Most SA investing advice is written for Americans. This isn’t. How else will you survive load shedding, forex scams, and SARS as an investor? This one is for you, the young South African navigating the world of investing without a trust fund. Learn how to invest, discover the best investment options, and find out where to invest.

Contents

1. Mindset Reset

• Why “Get Rich Quick” Fails
  
• How to Think Like Warren Buffett
  
• Your 3 Investing Commandments:
  
  • Patience
    
  • Boring Wins
    
  • No FOMO
    

2. Your First R100

• Step-by-Step: Opening a TFSA, RA, or Crypto Wallet (SA-specific)
  
• App Breakdown: EasyEquities vs. Satrix vs. Altify
  
• The “Coffee Money” Strategy: Turn R50/Week into R10k
  

3. Picking Winners

• My 4 No-BS Filters for SA Stocks:
  
  • Does it Sell What People Actually Need? (e.g., Shoprite)
    
  • Can it Survive Load Shedding?
    
  • Is Debt Under Control?
    
  • Are Insiders Buying? (How to Check)
    

4. Building Your Empire

• The 3 Portfolio Buckets:
  
  • Safety Net (ETFs like Coreshares Top40)
    
  • Growth Engine (e.g., Purple Group)
    
  • Moonshots (Crypto/VC, Max 5% of Portfolio)
    
• How to Rebalance Without Losing Sleep
  

5. Tax Hacks They Won’t Teach You

• How to Write Off Your Laptop/Phone as an “Investor”
  
• TFSA Loopholes (Max Contributions + Withdrawal Rules)
  
• Reporting Crypto Gains (Without Getting Screwed)
  

Quick Disclaimer:

• This is not personalized financial advice. Past performance ≠ future results. Consult a certified advisor.
• Crypto is unregulated in SA; capital is at risk.

Final Note

This isn’t about lambos. It’s about buying your freedom. Slow. Steady. Boring. Let’s go.

Section 1: Mindset Reset

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Why “Get Rich Quick” Fails

If you’re chasing fast money, you’re already behind.

South Africans lose billions every year to forex and crypto scams. The FSCA reports that most unregulated investment schemes collapse in under a year. Platforms promise 100% returns in a month, and people fall for it because it sounds easier than learning how to invest properly.

Here’s the truth:

• Investing is not gambling.
  
• If someone’s flexing profits but hiding losses, they’re selling hype.
  
• That’s not wealth building. That’s dopamine addiction.
  

Your money deserves better. Long-term investors win because they stay in the game. It’s not sexy, but it works. If you’re in this to buy freedom, not show off, you already have an edge.

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How to Think Like Warren Buffett

Warren Buffett doesn’t trade coins, chase trends, or panic when the market dips. He buys boring businesses and holds them for decades. That’s how he turned a paper route hustle into billions.

His whole philosophy:

“If you wouldn’t be happy holding it for 10 years, don’t buy it for 10 minutes.”

He reads for hours a day. He avoids stuff he doesn’t understand. He invests in real products, strong leadership, and consistent profits.

Want to play the long game? Learn from the guy who’s already won it.

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Your 3 Investing Commandments

1. Patience
Compounding is your superpower, but it takes time. R100 invested today might not change your life tomorrow, but left alone for years, it can snowball into real wealth. The trick is to start and not stop.

2. Boring Wins
You don’t need hype. You need consistency.
The stock that quietly grows 8% per year will beat the flashy one that crashes 40%, rebounds 20%, and burns out your nerves.
ETFs, strong dividend stocks, and simple strategies, and that’s where wealth lives.

3. No FOMO
You’re not late. You’re not missing out.
The market will always have shiny new things. Most people lose money chasing trends because they don’t know what they’re buying.
If it sounds too good to be true, it probably is. Run your race. Stick to your plan.

Section 2: Your First R100

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Step-by-Step: Opening a TFSA, RA, or Crypto Wallet (SA-specific)

1. Tax-Free Savings Account (TFSA)

• What it is: A TFSA allows you to invest up to R36,000 per year (R500,000 lifetime limit) without paying tax on interest, dividends, or capital gains.
  
