Weekly Thoughts 19 December 2014

The silly season of spending is well upon us. I was shopping in our big Mall by 8am on Monday this week – and out by 9.30 before everyone else and their neighbour was there. Then I worked on Tuesday, because that would also be a quiet day. I learnt that in these frantic days there are extended shopping hours in many places. It’s the time of most people spending more money than they actually have. Together with expectations by so many of so much. While there is all sorts of turmoil going on around the world, on so many levels.

This time of the year often results in many folk entering the new year already on the back foot in terms of battling with their personal cash flow, having just spent too much. One secret is not to spend. Not to spend on what? Going out costs more than staying at home, don’t buy that extra eat treat, don’t drive somewhere you don’t have to, restrict the amount you spend on a gift and don’t worry about how much someone else might spend. The clear winners are always the retail stores and the banks, due to the amount purchased on credit. Large retail stores will take in a couple of million Rand a day and be paid immediately. This means again, that many of the companies we invest in, make good profits right now.
Have a slow, safe and good festive season.