THE GHOST TRAIN
THE FINANCE GHOST: Ride my buy-cycle
As juicy as Grindrod Shipping has been, the cyclical industries most relevant to SA are in mining and resources
It’s easy to fall into the trap of thinking that the good times or the bad times will last forever. The world is dynamic and so are the forces of supply and demand.If you’re a Formula 1 fan, watching Lewis Hamilton fail to make it out of the first qualifying session on Saturday is a useful analogy for cyclical businesses. The Mercedes was unstoppable for several seasons before things changed.There are cyclical industries everywhere. On the global stage the microchip industry is cyclical. We’ve seen a supply crunch play out over the pandemic as demand for electronic goods surged and supply couldn’t keep up. The knock-on impact for industries like computer hardware and automobiles has been extraordinary to witness.It takes a great deal of time and investment to ramp up the "foundries" that manufacture microchips. I believe we will see deglobalisation of that supply chain to an extent, as tech giants in the West are now reliant on Taiwan Semiconductor Manufacturing Company. The geopoli...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.