With the US stock market now entering its 11th year in a bull market, it is probably a good idea to reflect on some old age wisdom, which is nicely explained by the following quote: Bull markets are born on
Damned if you don’t … price vs value
Look for long-term investors
The debate on active vs. passive investment strategies is never ending. If you google active vs. passive there are tens and thousands of articles on the topic. For less informed readers, passive investment strategies refer to tracker or index funds,
Trade wars lead to MAED
The cold war between Russia and the USA was premised on a critical acronym known as a MAD, which stood for “Mutual Assured Destruction” in reference to the nuclear arsenal of each country and that any hot war between them
Recency Bias can cost you
Investing in the JSE All Share Index has become a swear word as the herd flee our shores in favour of investing offshore and it is hard to make a case for investing locally given all the bad news and
Storytelling can be misleading
In the bestselling book Homo Sapiens Yuval Harari theorized that the success of humankind can be directly ascribed to our ability to tells stories, which we could all believe in and collectively work towards, thus achieving as a common goal.
Market may be nearing inflection point
The endless debate passive vs. active. I am yet to be convinced passive investing has now replaced active management as the gold standard, notwithstanding and possibly because this has become such a mainstream view. i.e. the herd are investing zillions
Investment yarns result in high prices and lousy returns
According the author of the award-winning book Homo Sapiens the success of humankind over other species came from the ability to work together and the secret to this togetherness came from the ability to tell stories, which we could all
Investing; Simple but never Easy
The illustration below explains how to calculate the expected return from a share or the overall market, which is represented by the straight upward sloping line in the chart and is simply the current dividend yield + expected real (above
Make room for ambiguity too
As investors we hate ambiguity, we want certainty, which is why we dislike the idea of randomness. We want our advisors / managers to know exactly what is going on. Financial experts must speak confidently and explain what is driving
My crystal ball predicts far better returns for the next five years
As it turns out my crystal ball really works. Unfortunately, I only realise that now after going through all my articles written in 2013 when I correctly predicted the lousy returns of the last 5 years. Of course, nobody wanted