WealthWise magazine
www.wealthwisemag.com
Vol I/No. 10
FREE
South Africa/Africa region December/January 2012
EXTREME MONEY Risk, shock, devastating truths in the world of high finance
Your bi-monthly guide to wealth wishes you Happy Holidays!
Contents
December/January 201 2
Coverstory 8 Extreme Money
LifeWise
24 Have investors CareerWise capitulated against value? 47 The Team-Building 28 How to value equities Debate on JSE 51 The Missing Link
1 5 The No New Gifts BusinessWise Holiday Challenge 32 Attuned Leadership 1 9 Advertorial 40 The GAP Marketing Turnover Boost Model MoneyWise Part I 21 How to avoid the 44 What is Due credit card meltdown Diligence?
Agenda
53 Holiday Guide to Scenic Garden Route 60 Books 64 Events
Regulars: 3 Contents 4 ForeWord 5 Get in touch 6 Contributors 49 Competition 66 Last Word 67 In next edition
WealthWise magazine 3
ForeWord
Happy Holidays!
H
appy holidays! The “silly season” is finally around the corner and we are slowly starting to shift our focus from work and business to fun holidays, parties and carefree days in the African sun. Unfortunately, most of us adopt the same carefree attitude towards money and spending during holidays. This year, before going shopping or planning your breakaway, rethink your options and save your wallet by reading our good advice in “How to avoid the holiday credit card meltdown” and “The No New Gifts Holiday Challenge” – you’ll find it both entertaining and practical. If you’re still busy planning a holidaytriporasocialcalendar 4 WealthWise magazine
for the end of the year, you might want to read our holiday guide to Garden Route, a South African hot destination of choice and browse our events section.Alsodon’toverlookthe book review section for fabulous reads that make perfect gifts for your family and friends. Thiseditionwehaverevamped our main sections, bringing more exciting interviews and content. We highly recommend our top interview and CoverStory with global money market trader and consultant Satyajit Das, who openly reveals the dirty money tricks in the high world of finance and makes it easier for everyone of us to (finally!) understandtheglobalfinancial crisis in his acclaimed book, “Extreme Money”.
Also, we had the opportunity to chat with businessman and leadership practitioner and theorist Dr. Reuel Khoza. Read the interesting discussion in our BusinessWise section, touching on political and economical aspects of the African continent. We also have exciting practical advice on investments, business buying and selling, marketing and team building options. This is our best edition ever and we are looking forward to providing you with an exciting reading experience! We hope that our publication will inspire you to make every day, longlasting changes to a wealthier future. Wishing you all the best, Denisa Oosthuizen Mng Editor WealthWise magazine
Get In Touch
Contact us Email: denisa@wealthwisemag.co.za editor@wealthwisemag.co.za Mobile: +27(0)82 819 2820 +27(0)81 326 1579 Skype: denisa.oosthuizen Facebook: WealthWise magazine Twitter: @WealthWisemag LinkedIn: www.linkedin.com/company/wealthwise足magazine
WealthWise magazine Publisher
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Denisa Oosthuizen denisa@wealthwisemag.co.z a
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All content and information within WealthWise publication is property of the Publisher and should not be reproduced, copied or entirely quoted without the prior approval of the Publisher, being protected under copyright laws. Should you wish to make use of any of the content displayed please contact us at denisa@wealthwisemag.co.z a or editor@wealthwisemag.co.za . For editorial contributions, comments and suggestions, email our editor at
editor@wealthwisemag.co.za . For technical issues and other website related comments, email us at admin@wealthwisemag.co.za
December/January 2012
Cover photo: Wall Street Sign (New York City) mypersonalphotoblog.wordpr ess.com Contributors: Leo Babauta, Andrew Newell, Geoff Blunt, Andrew Morton, Bob Power, Lisa Conlyn, Carla Rossouw, Johan Mouton, Denisa Oosthuizen Photos: dreamstime.com and contributor's photos where stated WealthWise magazine 5
Contributors
Andrew Newell
is Head of Business Development at Cannon Asset Managers. He was previosly involved with Investec Asset Management, as a direct client investment consultant and advisor.
Geoff
is Chief Executive Officer at Cannon Asset Managers. After completing a BCom (Hons) at Wits, Geoff lectured Corporate Finance in the Wits business economics department.
Johan Mouton is the owner
In 2004 he joined Cannon Asset Managers in Johannesburg as head of group new business. He is involved in the development of relationships with high net worth clients, brokers and institutions.
He worked as a private足client portfolio manager at SGFP and BoE Private Bank before joining the Investment Solutions investment team and then continue his career in asset management at Cannon Asset Managers.
