Tributum Newsletter #8
Hello there,
The death of BOSASA boss, Gavin Watson, just before Newsletter #7 was published meant that no mention was made about the policy discussion document containing plans for growing the economy that was issued by Treasury in August.
The policy document continued the narrative around efficiency improvements at State Owned Enterprises (“SOE’s”) and includes discussions around privatisation and more competitors within these markets. It also called for small businesses (“SMME’s”) to be exempt from bargaining agreements reached between large industry players and labour unions, many times at rates and administrative processes that SMME’s just cannot afford to comply with. Unfortunately, the policy document was heavily criticised by organised labour. No surprises there…
Whether Minister Mboweni can stick to his guns will become clear at the Medium-Term Budget Speech scheduled for 30 October 2019. However, if his recently reported discussion with the ANC’s NEC is anything to go by it will. Maybe he can start with a quote from Winston Churchill that “Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon”. Here’s hoping…
What should be clear to everyone (but unfortunately isn’t) is that Government’s revenue can no longer be boosted by just increasing taxes. Most entrepreneurs know that a good income statement is not confined only to the revenue line. Ultimately profit is a function of both revenue and costs. The costs line should therefore also be monitored, analysed and corrective measures be taken to ensure that costs also remain under control. That is what we have been promised by Government. The time for talk is long over and action is now desperately needed – desperate times call for desperate measures.
I’ve just completed reading “The subtle art of not giving a f*ck”. The book is not about being carefree at all. It’s all about choosing what you care about and not comparing yourself to others. According to Mark Twain comparison is the death of joy. So, stop comparing yourself to others and get better at being happy.
I have just received an interesting newsletter that dealt with the protection of wealth beyond the first two family generations. Yes, most wealthy families do not retain that wealth beyond the 2nd generation. That is a scary thought for those of us that are still trying to build wealth during our generation, but it seems that easy come easy go. Maybe we should spend as much time teaching our kids about wealth matters than we do on building that wealth. More on this in Newsletter #9, for now have an awesome October.