Frameworks and approaches that stand the test of time — adapted for South African conditions.
Picking investments without a strategy is like driving without a destination. You might cover ground, but you have no way of knowing if you are getting closer to where you want to be — or drifting further away.
A solid strategy answers three questions before you commit a single rand:
Strategy is not about predicting the future. It is about defining rules that keep you disciplined when the future surprises you.
Markets reward patience and consistency, not cleverness. A well-defined approach lets you tune out the noise and focus on what matters: steady progress toward your goals.
"Plans are worthless, but planning is everything."
Different temperaments call for different mixes. Find an approach that fits how you sleep at night — not someone else.
Ideal for investors nearing retirement or those who cannot afford significant drawdowns. The priority is protecting what you have, accepting lower returns in exchange for stability.
For investors seeking meaningful growth while cushioning the bumps. A balanced split lets you participate in rising markets without white-knuckling every correction.
Suited for younger investors or those with surplus capital they will not need for decades. Expects higher volatility but aims for significantly higher long-term returns.
The date you need the money shapes everything else.
Money earmarked for near-term goals — a home deposit, emergency fund, or upcoming tuition — belongs in low-volatility vehicles. Think money-market funds, short-dated bonds, or fixed deposits. Returns will be modest, but you avoid the nightmare scenario of needing cash when markets are down 25%.
Here you can afford some equity exposure, but cushioning remains important. A balanced fund or a custom blend of stocks and bonds offers growth potential while limiting drawdowns. As you approach the target date, gradually shift toward safety.
With a decade or more, compounding works its magic. Equities historically outperform other asset classes over long stretches, and time smooths out interim volatility. This is where aggressive growth allocations make sense — but only if you genuinely will not need to touch the money.
Once you start living off investments, the game changes. You need income, but you also need growth to outpace inflation over a potentially 30-year retirement. A bucket strategy — keeping a few years of expenses in safe assets while the rest grows — can help balance these competing demands.
The biggest threat to your returns is usually looking back at you in the mirror.
Fixating on a specific price you paid — or a past market high — distorts decision-making. The market does not care what you paid; it only reflects current supply and demand.
When everyone rushes into an asset, prices often overshoot. When panic hits, the crowd sells at the worst time. Recognising crowd behaviour helps you stand apart — and buy low.
Losses hurt twice as much as equivalent gains feel good. This asymmetry pushes investors to sell winners too soon and hold losers too long — exactly backwards.
What happened last month feels more important than long-term averages. A rough quarter can scare you out of a solid strategy just before recovery begins.
A few winning trades can make anyone feel like a genius. Overconfidence leads to concentrated bets and underestimation of risk — often ending in painful lessons.
We seek information that supports what we already believe. Actively looking for contrary evidence can reveal blind spots before they cost you money.
Our team can guide you through the frameworks above and help you apply them to your unique situation.