Ghost Stories

By The Finance GhostBusiness Entrepreneurship Investing

Ghost Stories episodes

February 06, 2024Ghost Stories Ep28: The 2024 kick-off (with Duma Mxenge of Satrix)
Welcome to 2024!
An investing strategy can only be successful if there is money available to invest. In the first part of this podcast, The Finance Ghost and Duma Mxenge discussed concepts like:
The value of planning ahead and how this can save money (e.g. when booking holidays – especially to cheaper jurisdictions than South Africa!)
The usefulness of sitting with a financial advisor earlier in the year.
Dangers of living bonus-to-bonus each year.
The reality of middle-class inflation in South Africa and effective double tax.
After initially bouncing around these ideas, the conversation turned to financial concepts including:
Different financial needs at different stages of your life – with Duma giving a clear and succinct explanation that we can all relate to, followed up by a discussion on the need to achieve balance in life.
The importance of stress-testing interest rates when deciding to take on debt.
The financial and practical considerations of renting vs. buying a home.
Of critical importance: financial discipline doesn’t mean not having nice things!
Why “tax free savings account” is a misleading name and some of the strategies that can be used with these investing accounts.
Offshore vs. local strategies and what we can learn from 2023, along with various nuances like the true impact of a strong vs. weak dollar on global tech stocks.
The bad habit of South Africans wanting to send money offshore when the rand is at its weakest.
The podcast ended off with a discussion on the ETFs that should exist – with The Finance Ghost beating the drum once more for the JSE to have a proper retailers index!
There’s so much in here, underpinned by Satrix’s commitment to South African investor education. To find out more about SatrixNOW, visit this link>>>
Disclosure
Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision.
While every effort has been made to ensure the reasonableness and accuracy of the information contained in this podcast (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
43 min
December 20, 2023Ghost Stories Ep27: What to do with those festive savings (with Siyabulela Nomoyi of Satrix)
We are now in December, which is generally a month of spending rather than investing. Of course, it shouldn’t be that way if you have the correct financial plan in place, a topic that Siyabulela Nomoyi (Quantitative Portfolio Manager at Satrix) joined me to discuss.

We couldn’t resist the opportunity to dig into ETFs as well!

In the final Ghost Stories podcast with Satrix for 2023, topics covered included:
The right way to think about saving and investing, particularly in the context of December and January.
The benefit of tax-free savings accounts and how interesting they can be with ETFs.
The range of equity ETFs, from vanilla products through to factor ETFs.
Local vs. offshore and how to play this heading into 2024 as a potentially volatile year in South Africa.
The performance of bond ETFs in 2023.
Real estate and infrastructure ETFs.
The difference between ETF and unit trust structures.
And just for fun, I also asked Siya what he would choose as his ETF exposure going into 2024.
There’s so much in here, underpinned by Satrix’s commitment to South African investor education. To find out more about SatrixNOW, visit this link>>>
Disclosure
Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision.
While every effort has been made to ensure the reasonableness and accuracy of the information contained in this podcast (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
39 min
December 05, 2023Ghost Stories Ep26: How to really manage your money (with Nico Katzke of Satrix)
Nico Katzke is no stranger to Ghost Mail readers. He has written several articles in his role at Satrix and has appeared on a number of podcasts with me.
In this show, there was more of a cross-over with personal finance than usual. The reality is that if you can’t save every month, then you also can’t invest.
Topics we discussed included:
Why does it make sense to treat your own financials like corporates do? And why is the concept of an inflection point in your income so important? How does this unlock guilt-free spending, making your discretionary spend so much more enjoyable?
How do entrepreneurs differ from salaried employees in how they take risks with their money?
Diversification: a concept that goes way beyond just investing.
Nico’s core approach of doing things today that have massive impact in 20 years from now: (1) adjust your lifestyle to your savings amount (and not the other way around; and (2) distinguish between saving and investing.
Why the greatest risk to investing is not taking enough risk.
As difficult as it is to resist temptation, why avoiding over-consumption can make a huge difference to your future, especially when the marginal benefit of buying the new model car / smartphone / whatever is minimal.
The huge danger of using debt affordability tests as a target for how much debt you can take on.
The benefit of taking a more active role in how your money is invested, particularly focusing on costs.
The importance of being willing to ask your financial advisor questions about your investments
An overview of the two-pot system that is due for implementation next year.
There’s so much in here, underpinned by Satrix’s commitment to South African investor education. To find out more about SatrixNOW, visit this link>>>
Disclosure
Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision.
While every effort has been made to ensure the reasonableness and accuracy of the information contained in this podcast (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
45 min
November 28, 2023Ghost Stories Ep25: A Landmark Network (with Anoop Ninan, CEO of Mazars in South Africa)
Mazars has announced a landmark network with Forvis, creating a top 10 firm in the USA. The CEO of Mazars in South Africa, Anoop Ninan, joined me to unpack why this is important. Of course, I didn’t waste the opportunity to tap into his extensive business knowledge at the same time!

