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

Dec 2
𝗥𝗘𝗪𝗥𝗜𝗧𝗜𝗡𝗚 𝗧𝗛𝗘 𝗥𝗨𝗟𝗘𝗦 𝗢𝗙 𝗙𝗜𝗡𝗔𝗡𝗖𝗘

South Africa is preparing for one of its biggest financial regulation shake-ups in decades.

𝗜𝘁’𝘀 𝗰𝗮𝗹𝗹𝗲𝗱 𝘁𝗵𝗲 𝗖𝗢𝗙𝗜 𝗕𝗶𝗹𝗹

It will completely overhaul how every financial institution operates, from Banks and Insurers to Fintech and Crypto companies.

𝗙𝗶𝗻𝗱 𝗢𝘂𝘁 🔻Image
1/ Back Story

𝗧𝗵𝗲 𝗖𝗢𝗙𝗜 𝗕𝗶𝗹𝗹 𝗶𝘀 𝗮 𝗸𝗲𝘆 𝗽𝗶𝗹𝗹𝗮𝗿 𝗼𝗳 𝗦𝗼𝘂𝘁𝗵 𝗔𝗳𝗿𝗶𝗰𝗮’𝘀 𝗧𝘄𝗶𝗻 𝗣𝗲𝗮𝗸𝘀 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗺𝗼𝗱𝗲𝗹, designed to create one unified, streamlined framework for overseeing how all financial institutions conduct themselves.

The reform process started with a policy paper around 2014, and by 2017 the Financial Sector Regulation Act (FSR Act) was enacted, officially establishing the two new regulators that underpin the system:

🏦The Prudential Authority
🏦Financial Sector Conduct AuthorityImage
𝟮/ 𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗖𝗢𝗙𝗜 𝗕𝗶𝗹𝗹

COFI = Conduct of Financial Institutions

The Financial Sector Conduct Authority (FSCA) is leading the charge on South Africa’s Conduct of Financial Institutions Bill (𝗖𝗢𝗙𝗜 𝗕𝗶𝗹𝗹), which will overhaul the country’s market-conduct rules for financial institutions.

𝗪𝗵𝗮𝘁 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻𝘀 𝗶𝘀 𝘁𝗵𝗮𝘁,

Instead of regulating each sector separately (banks, insurers, pension funds, investment firms, advisors, etc.), 𝗖𝗢𝗙𝗜 𝗰𝗿𝗲𝗮𝘁𝗲𝘀 𝗼𝗻𝗲 𝘂𝗻𝗶𝗳𝗶𝗲𝗱 𝗿𝘂𝗹𝗲𝗯𝗼𝗼𝗸 𝗯𝗮𝘀𝗲𝗱 𝗼𝗻 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀, 𝗻𝗼𝘁 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀.

Think: same rules for the same behavior.
Read 10 tweets
May 15
South Africa has over 𝗥𝟭.𝟮 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗘𝘅𝗰𝗵𝗮𝗻𝗴𝗲 𝗿𝗲𝘀𝗲𝗿𝘃𝗲𝘀.

If you are wondering who manages those reserves, then this is the thread for you.

Find out 🔻 Image
*** What are Reserves ***

Think of Foreign Exchange Reserves as a country's emergency savings account, which is usually held in foreign currencies

Look at S.A’s below:

🟡Gold = $13.1 billion ( R243b )
🔵Foreign/C = $47.9b ( R889b )

That alone is R1.1 trillion in reserves Image
1/ What’s the Purpose?

The central bank ( South African Reserve Bank (SARB) ) uses it to:

🟠keep the economy stable
🟠support the national currency

🟠Settle imbalances in
international payments
(export & import)

🟠Protect the country in the event of external shocks. Image
Read 13 tweets
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

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