• How to open:
  
  • Online: Platforms like EasyEquities, SatrixNOW, or FNB offer online TFSA account openings.
    
  • Requirements: South African ID, proof of residence, and a bank account.
    
• Considerations:
  
  • Exceeding contribution limits may result in penalties.
    
  • Funds are accessible, but early withdrawals may impact long-term growth.
    

2. Retirement Annuity (RA)

• What it is: An RA is a long-term investment plan that offers tax benefits, allowing you to save for retirement.
  
• How to open:
  
  • Online: Providers like Allan Gray, Momentum, or FNB facilitate online RA account setups.
    
  • Requirements: South African ID, proof of residence, and a bank account.
    
• Considerations:
  
  • Funds are typically accessible from age 55.
    
  • Contributions are tax-deductible up to certain limits.

3. Crypto Wallet

• What it is: A digital wallet that allows you to buy, store, and manage cryptocurrencies like Bitcoin or Ethereum.
  
• How to open:
  
  • Platforms: Luno, VALR, or Binance (Binance is not FSCA-regulated. Use caution with offshore platforms.) offer user-friendly interfaces for South Africans.
    
  • Requirements: Email address, proof of identity, and sometimes proof of address.
    
• Considerations:
  
  • Cryptocurrencies are volatile; invest cautiously.
    
  • Ensure the platform is reputable and secure.
    

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App Breakdown: EasyEquities vs. SatrixNOW vs. Altify

Feature	EasyEquities	SatrixNOW	Altify
Fees	Low brokerage fees; no platform fees	Brokerage + platform fees	Varies based on investment options
User Interface	Beginner-friendly; intuitive design	Straightforward; focused on ETFs	Modern interface; diverse offerings
Investment Options	Stocks, ETFs, crypto, bundles	Primarily Satrix ETFs	Stocks, ETFs, alternative assets
Minimum Investment	As low as R5	Typically R10 or more	Varies; often R100+
Best For	Beginners exploring various assets	Investors focusing on Satrix ETFs	Those interested in alternative assets

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The “Coffee Money” Strategy: Turn R50/Week into R13,000

Concept: Investing small, consistent amounts can accumulate significant wealth over time due to compound interest.

Implementation:

• Weekly Investment: R50
  
• Monthly Total: Approximately R200
  
• Annual Investment: R2,400
  
• Assumed Annual Return: 6%
  
• After 5 Years: Approximately R13,954
  

Steps:

1. Choose a Platform: Select an investment platform like EasyEquities or SatrixNOW.
   
2. Set Up Auto-Invest: Automate your weekly R50 investment to ensure consistency.
   
3. Select Investment Vehicle: Opt for low-cost ETFs or unit trusts that align with your risk tolerance.
   
4. Monitor Progress: Regularly review your investment to stay on track with your goals.
   

By consistently investing small amounts, you harness the power of compound interest, turning modest contributions into substantial savings over time.

Section 3: Picking Winners

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My 4 No-BS Filters for SA Stocks

If you’re serious about long-term investing, ignore the hype. You want businesses solving real problems. Here is how I filter stocks in the South African market.

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1. Does it Sell What People Actually Need

You want essentials. Not luxuries.
If the economy crashes, what will people still spend on? Food. Medicine. Airtime. Transport.

Example: Shoprite
People always need to eat. Even when times are tough. Revenue stays steady.

Look for companies whose products are part of daily life. If you can live without it for 30 days, it is probably not a solid investment.

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2. Can it Survive Load Shedding

If the lights go out and the business goes down with them, that is a problem.

Check:

• Does the business have backup power or solar?
  
• Is it losing money because of outages?
  
• Are they adapting or just hoping things improve?
  

Example: Capitec
They run strong digital systems and mobile banking. Even if branches are down, the core services still work.

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3. Is Debt Under Control

Too much debt can kill a business fast when things go wrong.

Use the Quick Ratio. Simple formula:
Quick Ratio = (Current Assets minus Inventory) divided by Current Liabilities

A ratio above 1 means the business can handle its short-term debt without panic.
If it is below 1, or getting worse each year, that is a red flag.

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4. Are Insiders Buying

If the people running the company are buying shares with their own money, that matters.

