“Helping you be and stay a confident investor”

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In 4 steps . . .

Investment Philosophy

The core beliefs of what I preach

1. Dealing with risk is the most essential element of investing

  • Investing consists of one thing: dealing with an uncertain future. Which means there is risk.
  • Understand, recognise and control risk.
  • What is risk? Don’t lose money over the long-term.
  • The first step to growing your money is to protect it.
  • Aim for a superior return which outweighs the risk taken to achieve the return.

2. Aim to beat inflation

  • Inflation is an investor’s no. 1 enemy. The biggest destroyer of wealth.
    Because it reduces your money’s purchasing power.
  • Aim for a return of Inflation plus 3 to 5% over the long-term.
    That means a real return of 3 to 5%.
    Know the return expectations of the various asset classes: shares, property, bonds and cash.

3. Invest for the long term. Be patient.

  • Time is the most important gift you can give your investment.
    It is scarce and precious. Therefore the best time to start is today.
  • Stay invested for at least 5 years. Preferably for 10, 20 years and longer.
  • Patience is the investor’s most important quality.
  • Compounding, which needs time, is the investor’s best friend:
    re-invest returns to achieve further returns. Returns on returns on returns.
  • A longer term leads to a decrease in risk of holding shares and property.

4. Don't put all your eggs in one basket

  • Spread your money. Diversify.
    Therefore I favour balanced funds. Also known as asset allocation funds.
    Invest in various assets: shares, property, bonds and cash. Local and foreign.
  • Split between funds with different characteristics.
  • Split between fund managers with different strenths and skills.
  • The fund managers, funds and assets may unlock value at different times.

5. Control your emotions

  • One of the most destructive forces. Don’t be your own worst enemy.
  • Know thyself. Know your risk tolerance, your appetite for risk.
  • Know and avoid peer pressure, mental laziness, greed and fear.
  • Stay calm in times of chaos. Resist the temptation to do something.

6. Buy low at a discount. Sell high at a profit.

  • Stock markets reflect human emotions and psychology. Mainly greed and fear.
  • In the short term these behaviours cause a difference between share prices and values.
    Which present opportunities. 
  • I favour fund managers who focus their research and skills on determining the value of businesses.
    Buy shares of these businesses at a discount to there value.
    Wait until the share prices reach the business value. And sell at a profit.

My process

How I practice what I preach

Once you feel comfortable with my process, I shall feel comfortable too… that you can make an informed decision.  

ettienne-vorster-investment-adviser

Reading about "seasoned" investment managers helps a lot!

Your story and needs

  • Study your unique story, principles, history and personality profile.
  • Discuss your needs. What’s your money for?

Risk

  • Study your risk tolerance report. Discuss it with you.
  • Use your FinaMetrica risk tolerance score.
  • Use the research reports of Fundhouse to calculate your comfort range for the % of growth assets in your portfolio.
  • Growth assets include shares and property.

The funds

  • Identify funds which have the % of Growth Assets compatible with your score.
  • Verify the investment quality of the funds.
  • Use the research reports of Fundhouse and Morningstar.
  • Fundhouse and Morningstar are leading Fund Research and Ratings Providers.
  • Peruse the fund fact sheets.
  • Study the characteristics of the funds. Use the Allan Gray fund research tool.
  • Discuss your capacity for risk, the extent to which you can handle negative returns.

Tying it al together

  • Advise you on a suitable product.
  • I guide you towards your informed decision.
  • I help you to implement my advice.

If you're a serious long-term investor, get in touch, give it a go…

Schedule your free, 30 minutes, no-obligation meeting to discuss your needs

I'm ready to help you be and stay a confident investor