuses around South Africa was an exhilarating experience, with eager readers grasping at a much anticipated first publication. Subsequently, we have had interviews with Kaya FM, Urban Brew Studios, and Destiny Man. South Africa here we come! Ultimately, our vision is to get The Money Tree into the hands of every high school and university student around the country. Your support and readership is what will get us there, and for that we are grateful.

Matthew Piper

Thousands of students have now become young investors, with The Money Tree magazine in hand

the

inside

scoop ISSUE #2 2014

MARKETS & ANALYSIS

ENTREPRENEURIAL EDGE

26 Mining: The Goose That Laid the Platinum Egg

28 InnovateSA

52 Fund Focus: Consolidated Infrastructure Group

40 Focus On: AEISEC

54 Economic Report: The Next Cash Cow

39 Review: Student Investor Roadshow 58 Success Stories: The Microbrewery Revolution

THE NEW INVESTOR 19 What Is Ratio Analysis 30 Diversification: Buffett vs Graham 32 Portfolio Strategies: 4 Types 34 How To Become a CA 36 Beyond Social Networks

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the

inside

scoop ISSUE #2 2014

ENTERTAINMENT

REGULARS

LIFESTYLE

6 Calendar of Events

1 Executive Report

42 Bikes: Harley vs Vespa

8 Tech & Gear

18 Advice from an Elder

46 Extreme Sport: BASE Jumping

10 Apps

21 By the Numbers: Enter Samsung

56 Montblanc Pens

12 The King of Candy

38 Columnist: Sheraan Amod

64 Womenâ&#x20AC;&#x2122;s Business Attire

14 Films & Games

72 Columnist: Rich Mulholland

66 Dinner Date

16 Profile: DJ Chris Taylor 22 The 10 Best Business Books

68 Student Life: UCT Pictorial

the

money tree

MEET THE FOUNDERS

A Student Investor Publication Issue 2 2014

For Student Investor

Matthew Piper matthew.piper@studentinvestor.biz 071 293 4409 Tokologo Phetla tokologo.phetla@studentinvestor.biz 073 684 8874

For The Money Tree Magazine Publisher Chapel Lane Media Charl du Plessis charl@chapellane.co.za 082 452 8110 Managing Editor Tanya Goodman tanya@chapellane.co.za Art Direction White Space Invaders ws-invaders.co.za 082 959 3263

Advertising Sales Tokologo Phetla tokologophetla@tmtmag.co.za 073 684 8874

Matthew Piper is Founder and CEO of Student Investor (Pty) Ltd. His passion for entrepreneurship, investing and empowering others to create financial wealth is what drove him to create Student Investor and The Money Tree. When away from the bustle of business life, he spends his time on other passions such as art and academia. Matthew aims to be at the forefront of change in South Africa, through entrepreneurial spirit and leadership.

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.”

Jack Newby is passionate about the financial markets. Numbers have always fascinated him. Jack learnt about investing when he was 18. He has been managing his own portfolio since then, with great returns, and as a finalist in the JSE Investment Challenge has proven his mettle in the investing arena. He believes Student Investor can help the youth of South Africa learn about financial markets and encourages everyone he meets to be a part of this revolution.

Karidas Tshinsholo is an actuarial science student. He is a serial entrepreneur, hectic jazz fan and parttime nerd who looks up to his mom and is crazy about Mustangs. A visionary who knows he is an integral part of a bright future for the African continent. His love for GOD is why he wakes up every morning.

Distribution

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 distribution@tmtmag.co.za Print by CTP, Cape Town Stock Photos from Thinkstock.com

The Money Tree magazine is published quarterly by Chapel Lane Media on behalf of Student Investor. Opinions expressed in this publication are not necessarily those of Chapel Lane Media, 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 editor@tmtmag.co.za Copyright © 2014. All copyright for material appearing in this magazine belongs to Chapel Lane Media in conjunction with 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 AFRIKABURN

Secret location, Tankwa Karoo, Northern Karoo April / May Modelled after the world famous Burning Man festival in the US, Afrika Burn is a one-of-a-kind festival. No money is used in exchange for goods, as festival-goers are encouraged to use a bartering system. Bananas for beer, foot-rubs for food, or water (bring LOTS of water) for, well, you might get desperate for water in the Karoo desert heat. They offer art installations, performance pieces, strange and wonderful costumes and elaborately decorated cars and they insist that no single genre of music defines the festival – you might find someone playing a cello in a hut or a group of hundreds dancing to psychedelic trance. www.afrikaburn.com

MTN BUSHFIRE House On Fire, Ezulwini Valley, Swaziland May / June This is a festival that promotes African music and creative talent while also playing a big part in promoting social responsibility. Bushfire features Pan-African live music, theatre, poetry, film, circus, dance and visual arts, with family-friendly areas and outdoor activities to boot. The setting is also one of the most breathtaking, located in the farmlands of Swaziland. Plus, 100% of their profits go towards AIDs charities and community-based projects, so you know this isn’t just a get-rich scheme by the organisers – or a flash in the pan. More than 100,000 people have attended the festival in the last seven years. www.bush-fire.com

Bananas for beer, foot-rubs for food, or water (bring LOTS of water) for, well, you might get desperate for water in the Karoo desert heat. – AfrikaBurn 6

GRAHAMSTOWN NATIONAL

ARTS FESTIVAL Grahamstown, Eastern Cape June / July The National Arts festival is a celebration of all spheres of culture in South Africa, with jazz, opera, theatre, folk-music, cabaret, drama and art exhibitions all thrown together. Grahamstown is transformed into a melting pot of culture for two weeks as the whole town rallies together (or cowers from the masses); parking lots become flea-markets, school halls become theatres and the streets become stages. It truly is one of the most important and most interesting festivals on offer. www.nafest.co.za

COMEDY

JEFF DUNHAM

Johannesburg May 10 America’s number one comedian and his beloved cast of characters are back in a brand new jampacked show with more laughs than ever before! Dunham returns with Walter the Grumpy Retiree, Achmed the Dead Terrorist, the beer-fueled redneck Bubba J, the manic purple creature Peanut, the spicy pepper from south of the border Jose JalapeNo, and Peanut`s own ventriloquist dummy Little Jeff, a mini-version of the ringmaster himself. One night only at the Coca-Cola Dome.

DELHEIM WILD MUSHROOM HUNTS STELLENBOSCH JUNE 16 – 17 While many fungi fans remain tight lipped about their favourite hunting spots, Delheim’s Nora Sperling-Thiel welcomes foraging fans to join her and Gary Goldman – an enthusiastic mushroom expert and cultivator who goes by the moniker Mushroom Guru – for a walk on the “wild side” on this legendary wine estate to indulge in some mushroom magic. The day starts with a rather essential lecture on wild mushrooms before gearing up for an enchanting excursion through the pine forest. After working up an appetite hunting for varieties ranging from pine-rings to ceps, guests are rewarded with a mouth-watering mushroom-themed buffet in Delheim’s historic Vat Cellar. Space is limited so contact info@delheim. com in advance.

PERFORMANCE ARTS

CIRQUE DE LA SYMPHONIE

Cape Town June 21 – June 22 Back by popular demand since it sold out performances last year, this exciting production bring the magic of cirque to the music hall. Artists include aerial flyers, acrobats, contortionists, dancers, jugglers, balancers, and strongmen. Each performance is professionally choreographed to classical masterpieces and popular contemporary music in collaboration with maestro Theodore Kuchar and the Cape Town Philharmonic Orchestra. Grand Arena at Grand West.

technology

gadgets CLIP IT According to a 2012 Pew Research study, 82% of smart phone owners are using them to take pictures. If you want the fun of capturing images when you want and wherever you want, check out the new olloclip 4-in-1 quick-connect lens, which offers fisheye, wide-angle, and two macro (10x and 15x magnification) lenses. The four new quick-change lenses are similar to those available with larger DSLR cameras, yet fit easily in a pocket and the palm of a hand. Simple, elegant and unobtrusive, the olloclip 4-IN-1 lens connects to the iPhone within seconds. Suggested retail price is R600. More info at www.olloclip.com

SNIP IT Grooming for men has become big business and Philips has a wide range of products aimed at making these necessary tasks simpler and quicker. The new Philips Norelco Do-It-Yourself Clipper can multitask almost better than your mother can. It has a unique 180° rotating head that makes it easy to reach even the most difficult spots and the head shave attachment, should you be so inclined, can deliver a perfectly smooth pate without those pesky nicks or cuts. If you don’t want to go all the way, there are 14 built in length settings from 0 – 15mm to choose from. For added convenience, it operates with or without a cord and battery power lasts up to 60 minutes after a 1-hour quick charge. Now you can spend your time on other, more pressing business. Available from www.loot.co.za for R762

NAB IT Wearables are all the rage but this one from Razer – the Nabu – might just be IT. Engadget fans recently rated it the best wearable to hit the market. Most wearable devices deliver app notifications to your wrist, but Razer’s Nabu takes the social element to a new level by incorporating two screens: a Public Icon Screen and a Private Message Screen. So, the wristband displays the regular array of alerts for personal texts, phone calls, bio data feedback, etc, but it also communicates with other Nabu devices to exchange fun social information like finding nearby friends, identifying mutual acquaintances and other data based on userdefined settings. What is particularly cool about these guys is that they have developed it on an open platform and it will be available on both iOS and Android devices. The Razer Nabu will be available for sale worldwide in late Q1 2014 (retail price still tbd), but developers can sign-up now and get the band at the developer’s price of approx R500. Learn more at www.razerzone.com

WATCH it If you prefer the more traditional device, the Runtastic GPS watch will record those all-important parameters including pace, laps, calories, distance, heart rate, speed, duration, and time, as well as altitude and target heart rate zones. With the Runtastic connect software it is extremely easy to upload all tracked activities to the Runtastic fitness site. Connect the Runtastic GPS watch via USB to a computer and all activities will be transferred to your profile at www.runtastic.com. There you will find all the important statistics and graphs and you can edit your sessions. You also get five different training profiles, training alarms and a nightlight. Available from www.mantality.co.za at R1,999

TOUCH it Attempting to use a touchscreen device when you’re wearing gloves is a little like trying to cross-stitch while wearing oven gloves, i.e. almost impossible. Thanks to the special conductive material discreetly woven into the forefinger, middle finger and thumb tips of these stylish gloves, you can keep your fingers toasty and activate your touchscreen devices at the same time. The fingertips are designed to be conductive but the material will not scratch or damage your touchscreen in any way. (Phone, of course, not included.) Get it at www.mantality.co.za for R127

technology

Apps

UBER Uber is a venture-funded startup transportation network company based in San Francisco, California that makes a mobile application which connects passengers with drivers of vehicles for hire and ridesharing services. The Uber app allows its users to request a cab using their smartphone’s GPS, removing the need to call the cab company. The rates are quite competitive with local cab companies but what sets them apart is that if you use Uber you arrive in style,

TINDER Tinder is a location-based social discovery app that facilitates communication between mutually interested users. It is used for dating as well as other kinds of networking. To use the Tinder app you simply create a profile using your Facebook account and choose a few pictures. Then, by accessing your smartphone’s GPS the app shows you all the women/men (depending on your preference) nearby who also use the app. You’ll be shown that person’s photos, and be told whether you have any mutual friends and similar interests. Now, you have two choices: either swipe left, if you don’t like them, or swipe right if you do. If that person also swipes right – bingo – you’ll both get a notification saying you have matched and the app will allow you to chat with each other. At the moment Tinder claims to be matching 10 million people per day. The huge popularity of the app comes from the way in which it removes the initial awkward stage of meeting someone and wondering if they like

as their fleet only consists of “high end” vehicles such as Audi, BMW, Mercedes etc. Your Uber account is linked to your credit card so it makes it more convenient for you to pay for your cab and with Uber being in over 30 countries around the world, you can use the same account wherever and whenever you travel. Download the app now and use it the next time you need a cab – you won’t be disappointed.

you or not. Once you’ve been Tinder-matched and can start chatting, you both obviously already know that there is mutual interest. The rest is up to you. Some say that this is ruining the dating and social world, while a lot of people think it’s the best thing ever. It’s up to you, give it a try and see if you match with someone.

