𝗧𝗵𝗲 𝗖𝗮𝘀𝗵𝗳𝗹𝗼𝘄 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁

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

But not anymore🔻 *** Catch up ***

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

Start with this thread before continuing 🔻

https://twitter.com/talkcentss/status/1787121236373635115

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀 𝗘𝘅𝗽𝗹𝗮𝗶𝗻𝗲𝗱

▪️Cashflow Statement
▪️Income Statement
▪️Balance Sheet

Beginners guide 🔻 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 🔻

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 🔻

** 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.

𝗕𝗿𝗲𝘄𝗲𝗱 𝘁𝗼 𝗟𝗮𝘀𝘁

The Beer with the Longest and Proudest Heritage in South Africa

𝗧𝗵𝗲 𝗗𝗮𝗿𝗸 𝗦𝗲𝗰𝗿𝗲𝘁𝘀 𝗡𝗼 𝗢𝗻𝗲 𝗧𝗼𝗹𝗱 𝗬𝗼𝘂

Read more 🔻

1/ History

𝗟𝗲𝘁’𝘀 𝗰𝗿𝗮𝗰𝗸 𝘁𝗵𝗶𝘀 𝗼𝗽𝗲𝗻….. 🍺

The story dates back to 1886 and can be traced to the days of the Johannesburg Gold rush.

Here is how a man with a small brewery in Northern Natal led to the historic legacy of the South African Breweries (SAB)
——————————————

𝗧𝗵𝗲 𝘀𝘁𝗼𝗿𝘆 𝗼𝗳 𝗖𝗵𝗮𝗿𝗹𝗲𝘀 𝗚𝗹𝗮𝘀𝘀…..

Charles Glass, British-Born-Brewer, established Glass & Co in 1864, which ended up giving birth to a global powerhouse in the later years.

As time passed, he saw a money making opportunity in the market, to provide miners with beer in the Witwatersrand Reef (𝗮𝗹𝘀𝗼 𝗸𝗻𝗼𝘄𝗻 𝗮𝘀 𝘁𝗵𝗲 𝗥𝗮𝗻𝗱).

—————
*𝚃𝚑𝚎 𝚐𝚘𝚕𝚍 𝚛𝚞𝚜𝚑 𝚝𝚑𝚊𝚝 𝚋𝚎𝚐𝚊𝚗 𝚒𝚗 𝟷𝟾𝟾𝟼 𝚒𝚜 𝚠𝚑𝚊𝚝 𝚕𝚎𝚍 𝚝𝚘 𝚝𝚑𝚎 𝚎𝚜𝚝𝚊𝚋𝚕𝚒𝚜𝚑𝚖𝚎𝚗𝚝 𝚘𝚏 𝙹𝚘𝚑𝚊𝚗𝚗𝚎𝚜𝚋𝚞𝚛𝚐*
—————

The beer soon became a hit that Charles and his wife, Lisa, decided to set up their brewery in the business centre of the town to capture the influx of fortune seekers coming to Witwatersrand Reef.

The phrase “𝗗𝘂𝗿𝗶𝗻𝗴 𝗮 𝗴𝗼𝗹𝗱 𝗿𝘂𝘀𝗵, 𝘀𝗲𝗹𝗹 𝗯𝗲𝗲𝗿𝘀”, seems more appropriate here”.

His beer brew took some time to gain traction, it was only when Charles Glass’s new beer, 𝗖𝗮𝘀𝘁𝗹𝗲 𝗕𝗲𝗲𝗿, was introduced that he won the miners over and secured the market.

It was in 1884 that Castle’s famous label, 𝘁𝗵𝗲 𝘁𝗵𝗿𝗲𝗲-𝘁𝘂𝗿𝗿𝗲𝘁𝗲𝗱 𝗳𝗼𝗿𝘁𝗿𝗲𝘀𝘀, 𝘄𝗮𝘀 𝗶𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲𝗱.

——————
*𝘏𝘦 𝘪𝘮𝘱𝘰𝘳𝘵𝘦𝘥 𝘩𝘪𝘴 𝘬𝘦𝘺 𝘪𝘯𝘨𝘳𝘦𝘥𝘪𝘦𝘯𝘵𝘴 𝘧𝘳𝘰𝘮 𝘌𝘯𝘨𝘭𝘢𝘯𝘥 𝘵𝘰 𝘬𝘦𝘦𝘱 𝘶𝘱 𝘸𝘪𝘵𝘩 𝘥𝘦𝘮𝘢𝘯𝘥*
——————

As a result of his success with Castle Beer, he renamed his business to “𝗖𝗮𝘀𝘁𝗹𝗲 𝗕𝗿𝗲𝘄𝗲𝗿𝘆” and focused on distribution, to expand.

