Weekly Thoughts 05 September 2014

Thank you for the various responses to my last couple of Weekly Thoughts. I was amazed at how many of you had had some or other similar ‘risk’ experience, or who know someone in your close circle with such an experience. We can learn from each other and also learn to take each day at a time.

I had my Compliance Officer in the building on Monday this week. It is always one of my most stressful days and periods of time. Just what my neuro instructed against!! You see it’s like passing a test, in this case the results of which are sent to the Financial Services Board. But she was very happy with everything and I received a 100% compliance rating.

Wednesday morning found me listening to the clever people from Marriott. I listened to ideas on savings – which, the CEO told us, is about adjusting your lifestyle now – and Investing – which, he said, is about maintaining your lifestyle in the future. Very good points. Then one of the fund managers went on to chat about various aspects of the Investment Landscape and how Marriott’s approach fitted in with this. His conversation on the reliable income streams of the companies they buy did raise the point of why they did not and would not have, owned Africa Bank. If there is any degree of uncertainty regarding a business, it won’t be in their funds. The level of unsecured lending in African Bank would have been the point of uncertainty. On the income streams point, I remember what one of the guys who manages Marriott’s offshore funds from the Isle of Man told me when I was sitting with him. He said that if they cannot find enough electronic history regarding the dividend income stream of the company they might be looking at, they will go and find paper based hard copies. That is how diligent they will be in their choosing process and how far back they might go to find consistency of income.