At Citi, we are as unique connected At Citi, we areand as unique and to Africa as connected you are. to Africa as you are. Across the continent, someone in our firm is meeting a client, closing a transaction or Across the continent, someone in our firm is meeting a gaining the skills to pass on to the next generation. client, closing a transaction or gaining the skills to pass

For over 50 years, we tirelessly to help turn dreams into reality across Africa. onhave to theworked next generation. Doing business in more than 40 countries across the continent, no other bank knows Africa For over 50 years, we have worked tirelessly to help turn like we do. dreams into reality across Africa. Doing business in more

At Citi, career opportunities never sleep.

than 40 countries across the continent, no other bank

For more information on available positions knows Africa like we do. and exciting opportunities, please contact us at: africa.careers@citi.com www.citigroup.com

At Citi, career opportunities never sleep. For more information on available positions and exciting opportunities, please contact us at: africa.careers@citi.com www.citigroup.com

Citi never sleepsâ&#x201E;˘ Citi never sleeps

entertainment

The Kings Of

o you remember your first colour bomb? The power of it was astounding. With one flick of the finger, an array of blue jellies exploded in a flash of electricity, points cascading down the screen like psychedelic rain. For hours I pursued that line of 5 jellies just to experience a colour bomb one more time... Each level started getting harder, and neither colour bombs, nor flying fish, could help me. This was a battle of foresight. I had to be 2, 3, 5 moves ahead to make the cut, and I dreaded what would happen if I lost. Facebook comments from friends made me feel like I wasn’t the only one: “350 for almost 3 weeks.” “Who can help me on level 350, been stuck here for months?” “Need more levels, passed 560, where is 561??” OK... I won’t lie. I am on level 27, but looking through the Facebook fan page of Candy Crush Saga, dubbed the world’s most addictive game, I can see what I am in for. Stealing every chance I can get on a friend’s phone (unfortunately/fortunately

BY MATTHEW PIPER

my Blackberry Curve does not support the game), I have made it thus far (in a couple days). Every now and again my lives dwindle towards zero, but as a normally self-disciplined guy, I soldier through the 30+ minutes for my revival, until eventually, I too start to break down... I remembered back to that one friend who always spammed me with Candy Crush requests, and returned the favour! This was not sustainable though, and I needed new sources of life. The only thing I could do was look to my closest friends – those who would understand my need. Level 350, it must take forever to get there! There are two things you need to know about me, I am always thinking about how business works and I am very competitive, so naturally I needed to know the winning secret, as well as the ulterior motives. It then dawned on me - R12.50. The trade off: A small amount of money in return for the possibility of becoming the best. I could simply buy my lives, and save 30+ minutes of playing time. Herein lay the bigger picture, something which excited,

and surprised, me more than colour bombs: The simple billion dollar business of crushing candies. Some quick facts: • Candy Crush makes roughly $633,00 per day • $500 million raised in 2013 IPO • King, the makers of Candy Crush, is valued at $6 billion since its IPO in 2013 • A 14-year-old boy spent $4,300 on boosts and extra moves • Candy Crush has 132.9 million monthly Facebook-connected users With 132.9 million monthly connected users all paying R12.50 at some stage, of course King would be making this much money, right? Wrong! The reality with free online gaming is that what is available for the many is paid for by the few. On average, 50% of revenue in gaming is generated by 0.15% of users. In business, this looks like seriously undiversified risk to me! The likes of King and Zynga (the

creators of Farmville) are raking this all in, and with profit margins in the realm of $700 million – I wouldn’t be complaining either. With King’s recent IPO falling short, down 16% on their first day of trading, the business world is finding gaming, and their business models, quite hard to swallow. Time will tell whether King will be able to rule the markets, or just remain The Kings of Candy. With only one winning title under their belts, which made up three-quarters of their revenue in 2013, the risk looks too large to bear for most investors. Perhaps the $500 million raised through the IPO will help them on their way to creating a larger gaming empire, with a few more “Candy Crushes” on the way. Only time will tell how well this app will do in the future. But if you haven’t played it yet, then download it now off your app store and see what the whole craze is about. (Warning: you will get addicted!)

The reality with free online gaming is that what is available for the many is paid for by the few. On average, 50% of revenue in gaming is generated by 0.15% of users.

Candy Crush

Candy Crush Saga was the most downloaded free app and top revenue-grossing app in 2013. The game involves lining up similar kinds of candy to earn points and more lives to progress through all 500 levels. Additional levels are released by the company, which keeps players excited to play more. The game is available for free download, and you don’t have to pay to enjoy the game or to progress through it. Yet, players spend approximately $900,000 per day to buy additional lives and to unlock new levels quicker. With an average of 100 million daily users and profits of $1.3 billion in 2013 this “little” game is outperforming hedge funds, banks and airlines and is competing in revenue with the likes of Facebook and Twitter.

entertainment

1 MAY

3 DAYS TO KILL

In this heart pounding action-thriller, Kevin Costner is a dangerous international spy, who is determined to give up his high stakes life to finally build a closer relationship with his estranged wife and daughter, whom he’s previously kept at arm’s length to keep out of danger. But first, he must complete one last mission – even if it means juggling the two toughest assignments yet: hunting down the world’s most ruthless terrorist and looking after his teenage daughter for the first time in 10 years, while his wife is out of town. Costner sure has had his ups and downs, if you remember Dances with Wolves or the hugely expensive 1995 wash-out Waterworld, yet he has a fan base that would make Clooney green, so be sure to book early.

23 MAY

WALK OF SHAME

After losing an audition for her dream job, Meghan Miles (Elizabeth Banks), a Los Angeles TV news anchor, goes out for an uncharacteristic night of partying. She awakes in a stranger’s bed to a phone message announcing the job is hers, if she can make it to the news station by time of broadcast. Stranded in an unknown area without money, a phone, and a car, Meghan embarks on a series of misadventures. As she races to the most important job interview of her life, she finds herself among drug dealers and hookers – all while being pursued by the LAPD, an angry taxi driver, and a young kid with an attitude. The cast also includes James Marsden, Gillian Jacobs, Sarah Wright Olsen, Kevin Nealon, Ethan Suplee, and Bill Burr.

13 JUNE

EDGE OF TOMORROW

The epic action of Edge of Tomorrow unfolds in a near future in which an alien race has hit the Earth in an unrelenting assault, unbeatable by any military unit in the world. Major William Cage (Tom Cruise) is an officer who has never seen a day of combat when he is unceremoniously dropped into what amounts to a suicide mission. Killed within minutes, Cage now finds himself inexplicably thrown into a time loop – forcing him to live out the same brutal combat over and over, fighting and dying again… and again. But with each battle, Cage becomes able to engage the adversaries with increasing skill, alongside Special Forces warrior Rita Vrataski (Emily Blunt). And, as Cage and Rita take the fight to the aliens, each repeated encounter gets them one step closer to defeating the enemy.

FIFA 14

THE WORLD CUP COMES EARLY Come 18 April, months before the official real-life kick-off, football fans can start their own virtual tournie with the launch of EA SPORTS 2014 FIFA World Cup Brazil. This new blockbuster features multiple innovations and improvements to the award-winning gameplay of EA SPORTS FIFA 14, putting players in control of their nation’s fate. From the ability to accelerate, decelerate, and change direction quickly on and off the ball with Explosive Movement, to the new World Class Control feature that uses Response Dribbling and Pinpoint Passing, fans will feel the athleticism and skill of their national football heroes. And one hundred new animations, including passing, saves, and penalty kicks, help play on the pitch to explode with the drama and unpredictably of the official tournament. With 203 national teams, 7,469 players, 19 officially licensed managers, and 21 new stadiums including all 12 authentic stadiums from Brazil, the 2014 FIFA World Cup comes to life with more detail and authenticity than ever before. Feel the support of a nation with all-new crowd scenes including banners, flags, and seat cards in the stadium, and from Live City events in all corners of the globe. Score a goal with England and see fans react live from the centre of London. Now everyone has a chance to write football history. In Road to the FIFA World Cup™, the most immersive tournament mode from any EA SPORTS title, players can play with 1 – 32 players locally through the qualifying rounds, and on to the group stages of the FIFA World Cup. Along the way, fans can get tournament updates from EA SPORTS Talk Radio, featuring Ian Darke and Andy Goldstein, or Roger Bennett and Michael Davies (Men in Blazers), with over 50 hours of recorded content to stay up to date on all the action. For those who want to celebrate the tournament online, Road to Rio de Janeiro™ is an all-new mode that lets players win their way across a map of Brazil’s 12 host cities in licensed and authentic stadiums. Would it be fair to call this “the beautiful game?” 15

PROFILE

To play with Avicii. That is a dream that very few would have the guts to realise.

hris Taylor does not know the meaning of “No.” It is kind of endearing, the way in which this classy DJ, who can have crowds eating of the palms of his hands by night, claims that his success stems from the mottos of his junior school “Persevere” and his high school’s Dominus Pastor (“Be All You Can Be”). And so, after setting a Facebook campaign in motion among his fans, and submitting his very best demo mix, Chris Taylor not only got to open for Avicii in Cape Town, but later that evening spent some time with his icon back stage. Persevere, indeed, although I am not sure that the old purple-haired biddies at the Harare prep school exactly had Chris’ kind of eccentric career in mind when they chose that motto!

We sat down with Chris in Cape Town. This, now, is home, a long way from Harare where he grew up with what sounds like an awesome woman, his mother. His father, an airline pilot, gave him his first DJ set-up with which he played at local parties whenever they needed music. His mum’s boyfriend played Louis Armstrong and Tracy Chapman around the house and Chris picked up a bit of guitar from his dad. “We had music in the house and it kept up the levels of positive energy,” he says. Chris landed his first residency in Zim at Red Bar. But he grew restless. Having sold his equipment to sponsor a three-month sailing course in the Cape, it seemed tougher to end up on a superyacht in the Med than Chris thought, and he soon had to re-assess

what next. His best music mate, Kevin, was doing sound engineering in the Cape, so after a stint back in Zim, Chris moved down for keeps, into the Cape and the world of sound. “I wanted to make music on a computer,” is how he describes his ambition at the time. And that is what he did.

“Chris gets visibly emotional about how he managed to get on stage with Avicii. It was a trail of hopes and disappointments, and then, finally DJ Fresh announced the winners.”

Photography by MARC BERMAN PHOTOGRAPHY

Now unshackled from the small Zimbabwean commercial sound environment, Chris had the opportunity to develop his own style of music as well as his personae. This is where Avicii played a big part in Chris’ taste in music – after Levels and Blessed there was no going back. Chris was in the progressive house school to stay, and his fan base started growing. Otherwise cool in every aspect, Chris gets visibly emotional about how he managed to get on stage with Avicii. It was a trail of hopes and disappointments, and then, finally DJ Fresh announced the winners. Chris had one week before the show to prepare, knowing he was the Cape Town winner. Chris describes Tim Bergling of Avicii as “kind and friendly” and they even shared a shot of Patron and took pictures. “He is a really nice

christaylordj

guy and very cool.” From there, Chris has not looked back and his schedule is packed. Playing with Hardwell at the Velodrome has also not done him any harm, and residencies followed at Knoxville, Affinity and the Side Show. The only thing about which this incredibly hard worker and big talent still seems uncertain is when to release his own songs. He has put a lot into it so far, yet he is just not quite sure it is ready and quite there, so he will wait and polish it a bit more before taking the next interesting plunge. He tells us he is working on his album and hopes to release it at the end of the year or early 2015. For his fans, it will be worth the wait. For everyone else, you may yet become a fan. What is not to like about this awesome musical talent? Chris’ next big dream – to play

@Chris_Taylor_DJ

at Tomorrowland in Boom, Belgium, one of the world’s pre-eminent music festivals.

DJ Chris Taylor with his state-of-the-art V-Moda headphones, sporting his own logo and his own customized pink and white. At last count, there might be three or four pairs like this in the country!

christaylorofficial 17

advice

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.

Dear Elder, I’m in love with someone quite a bit older than me, what do I do? Is this a problem? Will it work? Xander, UJ Dear Xander, There was this guy in our Law class who dated a Llandudno divorcee. We joked with him, calling her his “oumatjie.” The jokes stopped when he told us about his days lazing on the best beaches, sipping the best wine, being flown to cool events all over the country and, most of all, learning a lot from a person who was more experienced, in every possible manner. He never explained why they broke it off, but he ended up being pretty normal and happy. So, we cannot predict the outcome but we can encourage you to go for it. The Elder Dear Elder How do I know when I’ve been friendzoned? I really like this one person but I’m not sure if she just likes me as a friend. Patrick, Wits Hi Pat, Is it fun and uncomplicated to be with her? No stress, speaking her mind and cracking jokes? Hair let down and easy on the make-up? Does she seem to care what her friends think of the time you spend together? Congratulations, you may have a friend! And between us girls, have you noticed that it is significantly less high maintenance to hang out with her? The Elder 18

Dear Sir (I think), I think my boyfriend is cheating on me, but I don’t want to cause any more drama in our relationship because it is edgy at the moment. Do I ask him if it’s true or do I wait for confirmation? Abayomi, Tuks Dear Abayomi, This is a complete no-win. Try and do the honest and open thing by asking him straight and see where it gets you. You will get a diatribe on lack of trust and if he was looking for an excuse to dump you, this would be it. On the other hand, ignore at your own peril. I think the real question is what you understand by “cheating.” In a world of benefits, I do think that emotional attachment is by far the more important aspect of a genuine relationship. Even if he were not exactly dating someone else, you would know if he has grown emotionally distant. That should be your sign to work even harder at getting him back, or cutting your losses and moving on. The Elder Dear Elder, I really want to ask this girl out, but it’s been so long since I’ve dated someone... How do I do it? Alan, UNISA Dear Alan, Just ask. And then ask again. And then ask someone else too. As a longtime Turkish university friend of mine always claimed: “It is a percentage game, all of life. You have to try 10 times to get what you want at least once.” Need I say more? Ask yourself what is the worst thing that can happen to you should she say “no.” Now, is that so bad? The Elder

RATIOS

QUESTIONS ABOUT DEBT Can the company pay its debts?

400 companies on the JSE! We SOLVENCY RATIO = TOTAL ASSETS/TOTAL LIABILITIES are so spoilt for choice, so how If more than 1, company can pay long term debt do we come to a decision where to invest? Using ratios as a filter is one QUESTIONS ABOUT LIQUIDITY way to narrow down companies to How easily can the company pay its debts? look at. Ratios represent a quick way to answer hard questions. CURRENT RATIO = CURRENT ASSETS:CURRENT LIABILITIES Rule of thumb, 1.5:1 is good, although 1:1 is becoming more accepted depending on industry.

ACID TEST = CURRENT ASSETS – INVENTORY : CURRENT LIABILITIES Rule of thumb, 1:1 = good, but less can be acceptable depending on the industry, and how quickly inventory can be turned over.

QUESTIONS ABOUT PROFITABILITY How much money is the company making?

ROE = NET PROFIT/TOTAL EQUITY * 100 Shows how much money is made in comparison to what shareholders have put in. PROFIT MARGIN = (Any profit figure(net profit/gross profit/operating profit)/TURNOVER*100) This allows you to see how much profit is being made as a percentage of sales at any stage of the income statement. Increases in these margins show: tighter expense control, larger market share, or better sales.

QUESTIONS ABOUT EFFICIENCY How well does the company make its money?

RECEIVABLE = DEBTORS/creditors *365 How long debtors take to pay (should be less than PAYABLE) PAYABLE = CREDITORS/inventory *365 How long it takes to pay creditors. STOCK TURNOVER = INVENTORY/COST OF SALES * 365 How many days it takes to turnover stock.

