Impactful Magnus heystek joins BizNews founder Alec Hogg to talk about the hidden agendas plaguing the investment industry. Magnus has insisted on having offshore exposure for most of the past decade for two reasons, first because diversification is the only free lunch you get to invest in and second because of the volatile macroeconomic backdrop in South Africa. . He calls her perfectly. Unfortunately, some of South Africa’s major institutions and investment firms are plagued by conflicts of interest. As a result, customers suffer. Magnus stresses the importance of doing due diligence before investing, even if it costs a few thousand rand. – Justin Rowe-Roberts
Magnus Heystek explains how he decides which fund managers are likely to outperform:
It’s a much more complicated exercise than just responding to this or that method. It’s a whole process where you start with macro analysis – you look at macro trends, you look at past performance of fund managers, you look at past phases of the economic cycle. And that still doesn’t answer the question or still doesn’t guarantee that you are going to select the best fund manager. But at least you have a much more scientific approach. You eliminate the guesswork and bull dust. And you’re building a diverse portfolio based on verifiable facts, not “just call heads for the next five times.” You cannot invest on this basis. So there’s more to it than that, it’s just immensely boring. And the final point, earlier this year for a very brief time the JSE – due to the commodity surge it had with the going platinum stocks – for about two or three weeks was the market. the best performing in the world based on these criteria. And again, Old Mutual was guilty of saying “wow this is the start of a new bullish phase and now is the time to enter”. I took a look one more time, this rally sold out. The JSE since the start of the year is again flat. You haven’t made any money.
On the hidden agendas within the investment industry:
It’s part of the game. It’s a tough game – it’s not a gentleman’s game. It was very disappointing from this particular columnist – whom I later found out was in fact a consultant for the JSE. This was never stated in his articles. He has an ax to grind on behalf of his client, which I think he should publish. There you already have something stirring and subsequently it was 100% wrong. And as I will show you at next week’s conference, your offshore returns versus local returns – I’m talking about the stock markets – have been night and day. The change in yields has changed life. All I’m asking is a little fairness from certain sections of the media in particular and just publish the facts, let people make their own minds. But even that is blocked because I wrote a rebuttal to this article to the editor of Business Day and he didn’t want to publish it. I had no chance to defend myself. But subsequently the difference between offshore and local has widened again quite dramatically and indeed dramatically over the past three months.
Tips for young investors who avoid the investment hype:
It’s so easy to convince people just by making a few statements. But when you start to dig a little deeper, you need to question the claims that are being made first. Second, who makes the complaint? Is this person logged in or not logged in or will they benefit from this particular claim. And if you go through a little checklist, you’ll end up asking yourself questions: What kind of investment is this? Where is he standing? Who are the custodians? Who determines the returns? What are the liquidity factors? These are very logical questions people should ask, but they don’t. And with all due respect, a lot of people just don’t have the knowledge and they trust – that’s the basis of fraud. People trust others. They don’t want to believe that this nice boy in front of me is potentially a con artist who will steal my family’s money.
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