A WEE DRAM
CHRIS GILMOUR: To succeed like Buffett stick to a simple investment strategy
‘The biggest risks investors face are themselves and their own biases’
Some of the world’s most successful investors eschew overly complicated methods of attempting to beat the market. By sticking to proven simple fundamentals, they achieve extremely positive long-term results while others overanalyse, often to their detriment. Morgan Housel of The Collaborative Fund gave a fascinating insight into investor behaviour at the recent Allan Gray Investment Summit. He recounted the true stories of two very different individuals. Grace Groner was a secretary with no investment experience who in the 1930s began regularly investing small amounts. She never sold, and when she died at the age of 101 in 2010, left $7m to charity. Richard Fuscone was a financial whiz-kid who retired in 2000, but declared himself bankrupt in 2010 after reaping the whirlwind of the global financial crisis. "It’s not about what you know, it’s about how you behave," says Housel.Simple methods are not always taken as seriously as more intricate investment arguments and the tendency to ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.