ANALYSE THIS: Victor Mphaphuli
We analyse Victor Mphaphuli, head of fixed income at Stanlib
If someone came to you tomorrow with R100m to invest, where would you put the money?
In businesses that will drive the future and are focused on the fourth industrial revolution.
What’s the wisest thing you could tell your 20-year-old self that you didn’t know when you started out?
Start saving and investing early and believe in the power of interest.
What was your first job? And can you remember how much you were paid?
I did part-time stocktaking on some weekends for a clothing retailer while in high school. I think we made R50 a day; it was so valuable back then. My first official job was as a trainee currency dealer at Standard Corporate & Merchant Bank and I think we earned just over R5,000.
If you could fix one thing in SA today, what would it be and how would you start doing that?
I feel as a country we have a culture of not going beyond. We spend too much time doing only the bare minimum and as a result it really affects the productivity of our nation. We can’t change it overnight, but I would push for it to be firmly inculcated in our kids while still at school, to nurture it early on.
Whom do you admire in the investment community, and why?
The Oracle of Omaha, Warren Buffett. His investment approach is simple, patient and has been successful time and again. A lot of people overcomplicate investing.
What’s the worst investment mistake you’ve made?
For me it is more about the opportunities missed than the mistakes made.
How do you control your emotions in the market when all you want to do is trade but know you shouldn’t?
You need to trust and respect your investment philosophy and process. I find that to be the best way to avoid emotional decisionmaking.
What is your greatest extravagance?
Travelling the world with my family every time I get a chance.
Big Tech or old-fashioned industrial stalwarts?
Big Tech. It helps one to stay abreast of an ever-changing world.
SA or offshore?
Right now, with confidence low locally, I lean to offshore but watch closely for when local opportunities do arise. Investment is not about emotional attachment.
How much of a portfolio should be for wildcard selections?
Very little. Investing is a science and not a casino.
Art, wine, rare books or cars?
Wine, and I am collecting.
Would you buy your primary home or rent?
Buy. It is mostly a good investment and when one makes it a proper home instead of just a house, there is more value derived from it. Renting can feel detached.
If you weren’t a fund manager/analyst, what would your dream job be?
I doubt anything would beat what I do now.