Tag Archive: Shares

Marriott Fund and Share Management

Yesterday in Pietermaritzburg we were able to listen to the clever people who manage and trade and look after Marriott’s offshore / international funds and share portfolios. They sit on the Isle of Man and come travelling around South Africa to see us once a year.

They spoke of the various companies they buy and own in the portfolios and around a few of the ‘noises’ in the market place that affect stock markets, like Trump, international monetary policies and population changes. We also had the man speaking to us who looks after the physical property holdings that are owned around the UK by the portfolios. There are 17 such real estate holdings. Mainly warehouses. He talks about leases, yields and tenants.

They chatted through the obvious of market values being up and down over the last while – and the relevance or lack thereof in some instances – with a good quote being left with us: “The stock market is the only market in the world where customers run away during a sale”.

Weekly Thoughts 25 September 2015

I spent time on an interactive graph of the South African stock market values this morning. The downs and ups over the past couple of months reminded me of the actions that some investors take to try and control the effects of this.

If someone (an investor / a client) tries to play the game of self-prediction and control where they themselves decide when to disinvest because they think the markets are too high, the problem is that in nearly every case this individual will re-enter the markets after the first significant upswing and lose the first 40 or 50% of the recovery. Or even all of it. Or even enter again above the point where they exited, because the movement can be that fast. This has been seen numerous times.

Over time – 10, 15, 20 years – remaining invested through volatile times proves in the end, to hardly have been affected by the down times. They can even end up being totally insignificant. This is because you continue to hold the same number of widgets – shares / units of a fund – which therefore will simply follow values back up again. By this I mean that if what you owned was worth R100 and it went down to R60 and then back up to R100, you’ve lost nothing. The downs are merely losses on paper. And if you’re investing monthly, its even better to have these declines because in that month you buy cheaper widgets.

Thinking about value, VW shares could be the value of the day right now!!