David (TalkingCents) Profile picture
Sep 6, 2021 14 tweets 4 min read Read on X
Money Metaphors

Money Makes the world go around

- thread - Image
1/
Investing is a marathon not a sprint

Translation,
investing takes time, don’t be in a rush to get rich quick. Image
2/
Liquidity is like oxygen,
you don’t notice that you need it until is not there.

Translation,
having cash available is important to be able to cover emergencies, or to be able to take advantage of market sell offs. Image
3/
Don’t put all your eggs in one basket.

Translation,
don’t have all your money in one asset class because if it does bad then your entire net worth is affected. Image
4/
Investing should be like watching paint dry.

Translation,
It’s not meant to be fun, it should be boring Image
5/
Build a nest egg.

Translation,
make sure to have enough money for retirement so you can take care of yourself in the future. Image
6/
Choose your investments like you pick your spouse.

Translation,
don’t just marry anyone, similarly vet your investments thoroughly before committing to it. Image
7/
These prices are day light robbery.

Translation,
the cost of something is very expensive. Image
8/
That company is printing money

Translation,
the business itself has many customers, it is making a lot of profit. Image
9/
It’s a cash cow

Translation,
It’s making a lot of money without much effort. Image
10/
Pouring money down the drain

Translation,
you are wasting money, the odds are high that you won’t get a return on your investment. Image
11/
Time is money

Translation,
don’t waste your time because it’s valuable, it’s better to do things now and efficiently instead of procrastinating. Image
12/
My two cents worth

Translation,
you are giving your opinion on something, even if the person never asked. Image
• Shout out

You made it to the end, now learn how to become a millionaire 👀👇🏽

• • •

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More from @talkcentss

Apr 9
𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗦𝗲𝗰𝗿𝗲𝘁𝘀 𝗥𝗲𝘃𝗲𝗮𝗹𝗲𝗱

In this thread, the basic candlestick patterns and charts will be taught.

𝗟𝗲𝗮𝗿𝗻 𝗠𝗼𝗿𝗲 🔻 Image
** 𝗚𝗹𝗼𝘀𝘀𝗮𝗿𝘆 **

🟢Bull (ish) = Price is rising
🔴Bear (ish) = Price is falling

📈Resistance:
Price battles to move higher

📉Support:
Price holds at a certain level Image
** 𝗖𝗵𝗮𝗿𝘁 𝗧𝘆𝗽𝗲𝘀 **

🟠Candlestick
🟠Line
🟠Bar

There are more, but these 3 are common.

We’ll be 𝗳𝗼𝗰𝘂𝘀𝗶𝗻𝗴 𝗼𝗻 𝗰𝗮𝗻𝗱𝗹𝗲𝘀𝘁𝗶𝗰𝗸𝘀 𝗶𝗻 𝘁𝗵𝗶𝘀 𝘁𝗵𝗿𝗲𝗮𝗱, as it is the most important and the easiest one to trade. Image
Read 23 tweets
Mar 3
Dividends Explained

🟢 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝘀
🔴 𝗗𝗶𝘀𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝘀

Time to learn 🔻 Image
𝟭/ 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱𝘀

Dividends are payments made by a company to its shareholders.

When you invest into a company (own equity) you become a shareholder of that company and then have a claim on future cashflows. Image
The net profits from the respective company you’ve invested in can be:

(𝟭) 𝗥𝗲𝗶𝗻𝘃𝗲𝘀𝘁𝗲𝗱 𝗯𝗮𝗰𝗸 𝗶𝗻𝘁𝗼 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀
(𝟮) 𝗥𝗲𝗱𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝗱 𝘁𝗼 𝗲𝗾𝘂𝗶𝘁𝘆 𝗵𝗼𝗹𝗱𝗲𝗿𝘀
(𝟯) 𝗕𝗼𝘁𝗵 (𝗿𝗲𝘁𝗮𝗶𝗻𝗲𝗱 + 𝗿𝗲𝗱𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝗱)

The retention and amount of distributions are dependent on what the board of directors decide.

———

𝗙𝗼𝗿𝗺𝘀 𝗼𝗳 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱𝘀

Dividends can be paid in two forms, depending on what is decided:

(1) Paid in cash
(2) Additional Shares, known as a stock dividend

This is the way for a company to share its profits, and can be seen as a sign of financial stability.Image
Read 10 tweets
Feb 7
𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗕𝗼𝗻𝗱𝘀 🇿🇦

Let me explain the difference between RSA Retail Savings Bonds and tradable South African bonds.

𝗙𝗶𝗻𝗱 𝗼𝘂𝘁 🔻 Image
** Glossary **

𝗕𝗼𝗻𝗱:

A bond is a debt security. You can think of it as an I-O-U.

You lend money to someone, and then they promise to pay that money back to you + interest.

𝗠𝗮𝘁𝘂𝗿𝗶𝘁𝘆:

Refers to the date on which the bond issuer (debtor) pays back everything they owe to bondholders ( creditor ).Image
1/ Introduction

When it comes to bonds there are two markets one can opt to participate in:

🟠 The Primary Market
🟠 The Secondary Market

The primary market is where you 𝗯𝘂𝘆 𝗶𝘁 𝗱𝗶𝗿𝗲𝗰𝘁𝗹𝘆 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗴𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 but then cannot sell it to someone else because there is no secondary market for it.

*So the price of the bond cannot fall.

