In the Room with Allan Gray
INN8 Investment PLatform Presents...
Reflecting on Half a Century: Lessons in long-term investing from Allan Gray
It has been said repeatedly: Investing is a long-term game; do not succumb to knee-jerk reactions out of fear, and; stay invested in turbulent times without panic.
Easier said than done, right? Well, what about interrogating the approach of an investment company that has been at it for five decades?
Join us as our new In the Room host, Arifa Essop, regional sales manager at INN8 Investment Platform, chats to Duncan Artus, director and chief investment officer at Allan Gray, about lessons learnt over a substantial period as the company celebrates its 50th year.
Learning outcomes include
As Allan Gray celebrates its 50th anniversary, it is an opportune time to reflect on the lessons we have learnt about long-term investing. It is interesting to explore the history of investing, as unlike in science and engineering where knowledge is cumulative, investing tends to be cyclical. In other words, investors tend to repeat the same mistakes. As valuation-oriented investors, we believe investors are better off focusing on the fundamentals of the companies they invest in and not on the economy. Perhaps the single best way to compound wealth is to avoid the significant drawdowns when bubbles eventually pop. This is harder than it sounds, as it requires great discipline to go against the crowd, who are all making money.
Each investment period, which typically lasts between 10 and 20 years, has different rules, and it is important to have that context and invest accordingly. We believe that we entered a new period post 2019 and have been positioning our portfolios accordingly.
Investing and managing capital successfully over long periods is difficult, and even the best investors may underperform for prolonged periods. It is important not to get complacent when things are going well. Having a business structure and offering investment professionals incentives that allow them to take a longer-term view is key to success, in our view.
- You can still find great companies which compound value in weak economic conditions
- Avoid bubbles – they can wipe out your capital
- Know the rules of your time
- Do not become complacent
- Implement a business structure and incentives that will allow you to take a long-term view
- The world will look different in 50 years, but we believe these lessons will endure
Regional Sale Manager
INN8 Investment Platform
Arifa Essop, a seasoned professional in the financial services industry with over two decades of experience, commenced her journey in 2001.
She holds an Advanced Post Graduate Diploma in Financial Planning (CFP®) from the University of Free State and is actively pursuing an MBA via Henley Business School, showcasing her unwavering commitment to continuous learning and professional development.
Serving as the Regional Sales Manager at INN8, a leading digital wealth manager in South Africa, Arifa exemplifies a strategic mindset and an in-depth grasp of financial management principles.
Chief Investment Officer
Duncan was appointed chief investment officer in 2020. He joined Allan Gray in 2001 and was appointed as a portfolio manager in 2005. He manages a portion of the equity, balanced and stable portfolios.
He is also a director of Allan Gray Group Proprietary Limited and Allan Gray Proprietary Limited. Duncan holds an Honours degree in Business Science and a Postgraduate Diploma in Accounting from the University of Cape Town and is a CFA® and CMT® charterholder.
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