Financial Advisor
At gym, the other day a local minister mentioned that he regularly read my article. He questioned me on the difficulty of selecting a new topic each week. His passing words were, “at least you know how we ministers feel
Our love for stories and the ability to share stories widely has been mooted as the key determinant of our success as humankind, but also our potential downfall as investors. We cannot resist a good story, which talks to our
Allan Gray asset management recently came under fire in an article, in which the author opined their recent poor relative performance. The author, who will remain nameless as I think he may have been looking for publicity, blamed the disappointing
The price of generating real above inflation returns by investing in the share market is accepting the inherent volatility associated with equity investing. Investors must remember that short-term price volatility is not the risk per se. The risk is how you
Harry Markowitz developed Modern Portfolio Theory, which theorized that investors could design a portfolio to maximize returns by accepting a quantifiable amount of risk. In other words, investors could reduce risk by diversifying their assets and asset allocation of their investments using
Guru investor Terry Smith, founder of the phenomenally successful Fundsmith in the UK, has a remarkably simple investment philosophy based on three investment rules: Invest in a good business Pay a fair price for the business Do nothing! I will
Value style managers have struggled on a relative basis to keep up with broad market indices, which have been driven higher by a handful of mega-cap quality / growth companies mainly listed in the US. Value managers have been underweighting
The investment industry uses some very descriptive words in describing investor behaviour and one of these is capitulation, this is the point when investors throw in the towel. Throwing in the towel is boxing speak for give-up. Picture the towel
This week’s article is an extract from a reply to a client’s question on whether he should reduce his share exposure or move to a balanced portfolio strategy given several “warning lights” on the horizon. The easiest way to
“Smart money” is used to describe institutional or professional investors, by default that makes the rest of us the “not so smart money”. What seems to distinguish the “smart” from the “not so smart” is the degree of emotional influence