He has an Honours degree in marketing and has developed a marketing boost model to help companies increase their turnover by implementing and focusing on adequate marketing strategies.
Read Andrew's article (with Geoff Blunt) about valuing equities on the JSE in the MoneyWise section, page 28.
Read
6 WealthWise magazine
Blount
article about stocks in our MoneyWise section, page 24.
value
Geoff's
and marketing specialist at Online Systems. He has been involved in marketing research projects, consulting work and developing people for business.
Read Part I of Johan's 18 GAP Marketing Turnover Boost Model in our BusinessWise section, page 40.
Contributors
Andrew
Morton is Managing Consultant at The HR Hub, South Africa’s first HR Service Centre, offering a number of HR products and services under one roof, covering the complete HR spectrum. Read his article about the purpose and value of team building in CareerWise section, page 47.
Lana Conlyn
Carla
Bob Power
Bob wrote the article on due diligence in BusinessWise section, page 44.
is a writer, public speaker and life coach. Her anthology of poems ‘Am I Enough’ was nominated by the Academy Awards for English in 2009, she has been a frequent guest on Great Expectations with Sam Cowen and is a writer for The HR Hub. Read Lana's article about the loss of human connection in the workplace in CareerWise section, page 51.
is presently CEO of Power Corporate Consultants, specializing in security and management consulting, coaching and training in the M&A spectrum and assistance for the SME market.
Rossouw is a Professional Conference Organiser based in South Africa. She writes reviews on Venues, Hotels and Restaurants as well as International Destinations. She regularly writes for our Agenda section reviews of fabulous places. Visit www.carlarossouw.com and read a review of the Garden Route holiday hot spots in Agenda section on page 53.
WealthWise magazine 7
CoverStory
Extreme Money
Risk, shock and devastating truths in the world of high finance by Denisa Oosthuizen
O
nce upon a time society built things. "We engineered beautiful objects and created authentic goods. Now this real industrial engineeringhasbeenreplaced by financial engineering: shuffling money in an endless process of debt, trading and speculation. It’s enabled vast fortunes to be made for a few, while the risk was carried by ordinary people (…)”.
This is how the world we live in would be described today, from an honest, objective and shocking perspective few can really understand. And this is how the world of finance and its global domination is pictured by bestselling author, consultant and internationally respected expert in finance with over 30 years experience in 8 WealthWise magazine
"I didn’t know it at the time but I was getting into what would be the biggest game in money markets for the next 30 years"
global money markets Satyajit Das, in his best selling title “Extreme Money”. Satyajit Das, himself an insider of the global finance, having previously worked for giants Citicorp Investment Bank and Merrill Lynch, delivers a
true fascinating journey into the spectacular and dangerous money games and the elite who plays these games, namely the “Masters of the Universe”, representing the crème de la crème of the high finance: elite bankers, financiers and traders. In an interview with WealthWise magazine, Satyajit Das discusses the misfortunes and flaws of the world of high finance, the debt and speculation that fueled the global financial crisis and how powerful money games impacted on society as a whole. WealthWise magazine: What attracted you to the world of high finance and global money markets in the first place?
Picture: WallStreet in New York City, where the socalled "Masters of the Universe" continue to play dangerous money games Satyajit Das: I never set out to have career in high finance. I trained in law and accounting. To finance my studies, I used to work part time in an amusement park, which meant working every Friday night and all weekend. That’s hard when you are young. The Commonwealth Bank, then owned by the Australian government, offered me a scholarship to study on the condition that I worked for them after graduation. So, I supposed it was greed that got me into finance. But it was serendipity. I found I was suited to the world of banking. Very early on,
around 1977, as markets for derivatives the term hadn’t been invented, they called it futures and options were beginning, the bank was looking for people in that area. I had studied something called the Black Scholes option pricing model in a course at university and I bluffed my way in. They gave me a job.
I didn’t know it at the time but I was getting into what would be the biggest game in money markets for the next 30 years. I suppose it was an accident – a happy one. So my career tracks the rise of high finance in the modern world so much for careful career planning!
WealthWise magazine: What motivated you to write “Extreme Money”, given your background as a financier? Satyajit Das: In 2006, I published Traders, Guns and Money which anticipated developments in the financial crisis accurately. That same year, I gave a speech entitled The Coming Great Credit Crash. Like Cassandra, I tried to draw attention in vain to the issues that threatened the global financial system. What happened is now, of course, history. And we are far from a resolution – as the comedian Lily Tomlin stated: "It’s going to get much worse before it gets WealthWise magazine 9
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