Every year, I make sure to head to the bush a few times. Our favourite is the Kgalagadi, and we haven’t missed a trip in the last 13 years. What I find so special about the place is its harsh natural beauty. The landscapes, sunsets, and sunrises are unmatched, and to remain alive, every animal must be in peak condition. We go there to slow down and reset. It’s also the one place I can read books to keep me updated on aspects around our Profession.

Nick Murray is an author who writes about investing and financial planning. Having finally managed to get his book from the USA (second-hand), I devoured it on our last trip. He has a wonderful way of simplifying complex matters, so I am sharing 5 gems in this week’s article, with some observations.

Wisdom of Nick Murray                                               

 Here we go!

1. All financial success comes from acting on a plan. Much financial failure comes from reacting to the market.

This makes sense. It’s what our business is built around – planning. It may seem obvious, but experience tells us that most people have advisers who look at their money and pretend to know where the markets are going. A plan around the client’s life is vital.

                             

2. Wealth is not determined by investment performance but by investor behaviour.

It is common knowledge that, on average, the average investor’s investments underperform the market. This is due to clients and advisers trying to pick winners and not having a proper long-term investment strategy that they stick to.

      Wisdom of Nick Murray       

                         

3. If you think the market’s ‘too high,’ wait ’til you see it 20 years from now.

Trying to time the market is a nil-sum game, yet many claim to be able to do so?

                                    

4. Declines are temporary, and gains are permanent.

The market drops at least 4 times every year, so turn off the noise and save yourself some stress.

Wisdom of Nick Murray

5. The only risk with stocks is not owning them.

The stock market is the only guaranteed way to outperform inflation over the long term: buy the great companies of the world or save yourself poorer.

                                             

The financial services industry loves to make investing complicated, while the reality is, it’s not. If an investment cannot be explained simply, run a mile!

Dirk Groeneveld, Certified Financial Planner

t. 083 261 9287

e. dirk@clientcare.co.za

web. Client Care Lifestyle Financial Planning

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