ANALYSE THIS: Stanlib’s Joao Frasco
We analyse chief investment officer of Stanlib Multi-Manager Joao Frasco
If someone came to you tomorrow with R100m to invest, where would you put the money?
I would highly recommend investing in equities.
What’s the wisest thing you could tell your 20-year-old self?
Save as much as you can. Every little bit counts, and the power of compounding is truly phenomenal. Never touch your savings, unless you absolutely must. Commit future earnings to savings.
What was your first job? And can you remember how much you were paid?
I was employed as Glenvaal’s first actuarial student at the end of 1991, to rewrite their legacy actuarial valuation system into the company’s standard computer language. I was paid R3,500 per month.
If you could fix one thing in SA today, what would it be and how would you start doing it?
Get youth employment up in any way possible. Unfortunately, this one thing will require many other things to be "fixed". I would, however, focus on labour regulations to make SA more accessible, especially for entrepreneurs.
Who do you admire in the investment community, and why?
Elon Musk (not in the investment community directly, but a savvy investor nevertheless), because of his vision, his ability to see a possible future, and his tenacity to make it a reality.
What’s the worst investment mistake you’ve made?
Taking my pension fund contributions as a withdrawal benefit after leaving my first job.
What’s the best investment you’ve ever made?
My investment in Tesla stock is by far the highest return I’ve achieved.
Some investors hate it (it’s one of the highest shorted stocks in the US), some don’t understand it (they think it is a car company), and others don’t have the appetite for risk (it doesn’t make profits, yet).
Big Tech or old-fashioned industrial stalwarts?
Tech all the way (big or small). Tech will continue to touch every industry. Everything else is at risk.
SA or offshore?
How much of a portfolio should be for wildcard selections?
Maximum 5%, or whatever you are truly prepared to lose completely.
Would you buy your primary home or rent?
If you weren’t chief investment officer, what would your dream job be?
I would probably go back to coding full-time (artificial intelligence/machine learning).
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