Look
Visual Capitalist published a list of the 20 most common investment mistakes as identified by the CFA Institute. Whilst we are all human and succumb to biases and emotions which can lead to these kinds of mistakes, it unfortunately doesn’t remove the consequences. Namely that these mistakes destroy value and derail any carefully laid out financial plan.
We try to ensure that our processes, philosophies, and methodologies are designed to help our clients avoid these mistakes. Have a quick look at the list - how many of these mistakes can you identify with or have you experienced recently?
Listen
I think good storytellers are special. It’s a skill that intrigues me and I have done a lot of research about this topic throughout the years. There is something magnetic about listening to a good story, and I believe it’s a skill we can use in financial planning more often. It’s a personable way to build connection, simplify complex concepts and build trust.
In this wonderful video , actor Terry Crews and conservationist Jane Goodall share their stories with us, touching on parenting, the role of nature in creating a sense of awe, and the meaning of life. Their stories help us understand how they make sense of the world and create meaning and purpose in their own lives.
It’s a strategy that psychologist, Dan McAdams believes has a strong impact on the kind of life we lead. McAdams maintains that having a clear story and sense of purpose helps people live more authentic, happy lives.
I choked up listening to Jane as she spoke about her next adventure being death. It was a stark reminder of our own mortality and how she positioned it as part of her life story, rather than an end, gave me pause.
I can highly recommend taking the time to listen to these remarkable stories and insights.
Learn
We are going into an election year and all of us are trying to make sense of what might happen. News and social media drive our views, and they seem to be sending us down a negative, despondent, and depressing spiral.
In the 1980s, Clem Sunter pioneered scenario planning in South Africa, where he produced scenarios that had a massive impact on the country’s trajectory. At the time he boiled South Africa’s future choices down to two scenarios called “The High Road” (a negotiated end to apartheid) and “The Low Road” (civil war).
Today, authors Ray Hartley, Greg Mills and Mills Soko use a similar methodology in their book, The Good, The Bad and The Ugly, creating scenarios for the South Africa we live in today, and positing what the future may hold. They do this in a simple, yet thought-provoking way.
What I like about scenario planning is that it is not a prediction. It is a thought exercise. It makes you take a step back from what you are seeing, experiencing, and feeling, and helps you look at the bigger picture. The Good, The Bad and The Ugly does exactly that - helps us think about different possibilities for our future in South Africa.
Oenophilia
There is something special about December. It’s a time to reflect on the year that has passed and think about the year ahead. It is also a time for easy connection.
In keeping with that, I turn to easy, affordable, happy-go-lucky drinks. Drinks that are easy to find, easy to drink and easy to impress. I have two options for you!
First, is Kloof Street, Old Vine Chenin Blanc by Chris and Andrea Mullineux. It’s a more affordable wine from their impressive range, with notes of pear and a super soft, round texture. This is a wine for everyone!
Second, is not a wine but an alcoholic ginger beer, Dragon Ginger. It's low in sugar and gluten-free, for those who struggle to drink beer. It's light, refreshing and perfect for the sundowner cooler box.
I hope you enjoyed this month’s edition. Make it a December to remember!
Stay curious,
Elke Zeki