Topics discussed included:
An overview of the unique network with Forvis and why this is important in a professional services environment that is highly fragmented in the assurance and related services space.
How audit firms try to differentiate themselves in the market, specifically across technology, people and partner-led service.
The ownership structure of these audit firms and how that works in this network situation.
The impact of this network on existing and prospective South African clients.
The Mazars growth strategy in South Africa and the sectors that are seeing significant activity, with reference to the advisory teams in Mazars and the work that they do.
The public company vs. private company landscape in South Africa, particularly in the context of an ever-shrinking JSE.
An overview of the broader Mazars service offering, including data insights and related services.
The impact of greylisting on how we are perceived internationally and the level of foreign direct investment.
South Africa’s ongoing positioning as the gateway to Africa and where the “good news” stories are in our economy.
For more information on the Forvis Mazars network, you can read this article.
19 min
November 01, 2023Ghost Stories Ep24: Investment Concepts and a Ghost in the Hot Seat (with Nico Katzke of Satrix)
Nico Katzke of Satrix is a familiar voice to Ghost Mail readers and podcast enthusiasts. He’s back on Ghost Stories, with a fantastic twist halfway through the podcast where we switched roles and he started asking me questions.
Nico in the hot seat:
Diversification vs. “diworsification” – a topic always worth revisiting, with commentary on the impact on the market as a whole and an understanding of correlation.
The danger of only seeing the highlights reel of an investment journey, masking the impact of taking risky bets that don’t work out.
The importance of humility in the market.
A famous quote by Warren Buffett that is misused all the time due to it being taken out of context.
Your favourite ghost in the hot seat:
My approach to managing cognitive bias.
The importance of objectively assessing growth opportunities against the valuation, even for the world’s most exciting companies and brands.
Long-term vs. short-term analysis and how this impacts the weighting of price vs. industry fundamentals and management.
Personal stories of “the stock that got away” (including the pain of CGT vs. income tax for an individual investor) and the stock that feels like “drunk dialling” an ex.
My pick in a Shoprite vs. Pick n Pay debate and how to use common sense when analysing stocks.
Where I sit on the value – growth spectrum and the importance of both fundamental and technical analysis.
The danger of action bias and the usefulness of higher interest rates that pay you to wait for the right opportunities, making “payday investing” very dangerous in single stocks.
The three stocks that I would choose to hold forever.
The way to start a journey in analysing companies and making single stock exposure decisions.
There’s so much in here, underpinned by Satrix’s commitment to South African investor education. To find out more about SatrixNOW, visit this link>>>
Disclosure
Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision.
While every effort has been made to ensure the reasonableness and accuracy of the information contained in this podcast (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
50 min
October 29, 2023Ghost Stories Ep23: Unpacking the African Bank Strategy (with CEO Kennedy Bungane)
After I wrote critically about the pricing of African Bank’s deal to acquire two businesses out of Sasfin, the company contacted me to discuss the thinking behind the deal in more detail. I was highly impressed with the willingness to engage, especially as African Bank graciously recognised that Ghost Mail’s free-to-read format is only made possible by partners.

The bank opted to sponsor a podcast appearance by African Bank CEO Kennedy Bungane, who has been in the banking industry for over two decades. As with everything I do, a paid appearance doesn’t impact the independence of my questions and the overall approach to the show.

With the important disclosures now out of the way, I can give you a taste of what we discussed:
The important history of African Bank, particularly in the South African context.
An overview of what the bank does differently today vs. the previous chapter in African Bank’s life that ended in curatorship.
Examples of how the bank is adding customers through partnerships, with an expanded product suite to service these customers.
African Bank’s framework for successful acquisitions, ranging from strategic fit through to earnings accretion, execution difficulty, cultural fit and longevity.
An overview of the Grindrod Bank and Ubank acquisitions.
The client ecosystem strengthened through the Sasfin acquisitions and the synergies with the rest of the group.
The extent of talent and systems acquired as part of these deals.
The strategy of lowering the cost of equity to unlock more lucrative returns in these businesses.
The branding strategy with these acquisitions.
Of course, the proof of these acquisitions will be in the pudding. I’m grateful to be able to bring you this podcast that gives insights into how corporate M&A works and the type of thinking that goes into these transactions.
35 min
October 10, 2023Ghost Stories Ep22: Optimal Investment Growth Basket promoted by Investec
Structured products have come a long way. From a specialised, exotic investment tool, they are now mainstream, and financial advisers are now more comfortable about investing in them on behalf of clients.

