MARC HASENFUSS: Choose investment strategy carefully
The simplicity of a company’s business model was consistently emphasised as a prudent concern in selecting an investment strategy
The fallout from the Steinhoff debacle continues to frazzle the nerves of investors. The market buzz is horribly cynical — but let it be said that some of the illogical panic selling in unrelated shares has created certain attractive festive-season buying opportunities. Like most punters, I can’t predict what will transpire at Steinhoff — or when, for that matter. To date nitty-gritty details are frustratingly scant, and if I were a Steinhoff shareholder (fortunately I’m not) I would be in a terrible huff. In light of developments unfolding at Steinhoff, conversation at a recent lunch with a couple of my investment-minded pals revolved mainly around the most prudent investment strategy for 2018. Understandably, the thematic thread was the importance of investing in companies in which there is an easy-to-understand business model, steady demand and trusted management. These are, of course, standard considerations when weighing up an investment. But the simplicity of the business mode...
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