𝗖𝗮𝗽𝘁𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗮𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗼𝗳 𝗼𝘁𝗵𝗲𝗿𝘀…..

Other brewing companies grew interested in Charles Success, and soon realized the market was MASSIVE in the Witwatersrand.

Because of this astonishing growth, Frederick Mead, another brewer from Pietermaritzburg, negotiated to purchase Castle Brewery in
July of 1892.

Frederick Mead’s brewing empire combined with Castle brewery 𝘁𝗼 𝗳𝗼𝗿𝗺 𝘁𝗵𝗲 𝗦𝗼𝘂𝘁𝗵 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗕𝗿𝗲𝘄𝗲𝗿𝗶𝗲𝘀 (𝗦𝗔𝗕) 𝗶𝗻 𝟭𝟴𝟵𝟱.

𝗦𝗼𝘂𝘁𝗵 𝗔𝗳𝗿𝗶𝗰𝗮’𝘀 𝘃𝗲𝗿𝘆 𝗼𝘄𝗻
𝗪𝗮𝗿𝗿𝗲𝗻 𝗕𝘂𝗳𝗳𝗲𝘁

Meet the 100-year-old business tycoon who operated under the radar

A true Legend in the Baking 🔻 1/ History

𝗧𝗵𝗲 𝘀𝘁𝗼𝗿𝘆 𝘀𝘁𝗮𝗿𝘁𝘀 𝗶𝗻 𝟭𝟴𝟱𝟭….. ✍🏼

John Frederick Baumann migrates from England to South Africa,

here he starts a grocery and bread bakery in the old British Colony of Natal (KwaZulu Natal)

𝗙𝗿𝗼𝗺 𝗵𝗲𝗿𝗲…..

He manages to convince his nephew, John Michael Leonard Baumann to migrate to South Africa

J. M. L. Baumann arrives in Durban in 1881 and joins his uncle's bakery and grocery business.

𝗝𝘂𝘀𝘁 𝗮 𝗳𝗲𝘄 𝘆𝗲𝗮𝗿𝘀 𝗹𝗮𝘁𝗲𝗿……

The lease on their premise expires, and J. M. L. Baumann purchases the bakery operations from his uncle

𝗕𝗲𝘁𝘄𝗲𝗲𝗻 𝟭𝟴𝟴𝟱 - 𝟭𝟴𝟵𝟱, he (J.M.L) constructs a small building and starts to buy biscuit machinery, to make more “𝚏𝚊𝚗𝚌𝚢 𝚋𝚒𝚜𝚌𝚞𝚒𝚝𝚜” such as, ginger nuts and marie biscuits.

𝗪𝗼𝗿𝗹𝗱 𝗪𝗮𝗿 𝟭 𝗸𝗶𝗰𝗸𝘀 𝗼𝗳𝗳….

The company starts to falter because of the anti-German riots, which leads to the bakery and shop being burnt to the ground, 𝗼𝗻 𝘁𝗼𝗽 𝗼𝗳 𝘁𝗵𝗶𝘀, there are massive supply disruptions across the country during the Great Depression

𝗛𝗼𝘄𝗲𝘃𝗲𝗿,
a couple of things worked out in their favor.

(I) The factory manages to survive the anti-German riots of 1915, mainly because it was producing biscuits for the army, so the factory was put under government protection to prevent further damage.

(ii) the company's name changes from Baumann's (German) to 𝗕𝗮𝗸𝗲𝗿𝘀 𝗟𝗶𝗺𝗶𝘁𝗲𝗱, thus giving birth to the iconic brand we now know today.

The famous Baker’s mascot makes its first appearance on the packaging in 1923.

𝗗𝗶𝗱 𝗬𝗼𝘂 𝗞𝗻𝗼𝘄:

A Famous South African Brand was used as a currency

“𝗡𝗼 𝗰𝗵𝗮𝗻𝗴𝗲, 𝘁𝗮𝗸𝗲 𝗖𝗵𝗮𝗽𝗽𝗶𝗲𝘀”

Read more 🔻 1/ History

𝗧𝗵𝗲 𝘀𝘁𝗼𝗿𝘆 𝘀𝘁𝗮𝗿𝘁𝘀……✍🏼

A young man finishes school and needs a job, just as many do, he finds the most convenient job available, which is at the 𝗖𝗵𝗮𝗽𝗲𝗹𝗮𝘁 𝗦𝘄𝗲𝗲𝘁 𝗙𝗮𝗰𝘁𝗼𝗿𝘆, just down the road from his house in Troyeville, Johannesburg.