𝗧𝗵𝗶𝘀 𝗶𝘀 𝘄𝗵𝘆 𝘁𝗵𝗲𝗿𝗲 𝗮𝗿𝗲:

🟢No fees
🟢No commission
🟢No Risk
🟢Guaranteed returns

——————

𝗥𝗲𝘁𝗮𝗶𝗹 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 𝗕𝗼𝗻𝗱𝘀 𝗮𝗿𝗲 𝗻𝗼𝘁 𝘁𝗿𝗮𝗱𝗲𝗱 𝗼𝗻 𝘁𝗵𝗲 𝘀𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗺𝗮𝗿𝗸𝗲𝘁 and this is what makes them different from tradable government bonds.

𝗢𝗽𝗽𝗼𝘀𝗶𝘁𝗲 𝘁𝗼 𝘁𝗵𝗮𝘁,

Tradable government bonds have a secondary market where they can be traded or held to maturity.

This means you can sell it when you want to, but it also means you can potentially lose money if the bond price has fallen lower than your original purchase price.

With tradable government bonds, you are 𝘀𝘂𝗯𝗷𝗲𝗰𝘁𝗲𝗱 𝘁𝗼 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲 𝗿𝗶𝘀𝗸.Image
Read 16 tweets
May 9, 2024
𝗧𝗵𝗲 𝗖𝗮𝘀𝗵𝗳𝗹𝗼𝘄 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁

This is the part where many of us get confused when reading financial statements.

But not anymore🔻 Image
*** Catch up ***

Here is a basic understanding of the three most common financial statements.

Start with this thread before continuing 🔻
1/ The Cashflow Statement

Is an important tool used to manage the finances of a business by tracking the cash flow of an organization.

It’s divided into 3 Parts:

▪️Operating activities
▪️Investing activities
▪️Financing activities Image
Read 13 tweets
May 5, 2024
𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀 𝗘𝘅𝗽𝗹𝗮𝗶𝗻𝗲𝗱

▪️Cashflow Statement
▪️Income Statement
▪️Balance Sheet

Beginners guide 🔻 Image
1/ 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻

𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 records information related to a business’s transactions,

It provides a summary of statements reflecting the financial performance of an entity. Think of it as the 𝗹𝗮𝗻𝗴𝘂𝗮𝗴𝗲 𝗼𝗳 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀.

Let’s take a look 🔻
2/ 𝗧𝗵𝗲 𝗖𝗮𝘀𝗵𝗳𝗹𝗼𝘄 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁

The Cashflow statement shows:

▪️Sources
(where money came from)

▪️Uses
(how the money was used)

It 𝘁𝗿𝗮𝗰𝗸𝘀 𝘁𝗵𝗲 𝗰𝗮𝘀𝗵 𝗺𝗼𝘃𝗲𝗺𝗲𝗻𝘁𝘀 of a business (Money in, and money out) Image
Read 12 tweets
Mar 25, 2024
𝗧𝗵𝗲 𝗦𝗼𝘂𝘁𝗵 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗥𝗲𝘀𝗲𝗿𝘃𝗲 𝗕𝗮𝗻𝗸

National Treasury ( NT ) plans to use the 𝘂𝗻𝗿𝗲𝗮𝗹𝗶𝘇𝗲𝗱 𝗴𝗮𝗶𝗻𝘀 from the Gold and Foreign Exchange Contingency Reserve Account ( GFECRA )

They call it ‘𝗪𝗮𝘁𝗲𝗿𝗳𝗮𝗹𝗹’ arrangement

Learn more 🔻
Image
Image
** Glossary **

▪️National Treasury
▪️GFECRA

National Treasury is one of many departments of the South African Government

The Treasury falls within the portfolio of the Minister of Finance, and the role of NT is to manage the Government’s Finances.

The South African Revenue Service (SARS) and Statistics South Africa also fall under this wing.

——————-

The Gold and Foreign Exchange Contingency Reserve Account is a tool used to safeguard the country's financial stability.

This account’s purpose is in its name, it holds the reserves of gold and foreign currencies South Africa has built up.
1/ The Waterfall Arrangement

𝗦𝗶𝗻𝗰𝗲 𝘁𝗵𝗲 𝗺𝗼𝗻𝗲𝘆 𝘁𝗵𝗮𝘁 𝘄𝗲𝗻𝘁 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗚𝗙𝗘𝗖𝗥𝗔 𝘄𝗲𝗻𝘁 𝗶𝗻 *𝘂𝗻𝘀𝗲𝘁𝘁𝗹𝗲𝗱, it means it has grown larger over the years due to currency depreciation.

( remember this, cause this will be important later on )

—————

Going forward, the funds from the GFECRA will now be distributed into 3 pools, 𝘄𝗵𝗶𝗰𝗵 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗸𝗻𝗼𝘄𝗻 𝗮𝘀 𝘁𝗵𝗲 𝗪𝗮𝘁𝗲𝗿𝗳𝗮𝗹𝗹 𝗮𝗿𝗿𝗮𝗻𝗴𝗲𝗺𝗲𝗻𝘁.

The three pools are:

(1) GFECRA Buffer Account
(2) SARB’s Contingency Reserve
(3) National Treasury

—————-

𝗙𝗼𝗼𝘁𝗻𝗼𝘁𝗲:

*Unsettled funds going into 𝗚𝗙𝗘𝗖𝗥𝗔, means funds that entered into the account and had no purpose, they weren’t allocated or spent to anything specific.

*Picture just for visualization purposes to show the 3 Pools ( Waterfall arrangement)Image
Read 14 tweets

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