MyMoney Online

Why you should be more like Mr. Spock (and 3 other tips on successful investing)

1. Vulcans would make great investors

Is greed good? Only if you want to get poor in a hurry. But fear will do that too. In fact, any excessive emotion when it comes to investing is your worst enemy, says Galileo Capital Financial Advisor Warren Ingram.

This might make sense to you now, but it’s much harder to keep in mind when your portfolio is skyrocketing or dropping like a lead balloon.

Mr. Spock, paragon of rationality and almost unencumbered by emotions such as greed and fear, would've rocked at investing.

2. Keep it straight and simple

Investors are, often to their own detriment, spoiled for choice. The amount of “products” available is mindboggling.

“You don’t have to make investments too complicated,” advises Ingram. “You can keep it simple and do incredibly well by just maintaining your focus.”

3. Fees are very important

You might be blissfully unaware of the fees your investments attract. Nevertheless, they erode your returns more than most people realise.

“I've never been to a braai where people discuss how they cut their investment costs by 0.2 percent,” says Ingram. “We get excited about our returns, or lack thereof, but fees are rarely discussed.

“Saving even half a percent on your investment costs over, say, 10 years has a massive impact on your investment performance,” says Ingram. “That 0.5 percent could be the difference between an OK retirement and an excellent one.”

4. Do the basics right and ignore the noise

The stock market is overvalued! The government is useless! The economy is weak! The rand is plummeting! It’s almost always best to keep your head down and ignore the racket.

“I’m not saying these things are irrelevant,” says Ingram. “But a lot of it is simply nonsense.”

Ingram suggests setting your own goals and maintaining your own investment strategy. “Ignore the hype and the noise and make logical, rational decisions."

Listen to the audio for more detail.

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Curro's 'Stadio' is the hottest share you can buy this week - Vunani Securities

Curro's 'Stadio' is the hottest share you can buy this week - Vunani Securities

Small and medium cap analyst Anthony Clark shares his stock pick of the week with Bruce Whitfield on The Money Show.

2 shares that should pay handsomely, if you buy them now (by Luthuli Capital)

2 shares that should pay handsomely, if you buy them now (by Luthuli Capital)

The Money Show’s Bruce Whitfield asks Luthuli Capital Executive Director Mduduzi Luthuli for his stock picks of the week.

Huge study clearly shows how chopping and changing investments destroys wealth

Huge study clearly shows how chopping and changing investments destroys wealth

Trading is bad for your wealth. Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

The JSE is trading near all-time highs. Should you sell while the going is good?

The JSE is trading near all-time highs. Should you sell while the going is good?

The JSE is trading near record highs, despite a weak economy. Nevertheless, selling now would be a HUGE mistake. Here’s why…

How to protect your wealth when the JSE is falling

How to protect your wealth when the JSE is falling

How to protect your wealth should the JSE start to weaken...

4 beliefs about shares that keep you from growing wealthy

4 beliefs about shares that keep you from growing wealthy

4 popular, yet patently false, beliefs about stock market investing that's holding you back.

Popular articles
LISTEN: Gerrie Nel on why he's persuing prosecution against Duduzane Zuma

LISTEN: Gerrie Nel on why he's persuing prosecution against Duduzane Zuma

AfriForum will prosecute Duduzane Zuma after NPA declined to do so in 2015 following a 2014 accident where a woman died.

How we invented the modern concept of sleep

How we invented the modern concept of sleep

Dr Bodhisattva Kar reveals how industrial capitalism influenced the world's current sleep patterns.

Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

The Money Show’s Bruce Whitfield interviews Adams about his attitude to money (hopes and fears, successes and failures, etc.).

Kloof Street residents living in fear as crime multiplies

Kloof Street residents living in fear as crime multiplies

A Cape Town man was stabbed to death on Saturday while trying to assist two women who were being mugged on Kloof street.

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

After 3 years there are 3 Nic Harry stores (incl online) that sell 100 000 pairs of socks in over 20 countries around the world.