Much of my time is spent trying to help my clients make and keep to plans which have the best probability of meeting their needs, goals and objectives. Once we have crafted a strategy and a plan we meet at regular intervals to measure their progress. One of the things that we need to measure … Continue reading Ulysses and the Sirens: Few Things Destroy Long-Term Investment Returns Like Short-Term Measurement
Jason Zweig has been a Personal Finance columnist for the Wall Street Journal for the last decade. To be honest, I'm a big fan. Way back in 2013 he wrote an article in the WSJ with the headline above and, while I only recently came upon it, what he wrote is as relevant today as it … Continue reading Saving investors from themselves
In the latest GreyIssue from investment house Allan Gray, they have penned an important piece on investor behaviour which bears reading. Quoting research from one of my favourite behavioural economists Dan Ariely, they argue that our brains are wired to make the easiest, rather than the best decisions. "When it comes to investing, we may … Continue reading How to pave the way for better decisions – Allan Gray
I saw this quote on a site which promotes healthy eating and it reminded me of a conversation I had with a client earlier this week about her financial planning. She was a little embarrassed about "how little she has" and intimidated about working with me to get the best financial future we can. When … Continue reading We all have to start this somewhere. But let’s start!
How often are we taken in by the "Experts", "Gurus" and similar "Talking Heads" who are wont to be seen as seers and prognosticators? They appear on our televisions and in the newspapers that we read and are are a dime a dozen on the popular financial internet sites and will tell us that "the … Continue reading Ignore the “Experts” and make peace with uncertainty
This weekend my attention was drawn (thank you to PSG Asset Management's Shaun le Roux) to an article on the FT website with the title above. There is no doubt that many tracker funds and ETFs have had very strong performance in recent years as we have seen a powerful momentum trend push the prices … Continue reading Index trackers break basic rules of portfolio management
I recently attended Foord Asset Management's Mind of the Manager event which was kicked-off by MD Paul Cluer. Paul reminded us of the story of Pascal's Wager, and illustrated how Foord apply the philosophy of Pascal's tale to how they manage money. Source: Wikipedia Recap: Pascal's Wager Blaise Pascal was a 17th-century French … Continue reading Investing with Pascal’s Wager in mind
Prudential Investment Managers' Johnny Lambridis penned an interesting article last month in the Active/Passive debate. Some of the points he made were: Passive investing is gaining ground in the South African market, mainly due to the (generally) lower fees involved compared to actively managed funds, but also based on some misperceptions stemming largely from the … Continue reading Prudential Investment Managers: Why active management beats passive in South Africa
There are many people who are interested in taking charge of their finances who just don't know where to start. Normally, deciding that you want to do something about your finances AND FOLLOWING THROUGH on that decision by finding someone to help you is a good start. But it can be intimidating. I know that … Continue reading Sometimes just getting organised is the first step in taking charge of your finances
When it comes to your investment outcomes, what is the one most important thing you need to get right? What is the one thing that if you get it right will give you the best chance of meeting your investment goals over the chosen time periods? What is the thing that I as an adviser … Continue reading In investing: What THE most important thing is to get right?