QUESTIONS ABOUT FINANCING How much does the company owe, and how does the company finance itself?

DEBT TO EQUITY = TOTAL DEBT/TOTAL EQUITY Shows how much of the business is funded by debts(loans), and how much through equity (selling its shares)

TIMES INTEREST EARNED = profit(before interest and tax)/interest payments. Shows how many times earnings will cover interest payments – Reflects the ability of the company to handle interest bearing loans.

Define your preferences, and apply them to the filter to come out with a manageable list of companies to further analyze. There are other ratios which you can also add to the filter to suit your investing style, which may come with time. You can find benchmarks by familiarising yourself with competitor companies in the same industries. 19

by the numbers

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entertainment

BY CHARL DU PLESSIS

10 BOOKS ON

BUSINESS You would like to be the next Richard Branson? Who would not? Therein lies the problem – he was an original. He succeeded at trying to be different (like everybody else). So, no book called Seven Steps of Something or Ten Secrets of Another will give you any silver bullet. Walk right past that section in the airport bookshop. Yeah, sure, there was a guy with a Porsche who became a monk. And likewise, some arrogant and brash investment banker went around the world on a bike and treated his bike and girlfriend equally roughly. But really, we suggest, if you want to be successful, be an original. Read for ideas and habits that may make your journey interesting and offer you unique insights, rather than searching through other peoples’ recipes for turning you into little mini-me’s. Start with the following books...

BUILT TO LAST ON ETHICS AND ECONOMICS BY AMARTYA SEN

He won a Nobel Prize for Economics. More importantly, he introduced the measures commonly used by the UN and other agencies to truly test whether nations and their people are making progress (the United Nations Development Index). It is often a shock to rich nations to discover that their wealth is not spent that well on their populations, as being rich has proven not to necessarily equate with being the best at developing a nation. The same holds true at firm, industry and individual level. There comes a time, and it will happen in your life, when you will realise money is not everything. Sen explains why money and the pursuit thereof cannot be separated from trying to do the right thing. Another way to think of this book is that it just might keep some of your classmates out of the psychologists’ office or out of jail for fraud, insider trading, tax evasion and what more.

BY COLLINS & PORRAS

Another compact book brimming with good insights and, for at least the past 20 years, the darling of the managerial classes who generate all that wealth for investors. The two researchers and their underlings crunched the data that successful and less successful firms generated over almost a hundred years, then introduced some control over different variables, and finally came to an elegant yet very simple conclusion. The quality and performance of a company over the long term is inextricably linked to its leadership and the ability of this leadership to articulate a clear and inspiring vision of the firm and its future. So, if you are a fan of people like Branson, Jobs or Gates, rather than having to plumb their autobiographies, good or bad as they may be, looking for some hidden secrets, you could just read this little book. It has done the hard-lifting for you. There are few CEOs of Fortune 100 companies who do not have this book on their shelf.

PRICE OF A DREAM BY RICHARD BORNSTEIN

JESUS, CEO: USING ANCIENT WISDOM FOR VISIONARY LEADERSHIP BY LAURIE BETH JONES

When this book was written in 1996, the idea of spirituality entering the world of management was pretty new and the title also had people sit up and take notice. The movement had its moments, yet it never managed to cross into mainstream and shift the culture in Delaware (where most US firms are incorporated) or on Wall Street. Much has been written on leadership since then, and there has also been a lot of valuable research about decision-making in complex systems. So, this book may not have all the answers, yet as a kind of a pole-star book for a young individual, sifting through some values and issues to take into your career, there is absolutely no damage done reading this book. It will, arguably, stay with you longer than last week’s Varsity Cup match results.

WOLF OF WALL STREET BY JORDAN BELFORT

Gordon Gecko (Michael Douglas) did greed better in Wall Street than what DiCapprio made of Belfort. Do not read the book. The story is so simple. He was greedy, lied, cheated, stole and lived it up until he got caught. That makes him a criminal, no different than people who rape or murder, despite his expensive suit. This book and the movie gave Belfort 90 minutes of fame as it was good enough for a Hollywood script. Is it a meaningful read and is there anything more to learn from it? Enjoy the popcorn. And by the way – skip the whole genre of “mea culpa” or “profits and prisons” books, including Michael Milken (Junk Bonds), Nick Leeson (Baring Bank), Michael Lewis (Liar’s Poker), RJR Nabisco (Barbarians at the Gate) and more. It is fascinating only in the same perverse way as trying to peek at a dead body as you drive past an accident scene.

“Sometimes simple ideas work and really change the world.” CO-OPETITION BY NALEBUFF & BRANDENBURGER

Game-theory was not originally synonymous with business. It started deep inside the hallowed walls of Princeton University where mathematicians modelled different Cold War scenarios and helped Washington make decisions on where to point their ICBMs (Intercontinental Ballistic Missiles.) It is smart science and lots of fun for people who love to have their wits challenged with seemingly insolvable conundrums. By the 1990s, though, the authors of this book brought game theory into the business strategy environment, which one may assume was logical when other books with war analogies were becoming best-sellers. Trust me, this is a much more worthwhile read than The Art of War. The authors turn some conventions upside down, suggesting that there are times to compete and times to collaborate, and that good strategists know when to do what. Their thinking was so different that at the time, they had to come up with the new terminology. The verdict is still out whether their wisdom holds true in old industries as much as new industries, yet once you have seen gametheory in action, a whole new world will open up. And they build on an often overlooked theme, namely that capitalism is arguably the biggest system of trust ever developed, however much some people want to relish in the “dog eats dog” view of the world.

Sometimes simple ideas work and really change the world. When an American Professor of Economics, Mohammed Yunus returned to his native Bangladesh, one of the poorest nations, he put his hand in his own pocket to lend less than $30 to a bunch of vulnerable village women to start trading. But, he wanted a fixed repayment schedule and a modest interest. It worked, and was the birth of a global micro-credit industry that has lifted tens of millions of people out of extreme poverty. Grameen now owns cell-phone networks, banks and more, all still in the name of the poorest of the poor. This book tells the gripping tale of how good business came from good ideas and good intent.

“There comes a time, and it will happen in your life, when you will realise money is not everything. Sen explains why money and the pursuit thereof cannot be separated from trying to do the right thing.” 23

NICKLED & DIMED BY BARBARA EHRENREICH

This is an American book of which a South African version is so overdue to be written. Sociologist Ehrenreich goes deep undercover into some nasty blue collar jobs and then documents “how the other half lives.” Her time is spent as a waitress, a care-giver and a Walmart employee in retail. She exposes how tough situations (some that are also familiar locally) come about, such as when marginal income yields such low creditworthiness that people end up in expensive cash accommodation arrangements (or in SA, think “pay-as-you-go rates on cell networks” as an example). Most illuminating, especially for anyone who thought that the Massmart deal bringing Walmart into South Africa was just the greatest thing since sliced bread. Are you going to be the person who writes the local version? Maybe a month down below in Marikana, a month in Baragwanath, and a month in the suburbs of Pretoria East, Sandton or Bishopscourt as a gardener?

THE BLACK SWAN BY NASSIM NICHOLAS TALEB

Ever seen one? A Black Swan? Highly improbable. And that is what this book is about. How to deal with the highly improbable and how its occasional occurrence has the ability to disrupt. As the scholarly interest in behavioural economics has risen, in other words, trying to understand how real people make decisions in real situations rather than in a simplified, modelled world, so have books and theories in the cognitive and psychological areas abounded. We cope in this world with certain mental tricks and shortcuts. With some, we do not even know that we know how to do! Now, people are learning how to use these skills and knowledge. Taleb is the Distinguished Professor of Risk Engineering at New York University’s Polytechnic Institute. His main subject matter is “decision making under opacity;” that is, a map and a protocol on how we should live in a world we don’t understand. Unless you think you get it all, it might be worth picking this one up.

If you are a fan of people like Branson, Jobs or Gates, rather than having to plumb their autobiographies, good or bad as they may be, looking for some hidden secrets, you could just read this little book. THE GRAND SCAM BY ROB ROSE

COLLAPSE BY JARED DIAMOND

In his multiple award-winning book, Guns, Germs and Steel, Diamond explained why societies developed the way they did and why there are the differences that we observe. If you have not read it by now, start with this amazing read. But, move on quickly thereafter to Collapse where Diamond explains in cold, hard facts why some civilizations could not help themselves and grew themselves right into extinction and memory only. What, for instance, is different between our own nonsustainable ways, and the manner in which a growing sea-locked nation of islanders on Easter Island allocated all their time and energy and also harvested their very last trees in order to try and out-build the gods and statues of islanders on the other side and so hastened everybody’s demise? This book should be compulsory before you even get a driver’s license, although it is thick enough to stand on when you want to change a light bulb (long-life we hope). Diamond is a fantastic story-teller and despite the size of the tome and complexity of the issues, is quite a joy to read.

The subtitle to this book explains it all: “How Barry Tannenbaum Conned South Africa’s Business Elite.” Here we have the very affluent heir to an amazingly successful South African pharmaceutical empire use his reputation in the most nefarious of ways. How? He plugs into the country’s worst problem, namely HIV/ AIDS, to make a case amongst his cronies that there is massive and on-going demand. For what? For the chemical compounds that go into HIV/AIDS medication. And he offers them over 200% annual returns for dishing out lavish amounts of investments in his favour so that, as he claims, he can bring these chemicals to market. If you ever wondered whether greed makes smart people blind and dumb, consider the fact that Tannenbaum got a former CEO of Pick n Pay, a former head of the JSE and a former OK Bazaar boss all to put down sizeable money. Now, if they could not sniff that a ROI of that magnitude had something fishy written large all over it, how would Auntie Pegg with her pension money? We have expressed a distaste for books on greed and getting caught. This one is different, as the main culprit did not write it and it offers insights into the murky and very small, networked world of SA corporate politics that may be very informative.

Markets & Analysis

The Goose that Lays

the Platinum Egg

BY Tsepiso Secker

he South African mining sector is going through one of the most difficult phases since its establishment. As the nation steps into the third decade of democracy, the future of this crucial industry must be interrogated. Presently, the loudest question is whether the platinum industry is going to survive the wave of crippling strikes facing the three top platinum mining companies in the country, namely Anglo American Platinum (Amplats), Impala Platinum (Implats) and Lonmin. The biggest strike of 2014, which saw about 80,000 mineworkers down tools on 23 January hit these three companies simultaneously; this has never happened before and has been labelled by analysts as a catastrophe. There are many facets to the mining climate, and narrowing it down to a simple case of big-guy versus little-guy would be trivialising an intricate dynamic. Nonetheless, the top priority for all players involved should be the sustainability of the mining industry in South Africa. Mining sustainability was the key theme at the Mining Indaba hosted in Cape Town at the beginning of the year. Mining is crucial to the growth of the economy, especially because South Africa sources over 70% of the worldâ&#x20AC;&#x2122;s platinum reserves. In the past two years, the climate of the mining sector has been a turbulent one. Incidents such as the Marikana strike, which ended in tragedy, and the retrenchment of tens of thousands of workers have cast shadows over the concept of sustainable mining. With the strike at hand, after numerous failed negotiations, the mining sector lost approximately R400 million a day as the strikes affected over 40% of the 26

global supply. A report issued by the Chamber of Mines stated that this had severely negative impacts since it occurred against the backdrop of a slowing global demand for platinum, a surplus in platinum supplied, and thus falling prices. This report, along with more analytical insight, further confirms the defence that R12,500 for basic entry-level wages is unsustainable. The R12,500 is being demanded by the Association of Mineworkers and Construction Union (AMCU). Under the leadership of Joseph Mathunjwa this union, which hosts more members than its rival unions, is not backing down from its demands. In 2013 the basic entry-level wage for underground platinum miners ranged between R5,000 to R5,700. AMCU is demanding R12,500 â&#x20AC;&#x201C; a request which has been deemed unreasonable and rejected by big mining companies. The companies have made an offer of increases between 7% and 9%, excluding benefits and bonuses. The new wages would rest between R6,300 and R7,200. This also means that over the next three years, wages would increase by a total of 26% rather than the immediate 150% increase being requested by unions. The mining giants insist that an increase of that magnitude would not only cripple the sector, it would also see the shutdown of more shafts and the loss of more jobs. Already, from December 2011 to December 2013 a total of 11,000 workers in the platinum industry have been retrenched. AMCU has rejected these statements from mining companies, saying that platinum mines have large turnovers and that workers are getting a poor deal. In response, the corporations have stated that considering the inflation rate of 5.4%, their offers are reasonable and fair. At the Mining Indaba, the Chamber of Mines announced that the past 20 years have seen a doubling in labour costs of the platinum sector. Despite these statistics, it is evident that there is still a long way to go where mineworkersâ&#x20AC;&#x2122; living conditions are concerned. 2014 is the year in which the Mining Charter is set to expire and by the end of the year, there are a number of targets which must be achieved. Included in these targets are improved living and housing conditions for mineworkers. Although labourintensive production is still at the

Incidents such as the Marikana strike, which ended in tragedy, and the retrenchment of tens of thousands of workers have cast shadows over the concept of sustainable mining.

heart of South African industries, companies are starting to move towards capitalisation in order to cut the constantly increasing labour costs. In an interview, Khanyisile Kweyama, Executive Director at Anglo American South Africa, suggested that the mining industry is now looking a employing fewer workers but at higher wages. But this, too, is a complicated strategy, as there is a large gap between the required skill-sets and the available skills. In order to keep the platinum-producing goose alive, the mining sector needs to re-establish its direction. It is a dynamic industry and, especially during strike surges, all active members of the sector â&#x20AC;&#x201C; companies, unions, workers, government, investors, and, in South Africa, the police â&#x20AC;&#x201C; need to feel as if they are moving forward at the same pace. At the heart of these conflicts, there must never be a loss of vision. Ultimately, all parties involved want, and need, a sustainable and successful mining sector because without one, everyone loses. And since South Africa mines platinum more than any other nation â&#x20AC;&#x201C; we should not be on the losing side.

