From the tap or from the hosepipe? That is the question South African youth should be asking ahead of this month’s Global Money Week.
It’s the same question SV Capital Co-founder, Kagiso Tloubatla, asked his 10-year old nephew, whilst demonstrating the speed of water into the bathtub. Which is better? Which works faster? Which yields the best returns? The answer, of course, may lie in an alternative to the obvious – which is what SV Capital is sharing with all young and new investors ahead of Global Money Week 2024.
Johannesburg, 13 March 2024: Considering that most of South Africa’s young aspirants spend their money on 6 things alone: entertainment, fashion, education, travel, accommodation and cell phone data, it’s not surprising that short or long term investing is as far removed from the Sunday Lunch Table as is yesterday’s status update. For Ayanda Majola and Kagiso Tloubatla, Co-founders of South African investment group, SV Capital, it doesn’t need to be so complicated. According to the SV Capital team, investing for the future has earned itself a rap among youth for being too boring, too risky, ‘too adult’, or quite simply inaccessible. It’s all a myth.
Taking a stand for startup investments, SV Capital approaches investments with a different cap on, trumping traditional portfolios with alternative investment suites that present real growth, real value and real-world returns. “Like investing in delivery bikes,” says Tloubatla, “it’s a real South African thing, and it’s a real investment that can yield great returns.”
With the rise of South Africa’s gig economy, the delivery bike sector is rapidly expanding in South Africa, contributing not only to competitive returns but also to job creation within the country. By investing in delivery bikes, for example, young investors can now get excited about growing their wealth, and at the same time, can contribute to the support of local economies.
Cattle investing at SV Capital works in a similar way. Youngsters who might have always wanted to own or work their own farm, can choose to invest in cattle instead. “This way, you’re tapping into something that is real, and that, by default, is growing your wealth while you inadvertently become your own farmer (with your own cattle!),” says Majola.
SV Capital dubs this ‘the hosepipe effect’. By investing your money this way, one invests wealth into a slow and steady stream that winds its way seamlessly, and fills the bathtub in due course. The best thing about the hose, is that you can wind it where and how you like; it’s a flexible vehicle of movement, allowing you to decide the ebb and the flow without risking a gush of water all in one go.
With its focus on alternative investments as the new vibe for youth investors, SV Capital is making everyday life an everyday investment, encouraging young investors to get real about their money, and choose products that are simple to understand, easy to manage, and are still big on returns.
Majola and Tloubatla offer their top 10 investment tips for young investors – straight from the tap itself:
Know your Money
Know how to spend money, know how to make money and know how to lose money. This takes some practice and strategy. Ultimately, your relationship with your investments should never yield resentment – bad move! Investing is first and foremost an energy thing. You will gain and you will lose – but there is a win in every loss when you learn to look for opportunities to re-energise your investments at the right time, for the right reasons.
Don’t Wait for ‘Perfect’
If you are waiting for the conditions to be perfect, you may wait forever. The best day to start investing is today. Get out of the bathtub – even if its cold outside. Whatever you invest today, is already growing tomorrow. Incidentally, the worst periods can also sometimes be the best times to put money away, since the curve must come up ultimately. And it will.
Make Alternative Investments a Vibe
Our aim is to show you just how cool alternative investments are! Alternative investments, like Cattle or Delivery Bikes, means you’re working with real world assets, bringing realness into your investment portfolio. You also get access to local sectors you usually would not have had access to. This makes your investment relatable, easy to understand and exciting to grow. And, cool!
Don’t Confuse ‘Alternative’ with ‘Get Rich Schemes’
It’s easy to confuse ‘Get Rich Quick Schemes’ with ‘Alternative Investments’. Don’t! These are most definitely not the same – although there are many hustlers out there that will shade a scheme with an alternative portfolio. Be warned! Play smart! Ask the right questions! Ensure your broker is regulated and has the certification to prove so.
Choose Cattle or Bikes as your Startup Alternative
With any alternative investment, the risk is drastically reduced, and the yields are higher; you will be accessing sectors that are key in our economy. Agriculture, for example, is our economy’s survivor of Covid. It’s the backbone of the economy, while Delivery Bikes have seen a remarkable return of 19.22% over an 18-month period.
Diversify!
Our advice is to hedge your bets and diversify. Never keep your wealth in one bathtub. Diversified portfolios should be embraced, not feared, as it ultimately puts some control back in your hands: when one is losing, the other is gaining. Treat it like a form of investment insurance.
Make your Investment fit in with you
We get that long term strategies can feel a little needy, which is why our portfolios offer a short term, 12-month hop-off option – because we all want to get off the train at some point. For the commitment phobic investor, you don’t need a 5-year relationship with your investment, just to yield a small return. 12 months is doable. Of course, tapping out too soon is not the most effective way to invest, but if you want to, you totally can.
Commit to your Future Self
Commit to your future self, today. None of us know what our future selves will look like in 10 or 20 years – or what we might need. Invest now, so that when you turn 30 or 40, you already have a pot to play with.
Save and Invest – and know the difference
Your savings are more about your everyday, any day access funds – for things like last minute tyre purchases, an unexpected flight to London, a medical bill, or a first date you really want to impress at the Four Seasons. Your savings are more like an emergency fund – your investment needs to run its course. Both are important.
Don’t Expect Everything at Once
When it comes to growing your wealth, you can have everything you want, but not all at the same time. Remember – it’s not the bath tap you’re after, it’s the hose. choose the hosepipe over the bath tap. Stay focused, stay patient. Slow and steady wins this race, friends.
