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Investment advice
26-09-2019, 09:22 AM
Post: #1
Investment advice
Hi guys,

It's great to have the forum up again, now i can procrastinate once again Fencelook

Anyway as the subject states, I'm looking for advice wrt to investments as I have some cash which I would like to invest. Being new to this whole thing is there anyone who can perhaps point me in the right direct wrt to this as I am pretty stupid when it comes to these things. This would need to be in accordance to Islamic laws/practices.

My first thought was to check out the stock market but that's really confusing at this point Hammerhead

Another option would be to go into the gold/coin collecting market..

I was also thinking of buying into a small business but that's quite risky, also I have a full time job so I wont have the time to give it my full attention.

If anyone has any experience with this, I'd appreciate any input. The whole idea is to not blow this cash on something silly but to rather let it work for me if I could put it that way.

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26-09-2019, 10:03 AM
Post: #2
RE: Investment advice
in the current economic climate I would only continue to invest offshore

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26-09-2019, 10:05 AM (This post was last modified: 26-09-2019 10:07 AM by Zack.)
Post: #3
RE: Investment advice
Hi Bud

I suppose it all depends on what you want to "get out of it"? The safest investment is probably long term; put it into a fixed interest account and forget about it for 20 years. This seems to have been what all the older folks believed in and it's solid if you have the time and patience.

To me stocks/commodities fluctuate waay too much to be enjoyable and requires alot of time to check in on it regularly. I would rather let the experts handle that one (on your behalf) as it can be quite profitable short term if you know your stuff. Don't even look in the direction of crypto. Fencelook

Imo I would not write off the idea of small business investments. As you mentioned it is quite risky but if you can build a good trust relationship I believe that's the winner here for short and long term. Not all small businesses will require a whole lot of your attention all the time but you will need to invest some your time to make it work.

Just 2c though Bluebiggrin

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26-09-2019, 10:44 AM
Post: #4
RE: Investment advice
Thanks for the feedback guys

@tman I hadn't thought about this option

@Zack yeah the general idea is to invest it long term, I've been surviving comfortably on my salary so I don't want to dip into these funds unnecessarily

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26-09-2019, 03:19 PM
Post: #5
RE: Investment advice
I would put my money on gold due to the depreciating Rand and general uncertainty in the world markets especially the US/China trade war. Thumbs
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27-09-2019, 10:43 AM
Post: #6
RE: Investment advice
In short...

Wont touch Gold as its seriously over-valued. Gold is also extremely volatile.

Cash-like instruments such as money market accounts that only generate income with no capital growth are risky in the long term in terms of sufficiently beating inflation.

Local equities market is extremely risky as well so I would rather look at individual shares that are dual listed such as Ritchemont etc.

Personally, I have moved the majority of my cash savings into two offshore ETF's, that is, Satrix Nasdaq 100 and S&P 500 ETFs. They dollar based but you invest in ZAR so there is no exchange control issues.
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27-09-2019, 01:50 PM
Post: #7
RE: Investment advice
Also invested in offshore ETFs

Holding foreign currency via global accounts (NOT TRADING FOREX LMFAO)

Close to nothing in Rand cash

You need to understand @Fuzz point about inflation as well. We are in a ridiculous environment at present.... more so than people realise. We also don't understand how quickly things can go south!

An American wanting a sportscar used to spend $50000 in 2007 and will now maybe spend $55000 on one.

In South Africa, I bought an S2000 in 2007 new for R365000 (I was considered nuts at the time for spending so much on a Honda... and a GTI was around R230K). The equivalent in today's money would be R1.1M which is what an M2C costs. We complain about prices without always recognising how the environment has changed and a) how much harder you work for each rand and b) how little each rand can buy year after year!

Hypothetically in a low inflation environment you would be able to buy an M2 Comp for say 400K... you see where I'm going with this...

Anyway there are precious few cash investments that will leave you with much inflation beating power when you have to take into account both our currency volatility and inflation.

IMHO We are damn lucky that the rest of the world is a mess eg USA (trump), UK (Brexit) and Europe (Refugee crisis and Russia/Nato/etc). Without having these at play at the moment we would probably be in even more serious trouble...

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27-09-2019, 02:10 PM
Post: #8
RE: Investment advice
i would pay off any debt if you have first and foremost ...if you have a bond knock at that.

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27-09-2019, 02:17 PM
Post: #9
RE: Investment advice
I was just about to say, best investment is dumping in your bond/debt, that is effectively a 10% return if at prime.
Knock out debt before going offshore unless you make considerably more on forex and can dump your gains into the bond/debt.

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27-09-2019, 04:38 PM
Post: #10
RE: Investment advice
Thanks for the sounds advice, I have some time this weekend to do some homework on the various points given. Tbh I don't have any clue wrt to economics and such so I'll be doing some research on that too.

I have some debt which can be knocked off and I intend doing this towards the end of the year. With that being said, I'd much rather put these funds away until and wait until the end of the year and do proper homework on all my options in the meantime.

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