ENTREPRENEURIAL EDGE

InnovateSA BY MAGASHE NGOEPE

FROM AID IN AFRICA TO MADE IN AFRICA

ave you ever looked at a problem and wondered why no one was doing anything to fix it? Presenting Innovate South Africa – a platform to ignite creative thinking, to nurture invention and encourage entrepreneurship among young people. To solve challenges, you need resources and money. But you also need inspiration and a community to support you. Innovate South Africa helps young people do all this through an innovation competition called InnovateSA and innovation clubs called InnovatED. InnovateSA is a competition that encourages bright young students (you!) to think about challenges and problems in your respective communities: issues that you would like to see solved or changed. Once the “thinking” has happened, the program then pools together all of its resources to help you realise and experience the change you so desperately hope for. Innovate South Africa believes that the youth are more than capable of finding new solutions to old problems. Innovate South Africa creates innovation communities that generate ways to fix things. For too long, South Africa has been a recipient of the world’s aid, a recipient of shortterm solutions, which constantly keeps us impoverished. This is why one of the core values focuses on turning “Aid In Africa” to “Made In Africa.” Got an idea, now what?

Hubspace Khayelitsha is a vibrant space for entrepreneurs to work and made the ideal venue for the 2013 showcase of InnovateSA Finalists. 28

Go to the InnovateSA website and apply before the 25 May. The competition is open to all high school students in South Africa. We’ll check out your idea and if we think: “Hey, this person sounds like they want to stir up some goodness in their community,” then, we’ll get hold of you. From here on, you and your amazing prototype will be part of the community of like-minded young people also thinking about how to change the world. You could also find yourself winning up to R17,500 for your ideas and having your own local and international mentors (people from Harvard and MIT) on hand to help you on your innovation journey. If you would like to learn more about innovation with your friends why not start an innovation club at your school? Innovate South Africa supports innovation clubs lead by students, or “innovation agents” as we call them. The content for the clubs is provided on a Mxit app called innovatED. You will find useful content on how to problem solve, design solutions and start up your own organisation or business. InnovatED also allows you to submit a concept proposal to the InnovateSA team to get feedback on your ideas before applying in full. Go to Mxit to download the app now! To find out more about Innovate South Africa. including past projects, go to www.innovatesa.org.

To solve challenges, you need resources and money. But you also need inspiration and a community to support you.

Team Trolley Scanner with their mentor Mike Jenkins. The group devised a scanner that calculates the total cost of a shopperâ&#x20AC;&#x2122;s trolley to help people budget better even if they are not good at maths. It also helps the shops because shoppers donâ&#x20AC;&#x2122;t abandon items at the till.

The competition provides a platform to ignite creative thinking, to nurture invention and encourage entrepreneurship among young people. 1.

1. High School Mix is an application for highschool learners to communicate with learners in tertiary education to help make the transition easier and increase the pass rate among first year university learners. 2. Team LumoBoardz with their mentor David Robertson. The LumoBoardz provide a solution for emergency services to locate houses in informal settlements. The boards use a code system linked to GoogleMaps, incorporate advertising as a source of income and are linked to a health database. 3. Fires are a cause of deaths and loss of property in informal settlements. This team worked on creating a chemical that can be added to paint to slow the spread of fire. 29

the New Investor

DIVERSIFICATION

BUFFETT VS GRAHAM

and that by doing so, you are picking up unnecessary he greatest investing love affair of our time is companies with average returns. His strategy has been likely to be that between the world’s richest to invest only in specific companies that he likes, such as investor – Warren Buffet – and his mentor, the Geico Insurance and Coca Cola, without worrying about author of the acclaimed Intelligent Investor diversification, expecting superior returns from individual (published in 1949) – Benjamin Graham. companies. Thousands of investors around the world If we could pick excellent investment opportunities every place this relationship on a pedestal like no other, but were time, diversification wouldn’t be necessary. But we are not there troubles in paradise? Who was the better: the master, all Buffett, and nothing is ever certain in the markets. or the apprentice? The “Dean of Wall Street,” Benjamin Graham disagreed In every investment there is a certain level of risk. The with his most dedicated student on this topic. Graham conscious decision to make an investment is based on has always proposed that we diversify how you weigh this level of risk our investments to lower risk and against the level of possible reward. “Diversification is be prudent in our decisions, never Diversification is a method of allowing a loss in capital. However, spreading your investment between protection against both Buffet and Graham received shares in different industries, or ignorance; it makes little stellar returns over very long periods between different asset classes, sense for those who know of time, each making close on 20% such as bonds or commodities, return per year on average over their in such a way that it eliminates what they're doing.” lifetimes. as much risk as possible. This is – Warren Buffett With this in mind, who should we possible because things that affect choose to follow? We can either take shares, such as competition in a the Benjamin Graham approach and specific industry, will not necessarily diversify away our risk, or the Warren Buffett approach, affect bonds in the same way. If one part of the portfolio and pick only the best performing stocks. is affected, it will not affect the entire value of the Both ideologies worked for these two men. It is up to you portfolio. to find your preference. This can only be done by starting The “Oracle of Omaha," the world’s richest investor, NOW, and finding what works for YOU. The secret to great Warren Buffett, does not conform to investing society returns is through finding what works, and being consistent convention on this topic. He believes that diversification in your investing philosophy. is for those who do not know what they are doing, Quick tip: Diversifying too much will result in very average returns. The skill is in minimizing risk, while still being able to generate competitive returns.

the new investor

Portfolio

STRATEGIES L

ife would be pretty boring if everyone was the same. Imagine having to act like an 18-year-old for the rest of your life? Grannies would be going to clubs with you, listening to the same music, and lacking that austere charm of theirs. Or, on the other hand, we could all be playing games with weird names such as Gammon, Rummy, or Bingo. Now wouldn’t that be boring? Just as the charm of life is experienced through the vibrant differences of people, so the choices we need to make are also different. Our unique personalities need to be applied to all things in life, even in the way we look at structuring our investment portfolios. What kind of investor are you? Do you have a high risk tolerance? Are you generally the safe-bet, cautious person in all situations? Are you planning short term (1 – 5 years), medium term (5 – 10 years) or long term (40 years)? Your personality has a huge effect in shaping your investment decisions. Financial freedom shouldn’t be a burden, it should be something that enhances your life, and allows you to sleep well at night. This is possible through self-awareness and understanding what strategy you are most comfortable with.

THE FOUR CATEGORIES The more equities in the portfolio, the more aggressive the portfolio becomes. This is because equities are more high risk than other investment vehicles, such as fixed income securities (eg. government bonds). Characteristics: High risk tolerance, young (long-term view), don’t worry about short term fluctuations. Portfolio: 70% equity, 20% fixed income security, 10% cash.

equities

fixed income

Defensive If you tend to play it safe, and seek to keep risk low, this is the portfolio for you. This portfolio comprises of mainly fixed income securities, and less equity. Characteristics: Like to play it safe, want to preserve capital while still trying to beat inflation, cautious, nearing retirement. Portfolio: 30% equity, 60% fixed income, 10% cash.

Income For those “later-stage” investors, income based portfolios can provide the cash flow needed, while still appreciating in value. This can be achieved by investing in companies with a good dividend track record, and high dividend yields (2% +), or high yielding fixed income securities. The main difference here is the shift in allocation to low volatility, high yield equities. Characteristics: Starting to get a little older, preserving capital, cautious. Portfolio: 30% equities (high dividend yielding), 60% fixed income (bonds), 10% cash.

Hybrid

Aggressive

32 32

BY MATTHEW PIPER

A hybrid portfolio includes all kinds of investment vehicles, such as equities, bonds, commodities, and forex. This can also include high risk leveraged products such as CFD’s. Not only is the portfolio diversified within industry, but also across different investment vehicles. Portfolio: 30% equities, 40% fixed income, 10% forex, 10% CFDs, 10%cash. Characteristics: The experienced investor, high risk tolerance, flexible.

cash

forex

CFDs

Your personality has a huge effect in shaping your investment decisions

the new investor

HOW TO BECOME A

CHARTERED ACCOUNT

Why CA(SA) Spells “Success” The debate about a career path has always been about whether to choose a career path for job satisfaction or for monetary reward. The debate also begs the question: Can I get both monetary reward as well as job satisfaction? And the answer is a very firm: Yes. Research reveals that South African businesses need 22,000 qualified accountants. Therefore, students choosing to study chartered accountancy not only have a good chance of achieving better career prospects than any other profession, but also getting paid well because of the demand. If you have a flair for numbers, excel in mathematics and enjoy the business working environment, then job satisfaction as a chartered accountant will be a given. Perhaps you plan on going into commerce, starting your own business or want to enter a profession that will ensure you always have a great job anywhere in the world. The smart thing to do is become a chartered accountant. The South African Chartered Accountancy [CA(SA)] qualification is not only highly regarded in South Africa, but throughout the world and currently there are approximately 6,000 South African chartered accountants who are working abroad. In its 2010/11 Global Competitiveness Report, the 34

World Economic Forum (WEF) rated South Africa first in the world for the strength of its auditing and reporting standards – largely thanks to the quality of its chartered accountants. The South African Institute of Chartered Accountants’ (SAICA) Senior Executive for Professional Development, Transformation and Growth, Chantyl Mulder, herself a CA(SA), says that the qualification opens up the world. “With CA(SA) after your name, there are very few business obstacles you can’t conquer. The CA(SA) designation is well thought of and recognised the world over.” It is easily the most sought after professional qualification in South African business. A recent survey of the top 200 companies on the Johannesburg Stock Exchange (JSE) found that: • 11.59% of Directorships held by MBAs are CA(SA)s • 32% of Directors of the JSE top 200 are CA(SA)s • 75% of CFOs of the JSE top 200 are CA(SA)s • 32% of CEOs of the JSE top 40 are CA(SA)s This shows that there is a demand for chartered accountants in the corporate world. And, this year an independent survey of South African Business leaders found that: • 99% knew of the CA(SA) designation. • 55% said the CA(SA) designation was the “most admired” business designation.

How do you become a CA(SA)? • You’ve got to have that university exemption in the bag (that means you must work hard in your last few years of school). • You’ll need at least a C-plus in mathematics (simple maths literacy is a definite no-no). • Maybe you did accounting until grade 12 (but that’s a bonus, not an essential). • You must hold your own easily when debating in the English language. Next, you need to apply to study a relevant B.Com degree at a SAICA accredited university. SAICA, as a registered Education and Training Quality Authority (ETQA), only recognises certain universities as having the necessary quality to academically qualify prospective CA(SA)s. These universities are rigorously and continuously monitored to promote quality in the content and delivery of the education programme. A list of accredited universities and detailed career information is available at www.nowican.co.za Once you finish your B.Com degree and then the certificate in theory of accounting (CTA) – an Honours level degree – you will start your three-year internship (your “articles”) with an accounting firm, in government or in a commercial company. This is called a training contract. A training contract is tough. You have to hold down a full-time job, study for your various exams — and still find time for some recreation. But it can be done – and more than 33,000 CAs(SA) can testify to this! However, it requires discipline and good time management. You will be deeply involved with practical issues of real businesses, all the while fine-tuning your academic knowledge. You could possibly work in one or a combination of the following environments: • Auditing – express your opinion on financial statements • Taxation – advise clients on their tax • Accounting – lead a team that handles the payroll, VAT returns, tax reports, annual financial statements, cash flow forecasts etc. • Business Advisory – business plans, profit improvement advice, investment strategies • Forensic Accounting – investigate fraud, high overhead costs • Corporate Finance – mergers, acquisitions, disposals • Schemed Finance – structured deals, investments and businesses • Company Secretarial – deal with statutory books • Wealth Management – manage estate planning, wills and trusts • Entrepreneur – pursue a business of your choice • Education – lecturer

If you do your training contract in one of the large accounting firms, you can specialise fairly early, focusing on specific sectors or industries such as, for example, mining, manufacturing, banking or financial services. In a small- or medium-sized firm you may find you can move into, or even start, one of the firm’s subsidiary companies that might include corporate governance, internal auditing, IT and recruitment. In government you might see what makes the economy tick at the National Treasury or guard public spending with the Auditor-General. Regardless of where you serve your training contract, your qualification is the same — the globally recognised and prestigious CA(SA). While completing your training contract there are two final qualifying exams (QE 1 and 2) that must be passed before you can call yourself a CA(SA) and can practise as a CA(SA) and/or as a registered auditor (RA). You can now work in almost any field of business. For example, you can work in private practice, as a tax advisor or consultant, as a forensic accountant, as an entrepreneur, as a financial manager, become a chief financial officer (CFO) or a chief executive officer (CEO). The list goes on, beyond accounting firms. A CA(SA)’s reputation is built on four pillars: • integrity • ethics • technical excellence • training So, go ahead. Take that big step and become a chartered accountant and put that smart designation after your name — CA(SA). It’s called success.

Markets & Analysis

BEYOND

by Chris Mills

SOCIAL NETWORKS

here is a joke doing the rounds these days about Mark Zuckerberg buying WhatsApp for $16 billion, when he could have downloaded it for free. Bad humour aside, this recent social network deal has without a doubt been the biggest in the history of Facebook – very likely the history of social media too. Not bad for a simple mobile chat app that quietly and quickly overtook SMS messaging. There have been many other deals over the past year or two that have also broken ground in the social space. From as far back as 2012, when Facebook purchased Instagram for what was then an impressive $1 billion, to more recent purchases such as Twitter snapping up trend sharing website Trendr last year. Microsoft owns Nokia and Skype. Yahoo owns Tumblr. And then there was the somewhat embarrassing news of Snapchat turning down Facebook’s offer of $3 billion. What does this mean for the future of social? Before we answer that million dollar (or Randela) question, consider these numbers for a second: 2.5 billion people are online worldwide 6.5 billion mobile subscriptions worldwide 1.8 billion people are on social networks 1.3 billion people are active on Facebook 343 million people are active on Google+ 238 million people are active on LinkedIn 351 minutes each month spent on Facebook $11 billion social advertising revenue expected by 2017

Now, let’s see what the experts have to say… There are a few predictions worth noting, which have been shared by Mashable, Wall Street Journal, Social Media Today, LinkedIn and many other leading experts in the industry.

