WealthWisemagazineSouth Africa/Africa region

December/January 2012Vol I/No. 10

Your bi-monthly guide to wealthwishes you Happy Holidays!

FREE

EXTREMEMONEYRisk, shock,devastatingtruthsin the worldof high finance

www.wealthwisemag.com

December/January 201 2

Contents

WealthWise magazine 3

Coverstory8 Extreme Money

LifeWise1 5 The No New GiftsHoliday Challenge

1 9 Advertorial

MoneyWise21 How to avoid thecredit card meltdown

24 Have investorscapitulated againstvalue?

28 How to value equitieson JSE

BusinessWise32 Attuned Leadership

40 The GAP MarketingTurnover Boost ModelPart I

44 What is DueDil igence?

CareerWise47 The Team-BuildingDebate

51 The Missing Link

Agenda53 Holiday Guide toScenic Garden Route

60 Books

64 Events

Regulars: 3 Contents 4 ForeWord 5 Get in touch 6 Contributors49 Competition 66 Last Word 67 In next edition

HappyHolidays!

ForeWord

appy holidays! The“silly season” isfinally around thecorner and we are

slowly starting to shift ourfocus from work and businessto fun holidays, parties andcarefree days in the Africansun.Unfortunately, most of usadopt the same carefreeattitude towards money andspendingduringholidays.Thisyear, before going shoppingor planning your breakaway,rethink your options and saveyour wallet by reading ourgood advice in “How to avoid

Thiseditionwehaverevampedour main sections, bringingmore exciting interviews andcontent.We highly recommend our topinterviewandCoverStorywithglobal money market traderand consultant Satyajit Das,who openly reveals the dirtymoney tricks in the high worldof finance and makes it easierfor everyone of us to (finally!)understandtheglobalfinancialcrisis in his acclaimed book,“Extreme Money”.

Also, we had the opportunityto chat with businessman andleadership practitioner andtheoristDr.ReuelKhoza.Readthe interesting discussion inour BusinessWise section,touching on political andeconomical aspects of theAfrican continent. We alsohave exciting practical adviceon investments, businessbuying and selling, marketingand team building options.This is our best edition everand we are looking forward toproviding you with an excitingreading experience!We hope that our publicationwill inspire you to make everyday, long­lasting changes toa wealthier future.Wishing you all the best,Denisa OosthuizenMng Editor WealthWisemagazine

H

4 WealthWise magazine

the holiday credit cardmeltdown” and “The No NewGifts Holiday Challenge” –you’ll find it both entertainingand practical.If you’re still busy planning aholidaytriporasocialcalendar

for the end of the year, youmight want to read our holidayguidetoGardenRoute,aSouthAfrican hot destination ofchoice and browse our eventssection.Alsodon’toverlookthebook review section forfabulous reads that makeperfectgifts foryourfamilyandfriends.

WealthWise magazinePublisherREO Media SolutionsManaging EditorDenisa Oosthuizendenisa@wealthwisemag.co.zaEditorialeditor@wealthwisemag.co.zaSales and MarketingAdvertisingsales@wealthwisemag.co.zaGraphic DesignREO Media SolutionsLayoutNial l Brown

Distributionwww.wealthwisemag.comwww.wealthwisemag.co.zaCopyrightAll content and informationwithin WealthWisepublication is property of thePublisher and should not bereproduced, copied orentirely quoted without theprior approval of thePublisher, being protectedunder copyright laws. Shouldyou wish to make use of anyof the content displayedplease contact us atdenisa@wealthwisemag.co.za oreditor@wealthwisemag.co.za.For editorial contributions,comments and suggestions,email our editor at

editor@wealthwisemag.co.za.For technical issues andother website relatedcomments, email us atadmin@wealthwisemag.co.zaDecember/January2012Cover photo: Wall StreetSign (New York City)mypersonalphotoblog.wordpress.comContributors: Leo Babauta,Andrew Newell, Geoff Blunt,Andrew Morton, Bob Power,Lisa Conlyn, Carla Rossouw,Johan Mouton, DenisaOosthuizenPhotos: dreamstime.comand contributor's photoswhere stated

Get InTouch

Contact us

Email: denisa@wealthwisemag.co.zaeditor@wealthwisemag.co.za

Mobile: +27(0)82 819 2820+27(0)81 326 1579

Skype: denisa.oosthuizenFacebook: WealthWise magazineTwitter: @WealthWisemagLinkedIn: www.linkedin.com/company/wealthwise­magazine

WealthWise magazine 5

Andrew Newell is Headof Business Development atCannon Asset Managers. Hewas previosly involved withInvestec Asset Management,as a direct client investmentconsultant and advisor.In 2004 he joined CannonAsset Managers inJohannesburg as head ofgroup new business. He isinvolved in the developmentof relationships with high networth clients, brokers andinstitutions.Read Andrew's article (withGeoff Blunt) about valuingequities on the JSE in theMoneyWise section, page 28.

Geoff Blount is ChiefExecutive Officer at CannonAsset Managers. Aftercompleting a BCom (Hons) atWits, Geoff lectured CorporateFinance in the Wits businesseconomics department.He worked as a private­clientportfolio manager at SGFPand BoE Private Bank beforejoining the InvestmentSolutions investment teamand then continue his careerin asset management atCannon Asset Managers.Read Geoff's article about

value stocks in our

MoneyWise section, page 24.