𝗠𝗲𝗲𝘁 𝗔𝗿𝘁𝗵𝘂𝗿 𝗚𝗶𝗻𝘀𝗯𝗲𝗿𝗴

The creator of the iconic
𝗖𝗵𝗮𝗽𝗽𝗶𝗲𝘀 𝗕𝘂𝗯𝗯𝗹𝗲𝗴𝘂𝗺 𝗕𝗿𝗮𝗻𝗱 was inspired when the Chapelat Confectionary Company found themselves losing their biggest client at the time – OK Bazaars

This pressure led Arthur Ginsberg to come up with the 𝗖𝗵𝗮𝗽𝗽𝗶𝗲𝘀 𝗕𝗿𝗮𝗻𝗱 𝗶𝗻 𝟭𝟵𝟰𝟴. The idea was sparked by looking at a competitor’s product.

Wicks bubble gum, at the time, was selling gum for a penny each, and Arthur believed he could sell two for a penny –𝗴𝗶𝘃𝗶𝗻𝗴 𝗯𝗶𝗿𝘁𝗵 𝘁𝗼 𝗖𝗵𝗮𝗽𝗽𝗶𝗲𝘀.

*The Chapelat Sweet Factory is what gave him the inspiration and it is where “chappies” derived its name from.

𝗦𝗼𝘂𝘁𝗵 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗕𝗿𝗮𝗻𝗱𝘀 .

Here is how a 𝗥𝟯𝟯𝟴,𝟮𝟳𝟴 𝗹𝗼𝗮𝗻 𝗳𝗿𝗼𝗺
𝘁𝗵𝗲 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗶𝗼𝗻 (𝗜𝗗𝗖) helped the Greyvenstein family grow two iconic South African Brands.

Read more: 🔻

Prelude:

These two brands being built from the depths of the great depression in the 1930’s underscores the importance of not giving up when times are tough,

and it serves as evidence that the best time to start something is always now.

𝗧𝗵𝗲 𝗕𝗲𝘀𝘁 𝗠𝗼𝗻𝗲𝘆 𝗧𝗶𝗽𝘀

Here are 15 ways to start Building Healthy Money Habits.

*𝗡𝘂𝗺𝗯𝗲𝗿 𝟭𝟰 𝗶𝘀 𝗰𝗼𝗻𝘁𝗿𝗼𝘃𝗲𝗿𝘀𝗶𝗮𝗹

Repost your favorite. 🧵 1/ 𝗧𝗿𝗲𝗮𝘁 𝗠𝗼𝗻𝗲𝘆 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗹𝗶𝗸𝗲 𝗮 𝗷𝗼𝗯.

It's important to budget and keep track of your finances.

Know where your money is going and then control your expenditure

𝗥𝗮𝗻𝗱 𝗠𝗮𝗻𝗶𝗽𝘂𝗹𝗮𝘁𝗶𝗼𝗻

This is How Currency movements work (Forex) and how banks make money from it.

< THREAD > *** 𝗚𝗹𝗼𝘀𝘀𝗮𝗿𝘆 ***

▪️𝗔𝗽𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻:

Is an increase in the value of one currency in relation to another currency.

————

▪️𝗗𝗲𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻:

Is when a currency falls in value in relation to another currency.

Let’s look at what I mean 👇🏽

𝗘𝗱𝘂𝗰𝗮𝘁𝗲, 𝗗𝗼𝗻’𝘁 𝗦𝗵𝗮𝗺𝗲!

Here are the Costs Associated with Buying Property

Things people don’t show you 👇🏽 // Glossary //

* 𝗙𝗿𝗲𝗲𝗵𝗼𝗹𝗱 (𝗙𝗿𝗲𝗲 𝗙𝗿𝗼𝗺 𝗛𝗼𝗹𝗱)

-The entire property belongs to you, land, border walls, etc.

* 𝗦𝗲𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗧𝗶𝘁𝗹𝗲

It is the separate ownership of a (unit within a complex ) or within a development.

