What is the best way to invest your money?

[Dave A]

I'l be honest - if the paperwork matches the advertising, I'm pretty sure this isn't a pyramid scheme or scam. Discounting notes is as old as money, and this isn't far off it.

The names and operations I found connected to this also pretty much checked out fairly favourably.

However I confess, I'm also curious about how the trust absorbs and finances the losses though.
And where the referral money comes from.

Perhaps an agent's commission agreement with the seller of the "note"?
About the only option that comes to my mind just at the moment.

[Savvy]

They make their money by buying the debts first from all the major banks in the country, *at a heavily discounted price* which includes theirs' and the end buyers' profit margins, referrals etc.

The original debtor incurs no additional costs and is secured through an EAO (Emolument Attachment Order) via the courts.

Cambist is by no means a small operation and Cambist itself is a small part of the holdings company www.bridge.co.za. They also offered the same product for a higher-end market where the minimum investment was R1 million. They are very much legit and have many investors. If millionaires are comfortable with investing with them, and I trust they know their stuff, then that also brings some credibility.
They also have 20 odd years of experience in the financial industry specializing in debt collection and finance/loans.

At the end of the day though, it is the investors responsibility to do their own due diligence and make a decision. I have a slight advantage being so personally familiar with the company. I'm also not an employed agent of the company in case any one was wondering.

[Blurock]

This sounds legit and the returns sound in line with what the industry charges. The problem is, you are buying debt and debt, like vegetables, has the tendency to go bad after a while. Even with a garnishee order, one is not assured of payment, because the debtor may lose his job or resign.

The credit industry is in a bad shape at the moment and there has been much hype in the press regarding unsecured debt and high debt levels. The banks and the money lenders, as well as the retail industry are battling with bad debts. The old saying is true; high risk - high return....

[Savvy]

When a debtor fails to repay, Cambist pays the buyer back for the original contract amount (without interest). One of the contracts I had bought did in fact go bad but I didn't loose a cent. The only risks I see are the industry, economy or the company goes bust. I don't see this happening anytime soon.

[Dave A]

The only risks I see are the industry, economy or the company goes bust. I don't see this happening anytime soon.

The company certainly has no intention of risking going bust on defaults - that'll be why the liability for defaults is incurred by a trust. It's quite clearly a stopper mechanism that'll cap losses for the operators if everything ever does go totally pear shaped.

Savvy has already covered much of what I found in my research. It's real. The operators are experienced. And sharp!

I'm not quite as upbeat as Savvy on the risk side of things though. As Blurock points out, the overall environment just at the moment indicates risk is probably increasing for this segment. Thinking about it, this could explain the recent downgrade on returns - perhaps a bit more margin is being set aside for defaults.

If I'm right - it means this is an investment mechanism with an unusual contra-cycle feature.

[Miro Bagrov]

Greetings everyone,

I have a experience in credit risk analysis from a commercial banking side. If anyone wants an analysis of the company in question forward the audited financial statements here and I can provide an objective professional opinion on whether they are likely to go bankrupt or not .
(Hint - if you can't get hold of audited financial statements for this company just run away.)


Off the matter, I think investment is a game where you have to play both sides.
For instance, the rand weakened because of firstly the lowering of interest rates, then the mining strikes, then the higher inflation (that's like getting a lower salary, your boss getting angry at you, and an increase in your rent all in the same day).

This time no one could invest in Gold or Silver to hedge because their values were also sinking as the US economy "recovered" (but really just "re-covered up" it's losses)...

The JSE does not let us "short" South African assets, meaning we can not profit on down turn movements in South African assets, because if we did that we would all be rich by now as no one has too much faith in them anyway. (The JSE only lets the investor "buy" a share, that means you can only make money if that share goes up in value.)

So the last option available in the Low-Rand scenario is to use an overseas broker that trades through the NYSE (New York) and lets you "short the rand" from there, (meaning make a profit from a drop in value), and that way bypassing the JSE.
Or simply to open an overseas investment account in another currency. Now that way an investor can profit every time his team (the Rand) loses by betting on the opposition.

It's a vicious game gentlemen - if you are not cannibals prepared to eat your fellow citizens and predators who are prepared to jump an an easy kill, you can't survive investment these days.

[Jddt]

Invest in assets with the highest growth rate and lowest risk provided you calculate the growth and risk correctly.

[Miro Bagrov]

I will be even more specific...

If you want to make money, short the Rand against the Dollar, the Euro and the Aussie Dollar just before elections.

Either way, no matter who wins, the rand will dip at that time.

[Jozsef Borbely]

Hi all,

This is my first post to this forum, so I hope I can be so some assistance.

I feel unit trusts are a excellent means of investing, whethers its for retirement or for flexible savings. I recently created a youtube video on unit trusts which I use to explain how they work to my clients.

[joya]

You can start another business and invest in property and you can deposit your money in the bank.