National Savings Month traditionally focuses on encouraging South Africans to save more and spend less. However, for those who already have an investment portfolio, the real challenge is whether they have the discipline to stay fully invested when anxiety pushes them to act.
Investor behaviour, not market performance, is one of the greatest destroyers of long-term portfolio value. You can either panic and make unwise short-term spending decisions, or you can stay the course.
Staying calm, disciplined and focused are essential for investment success – and that’s why we call it the ‘patience premium’.
Tuning out the noise
In an era of constant external shocks, it is easy for investors to get spooked. The reality is that stories of volatility are part of the world we live in. Bad news that comes to us can make us anxious, but we also have to realise that in terms of investing, reality can be different.
