Investing is not about avoiding risk. It is about understanding the risks and pricing the risk accordingly, which is why we refer to risk and return. The return must be commensurate with the risk taken. The trick is understanding risk.
Always do your homework
Today is Friday and not just any Friday it is “Black Friday”, the day every self-respecting shopper looks forward to when just about everything goes on sale with knock-down price bargains to be had. The frenzy is palatable with a
Inflection Point
Expectations regarding the future are usually an extrapolation of the recent past; in behavioural finance this is known as hindsight bias, which is one of the most common mistakes made by investors and I am not only referring to Mr.
Five key tips for DIY investing
If you planning to be the next Allan Gray, then this article should be of interest to you with five tips for successful DIY investing. Tip 1: Read articles on behavioural finance and study the various biases, which wreak havoc
What you don’t want to hear from your financial adviser
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
Negotiating uncertainty
I can quite honestly say as an investor for over 26 years now that I have never experienced a dull day, but that said, there is a Chinese curse, which says, “May he live in interesting times.” As investors we
Emotional investors need good advice
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 end of value investing?
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
Living Annuity and Death
Never a topic we like to discuss but dying with a living annuity has some important planning considerations, which I will briefly cover in this week’s article. Living annuity contracts allow the retiree to bypass his / her estate on
Investors, beware of ‘Tina’
The tile of this week’s article sounds more like a tropical storm warning than a warning to investors, which may be appropriate given that TINA can be just as devastating on your wealth as a category five hurricane when making