As a child I used to love playing monopoly, which I had not done for years, but the other day, while braaing with friends, I re-discovered my monopoly board and could not resist the temptation. My friend Emil and I
Don’t only trust your instincts
Zookeeper in charge of feeding the tigers
What does your financial adviser do for you? According to Daniel Kahneman Nobel prize winner and author of “Thinking, Fast and Slow”, financial advisers are responsible for: “The anticipation, diagnosis, and the management of client discomfort and regret.” Kahneman &
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
The share prices aren’t irrational, the investors are
When the stock market behaves like a yoyo it’s good to remind yourself of what a share price really is and that is a daily offer from someone to buy and / or sell you a business. If you are
Now, don’t develop hindsight bias
Don’t congratulate yourself or berate yourself too much your choices are half chance. This is one of those great wisdoms of life, which can be applied to every aspect of your daily living including your investment successes and failures.
Think before changing proven strategies
The most important factor in successful investment is your behaviour and it’s the hardest thing to manage, because it is usually driven by irrational thinking and the failure to learn from past mistakes. No matter how much evidence is provided
Inflation within target, but be cautious
Why does nobody believe the published inflation rate? I will attempt to answer this question by explaining how inflation is calculated. The inflation rate refers to the annual average rate of increase in prices represented by a basket
Price mustn’t be confused with value
The strength of a countries currency can be viewed as a proxy for the price of the country. Just like with any investment you must differentiate between price and value. Price is what you pay and value if what you
Leadership uncertainties
As investors we are taught not to let macro factors overly influence our investment decisions. There is empirical evidence suggesting that even if you can correctly call a macro event like Brexit it is still impossible to know how the
Don’t be ‘herd’ investor, take a risk and score!
A recent Credit Suisse report revealed the best performing stock market since 1900 to be none other than our own ALSI. Hard to believe considering all the turmoil SA has been through over the last 116 years or maybe that