“Helping you be and stay a confident investor”
INVESTMENT PHILOSOPHY
The core beliefs of what I preach
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.
Aim to beat inflation
- Inflation is an investor’s no.1 enemy. The biggest destroyer of your money. 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.
Invest for the long-term
- Time is the most important gift you can give your investment. It is scarce and precious. Therefore the best day 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: reinvest returns to achieve further returns. Returns on returns on returns…
- A longer term leads to a decrease in the risk of holding shares and property.
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 strengths and skills.
- The fund managers, funds and assets may unlock value at different times.
Control your emotions
- One of the most destructive forces. Don’t be your own worst enemy.
- Know yourself. 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.
Buy and sell at the right price
- 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 their value. Wait until the share prices reach the business value. And sell at a profit.
MY PROCESS
How I practise what I preach
Once you feel comfortable with my process, I shall feel comfortable too…
that you can make an informed decision.
Your story and needs
- Study your life principles, history and personality awareness profile.
- Discuss your needs. What’s your money for?
Risk
- Study your risk tolerance report. Discuss it with you.
- Calculate your comfort zone for % growth assets.
Growth assets are shares and property. - Discuss your capacity for risk.
That’s how much negative returns you can handle.
The funds
- Identify suitable funds.
- Verify the investment quality. Use the research reports of Fundhouse and Morningstar, leading fund research and ratings providers.
- Peruse the fund fact sheets.
- Study the features of the funds. Use the Allan Gray fund research tool.
Tying it all together
- Advise you on a suitable product.
- I guide you towards your informed decision.
- And 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