Sneak Peek at Market Trends for 2014: • Social advertising -> promoted tweets, sponsored Facebook content, Pinterest campaigns and even more brand outreach through social channels. • Visual focus -> dedicated image and video social networks on the rise – Pinterest, Vine and Instagram continue to grow. • Social for good -> goodbye NekNominate, hello RAKnomination (Random Acts of Kindness)/ SmartNominate – viral initiatives aimed at helping others. • Mobiles go mainstream -> more websites optimised for mobile, better integration between platforms and apps with more accessibility for mobile users. • Digital rebellion -> concerns of market saturation, online overkill, advertising overload and worries of security issues may lead to a social decline.

Now for the biggest question of all: What’s next? If you thought the social space was big enough now, think again. Predictions aside, new apps are popping up all over the place. And, while Facebook may not have too much to worry about for now, who knows how fast these new networks will grow in the next month, let alone year?

As technology expands, smartphones are getting smarter and more integrated towards social and web activities. New kids on the social block 1. Medium – viral blogging platform, created by Twitter cofounder Evan Williams. Provides user-generated content across tech, design and culture, for those who love bright ideas. 2. Impossible – fun social help network aimed at getting help for free, backed by Lily Cole. Instead of payments for help, virtual gifts and thanks can be given. 3. Mobli – visual search engine with a beautiful interface, endorsed by Leo DiCaprio. Some competition for Instagram, ideal for those seeking a fresh approach to image sharing. 4. Nextdoor – community search app, funded by Google and Amazon. It may take a while for this network to become truly useful through the power of a large user-base, but well worth watching. 5. Shots of Me – the first social app for selfies, backed by Justin Bieber (no surprises there). Some will hate it; others will love it. Either way, selfies are here to stay for a bit longer. Facebook has entered its tenth year in the digital space this year – something that very few of us could ever have believed back in 2004. In those 10 years, we have seen many new social networks starting and growing. Twitter, YouTube, LinkedIn, Instagram, Pinterest and WhatsApp are just some examples. As technology expands, smartphones are getting smarter and more integrated towards social and web activities. Google Glass, Galaxy Gear and other gadgets are bringing “wearable tech” to the table, which is sure to change the face of social even further. With the vast majority of people on the planet owning a mobile device, social is becoming a natural part of life even in the most remote, poverty-stricken parts of the world. And that is perhaps the true power of social – the ability to reach every corner of the globe, and change lives forever. Christopher Mills is the founder and owner of iMod Digital, a Digital Marketing Agency. Follow Chris on his blog www.imod.co.za or on Twitter www.twitter.com/christopherm 37

COLUMN

BY SHERAAN AMOD

THE MYTH OF SMOOTH SUCCESS BY SHERAAN AMOD

hen most people see entrepreneurs succeeding, they often think or remark something along the lines of, “Wow, that guy [or girl] really has it figured out. They just keep rising.” While it may be true that the entrepreneur is doing a great job and operating at an advanced mental level, the mistake often made is that their rise has been smooth, either professionally or personally. Everybody knows that founders work incredibly hard, but so many are fooled that hard work and clever decision-making on their own are enough to succeed, over and over again. In my limited experience, I’ve found that there’s a little more to this game than just smarts and laboriousness. After all, people need those to succeed at just about anything in life. In startup entrepreneurship, however, there are a lot more unknown and difficult variables to contend with. These could include issues like market timing, tricky investor relations, co-founder politics, or managing a difficult cash runway. It may sound straightforward, but dealing with any of the above when pushed to extremes can

feel like a life-threatening situation, and raise a person’s stress levels to dizzying heights. As such, “success” tends to show up when the founder has learned to continuously weather these variables and survive – while working hard and cleverly, of course – until good things happen. That’s what people often refer to as “getting lucky.” Even founders, when speaking of their successes will make statements like, “I got lucky there,” or “That deal came out of nowhere.” Was it luck? Well, yes, to an extent. But in my view, if you stay in the game long enough you’re bound to get lucky at some point. That’s really what it’s all about – being tenacious enough to survive the difficult scenarios; again and again and again. On the surface and to the outside world, though, everything can seem hunky dory. Founders tend to hide their struggles, internalizing them and not wearing their hardships on their sleeves. When viewed in perspective, victories are unimaginably hard-won at times, yet this is unseen by most. And therein lies the myth of smooth success.

Sheraan Amod is the Co-founder and CEO of Personera, the first personalized photo products platform for Facebook. Personera launched internationally in 2009 after acquiring investment and winning the FNB Enablis Business Launchpad – the biggest small business competition in Africa. Sheraan is passionate about technology, startups, and Internet culture. He started the Cape Town edition of StartupDigest, a localized weekly events list for entrepreneurs that set the record for highest subscribed newsletter outside the US and has been called one of the “Top 200 Young South Africans You Must Take to Lunch” by the Mail & Guardian newspaper. His latest venture, Springlab (www.springlab.co), is a technology incubator and business development partner that helps build lean startups to solve real-world inefficiencies. Sheraan holds a degree in Electrical and Computer Engineering from the University of Cape Town. 38

That’s really what it’s all about – being tenacious enough to survive the difficult scenarios; again and again and again.

ENTREPRENEURIAL EDGE

STUDENT INVESTOR

RO A D S H O W

BY MATTHEW PIPER

he lethargic ebbs and flows of daily life change in their own lives, and the lives of create a population of consumer-driven others. individuals. Young people lose a sense of With a reach of over 5,000 students between consciousness and meaning. Our economy 15 January and 15 February, it is safe to stagnates as generations of consumers move say that the potential to start investing from through a system of the oppression of the a young age was realised by many young mind. This is a bleak projection of the future, people. With an understated intention of unless something radical can be done to a 15-minute presentation, we often saw change the mind-set of a generation that has ourselves spending a good hour at each the power to mould South Africa into what we school answering the eager questions of want it to be. We are a generation that must hundreds of students. The Student Investor create reality, and not consume it. Roadshow has become something very On 15 January 2014, Student Investor tangible, very successful, and this is just the started a movement; a stand against this beginning! oppression we have imposed upon ourselves. While I could not be in every school at once, This movement, in the form of the Student Investor Roadshow, We are a generation that must create reality, and takes young people and puts them it was through the effort of the entire team in front of other young people, to promote that made this possible. With three provinces, the possibilities of wealth creation, through and many school presentations going on investing and an entrepreneurial mind-set. simultaneously, it took a symphony conductor’s Over 40 top high schools and universities touch to bring it all together. I have to pay from around the country came together under special mention to this team, all future leaders the banner of financial empowerment among in South Africa, and all incredibly passionate the youth. This included universities such and dedicated people: Nick Fitzhenry, Colin as UCT and WITS, as well as high schools Besaans, Greg Makama, Karidas Tshinsholo, such as Maritzburg College, Durban High Jack Newby, Saarah Coenraad, Chad School, St Cyprians, KES, and St Anne’s. The Bushnell, Matthew McElligot, Tokologo Phetla, hundreds of questions, and eyes burning to Tsepiso Secker, James Cook, and Siyabonga do something great, confirmed our belief in Mseleku. Also, this would not have been the intrinsic desire of young people to create possible without JM Busha, and their support,

as well as Chris Roos for presenting with us. Our belief that education is the first step towards creating wealth saw Student Investor, and JM Busha, giving away three University Scholarships. In addition, R1,000 investing accounts were given to each school’s grade 11 top academic achievers. Once the ripples had settled, and The Money Tree magazine had been put in the hands of all these students, the feedback has continued to be very positive. Our first radio interview saw us receiving R100,000 not consume it. in free advertising, as well as huge media exposure. This is exciting as it means that what was once just a dream thought up in a res at UCT, sitting in a cramped room, on a single bed, at 2:00am in the morning, is now something tangible. It is real. We are creating a much needed reality. The Student Investor Roadshow is just going to get bigger and better as time goes by. A successful start has set a solid foundation, and great expectations for the future. Next year we will be back, and it will be big! We are the generation that must take it upon ourselves to create change, and most importantly, we must be able to consciously change ourselves into what we believe a contributor to society should be.

ENTREPRENEURIAL EDGE

FOCUS ON

AIESEC Imagining A Better World Through Travel

ociety needs leaders who are entrepreneurial, culturally sensitive, socially responsible and take an active part in their own learning. AIESEC is a student-run organisation that has been facilitating youth leadership activities as well as international internships and volunteer experiences for over 65 years, developing a global learning environment across 124 countries and territories. The Travel to Impact program aims to enhance the leadership potential of an individual. This is achieved through participating in an International Exchange that not only allows you to explore a different side of yourself but also to contribute to making a

positive difference in your host country. Taking part in an International Exchange is a once-in-alifetime opportunity that will forever be part of you but, most importantly, being given the chance to enhance other people’s lives brings immeasurable, extra personal reward. What AIESEC does is to facilitate this “Travel to Impact” exchange and becomes the platform that buiilds your leadership capacity. South African students currently have the option of travelling to one of four countries – Brazil, Mauritius, India and Turkey. Here they will spend 6-8 weeks working with an NGO while exploring a new country and making friends from around the world with other interns also on the program.

Enjoy, Explore and Educate the world through AIESEC! What is your ideal world? The answer to this question is both complex and straightforward. If your answer is “a better world,” then you should take the initiative to make it a reality. Imagine a new you… who is able to stand up to our societal problems by giving a helping hand. Imagine a new world… where you and I simply come out of our comfort zones and explore a different society and collaboratively work towards achieving positive change. AIESEC believes in global peace through cultural understanding and youth leadership and aims to make real all of these imaginations.

traveltoimpact.co.za aiesec.co.org

Aspire to be…. A Mandela Rhodes Scholar www.mandelarhodes.org

lifestyle

Harleys vs Vespas BY TIM HOUGHTON

It’s a Lifestyle Thing Can one even begin to start to compare Harley-Davidson, the epitome of hairy, lairy and scary (the bikes are quite wild too) with the espresso-sipping, pointy-shoe-wearing folk you tend to find on Vespas? You may well be saying it’s a reach too far... and you may be right! But have a listen here first, and you might start to see what we’re on about.

ho are the two biggest bike-only manufacturers in the business? Yup, Harley and Vespa, or strictly speaking Vespa’s parent company, Piaggio. These are the two that have endured basically unchanged through two or three generations, have gained fanatical followings, and whose names are definitions of what biking is to certain groups of people. And both brands are so steeped in the righteous lore of the Silver Screen, celebrity indiscretion and post-war transportation that they’re practically drowning in it.

The bike itself is quite a good-looking thing, as Harleys go. Relatively small for a Harley, it sits low with a 735mm seat height, making the bike’s 254kg weight fairly easy to handle at low speeds, and therefore relatively accessible to a new rider. Hop on, helmet up, and fire up the fairly longstroke (76.2mm x 96.8mm) 883 Evo motor. Thunk the very deliberate shifter into first, an action that makes a sound halfway between breaching a round in a rifle and kicking a tin, and feed in the power gingerly to set the mass in motion. The 70Nm of torque the bike produces immediately

Harley: Around town it has the slow-speed manners of a hung over mule, too big to realistically filter between lanes in traffic.

What you might not have realised, however, is the similarity in cost. Surprised? Well, the most expensive Vespa might actually be more expensive than the cheapest Harley. That’s not a misprint. So we decided that this situation warranted some investigation: just how can a scooter be the same kinda cash as a piece of pig-iron heavy enough to be worth the money just on metal alone?

Testing the smallest Harley Let me state, right from the outset, that I’m not a Harley guy. I think that they are fat bikes bought by even fatter people who use the vastness of the bike to disguise their own bulk, and spend their days roaring around in a cloud of self-importance. I said as much to the Harley guy who offered me the entry-level machine, who laughed, “Go ride it, then we’ll speak.”

makes its presence felt, effortlessly whumping the little Harley up the road on a blare of V-twin dissonance and rumble, shifting its mass in a very convincing fashion. And the “little” motor has more than enough oomph to get you quite far into Gareth Cliff (illegal) territory, combined as it is with a fairly long-ratio’ed 5-speed gearbox. The limiting factor is generally the strength of your neck and arms, as the wind makes its best effort at peeling you from your mount... So it’s got the go to match the pose factor, which is pretty high. Styled on one of the more popular classic speedster styles of yesteryear, it’s a long, low slab of chrome and black, with low sweep bars and a peanut tank giving it a classic speedster profile, and cutting a stylish swathe as you surf along on your wave of torque. Make no mistake, it can be fast; it just doesn’t necessarily want to be. Settle into the way it wants to be ridden, and a whole new experience starts to avail itself to you. Suddenly you’re slouching back on your seat, burbling along in top gear with the bike practically idling at 120km/h, hand on the tank, soaking up the joy that is riding a bike and being a part of the scenery, as opposed to a disinterested spectator in your car. The wide front wheel gives the front a nicely keyed-in feel, with good stability and a positive turn-in feel through the bar, although you tend to ride through the bumps with the bike, as opposed to the suspension soaking up the

lifestyle

impacts. The bike makes no bones about its envelope of performance, and does things the way it feels like doing them. You either adjust, and start to see the special brand of enjoyment it uniquely offers, or you’ll feel limited, and ultimately walk away. So does it sound like I’m the newest Harley convert? Well, no, actually. The tank is a touch small, making the trip to the garage a common experience if you use the performance. The vibration is literally enough to turn all contact points into a buzzing mass of pins and needles after an hour, and around town it has the slow-speed manners of a hung-over mule, too big to realistically filter between lanes in traffic. It also suffers from mild driveline shunt, making mooching along at walking pace a fraught affair of too little/too much, foot down/foot up, unless you clutch in and coast along, and changing direction is an exercise requiring notification in triplicate a week before the event. People also immediately think that you are a lawyer, and start pelting your with their take-out coffees and chewing gum. So where do I stand then, on this entry point to Harley? Well, I’m ambivalent. The power is nice, and it delivers in the way that only a largecapacity naturally aspirated motor could, from below-basement in one large, juicy slug. It is also a very well made specimen. If your idea of a bike is the laid-back variety peddled by this Milwaukee manufacturer, you can’t get into the fold for less money. It’s eminently competent, and I must admit that I did enjoy my time on it. Now I can understand why people buy these things in their droves; Harley does things in a way unmatched 44

in the bike world, and that is still a good thing.

