By Tshepo Magagane Copper (Commodities Context) – I cannot even begin to capture how well placed we are with various ventures on this – across the various sectors and products. When we started, there was a JPM analyst who the market made fun about – he was incredibly bullish on Kumba – Kumba had been […]
GFC taught me something – credit markets move way ahead of equity markets.
By Tshepo Magagane GFC was bad – looking down as Lehman bankers were having pints at 9am in Canary Wharf – this will even be worse re: level of automatic buying eg ETFs and lack of experience sitting at desks / risk committees – so many seniors only read about a crisis🤞🏽 A month or […]
GOLD – YES, China has ramped up purchases of gold – this has been the driver of the gold price – not some nonsense about rates!
By Tshepo Magagane BUT remember that its holdings of US Treasuries is incomplete here – you also have to look at various holdings in clearing houses across Europe (Belgium) – which is also China. Just because a datapoint supports your investment case, does not mean you dont take a closer look at it. I know […]
Get off the phone and into the arena.
Not too long ago, men woke up in the morning with nothing but their thoughts. What were they doing with their lives? Would their salary last until the next payday? Why did one of their children look like the gardener? They could cross-examine life with a clarity that eludes today’s man. Men these days? We […]
Transition & Minerals – why cant the West get it right?
Written By: Tshepo Magagane The West has never had to build up: 1. Without extracting resources violently from the developing world 2. Without a post war build out whereby taxes where jacked up to 90% or so Take Germany – just going around in circles (and not learning anything from Russian gas or shutting down […]
Mining v Tech
By Tshepo Magagane Mining v Tech – And yet for the same cashflows ie Nvidia v BHP; the market will only pay a 6% for BHP v Nvidia (5.4trn v 323bn). Which makes me even more convinced that mining stocks should not be listed (and they should not be issuing equity if listed). And that […]
TW Global – A Lesson In Finance
By Tshepo Magagane Here is one bad thing that could happen. A company raises money by issuing bonds. It wants to sell, say, $1 billon of bonds. In the bond offering, it tells investors that it has earnings of $300 million per year. Investors read the prospectus and think “ah, this company makes plenty of […]
Copper substitutes
By Tshepo Magagane Air-conditioning units – manufacturers are putting Copper sticker on top to show that this one uses Copper… …because, with Copper it lasts 50yrs instead of 5yrs with aluminium! 2% of market lost to aluminium! Palladium used to be honestly a rounding thing when doing PGM companies – price would be c20% of […]
Real assets – that is all that matters!
Written By Tshepo Magagane US hits USD40trn debt level. The world cannot turn off the money printing press – simply cannot; otherwise the whole thing falls apart. You need to be in REAL ASSETS. This thesis we had post GFC: The aim of QE2 is supposedly to boost the economy by lowering the cost of capital […]
The fly-up scenario for Copper is going to be something else.
By Tshepo Magagane When we started 1. We were buying every asset around for the Mittal – state owned assets people would pay you to take them off your hands (from Ukraine to SA to Canada to France) 2. See Kumba – it was spun out of Iskor (the steel co in SA) for just […]