It shows belief in the business. They know more than the public. If they are buying instead of selling, pay attention.

How to check:

• Visit Sharenet or the company’s SENS announcements
  
• Look for “Director Dealings”
  
• Regular insider buying is a good sign
  

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Filter out the noise. Focus on quality. You do not need to be perfect. You just need to avoid the garbage and stay consistent.

Section 4: Building Your Empire

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The 3 Portfolio Buckets

Think of your portfolio like a house. Every piece has a purpose. Some parts keep it standing. Others make it grow. And a few wild bets might change everything if they work.

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1. Safety Net

What it is: Your base layer. It keeps you stable no matter what happens in the market.

What goes here:

• Index funds
  
• ETFs like Coreshares Top40 or Satrix 40
  
• Bonds or conservative unit trusts
  

Why it matters: These assets protect your money from chaos. They are not flashy, but they are reliable. This is where your future peace of mind comes from.

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2. Growth Engine

What it is: This part of your portfolio works harder to grow your wealth over time.

What goes here:

• Quality individual stocks
  
• Small caps with potential
  
• Companies with real profits and solid business models
  

Example: Purple Group (Purple Group (JSE: PPE) is a small-cap stock; expect higher volatility and liquidity risks)
They own EasyEquities. They are innovating in a growing space. Not a sure thing, but worth a spot in the middle layer.

Why it matters: This is where you beat inflation and slowly build your wealth without gambling.

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3. Moonshots

What it is: The high-risk, high-reward corner. This is your bet on the future.

What goes here:

• Crypto
  
• Startups or venture capital investments
  
• Anything that could 10x but might also crash (crypto/VCs are high-risk and not FSCA-regulated)
  

Rules:

• Max five percent of your total portfolio
  
• Never use money you cannot afford to lose
  
• Treat it like a bonus, not a core plan

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How to Rebalance Without Losing Sleep

You do not need to check your portfolio every day. But you do need to keep it in shape.

Rebalancing means:

• Selling some of what has grown too much
  
• Buying more of what has dropped below your target
  
• Keeping your risk levels in check
  

Do it:

• Once or twice a year
  
• When one bucket gets way bigger than the others
  
• With calm, not emotion
  

Set reminders. Automate where possible. And most important, zoom out. You are building wealth over years, not weeks.

Section 5: Tax Hacks They Won’t Teach You

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How to Write Off Your Laptop or Phone as an Investor

If you are using your laptop or phone to research investments, track portfolios, or create financial content, it is not just a gadget. It is a tool. And in South Africa, tools for trade can be claimed as expenses.

What to do:

• Keep your invoices and proof of purchase
  
• Track how much time you use the device for investment activity
  
• When you file your tax return, declare it as a capital or business expense (if you earn income from your investing or related content)
  

Pro tip: If you are making any money from YouTube, affiliate links, or even paid workshops, your devices instantly become part of your business toolkit.

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TFSA Loopholes and Rules You Need to Know

The Tax-Free Savings Account (TFSA) is a gift, but most people mess it up.

Key rules:

• The max annual limit is R36 000
  
• The lifetime limit is R500 000
  
• You cannot replace what you withdraw within the same tax year
  

Example:
If you invest R36 000 and withdraw R10 000 in July, you cannot top up another R10 000 that year. You are done until next tax cycle.

Loophole:
Use multiple TFSAs across platforms to diversify your holdings, but the total limit across all of them still counts toward your annual and lifetime caps. Track carefully.

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Reporting Crypto Gains Without Getting Screwed

Yes, SARS is watching. And yes, crypto is taxable.

You must report:

• Gains when you sell or swap crypto
  
• Income from airdrops, staking, or mining
  

How to stay safe:

• Use a crypto tax calculator like Koinly or TokenTax
  
• Keep records of buy and sell prices
  
• Convert all values into rands when filing
  

Big mistake to avoid:
Thinking you only pay tax when you cash out to a bank account. The moment you sell one coin for another, that triggers a taxable event.

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Stay clean. Stay smart. And do not play games with SARS. Use the system to your advantage, but never ignore it.

