Most investors understand the basic concept that aiming for higher returns involves taking on more risk. This principle – commonly summarised as “there is no free lunch” – is embodied in what is officially known as the Equity Risk Premium (ERP)…

In this past month and particularly this last week, we’ve witnessed a significant spike in share price volatility, especially in the US market. One of the standout examples is Nvidia…

I would hazard a guess that very few investors consider investments and strategy through the lens of entropy – a concept that influences every aspect of our lives.

Investing is often seen as the pursuit of big returns – the kind that can change lives. However, what is equally if not more important, is avoiding significant losses.

I was reminded of the distinction between wealth creation and wealth preservation after reading a report that former Microsoft employee and CEO Steve Ballmer’s wealth, had surpassed that of Microsoft co-founder Bill Gates this year…

One can almost say that, by design, prices of equities are volatile. Investors in any asset, but especially financial assets with an active and deep two-way market, must expect price volatility as the norm and not the exception…

Passive investment funds are designed to replicate the performance of a specific index or benchmark, such as the S&P500. Unlike actively managed funds, where managers select specific investments, passive funds aim to mirror the index’s…

“Do not save what is left after spending but spend what is left after saving” – Warren Buffett. I have a family member who often justifies an expense by saying, “It’s a great investment.” This spins my mind because I firmly believe that…

Richer Wiser, Happier : How the World’s Greatest Investors Win in Markets and Life, authored by William Green, currently ranks as the top investing book on Goodreads, the largest online book recommendation site…

In the ever changing and dynamic global investment landscape where market prices and values rise and fall, and economic trends are often unpredictable, I find it useful to reflect on various quotes, many embedded with timeless wisdom…

In the world of business, few names resonate as strongly as Elon Musk. The visionary entrepreneur consistently garners attention with his various ventures, and it’s understandable that investors are excited about the prospect of the public listing of SpaceX.

We are at the halfway mark for the year, and it seems like the months are flying by quicker than ever. It’s been a positive year for most investable asset classes, with some strong performances, but these invariably come with the standard fare of high volatility.

Into 2024, Artificial Intelligence (AI) remains extremely topical. Not only has AI chip designer, Nvidia seen incredible price gains, but this week Apple garnered significant attention with its announcement of an OpenAI partnership…

I recently had the opportunity to reflect whilst on a two-week Camino hike from Porto in Portugal to Santiago de Compostela in Spain. The peaceful journey provided the perfect backdrop for thinking about investing and investments and what holds ultimate value…

What does it take to be a successful investor? Undoubtedly, knowledge, skill and strategy are critical. Less acknowledged but still significant, is the role of luck…

If you were given a $100,000 to invest, how would you invest it? The time horizon and risk profile are crucial, but an equity index that returned more than 20% over the last 12 months would surely catch…

This year, many people around the world will go to the polls to vote in national elections. The U.S. four-year election cycle, culminating in November, is a significant event, as is South Africa’s five-year…

Warren Buffett’s, Berkshire Hathaway again captured attention last week with its renowned annual general meeting drawing significant crowds as always. A major talking point this

In today’s globally financially leveraged world, the level of interest rates matter. Which is perhaps why there is so much fascination with announcements from central banks, with none bigger than the US Federal Reserve….

The United States saw a 4.8% year on year increase in the median existinghome sales price, reaching $393,500 in March 2024. While slightly off the highs of mid 2022, residential prices remain exceptionally robust, making home ownership a…

Two weeks ago, I mentioned several assets that had traded to new price highs, including gold. This asset tends to evoke strong emotions. Even wellknown investor, Warren Buffett has a negative view of it, while economist John Maynard Keynes famously called it a “barbarous metal”…

This week, Amazon shares traded near their all-time high at around $185 per share. Spending time in the United States, it is apparent how pervasive Amazon is….

