In the latest Blue Chip Journal article, SA Managing Director, Kathryn van Dongen, unpacks the importance of consistency in investment management.
Next year, my father, Barry Holland, is poised to take part in his 50th consecutive Comrades ultra-marathon. I am struck by the invaluable lessons in his athletic achievements and the striking parallels they provide to the world of financial advice and investing.
Firstly, the spirit of unity is at the core of the Comrades Marathon, a fitting name for a race renowned for its tales of camaraderie. Seasoned runners can attest to times when the motivation from their peers was the driving force that got them to the finish line. Similarly, in the financial advice profession, a cohesive community can significantly impact success. The recent PortfolioMetrix LEAD Symposium for our advisor partners was an epitome of collaborative power, where top advisors from South Africa and Ireland converged. They exchanged insights on various topics including advising global citizens, internal succession planning, evaluating advice practices and the application of Artificial Intelligence in financial planning. The community fostered at this event proved how collaboration, just like in the Comrades race, provides advisors a platform for growth, inspiration, and mutual support.
Consistency is another critical lesson from marathon running that is equally vital in investing. The top Comrades runners maintain consistent splits (the average time taken to complete each kilometre of the race) regardless of course undulations, weather conditions, fatigue and even psychological challenges. This year’s winner, Tete Dijana, demonstrated this with his considerably more consistent and less volatile performance compared to the last finisher.
Click here for further reading (pages 68 - 69).