Bonus: When to Sell Checklist

Investing is not just about picking the right stocks or assets. Knowing when to sell is just as powerful. Here’s your practical, no-fluff guide for making confident exit decisions.

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1. Does it Still Fit Your Original Plan?

Revisit your goals
Did you buy this because of growth potential, dividends, or a solid company story? Check if those reasons still hold.

Change in fundamentals
If the company’s core business is failing or leadership is falling apart, it may be time to walk away.

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2. Is the Price Overvalued?

Valuation check
Look at P/E ratios and compare to historical averages. If it’s 20% or more above peers without real earnings growth, that’s a red flag.

Market hype alert
If everyone around you is hyped up, be cautious. Overhype usually means it’s near the top.

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3. Are You Too Emotionally Attached?

Don’t fall in love
It’s a stock, not a soulmate. Keep decisions based on logic, not loyalty.

Loss aversion trap
If you’re only holding it to avoid admitting you were wrong, you’re blocking better opportunities.

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4. Has the Market Changed?

Industry shifts
If regulations, tech disruption, or customer habits are changing, your stock might be at risk.

Macro changes
Interest rate hikes, recessions, or political instability can change a company’s outlook fast.

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5. Have You Hit Your Target?

Profit goals
If it reached the target price you set, take the win. That’s discipline.

Rebalancing need
If one stock now makes up more than 20% of your portfolio, consider trimming to reduce risk.

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6. Is There a Better Opportunity?

Upgrade your portfolio
If another stock offers stronger growth or a better fit, it’s okay to switch. Capital has no loyalty.

Diversify smarter
Selling to balance out your portfolio is strategic, not reactive.

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7. Tax Considerations

Capital gains timing
If the sale creates a big tax bill, consider spreading it over tax years or offsetting with losses.

TFSA heads-up
If selling inside a TFSA, remember gains are tax-free, but withdrawals still count against your annual contribution limit if you re-deposit too soon.

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Pro Tip: Exit Gradually

You don’t have to sell all at once. Scaling out in pieces can lock in profits and reduce the stress of timing the top.

Bonus: Crucial Math for Investing Simplified

This is the only math that really matters if you’re serious about growing your money. No fluff. No finance degree needed.

1. Compound Interest

Formula
Future Value = Present Value × (1 + Rate)^Time

Why it matters
If you invest R100 and earn 10 percent per year, it becomes more than R250 after ten years. Not because you added more money, but because interest earned its own interest. That is compound growth.

Example
Invest R50 a week into an ETF that earns 10 percent a year. In under four years you could have R10 000.

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2. Rule of 72

Formula
72 divided by your annual return tells you how long it takes for your money to double.

Example
9 percent return means your money doubles in 8 years
6 percent return means it doubles in 12 years
12 percent return means it doubles in 6 years

This helps you compare the real speed of different investments.

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3. Real Return

Formula
Real Return = Your Return minus Inflation

Why it matters
If your investment earns 8 percent but inflation is 5 percent, your real gain is just 3 percent. That is what counts.

South African reality
Inflation in SA is usually between 4.5 and 6 percent. If your return is below that, you are not building wealth. You are falling behind.

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4. Fees Matter

Formula
Net Return = Gross Return minus Fees

Example
A fund gives you 9 percent before fees. If it charges 3 percent, your real return is only 6 percent. Over 20 years, that difference could cost you tens of thousands.

What to do
Use platforms with low fees. Aim for under 1 percent if possible.

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5. Quick Ratio

Formula
Quick Ratio = (Current Assets minus Inventory) divided by Current Liabilities

Why it matters
This tells you if a company can pay its short-term debts without selling stuff or taking loans. A healthy company usually has a quick ratio above 1.

Shortcut
You can look this up on platforms like Simply Wall St. You do not need to calculate it yourself.

(The Quick Ratio is a liquidity snapshot, combine with other metrics like debt-to-equity for a full picture.)

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6. Position Sizing

Rule
No more than 5 percent of your portfolio should go into one stock
No more than 1 to 2 percent should go into risky plays like crypto

Why it matters
Even if something fails, it will not wreck your entire plan. Small bets protect your long-term game.