I am spending a few weeks in the United States with my family and always find it intriguing to compare prices across basic grocery items such as eggs, milk, yogurt, beef and fuel…

Efforts to reduce carbon emissions have intensified globally. Just as important in the climate change fight, is the need to remove excess greenhouse gases already in the atmosphere…

This week, the U.S. inflation rate for February was released at 3.2%, slightly higher than the market’s expected 3.1%. While this could imply the possibility of higher interest rates for longer, investors in the equity market took it in…

Over the last few weeks, we have seen a range of markets and assets trade at new all-time highs. These new highs often trigger nervousness among investors, yet the adage holds true – bull markets climb a “Wall of Worry…

In 1965, Warren Buffett took control of Berkshire Hathaway when the company was valued at $20 million, with shares trading at around $19. Originally a declining textile manufacturing firm…

In the world of personal finance, the concepts of saving and investing are often confused. They each serve a distinct purpose and therefore it is important to clarify each of them from first principles…

This year Microsoft surged to over $3 trillion in value, becoming the largest company among the so-called “Magnificent 7” (Alphabet, Amazon, Apple, Meta Platforms, Microsoft…

“A trillion here, a trillion there, and pretty soon you’re talking real money.” This famous quote was supposedly made by the late US Senator Everett Dirksen, who served in the 1960’s, and…

Last week, I made the comment that asset prices are likely to appreciate over any reasonable timeframe, at least in nominal terms. Given the ongoing erosion of purchasing power, this is not a controversial statement…

Mark Twain’s quote, “Prediction is difficult- particularly when it involves the future” resonates as many financial commentators attempt the daunting task of forecasting markets at the start of a new year…

Shane Parrish, the mind behind the weekly blog, Farnam Street (FS) and now the author of the book, “Clear Thinking”, has curated a collection of wisdom which I thought would be fitting as we approach the end of the year…

In a world where an eye-for-an-eye rules AI progress delights as the shiny jewel ChatGPT is more than a machine It is a friend and tutor helping us to learn and dream

We’ve all encountered the increasing red tape required to not only initiate new investment, but also to make top ups or even to redeem existing investments. The bureaucratic processes all fall under…

For company shareholders, there are many factors to consider when assessing investment feasibility. One metric stands out as the ultimate measure of…

Artificial Intelligence (AI) is not new. A defining moment occurred in 1997 when IBM’s Deep Blue computer defeated chess grandmaster Gary Kasparov in a six-game chess match. However, despite this breakthrough, progress…

This week marked the latest US Federal Reserve meeting, where they announced that short term interest rates would remain unchanged. The market places significant emphasis…

7 companies, often referred to as the “magnificent 7” have been pivotal in driving the performance of the US stock market this year, even as some of these gains have faded in recent months. These 7…

This maxim encourages individuals to approach a situation or problem by flipping it upside down, examining it from the reverse perspective to enhance clarity of thought and gain deeper insights…

The biggest talking point in global markets is rising interest rates to combat high inflation. It is widely accepted that there is a negative relationship between spending and interest rates, hence the move…

Warren Buffett wisely quoted in his 2018 annual letter to shareholders, “Rational people don’t risk what they have and need for what they don’t have and don’t need.” He mentioned this in the context of…

A key indicator that we watch on an ongoing basis is the yield, or interest rate, on the US 10-year bond. Just a few years ago, during the depths of the pandemic, this key rate plummeted to a low of around…

It is completely understandable that retired investors in the drawdown phase, “never want to dip into the capital”. This assumes that the income is not only sufficient at the start of the drawdown period…

Most diamonds sold at the retail level lack any genuine scarcity. This perception of diamond scarcity was carefully crafted over the last century by De Beers Consolidated Mines…

After discussing various allocation scenarios, I received an updated report this week on global USD forward looking returns from BCA Research. While it’s a comprehensive 26-page report on long…

In last week’s article discussing currency devaluation, I emphasized the importance of considering investments in real assets, including shares in multinational companies, as a safeguard against…

On Monday this week, Argentina, a country with a GDP of approximately $480bn, devalued its official currency, the peso, by a staggering 18%. Simultaneously the government upped the official interest…