The sum of all things
Soapbox The sum of all things : Latest Posts
29 July 2009 08:03
Investors have such short-term memories
Magda Wierzycka slams media reports on Stanlib CEO's ousting.
The fickleness and short-termism of investors is notorious. Nothing illustrated this more than the unwarranted press coverage of a highly respected investment professional with many years of superior returns behind him after just one year of poor performance.
It is a well known fact that most asset managers manage their investment portfolios within tight bands relative to competitors. The reason is pure "business risk" management. It is easier to defend mediocre performance which is broadly in line with that of competitors, than to defend a bold position based on a show of true intellectual courage, that later turns out to be wrong. The regrettable truth is that, apart from Allan Gray who has spent millions of rand on marketing its contrarian investment p...
16 June 2009 23:36
Recipe for getting rich quick
Behind the greed and few of ponzi schemes and tips for spotting a con.
Last week I received a fax from a well know private bank informing me that a relative with the same surname had died intestate, potentially leaving me with a sizeable fortune. All I had to do was contact the sender and take it from there......and for a minute, greed and the possibility of effortless gain took hold, before, albeit with regret, I pressed the delete button.
It is not particularly surprising that so many people, who really should know better, keep getting caught in various iterations of the Ponzi scheme. The latest to hit our headlines, the Tannenbaum affair, is surprisingly familiar to the one promulgated by Charles Ponzi back in 1920. Ponzi promised investors a 50% return in 45 days through international postal coupon arbitrage. Tanne...
03 June 2009 11:25
The "Holy Cows" of asset management
Magda Wierzycka examines five secrets asset managers don't discuss.
Having worked in the local asset management industry for over 15 years, I have encountered many "holy cows" - things we just do not talk about. At the risk of being cold-shouldered at the next industry function that I attend, I will identify a few of these bovine deities, posed as questions, rather than definitive statements. Each of these deserve a fuller explanation and almost certainly vigorous debate.
HOLY COW #1
Despite being an actuary and having analysed performance numbers for many years, I still struggle to answer the question as to whether active asset managers consistently outperform the indices, or add "alpha". Undoubtedly we are going through a period of almost unprecedented market volatility and upheaval. All fundamental as...
Soapbox The sum of all things : Recent Posts
Do defined contribution retirement funds have a future?
27 May 2009 11:06
Magda Wierzycka reckons we need to ensure that we take care of our retirement savings through more vigilance, stricter governance ...
How to sell asset management
20 May 2009 08:47
Magda Wierzycka argues that doing marketing is easy. Doing marketing which brings in tangible results is extremely tough.
Future of books and newspapers looks bleak
13 May 2009 12:22
Moneyweb columnist Magda Wierzycka examines the trends that threaten print media.
Technology: the defining line
06 May 2009 00:37
Moneyweb columnist Magda Wierzycka looks at how SA is worlds apart from the US when it comes to technology.
An Easter Tale
15 April 2009 12:19
Moneyweb columnist Magda Wierzycka looks at what you should do with your bonus if you are one of the lucky recipients of the poiso...
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