Finweek English Edition - - MONEY -


In the last eight months the most fre­quent ques­tion I have from my clients about in­vest­ing is: “Are we head­ing for a Zim­babwe-style melt­down?” To date, this has not been a se­ri­ous con­sid­er­a­tion for me but re­cent events are af­fect­ing my views. One needs to re­alise that SA is a teenage democ­racy. As with all teenagers, the coun­try is prone to mood swings and sus­tained pe­ri­ods of ir­ra­tional­ity. All teenagers go through this and many of them grow into up­stand­ing mem­bers of so­ci­ety – only a lim­ited num­ber be­come crim­i­nals or politi­cians. There are still many fac­tors that could help launch our coun­try into the strato­sphere. Our in­fra­struc­ture, min­eral re­sources, ge­o­graph­i­cal lo­ca­tion, and our com­pet­i­tive and adapt­able pop­u­lace are real ad­van­tages. South African busi­ness lead­ers at home and overseas are on par with the best in the world. Even our po­lit­i­cal lead­er­ship can change very quickly if the ma­jor­ity of vot­ers de­cide it is time for change.


To para­phrase Piet Viljoen from RE:CM, one does not find great value as an in­vestor when ev­ery­thing is rosy. While 10 or 15 shares in our mar­ket are very ex­pen­sive, there are a large num­ber of qual­ity com­pa­nies that are cur­rently very cheap. As we have seen in the past, our stock mar­ket of­ten per­forms very well de­spite our politi­cians’ an­tics, so avoid­ing shares be­cause of pol­i­tics is not ra­tio­nal. Per­son­ally, I am quite op­ti­mistic about our stock mar­ket for the next few years. With the enor­mous amount of neg­a­tiv­ity that faces us in SA, the Mid­dle East and the devel­oped world, I feel that savvy in­vestors should be fill­ing their boots with qual­ity in­vest­ments over the next few months.

War­ren In­gram is a cer­ti­fied fi­nan­cial plan­ner and ex­ec­u­tive di­rec­tor of Galileo Cap­i­tal.

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