And the top-end Vespa Right, this is where that healthy dose of scepticism comes romping in through the door, kicking over your Red Bull and keying your paintwork. How can I even be doing this?! Truth be told, Harley and Vespa can’t be compared as tools, except for the fact that they are both motorcycles, with two wheels and a motor powering one of them. It’s transportation, pure and simple. But yet, somehow, Vespas are something more than just that. After all, Vespa means “wasp” in Italian. Maybe it’s the playful days of the swinging 60s, with pictures of impossibly gorgeous women perched behind Italian cads, blasting through the Roman streets on their Vespas with a smoke in the mouth. They personified a decadent, devil-may-care era where it was All Good. I’ll grant you, those rose-tinted specs are now firmly removed with today’s economic situation, but the heritage of the brand cannot be denied. I jump onto the latest offering from the Pontedera-based giants. These puppies are significantly more advanced than the isithuthuthu’s (ask

It’s an immensely competent and well-built bike with aerospace someone, if you don’t understand) I’m used to from Vespa, sporting disk design influence and a healthy dose of brio, and compared to other brakes front and rear, a water-cooled 278cc thumper (4-stroke) motor with fuel injection and impressive 35km/l fuel consumption figures at scooters the quality does shine through in a number of noticeable ways, like the milled aluminium passenger footpegs that fold flush with the 70km/h, a figure that Frans Steyn’s the Harley into a deep touch. And bodywork when not in use, or the electronic push-button release for this is one seriously flick-able little scooter! The low centre of gravity and micron-perfect positioning of all the front cubby stash. This is a tool of the interfaces, combined with of utility. They allow you a step-in, Vespa: I don’t care what age you are, you’ve step-out super-taxi to any reasonable the plucky little motor punching heard a Vespa being caned past you at some destination, with predictable handling well above its weight in delivery of its maximum output of 22.7bhp point, usually trailing a smoky cloud behind that somehow remains engagingly @7,500rpm all collude to make the responsive to those more skilled in the student riding it. the art of the motorcycle. It makes sprightly little Italian quite a laugh sense in a transport way, but I’m not around the cut and thrust of the city centre. It seems genuinely eager to please, dosing out engaging convinced that it’s quite swimming in the rarefied waters it finds itself. It acceleration while allowing you to weave about between the traffic like a costs a lot of money, proper actual money, for a scooter, even one as well specced as this one is. particularly energetic Muhammad Ali. Okay, maybe Baby Jake... It’s not a Harley. But then it was never intended to be. This was a bike Both bikes should have no space in our chase-the-bottom-line first designed for a post-war Europe (Italy, specifically) that allowed people world, but yet they both remain as relevant as ever. They remind us to get about their business in a cost-effective and timely manner, while that things don’t have to be refined beyond all recognition to make still adhering to the Italian God of Style. They really do look like the racing them better. I won’t lie and say that I would buy either, because I snails from The Neverending Story. Just don’t buy into the putrid metallic wouldn’t. But for the first time in my life, I can properly understand why people would buy them. lime colour scheme they offer; looks too real then...

LET’S BASE IT...

ou can’t begin to talk about BASE jumping without first tipping your hat to Felix Baumgartner, the first man to break the speed of sound in freefall, along with several other records. In case you missed it (where were you?), Baumgartner’s Red Bull Stratos mission in October 2012 took him up to 38,969.4 metres in a stratospheric balloon from which he then jumped – yes, jumped – rushing toward earth at supersonic speeds before parachuting to the ground. Those of us watching simply struggled to breath. His speed was clocked at 1,357.6km/h (Mach 1.25). And he landed safely.

THEY ARE

While Baumgartner’s Stratos jump is not classified by all hard core fans of the sport as a BASE jump – BASE typically means any fixed object such as a Building, Antenna, Span (eg bridges), or the Earth (eg a cliff) – he is considered a bit of a legend in the field, having twice set world records for the highest BASE jump from a building (Petronas Towers in Kuala Lumpur and Taipei 101 Tower), the lowest BASE jump (from Rio de Janeiro's Christ the Redeemer statue), and even landed his canopy inside a cave in Croatia. If you think Baumgartner’s accomplishments are rare, you’d be surprised to learn that for those lesser mortals who merely want to jump from tall buildings or high mountains, there are a remarkable number of opportunities. Jump from the Burj Khalifa, fly from the top of Mt Everest, parachute into ancient valleys in China or ski off a cliff in the Alps. Many consider the first BASE jump to be the one taken by Phil Smith and Phil Mayfield off El Capitan in Yosemite National Park in 1978, which was filmed by Carl Boenish. Subsequently, competitions were held, starting in the early 1980s, and Boenish was the first listed BASE jump in the Guinness World Records with his 1984 leap from the renowned Trollveggen (Troll Wall) in Norway. It was considered the highest BASE jump at the time (and was made two days before Boenish's death at the same site.) Among those who jump, BASE numbers are awarded to those who have made at least one leap from each of the four categories (buildings, antennas, spans and earth). When Smith and Mayfield jumped together from a Houston skyscraper on 18 January 1981, they became the first to attain the exclusive BASE numbers (BASE #1 and #2, respectively). As of February 2014, over 1,700 BASE numbers had been issued. BASE jumping has evolved from its early days when jumpers used parachutes to those who now use wingsuits. It is significantly more dangerous than skydiving because of the lower altitude and, therefore, the lower degree of control over the fall. One risk is that most BASE jumping venues have very

small areas in which to land. A beginner skydiver, after parachute deployment, may have a three minute or more parachute ride to the ground. A BASE jump from 150m (500 foot) will have a parachute ride of only 10 to 15 seconds. As of 23 February 2014 the “BASE Fatality List” maintained by Blincmagazine.com recorded 226 deaths for BASE jumping since April 1981. One of the innovators in BASE jumping was Shane McConkey, to whom many attribute the resurgence of an interest in skiing, too, because of his daredevil stunts. McConkey pretty much perfected the art of ski-BASE jumping and wowed those who had the privilege to watch him in action with his over-the-top backflips and breath-taking jumps. McConkey was an iconoclast in the world of ski-BASE jumping and pushed the boundaries at every turn. He coined the term “freeskiing,” which, for him, meant something different than extreme skiing. “Extreme skiing is a specific type of skiing and only one part of what we were doing. The term was not accurate. What we were doing was free form skiing, free of rules and most any kind of boundaries. Whether it was steep, extreme descents or new freestyle what we were doing was freeskiing, free to ski our own style on our own terms.” He died in 2009 in an accident attempting a ski-BASE jump off the Dolomites in Italy.

Jump from the Bu rj Khalifa, fly from the top of Mt Everest, parachut e into ancient valleys in China or ski off a cliff in the Alps.

To learn more about Shane McConkey: find out about the new film on his life http://mcconkeymovie.com/ To see the Felix Baumgartner jump, from his point of view: go to http://win.gs/1hM37GR To experience what it’s like to fly in a wingsuit, check out any of Jeb Corliss’ videos filmed with a GoPro on his helmet. Start with http://youtu.be/TWfph3iNC-k Follow the World Cup BASE Tour: http://istanbulshowdown.com. 50

PHOTOS COURTESY OF RED BULL

Wingsuit flying has been another offshoot from original BASE jumping. Using a specially designed aerodynamic suit, these flyers are in constant pursuit of the ultimate in airborne feats – staying aloft and controlling a human flight path. Jeb Corliss is the living legend in this arena and he has achieved enough to probably justify a whole separate story. The first official World Wingsuit Championships were held at Tianmen Mountain National Forest Park’s 700-metre (2,300-foot) cliffs in 2012, with 15 fliers from nine countries. In October 2013, the event was held again, but it made headlines when athlete Victor Kovats plunged to his death in a practice run before the actual event. Despite the tragedy, the Championships were held, with Colombian wingsuiter Jhonathan Florez being crowned champion. They are due to fly again in 2014, despite the incident and death, as few can no longer deny that is is part of the sport. Blinc Magazine listed 21 wing suit deaths worldwide in 2013. The secretive nature of BASE jumping means that many of the statistics about the sport have to be taken with a grain of salt. No one keeps exact records on the many jumps (and deaths or injuries) that happen at night, in the wilderness or with no one else around. Jumpers continue to jump. And it is not always easy to find a legal spot from which to BASE jump. The national parks services in the USA are very strict as are Australian authorities. But regulations differ in various countries, with some landmarks being approved for only certain windows of time, while others are open year-round. For those who want to jump legally, and for the record books, there is now a World Cup Tour of BASE jumping. The next event is headed to the Sapphire Tower in Istanbul in May. Planned are jumps from a hot air balloon over the city followed by jumps from the Sapphire Tower, which stands 230 metres high, and will include both target landing and free jumping. At last count 69 people from across the globe, men and women, had signed up for this event, some of whom have completed over 1,000 jumps to date. South Africa has its fair share of adrenalin junkies and attractions, as when Jeb Corliss broke a leg coming off Table Mountain a year or so ago. But on the current circuit, there are no big South African names as yet, despite some of the top wingsuit design and manufacture happening right here in the Mother City. But, as we stand tall in other sports of daring and bravery, like big wave surfing for instance, we have little doubt that our flag will soon be seen on this craziest of all global competition circuits.

FUND FOCUS Consolidated Infrastructure Group (CIG)

PHOTOGRAPHY BY CHRIS KIRCHHOFF AND GRAEME WILLIAMS OF MEDIACLUBSOUTHAFRICA.COM

By Jack Newby

MARKETS & ANALYSIS

onsolidated Infrastructure Group (CIG) is an infrastructure-focused company listed on the Main Board of the Johannesburg Stock Exchange. It is a supplier of high voltage infrastructure. With a market cap of R3.6 billion, we could refer to it as a small company. And this small company has many things going for it. The World Bank has claimed that the lack of infrastructure in Africa hinders economic growth by up to 2% a year. With the National Development Plan (NDP) recognising the need for infrastructure development in South Africa, CIG is well positioned

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to benefit from this opportunity. In the 2013 budget speech Pravin Gordhan allocated R827 billion over the next three years to the expenditure in infrastructure. CIG can expect to gain a small percentage of that expenditure. For example, 70% of South Africa’s population had access to electricity in 2010. Government wants to increase this number to 95% by 2030. Government also wants an extra 40,000 MW of capacity. With its competent track record, CIG will bid for many of these contracts to supply high voltage infrastructure to meet government’s goals. CIG is also involved in the construction of renewable energy projects. They can manage the entire process of taking the electricity from the source to the substations, which they can also build, and then on to the households and industrial areas. It is clear that renewable energy is the way forward and CIG has the opportunity to increase its revenue whenever a renewable project is undertaken and CIG is awarded the contract. In the last 20 years the company has worked in 19 different countries and management targets 50% of revenue to be made outside of South Africa. This diversifies their risk in any downturn in one country. The company has a Price to Earnings of 16 and a Price to Book value of 2.5. These are conservative valuations for a company that has the potential to substantially increase its earnings. It carries little debt and the CEO Raoul Gamsu is regarded by the respected analyst Anthony Clark as being one of the best in South Africa. CIG is a company that is well positioned to benefit from the African growth story. It’s a company Student Investor is very positive about and it is why we are considering buying it for our Student Investor Fund, which is soon to open.

Markets & Analysis

WHAT’S THE NEXT

CASH COW? BY JESSICA VAN RENSBURG

We’ve hit the 21st century and never before have we had such a choice of investments. From Bitcoins to Facebook, we can really pat ourselves on the backs as a society for creating such an interesting range. But what if we were to go back to basics, take a long-term view and invest in something like agricultural farming in Africa? From the start of human civilisation to the 1920s, the world’s population managed to grow to about 2 billion. Fast-forward 90 years and we’ve managed to, just about, quadruple that number. With such a rapid increase in the population there is bound to be upward pressure on food production. This, combined with a rapidly growing middle class in developing countries, such as the BRICS nations, doesn’t take an Ecos 101 student to realise the commodity prices will be on the increase. To fulfil this need, technological innovation has risen, which in recent years has been able to increase maize productivity by

Photos by Graeme Williams/MediaClubSouthAfrica.com

“It doesn’t take an Ecos 101 student to realise the commodity prices will be on the increase.”