Johan Mouton is the ownerand marketing specialist atOnline Systems. He has beeninvolved in marketingresearch projects, consultingwork and developing peoplefor business.He has an Honours degree inmarketing and has developeda marketing boost model tohelp companies increase theirturnover by implementing andfocusing on adequatemarketing strategies.Read Part I of Johan's 18 GAPMarketing Turnover BoostModel in our BusinessWisesection, page 40.

Contributors

6 WealthWise magazine

Andrew Morton isManaging Consultant at TheHR Hub, South Africa’s firstHR Service Centre, offering anumber of HR products andservices under one roof,covering the complete HRspectrum.Read his article about thepurpose and value of team­building in CareerWisesection, page 47.

Lana Conlyn is a writer,public speaker and lifecoach. Her anthology ofpoems ‘Am I Enough’ wasnominated by the AcademyAwards for English in 2009,she has been a frequentguest on Great Expectationswith Sam Cowen and is awriter for The HR Hub. ReadLana's article about the lossof human connection in theworkplace in CareerWisesection, page 51.

Bob Power is presentlyCEO of Power CorporateConsultants, specializing insecurity and managementconsulting, coaching andtraining in the M&A spectrumand assistance for the SMEmarket.

Carla Rossouw is aProfessional ConferenceOrganiser based in SouthAfrica. She writes reviews onVenues, Hotels andRestaurants as well asInternational Destinations.She regularly writes for ourAgenda section reviews offabulous places. Visitwww.carlarossouw.comand read a review of theGarden Route holiday hotspots in Agenda section onpage 53.Bob wrote the article on duediligence in BusinessWisesection, page 44.

Contributors

WealthWise magazine 7

Extreme MoneyRisk, shock and devastating truths

in the world of high finance

by Denisa Oosthuizen

CoverStory

nce upon a timesociety built things."We engineeredbeautiful objects

and created authentic goods.Now this real industrialengineeringhasbeenreplacedby financial engineering:shuffling money in an endlessprocess of debt, trading andspeculation. It’s enabled vastfortunes to be made for a few,while the risk was carried byordinary people (…)”.This is how the world we livein would be described today,from an honest, objective andshocking perspective few can global money markets

Satyajit Das, in his best­selling title “ExtremeMoney”. Satyajit Das,himself an insider of theglobal finance, havingpreviously worked for giantsCiticorp Investment Bankand Merrill Lynch, delivers a

true fascinating journey intothe spectacular anddangerous money gamesand the elite who playsthese games, namely the“Masters of the Universe”,representing the crème dela crème of the highfinance: elite bankers,financiers and traders.In an interview withWealthWise magazine,Satyajit Das discusses themisfortunes and flaws of theworld of high finance, thedebt and speculation thatfueled the global financialcrisis and how powerfulmoney games impacted onsociety as a whole.WealthWise magazine:What attracted you to theworld of high finance andglobal money markets inthe first place?

"I didn’t know it

at the time but I

was getting into

what would be

the biggest game

in money

markets for the

next 30 years"

O

really understand. And thisis how the world of financeand its global domination ispictured by best­sellingauthor, consultant andinternationally respectedexpert in finance with over30 years experience in8 WealthWise magazine

Satyajit Das: I never setout to have career in highfinance. I trained in law andaccounting. To finance mystudies, I used to work parttime in an amusement park,which meant working everyFriday night and allweekend. That’s hard whenyou are young.The Commonwealth Bank,then owned by theAustralian government,offered me a scholarship tostudy on the condition that Iworked for them aftergraduation. So, I supposed itwas greed that got me intofinance. But it wasserendipity. I found I wassuited to the world ofbanking. Very early on,

around 1977, as markets forderivatives ­ the term hadn’tbeen invented, they called itfutures and options ­ werebeginning, the bank waslooking for people in thatarea. I had studiedsomething called the Black­Scholes option pricing modelin a course at university andI bluffed my way in. Theygave me a job.I didn’t know it at the timebut I was getting into whatwould be the biggest gamein money markets for thenext 30 years. I suppose itwas an accident – a happyone. So my career tracks therise of high finance in themodern world ­ so much forcareful career planning!

WealthWise magazine:What motivated you towrite “Extreme Money”,given your background asa financier?Satyajit Das: In 2006, Ipublished Traders, Guns andMoney which anticipateddevelopments in thefinancial crisis accurately.That same year, I gave aspeech entitled The ComingGreat Credit Crash. LikeCassandra, I tried to drawattention in vain to theissues that threatened theglobal financial system.What happened is now, ofcourse, history. And we arefar from a resolution – asthe comedian Lily Tomlinstated: "It’s going to getmuch worse before it gets

Picture: Wall­Street in New York City, where the so­called "Masters of theUniverse" continue to play dangerous money games

WealthWise magazine 9

Subscribe for freeto read the fulldigital magazine!www.wealthwisemag.com/wealthwise/subscribeor click Subscribeand automatically receive thefull digital version ande-newsletter!

Need help?Call +27(0)82 819 2820 oremailadmin@wealthwisemag.co.za