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
The share prices aren’t irrational, the investors 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
There is no “holy grail” secret to making good investments
I was invited to spend a full day with arguably South Africa’s top asset manager; you go there with very high expectations hoping to get all the answers. These are the guys with the enviable track- record of consistently beating
One’s risk tolerance = capacity for volatile equity investing – 8 June 2017
Risk is one of, if not the most misunderstood concept when it comes to proper investing. I hope to remove some of the confusion around the concept of risk by firstly covering the various terms used to describe risk and
Banana Republic
South Africans are feeling better without really knowing why. The positive sentiment is probably linked to the stronger rand, which is being driven by the stabilization of commodity prices and a renewed investor appetite for emerging markets; but mostly I