300%. There are also endless possibilities for genetically modified foods (GSMs) to create crops that have higher yields, are more disease and weather hardy, and less damaging to soil. These factors could lower the risks associated with farming and food production. This contributes to building a less volatile food market – which is already able to weather recessions better than most industries. It would be easy to say invest in food production companies that operate out of the more conventional “food-productioninfamous” countries, but these countries are experiencing challenges, which, to a large extent, Africa doesn’t experience. China and Pakistan have severe pollution problems, hindering the rapid growth of crops and cattle, while America and Australia struggle with water shortages. Therefore, Africa is the continent that could offer the highest prospective returns on investment. The sheer size of Africa alone makes it a viable candidate to produce the world’s food needs – it can fit Europe, America and China comfortably inside it while still having some space for half of Australia. This makes it easy to comprehend why Africa contains 70% of the world’s highest potential land for agriculture, offering an abundance of opportunity for farming investment. What makes Africa an even more attractive place to invest in food production is that if we project the population growth of each continent to the year 2050, then Africa will, by far, have the largest population. This is attributable to our healthy, pyramid-shaped population rather than Europe or China’s aging one. Therefore, Africa remains one of the key areas for growth. And, of course, having traditionally weaker currencies in Africa than the rest of the world definitely helps to maintain a competitive edge for food imports. So, while being bullish on food production may not sound as glamorous as a “dot com boom” or “mining Bitcoins,” at least you won’t be left naked in the markets. But hey, who am I to say, I’m just a farmer’s daughter.

d r o w S lifestyle

by jean-marc villois

Mightier than the

Montblanc Honours Picasso & His Muse

here is an expression that states that it is a “pen” that is indeed mightier than the sword. Yet, at Montblanc, instead of speaking of “the pen” they speak of it as a “writing instrument.” For several reasons. Foremost, because the company is more than 100 years old and built its reputation and fortunes on the foundation of exquisitely crafted nibs to be dipped in ink, years before the first ballpoints saw the patent office. But also, speaking of an “instrument” pays homage to the craftsmanship that goes into developing each and every Montblanc piece. Many of the hand-crafted objects of beauty that we observe in the world have been inspired by the ideas of men and women of passion, and Montblanc smartly recognised several years ago how the poems, music, pictures and other artefacts of creativity were closely tied to the writing instruments of the artists’ choice. That inspired a remarkable project and a collector’s dream: the annual release of a special limited edition

Montblanc writing instrument, designed and named in honour of a particular artist. In the world of art, few match the fame and talent of Pablo Picasso, who was not only a painter but also a writer of note. And so the Montblanc Limited Edition 91 and the Limited Edition 39 were born in Picasso’s honour. When Montblanc explored the idea of dedicating one of their unique Limited Editions to the genius of Pablo Picasso, the collaboration started with the Succession Picasso in Paris and Mr Claude Picasso himself, son of the artist. At first the design team of Montblanc explored many different ways to celebrate the multi-faceted genius, and after a few very passionate and interactive exchanges “the light came.” Picasso had also created artworks with corresponding text for a number of his paintings and sketches – what a perfect match for a Montblanc art piece! So, for the Limited Edition 91, the 750 solid gold skeletonised cap offers a view to the rhodium-plated 18K gold nib. Engraved

in black are comments and sketches based on Picasso’s famous work of art, “Portrait de Jeune Fille” (1936). It is this which decorates the upper part of the cap with the distinctive face of the portrait represented in the clip. The shape of the black lacquered body is reminiscent of the simple pencils with which Picasso drew a multitude of sketches. The tip of the cap has the Montblanc emblem emblazoned in mother-ofpearl. Picasso’s Spanish origin is featured masterfully on the cone with lacquered red stripes between rings of 750 solid gold. Only 91 writing instruments throughout the world make up this Limited Edition as a tribute to the number of years that Pablo Picasso lived. The second writing instrument, the Limited Edition 39, is also an exclusive design with its 750 solid gold cap, and takes as its starting point the “Portrait de Jeune Fille.” The shape of the clip reflects the portrait of the same work. The 18K rhodium plated gold nib is visible through an opening in the cap and is decorated with an engraving of the famous Picasso hallmark, the “Ojo.” The Montblanc emblem is featured as a Montblanc cut diamond in the upper part of the cap. The grey lacquered barrel is reminiscent of concrete material as well as the shape of simple pencils. Only 39 writing instruments throughout the world make up this Limited Edition alluding to the number of paintings and drawings of Sylvette David, his muse. Thirty-nine plus ninety-one. Enough to please one hundred and thirty collectors. One need not ask about price, as money seems vulgar in

Photos Courtesy of Montblanc & Succession Picasso 2012

The shape of the black lacquered body is reminiscent of the simple pencils with which Picasso drew a multitude of sketches. the company of objects of this beauty. Yet, Montblanc recognises the value and impact of money and just completed a year-long drive with its Signature for the Good Collection to raise at last $1.5 million for UNICEF education programs for the most vulnerable children across the globe. Here is an idea. Don’t you think a special edition Montblanc writing instrument makes for a fantastic graduation gift? Suggest that to your parents, and even if they cannot afford one of the rare Picasso editions(!) it would make for a fine way to mark this important milestone in your life. It may also inspire you through the years to come, when holding an instrument like this in your hands, to continue to create a life of beauty and meaning.

THE

MICROBREWERY REVOLUTION I N S I G HT S F R O M R O B H E Y N S

The past few years have seen a beer revolution and the sprouting up of microbreweries on every other corner â&#x20AC;&#x201C; some functioning out of garages, and some with really impressive premises and a decked-out tap room. We spoke to Rob Heyns of The League of Beers, who is stoked to see this growth and is keen for you to check out some of the most interesting microbreweries in South Africa.

PHOTOS COURTESY OF LEAGUE OF BEERS

ENTREPRENEURIAL EDGE

But first things first: if you’ve ever been to a commercial brewery, you may notice some big differences between these and the craft varieties. MICROBREWERIES The most noticeable difference is that microbreweries are usually three-to-five man operations. Inevitably, they are run by people who are passionate about beer and the process of making it. That means you will most likely bump into the actual brewers on site and get some insight by chatting to them.

COMMERCIAL BREWERIES A commercial brewery will tend to be more focused on the end product and how much of it they can produce in a day. This means that everything is automated and you may only find casual labour milling around.

Microbreweries view their space as a place of inspiration and you are far more likely to find interesting décor, men with beards, and bicycles against the wall.

Commercial breweries view their space as a machine.

Microbreweries are smaller, and therefore easier to keep clean, and although they will be hygienically sound, there may tend to still be many bicycles and beards around.

Commercial breweries are big. Say no more.

Microbreweries definitely have an aroma, but it is one where you can smell wonderful malt being boiled to smell almost like porridge.

When you enter a commercial brewery, you may be hit by an overwhelming smell of machinery, not always in line with the romance of things.

LOCAL IS LEKKER There are loads of microbreweries out there making great beer and we’ve tried to narrow down some of the true revolutionary brewers who are doing something out of the box. Cape Brewing Company (CBC) is one of the biggest microbreweries we have in SA, but still a long way off from a commercial brewery in scale. They are on the Spice Route farm out in Paarl so you can chat to the brewers, find out how the beer is made, do a tasting and then try the chocolate or coffee tasting around the corner if you’re keen.

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Devil’s Peak is in the trendy Woodstock/Salt River area of Cape Town. Apart from their main range, they are also brewing some really interesting beers with unusual combinations by using special bacteria or wood to age their beers and get something special. Brewers & Union have had a beer feature in London. They’re also the official beer for Spin Ldn – an event celebrating pop culture, craft beer and cycling held in London in March this year. You can join them for a drink at & Union on Bree Street in Cape Town.

ENTREPRENEURIAL EDGE

Clarens Brewery, based out in the small town of Clarens (bet you did’t see that coming) in the Free State hold a beer festival every year. This year was their fourth one. We are impressed at the consistent authenticity of what they are doing at the Festival every year. Why not try Standeaven in Durban? They were featured at the Real Ale Festival in England this year and have some really interesting ales for you to try, pop over to the Shongweni Farmers Market to pair their beers with fine foods while chatting to the brew master about his favourite yeast strains. Triggerfish from Somerset West and Cockpit in Cullinan have teamed up to create some of the biggest and strongest beers in SA and are looking to set some records in the process. Thinking about getting into brewing your own beer, or investing in a Microbrewery? Here are some trends for 2014 identified by Rob Heyns. NANO AND CONTRACT BREWING While the big brewers are expanding, new breweries are popping up all over the place. In the US, there is a trend for home brewers to “go pro.” This is one of the best ways for new brewers to enter the market on a small budget, testing their brew’s acceptance, while often still retaining their day jobs. Examples of breweries who started as nano-breweries include Dogfish (head founder Sam Calagione joked that they were “nano before nano was cool”), Lakeside Brew Works, and Bad Dog Brewing Company. Currently in SA our industry is so small by world standards that a lot of our medium to large breweries would be counted as nano in other parts of the world. While contracting was a word of much controversy in 2013 in SA, almost a swear-word to some, it remains one of the best ways to launch a beer into the market. Classifying a brew as a contracted beer allows brewers to test the market before pricy brewing equipment is purchased. It also enables brand owners to focus on building their brands and allows brewing experts with better equipment to focus on brewing the beers. Brooklyn brewery launched in this way in the US and many of the best producers in SA have done the same. Expect to see many, many more contracted beers arriving on the shelves in 2014.

qualifies as craft but by releasing a list of which beers qualified as craft. The beers that claim to be or apear to be craft but that are not on this list have become known as faux craft or crafty beers. So what is a crafty beer? Beers like Blue Moon and Shock Top are “crafty beers” brewed, owned and distributed by the big, mainstream brewers like SABMiller and ABInbev: • They too look, feel and taste like craft beers. • They’re marketed with localized, story based style marketing. • They happen to also be good quality beers. • And they are brought into the market far more cheaply than many other craft beers. SABMiller argues that the consumer should be left to decide what they want, but some craft brewers counter that the brewing company name should then be displayed on the product openly. Arguments aside, time will tell when, not if, this will start to happen in SA. Word out on the street is that such a beer might be rearing its head in SA in 2014 already. PRICING From the outside many assume that craft brewers are making huge margins. In fact, with their scale, the big brewers are actually making far more margin with their lower price points as well. Pricing elements that affect craft brewing include the factors of small scale production, needing to import ingredients, limited distribution options that are all costly and under-priced mainstream competition. It is hard to tell whether 2014 will bring about a price war, or increased beer costs. Everyone in the industry is fighting to bring costs down, but perhaps the best options will lie in brewers finding ways to add value through innovations. We’ll be looking out.

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CRAFTY BEERS In 2013 in the US, there was quite a stir when the Brewers Association went on the offensive by declaring not just what 60

OFFENSIVE LABELS One thing is obvious in craft beer, especially in the American beers finding their way onto our shores, and that’s offensive and aggressive naming and labelling. Examples include Raging Bitch IPA, Santa’s Butt Winter Porter, Wailing Wench Ale, Dirty Bastard, Arrogant Bastard, Lukcy Bastard from Stone (purposefully spelt incorrectly) and the ironically named Utah craft beer, Polygamy Porter, with the tagline “Why have just one?” One of the reasons for using potentially offensive beer labels is that microbrews need to find ways to catch the eye due to increasing competition, and such names obviously create talking points and “awareness” around that beer. As one brewer put it, “If it offends someone, they probably weren’t going to buy it anyway.” The question is: where are we sitting in SA? Will we go the same way?

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The League of Beers is an online craft beer store with a mission to bring the finest range of local and international craft beer to the South African craft beer community. They try and stay on top of all the microbreweries that are springing up, but if you’ve found a secret brewery that you think they should know about, pop them an email at hello@leagueofbeers.com or visit www.leagueofbeers.com. You can join as a monthly member for just R400/month or try a once-off mixed case for between R300-R485. (Pssst: This would make a great Fathers’ Day gift). Obviously no sales to those under 18.

ENTREPRENEURIAL EDGE

Examples of some already “in-your-face” style beer labels in SA include Bonecrusher, Wild Beast, Beast of the Deep, Naked Mexican, Skeleton Coast and Fokker Weiss. However a lot of SA beers have more of a design focus than those found in the US. Brewers like Citizen, &Union, Darling and even CBC amongst others have clearly been influenced by Cape Town’s design and art community and although we will continue to have many new offensive or aggressive labels, we expect our labels to be more refined and design-oriented than those of our US counterparts. QUALITY CONTROL At a recent Craft Brewers Conference held in Washington, DC in 2013, one of the main things noticed was that while many new beers and breweries were arriving on the scene, not all of them were great. Similarly, in SA we have more and more craft breweries and beers popping up with great ones arriving all the time. But there is very little in terms of quality control. Elements of the microbrewing process that require quality control include the low alcohol to carbohydrate ratio of beers, the complexity and unpredictability of yeast, and challenges in bottling and kegging of beers. A group of us beer snobs recently completed our Beer Judging Certificate Program exams in the hope of encouraging more appreciation for good brewing standards. We are expecting that, as consumers become more adept at understanding the intricacies of craft beer, more will be expected from the brewers. In time, we suspect that the breweries who flourish will need to develop strict controls and those that don’t will eventually fall away. Therefore, increased education will improve practices across the board, which will be great news for everyone.

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TALL BOTTLES In most countries, beer tends to be in a standard sized bottle. Trappist, Abbey and Belgian beers tend to come in bottles like that of Duvel. German Weizen tend to be in bottles like that of the Steph Weiss. While

American beers tend to come in the 12fl.oz bottle such as the one from Rogue. Nowadays, brewers are leaning towards tall bottles. Why? According to brewers, some of these beers are made with such expensive ingredients, it seems ridiculous to put these in bottles that stand next to far less costly brews. These “big beers” are also best shared, as their flavour and alcohol are be very high. Many of these beers also fall into a similar category of fine wines and whiskey as they are meant to be appreciated slowly. Brewer & Union, Darling Brew and Cockpit Brewhouse have allowed SA consumers to grow accustomed to bigger-thanmainstream bottles with 550ml bottles. Glass suppliers, Consol, with their craft bottle have made 440ml the craft beer standard in SA. GLOBAL INFLUENCES The craft beer revolution is happening on a global scale and we are picking up lessons as well as actual products from some of our craft beer counterparts. From Australia to Japan and New Zealand and up to Scandinavia, all kinds of interesting beers are being created and distributed. Watch this space.

lifestyle

by tanya goodman

DRESS

CODE

H o w t o D r e s s f o r an I nt e r vi e w So you’ve just scored your first big job interview after months of networking, sending out CVs and scouring the internet. You've done your research on the company, practiced your answer to the inevitable “What are your strengths and weaknesses?” and you’re sorted for transportation on the big day. Now, what to wear? If you’re a guy, the choices are relatively simple: business suit or business casual. A suit is pretty self-explanatory and your employer knows you are new in the job market, so no need to go the Armani route. Business casual for men is easy, too: a nice pair of neutral slacks and a button-down shirt will suffice. Just make sure your clothes are ironed and your shoes are polished. For women, however, it’s a bit more complicated (isn’t it always?). Women are faced with the dilemma of whether to wear a suit, and if so, what kind of blouse to wear underneath, what length of skirt, what height of heel, and what accessories to pair with it. Then, if you’re going for business casual, the choices become even more overwhelming. Here are some tips.

