Financials services was an industry I fell into. I studied for a BCom degree but I wasn’t 100% sure of what I was going to do, so I headed to London where I managed to obtain a job on a trading desk at HSBC and my journey in financial services began.
I have always been fascinated with the impact great management teams have on a business. This led me to initially invest in small to mid-cap stocks as access to management was easier, and information was readily available – and in many ways more transparent, leading to a more informed decision. This belief in the power of great management teams to deliver value led to my initial investment being in a small cap stock.
The best must be every time I happen to find myself on the right side of a trade; the worst for me so far was definitely 2008. I was astounded at the speed and ferocity at which wealth was eroded, and this, being my first market crash, was a life lesson.
AVOIDING MAKING INVESTMENT DECISIONS IN A STATE OF PANIC
Investing rewards those with long-term thinking, and markets have shown in the past that they recover. If you are in a position to be able to ride out the environment we currently find ourselves in, then it’s best to sit on your hands and wait for the opportunities to present themselves. Avoid making investment decisions in a state of panic as rash decisions very rarely translate to solid investment returns.
As I’ve mentioned, I’m fascinated by the impact great leaders have on businesses, so I’ve read quite a few biographies or case studies. The one book that does stand out from my recent readings would be The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success, written by William Thorndike. The book provides a different perspective on some great unsung leaders of great businesses.