Lessons from an Asset Manager

We at Bovest are privileged to have contact with the best investment minds in our country. One of those experts I have huge respect for is Co-Head of Quality from Ninety One, Clyde Rossouw. Clyde shared some of the key investment lessons he has learnt over twenty years in the industry.

The three lessons that stood out for me and that we implement in our clients portfolios everyday are the following:

  • Investing is more than a numbers game
    You need to understand more than the underlying financial statements of the companies and the economics of the country. You need to understand the psychology of markets and for us working with end investors you need to understand their psychology and biases.
  • The best ‘investment stories’ carry the highest potential to lose money
    You need to understand how to spot Ponzi schemes. These schemes usually have pyramid structures, where the late adopters tend to lose all their money and the investors that get in early make all the money. We have seen this with Sharemax and we will see it again in the future.
  • Over the long term, markets go up but not in a straight line. Balancing risk and return remains the cornerstone of successful investing. We continue to seek differentiated investment ideas to generate long-term wealth for our clients. 

For the whole article follow the link HERE.

PJ Botha CA(SA), CFP ®

Photo by Johannes Plenio on Unsplash

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