SCOUT OUT THE CULTURE First of all, know the office culture of the place where you are interviewing. Is it an office with many employees, or just a few? Is the company located in a large office block or in a house or stand-alone building? Are the hours strictly 8:00am to 5:00pm or is it more flexible? The answers to some of these questions will help you determine how relaxed or formal the culture is. You can do some sleuthing online. Check out the company’s social media and see if you can spot any events or meetings. Scan their website and even Google some of the people who are listed as being contacts. (You should have already Googled the company and done extensive research 64

on who they are and what they do). Sometimes even the official company headshots of executives can give you a clue. Then, if you can, find a coffee shop near the office and watch as employees come and go from work or during lunch hour to see what they are wearing (And, if none of them leave for lunch, you should definitely ask yourself if it’s the type of environment for you). If your potential job is in a creative industry, like advertising or public relations, you probably have a bit more leeway to show your own style. If, however, it is a more mainstream business or a large corporation, like finance or law, it’s best to stick with a conservative approach.

SUIT YOURSELF

BAG OR BRIEFCASE?

If you opt for the suit, we suggest you take the middle road. Choose a neutral or dark coloured outfit that includes a skirt and jacket or dress and blazer. A skirt should neither be too short nor too long. At, or slightly above, the knee is fine. If you can’t sit comfortably in it, it’s too short. The jacket should be tailored and fit you properly so that it can be buttoned if need be, though always unbutton before you sit down. It is the blouse and heels that can get you in trouble here. If you opt for a sleeveless blouse, do not plan to take off your jacket. Too much skin is not appropriate in the typical workplace or for first impressions. The same holds true for a neckline – do not plunge. And do not wear anything that hugs your body too closely. Lastly, choose a colour that's flattering but not distracting. No neon or hot pink or funky patterns. Keep it simple.

It’s always a good idea to take along extra copies of your CV, a notepad and a pen (to write down names for thank you notes you will send later). So consider ditching the handbag and going for a slim briefcase or portfolio-type folder. Leather always looks stylish. A briefcase works better so you can stash your keys and cell phone before you walk into the meeting. Definitely no book bags or back packs.

CASUAL BUT CLASSY

HAIR UP OR DOWN?

If you’ve determined that business casual is the way to go, it can be tough to actually nail down what that means. We suggest that either tailored pants or a skirt is fine, paired with a classic, fitted shirt. Go neutral – navy, blue or black skirt or pants with a white or light-coloured shirt is an easy solution. But you can jazz it up a bit. A rule of thumb – if it needs to be ironed, it’s probably suitable. Just remember to do the ironing.

If you have long hair, it’s safest to find a style that is neat and where it doesn’t hang in your face. It need not be spinster-ish and slicked back, but consider a hairband or ponytail if you have a wild “do” so long as it looks professional and under control. If your hair is short and styled, just make sure it’s clean and tidy. We suggest you don't do any crazy hair colouring before an interview, unless you’re speaking to the funkiest marketing agency in town. And even then, rather not.

ACCESSORIZE IT When it comes to accessories, here is where you can let your personal style shine through. Just don't let it overwhelm. In winter, you can choose a nice scarf to complement your outfit. Keep jewellery relatively light and not too flashy. A medium pair of earrings (no large, dangly ones – they, too, are distracting and are more appropriate for a night on the town) are fine, along with a watch, bracelet and a couple of rings. Just don't choose jangly ones, especially if you talk with your hands. Think carefully if you need to wear a necklace, as it’s usually not necessary. And no jewellery is better than cheap jewellery.

NO BRAINERS • Go easy on the body spray or perfume. • Clean and trim your nails.

HEELS OR FLATS? If you have to ask if they’re too high, they probably are. Be sensible, but don't be dumpy. Wear what makes you comfortable, but do not wear stilettos or platforms or unusual colours. Medium height, closed-toe shoes are perfect with either a suit or business casual.

MAKEUP No smoky eyes, no false eyelashes, no over-thetop lip colour or eye shadow. Again, you want the focus on your skills and qualifications, not on your war paint.

GO GET ‘EM We can give you all the “first impressions count” clichés, but you know all that. Just dress the part so you have that extra boost of confidence. Go out there, get the job, and then the real work begins.

• Brush your teeth. • Don't chew gum. • Don't put your sunglasses on your head – pack them away.

• No iPads, tablets or laptops unless you need to show your portfolio. • Turn off your cell phone.

lifestyle

Dinner Date

by marina stewart

You decided to invite the new love of your life over for dinner, but don't have a clue what to prepare. And mom isn’t online. Try any one of these quick and easy entrees, serve each with a crisp green salad and garlic bread, and top off your feast with a simple yet fancy desert. Invest in a decent bottle of wine or two, remember to chill the white in advance, and you’ll be set to charm his or her socks off.

CHICKEN PARMIGIANA

A hearty meal that won’t break the bank and looks like you spent hours in the kitchen, a chicken parmigiana is ideal for a cold, winter’s night. Complement with a cabernet sauvignon or a merlot. Serves 2-4 Prep Time: 15 min Cook Time: 30 min Ingredients • 4 chicken breasts (prepared with crumbs) • 1 large jar pasta sauce

• 1 cup grated cheddar or mozzarella cheese • sprig of basil to garnish Method 1. Preheat oven to 180-degrees. 2. In an oven-proof baking dish, spread half the pasta sauce. Place chicken breasts on top. Spread remaining pasta sauce on the chicken and sprinkle the cheese on each. 3. Place in the oven for 30 minutes. 4. Sprinkle with chopped basil.

PENNE PESTO PASTA

Super quick and easy but classic and full of flavour. Perfect if you have a vegetarian or vegan (skip the cheese) in your life. Red wine or white works well with this dish. Serves 2-4 Prep Time: 15 minutes Cook Time: 10 minutes Ingredients • 1 package of penne pasta • 1 package of Ina Paarman’s Pesto sauce • 1 package of baby tomatoes

• 2 tbs grated Parmesan cheese • 2 tbs olive oil • salt to taste Method 1. Cook pasta in a large saucepan of boiling, lightly salted water according to packet instructions. Drain and place in a large bowl. 2. Pour pesto sauce over pasta and toss, adding olive oil if needed. 3. Slice tomatoes in half and sprinkle cheese on top.

GRILLED SALMON

Healthy and delicious, grilled fish always impresses. Cook inside if your stove has a grill, or take it outside and braai. Serve with dry, white wine like chenin blanc or sauvignon blanc. Serves 2-4 Prep Time: 15 min Cook Time: 30 min Ingredients • 4 salmon fillets (frozen, though fresh is better) • 2 tsp vegetable oil • 2 tsp soy sauce • 1 tsp Worcestershire sauce • juice of 1/2 a lemon • 1 tsp ginger • 2 tsp honey

Method 1. Preheat oven to grill (or braai outside) 2. In a small bowl, stir together the oil, soy sauce, Worcestershire sauce, lemon juice, ginger, and honey. Pour over the salmon and let it marinate for about 20 minutes. 3. Place the salmon on a foil lined baking sheet, skin side down (or slide the foil onto the braai). 4. Grill the fillet for about 20 minutes, basting it twice but do not turn. Salmon should be able to flake with a fork, but not be too dry when ready.

SWEET NOTHINGS PAVLOVA DESERT

You won’t believe how easy it is to present this impressive desert with pre-prepared meringues. Serves: 2-4 Prep Time: 10 minutes Cook Time: 0 Ingredients • 4 prepared meringue shells or 1 large shell (available in the fresh bakery section) • 1 small can of granadilla pulp (available in the baking section) • 250ml whipping cream (or Greek yogurt if you don’t know how to whip cream)

• small package of strawberries (or any berries you prefer) • small package of icing sugar Method 1. Whip the cream until stiff peaks appear. This can take a while, so if you’re in a rush, try Greek yogurt (the full fat kind) and mix a few teaspoons of icing sugar in at a time til it’s the right sweetness. 2. Scoop enough cream or yogurt into the basket of meringue until it is slightly above the rim. 3. Slice the strawberries in half and arrange on top. 4. Drizzle the granadilla pulp across the strawberries and sprinkle with icing sugar.

STUDENT LIFE

uct pictorial In early August 2013, Nick Fitzhenry, a first year Law and Economics student at the University of Cape Town, created a street photography blog called UCT Pictorial, whose Facebook Page has gone viral on the UCT campus. The blog is inspired by Brandon Stanton’s Humans of New York, a popular street photography page, which has gained over 3.5 million likes on Facebook. Between lectures, Nick roams the campus with his camera, approaching strangers and asking them if they would like to partake in an impromptu photo-shoot. So far he has taken over 100 portraits of students around UCT, and more follow daily. Each portrait is accompanied by quotes taken out of a short interview that Nick conducts with the subjects of his photographs. The result is a stream of stunning portraits that gives us a sincere glimpse into the thoughts, hopes, struggles and personalities of the humans of UCT. For Nick, the purpose of the blog is not to convey one single message, but is driven simply by his “love for photography and the joy of meeting new people.”

"I want to become a teacher" "Why?" "I love children, so much. I want to have at least six. Last week I bought this cute baby shirt because I was worried that it wouldn't be on sale when I have kids." 68

www.facebook.com/uctpictorial

"I'm triple majoring in Arabic, linguistics and media." "Why do those subjects interest you?" "The Qur'an was revealed in Arabic, it's difficult to translate, as a lot of the expression is unique to the language. I'm studying Arabic so I am able to properly read it. I'm studying Linguistics because I love languages as a whole. When you learn about a language, you learn about a person's culture."

“I’m studying Drama and Dance.” “What attracts you to those subjects?” “I suppose the fact that we live in a society that subconsciously suppresses how honestly and sincerely we interact with those around us. Which to some extent prevents us from being honest with ourselves a lot of the time. But then you have these forms of expression, moments of movement and jubilation. I feel like I’m making magic every time I move. Just constant exultation and catharsis in between the sweat and achy limbs.”

“I think what we need to realise is that the very hands we use to point at the government are the very hands that can make South Africa better for everyone. How do we do this? I don't know, but that's why I'm at university; to find out how!”

“There’s a huge need for feminism in Africa. Too often women aspire to someone else’s definition of beauty, or have opinions pushed onto them, rather than voicing their own.”

"What's your biggest struggle at the moment?" "I lost my mom last year, it was very difficult coping with her loss along with my academic requirements, but I managed. We were very close"

"Always value your freedom, and always value your individuality. People are often pressured to do something even though they don't want to. I try and avoid that." "Can you give me an example?" "There's nothing wrong with it, but a lot of people at university like to party, but also I know a lot of people don't like partying, yet they do it anyway. Why imprison yourself? For me, I'd prefer a LAN any day."

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S WHEN THE OLD GUYS GET IT WRONG BY RICH MULHOLLAND

Follow the author on Twitter @RichMulholland or www.richmulholland.com

o let me tell you something about wisdom. It’s a great thing, and old dudes have it in abundance. For the most part, it’s worth listening to them too. However, there’s one mistake we old(er) guys make when we talk to younger guys starting out in business. We make the mistake of telling them that money isn’t everything. We tell you that what you need to achieve is a healthy dose of balance. We tell you that you should worry about your health, how you should understand that money won’t buy you happiness, and that the more you get the more you want. We’re not lying either. In our universe that’s exactly how it is. However, that’s about as valuable as telling a 16-year-old that he’s not actually in love. Here’s the reality: With all luck and perseverance, you’ll reach a stage in your business/life where money isn’t everything. The bad news is, if you want to get there anytime soon, you better make sure that money is a very real priority for the foreseeable future. Starting my company, Missing Link, when I was 23, if you’d asked me to define success, I would have said a Porsche in the garage and a yacht on the dock. Fast-forward 16 years and it’s a different picture. Do I regret chasing the wrong, slightly shallow dream? Absolutely not! If I didn’t chase it then, I’d damn well be chasing it now – and it would be a whole lot harder to achieve. So why am I telling you this? Hopefully to give you a well needed kick in the ass. Stop fretting about cool offices and killer websites, and start stressing about the only single thing that matters – sales. If you sell products or services, get customers. If you’re hoping to sell your “OMFG this is the raddest idea ever website” to Google for a bijillion rand— get users. Just sell. Oh, and this should go without saying – but if you can’t sell, find yourself someone who can. Just do it properly. Salesmen are like waiters, any one can get the job but only a very small percentage can do it. So where to from here? Right now, throw work/life balance out of the window and focus. Dig in your heels, burn the midnight oil and do every single thing you can to make this work. However, just make sure the people that you love and care about understand this short-term tactic, and make them part of it. They say that the best lessons are from mistakes. Well, learn from mine: I did my best to go it alone and, as a result, at one stage I found that all I actually had was a company – that’s no fun. As my business coach Wolf Vosse always says, “It’s lonely at the top.” You need collaborators, critics, confidants, and companions – you need people around you to hold you up when you feel like crashing. You know what? It’s going to be a crazy roller-coaster, but that’s not so bad. People pay good money and wait in long queues to get on those things – you just have to open your office door. Enjoy the ride.

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

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