A South African State-owned entity that has grown to be

𝗔𝗳𝗿𝗶𝗰𝗮’𝘀 𝗹𝗮𝗿𝗴𝗲𝘀𝘁 𝗔𝘀𝘀𝗲𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗿

My favorite part is at the end
Look inside 👀👇🏽 1/ 𝗔𝗯𝗼𝘂𝘁

The Public Investment Corporation ( PIC ) is a South African State-owned entity with R2.548 trillion of assets under management, as of March 2022.

𝗧𝗵𝗲𝗶𝗿 𝗹𝗶𝘀𝘁𝗲𝗱 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗶𝘀 𝘁𝗵𝗲𝗶𝗿 𝗯𝗶𝗴𝗴𝗲𝘀𝘁 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼, which accounts for 80% of their Assets Under Management ( AUM )

𝗧𝗵𝗶𝘀 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗜𝗻𝗰𝗹𝘂𝗱𝗲𝘀:

• Internally Managed Listed Equity
• Fixed Income
• Externally Managed Funds

𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝗮𝘁 𝘁𝗵𝗮𝘁 𝗺𝗲𝗮𝗻𝘀

Cyril Ramaphosa has been South Africa’s President since 2018

Look at his achievements 👇🏽

1/ Rand Depreciation

The 𝗭𝗔𝗥 𝗵𝗮𝘀 𝗱𝗲𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗲𝗱 𝟯𝟲% 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝘁𝗵𝗲 𝗱𝗼𝗹𝗹𝗮𝗿 since Cyril Ramaphosa became president.

• On the 9th February 2018, The Rand traded at R11.98 to the Dollar.

• August 10, 2023, the Rand traded at R18.78

Investing in Property

• Loan-to-Value (LTV)
• Dividend Yield (DY)

After you learn this,
I’ll show you SA Property REITs

(Thread) 🧵 2/ Loan to Value Ratio ( LTV )

It measures the amount of borrowed money you used to buy an asset ( property ) relative to the value of the asset.

LTV =
Current borrowed amount ÷ Current value of property x 100

Example: 👇🏽

Property is a Terrible Investment

THREAD 🧵 1/ Terminology

• Amortization

Is the gradual repayment of a loan over time, it covers the principal + interest charged

• Negative Amortization

you don’t pay enough to cover the interest, the unpaid amount gets added to your loan balance- making it bigger instead of smaller

Dividend Yield

The lower the share price falls the higher the Dividend Yield climbs.

• Share Price = R13
• Dividend = R1.18

R13 = 9%
R11 = 10.72%
R9 = 13.1%
R8 = 14.75%

Thread 🧵 1/ What is a Dividend Yield?

A dividend yield ( DY ) shows you the percentage of a company's share price that it pays out in dividends each year.

If you are a shareholder, you risk losing all your money.

Here’s Why 👇🏽 1/ Introduction

As an equity owner ( shareholder ) of a company, you aren’t safe if the company goes bankrupt.

You will be the last one to get your money ( if there is any left).

How to Spot Pyramid Schemes 🚩

Thread 🧵 1/ Introduction

Pyramid schemes are deceptive and fraudulent business models that promise participants high returns if they recruit new members to join the scheme.

🚩 🚩 Here are the red flags 🚩🚩

Read this if you want to Improve your Credit Score

( Thread ) 🧵 1/ Introduction

If you aren’t sure what a credit score is, then here is a thread to bring you up to speed.

Read it, retweet it, and then return to this thread to continue.

https://twitter.com/talkcentss/status/1663464940039192576

Understanding your Credit Score in South Africa

Thread 🧵 1/ Introduction:

The National Credit Act regulates credit reporting in South Africa.
It outlines the rights and responsibilities of consumers and credit providers

It’s intended purpose is for credit providers, they use it to assess an individual's creditworthiness

Fixed Deposit Rates (Nominal Rate)

5 year ( 60 months )

> Standard Bank = 9.1%
> FNB = 9.15%
> ABSA = 9.3%
> Nedbank = 9.2%
> Capitec = 9.3%
> African Bank 9.57%

* RSA Retail Bond = 10.5% 1/ Introduction

Before we look at the interest rates of banks. We must first understand the difference between.

1) Nominal rate:

This is the rate that doesn’t account for compounding

2) Effective Rate:

This is end rate as a result of compounding (interest on interest)

[THREAD]🧵

The Forms of Money in South Africa

By Tracking the Money Supply you can make better investment decisions.

Let me Explain👇🏽 1/ Introduction

Money comes in different forms,

and in South Africa we measure different forms of money supply to track the total amount of money in circulation

They are broken down like this:

>M0
>M1
>M2
>M3