My Brain Food This Week...
Is loadshedding in South Africa on the way to being eliminated? Rent in SA has increased by 38% nationally since 2014, and Balaji opens a new university for top talent, of all ages
Welcome to another edition of My Brain Food This Week, where I share the content I consumed this week to help me on my journey of becoming a master capital allocator.
Check out my latest investor letter where I suggest that Instead of Cutting Expenses, Consider Growing Out of Your Expenses.
Here’s what caught my eye this week:
It’s been months since South Africa experienced loadshedding, with Eskom marking 142 days of constant power supply on Thursday, 15th of August. What’s happening?
Usually during the winter months more energy is consumed as South African’s turn on heaters and electric blankets. In the last couple of months Eskom has averaged 33 000MW of energy capacity, higher than the forecasted 28 000 MW for winter, without burning more diesel. The reason for the additional capacity is the performance improvements of the Tutuka coal plant, as well as the Kendal and Kriel plants where unplanned outages have more than halved at each plant. This will give Eskom the ability to undergo more planned infrastructure maintenance heading into the summer season where less energy is typically consumed. The strong turnaround in Eskom’s power supply capacity will be a positive boost to business confidence and to the South African economy.
Rental cost in South Africa has increased by 38% on average nationally from Q1 2014 to Q1 2024. What’s happening?
The national rental increase means that renters are dedicating a higher proportion of their incomes to rent. The South African economy is in a complex period where inflation is stubborn around 5%, higher than the South African Reserve Bank’s target of 4.5%; interest rates are restrictive to investment and economic activity at 8.25%, the highest they've been since the global financial crisis; GDP is flat and lower since peaking at ~$458 billion in 2011, and the household savings rate is at -1.1%, the lowest its been since 2015. Tough and important economic reforms will be required to revive the South African economy.
Balaji and a team of partners have announced a new university called the Network School. What is it?
The Network School is a re-imagining of the purpose of elite universities and the outcomes they provide. The Network School is for people of all ages ad provides lifelong learning. Essentially as an attendee you move to this remote area in Singapore, attend classes, exercise, and you’re able to apply your skills you’ve learned to make money, all as part of the Network School curriculum. Read more here…
Other reading…
The yen carry trade sell-off marks a step change in the business cycle
Berkshire invests in Ulta Beauty, Heico as it retreats from Apple
By trying to please the US, did Taiwan’s TSMC make a huge mistake ?
Podcasts & Video 🚀
Which piece of content sticks out for you?
Let me know in the comments!👇🏾