Having covered the Investec USD S&P 500 Autocall on a previous podcast (Episode 19 of Ghost Stories), we now move on to the Optimal Investment Growth Basket Limited promoted by Investec. This product offers a maximum annualised return in USD of 9.8% per annum over five years, with 100% capital protection at maturity in US dollars. The minimum investment amount is $12,000 or £10,500. This is a limited offer that closes on 24 November 2023. T’s and C’s apply and full details can be found on the Investec website at this link and the brochure can be found here.

To unpack this opportunity in detail, Japie Lubbe joined The Finance Ghost on this episode of Ghost Stories.

Topics covered included:
The importance of global diversification and exposure for South African investors;
The strategy of tracking a basket of global indices as opposed to a single index;
The methodology used in this instrument to achieve the potential return profile for investors;
The look-through credit exposure in the structure;
Liquidity in the structure; and
How to invest in the product.
35 min
September 27, 2023Ghost Stories Ep21: 2023 ETF Scorecard (with Siyabulela Nomoyi of Satrix)
The universe of Exchange Traded Funds (ETFs) is broad, offering investors many different ways to invest in the market.
Not only are there various different sector and weighting methodologies available, but Satrix ETFs offer South African investors a way to make perhaps the biggest decision of all: offshore vs. local exposure.
As we reflect on ETF performance in 2023, Siyabulela Nomoyi of Satrix joined The Finance Ghost to look at topics like:
Offshore vs. local performance and the impact of the start date for that analysis, including the currency effect;
The importance of understanding the underlying stocks in an ETF and their relative valuations; and
Relative performance of local ETFs.
The Ghost couldn’t help but slip in his ongoing request for a retail sector ETF, an index that the JSE really needs to add to the local market.
To understand more about ETFs and how they can be used in your portfolio, enjoy this podcast brought to you by Satrix.
To find out more about SatrixNOW, visit this link>>>
Disclosure
Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision.
While every effort has been made to ensure the reasonableness and accuracy of the information contained in this podcast (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
35 min
September 03, 2023Ghost Stories Ep20: Dividends - Delights and Dangers (with Nico Katzke of Satrix)
Are dividends always worth celebrating? Does a company paying a dividend really reward shareholders, or is this just shuffling money around?

These are the kinds of questions that Nico Katzke of Satrix discussed with The Finance Ghost on this episode of Ghost Stories. Nico is a wealth of information about the markets and these podcasts are always highly interactive.

Topics covered included:
Headlines were all over the place recently about Michael Burry shorting the US market – did the media get it wrong? What does it actually mean to short the market?
After many investors learnt the hard way that “stonks” don’t always go up, how should investors manage their mindset around volatility? Does the difference between saving and investing come in here?
What is the danger of fully allocating your portfolio to fixed income vehicles in an environment of high yields?
How important is it to include dividends when looking at equity performance?
What is the peril of trailing dividend yields vs. forward dividend yields?
What is capital allocation policy and what are the pros and cons of a management team paying dividends?
How do share buybacks work as an alternative to dividends?
Can you directly compare dividends on shares to yields on fixed income investments?
What are the dangers of the “Dividend Aristocrat” label in the US market?
What role might Artificial Intelligence play in asset management and investment strategies?
To end off the show, Nico shared how he manages his own investing every month.
To find out more about SatrixNOW, visit this link>>>
Disclosure
Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision.
While every effort has been made to ensure the reasonableness and accuracy of the information contained in this podcast (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
46 min
August 29, 2023Ghost Stories Ep19: The Investec USD S&P 500 Autocall
Structured products have come a long way. From a specialised, exotic investment tool, they are now mainstream, and financial advisers are now more comfortable about investing in them on behalf of clients.
A perfect example is the Investec USD S&P 500 Autocall, where investors can earn a potential return of up to 8.4% p.a. if the index ends flat or positive on one of the call dates in year 3, 4 or 5. Provided the index does not end below 70% of the initial index level, there is full capital protection in USD. The minimum investment amount is R100,000 and there is a maximum 5-year term. This is a limited offer that closes on 16 October 2023. T’s and C’s apply and full details can be found on the Investec website at this link.
To explain structured products in general and the Investec USD S&P 500 Autocall as the latest offering, Brian McMillan joined The Finance Ghost on this episode of Ghost Stories.

Topics covered included:
The other side of options: using options as hedging instruments rather than tools of speculation;
A history of structured products in the South African market;
How to invest in Investec structured products through an independent financial advisor or broker;
An overview of the key terms of the latest structured product, including the downside protection calculation and the upside potential;
Liquidity in this structure; and
The versatility of the product in terms of types of investors and portfolio strategies.
29 min

About Ghost Stories

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Ghost Stories is a long-form podcast that gives me the opportunity to have deeper conversations with founders, executives and market participants who have a great story to tell.