Investment insights

Investment insights

Our unwavering commitment to the same investment philosophy, through turmoil and triumph over four decades of investing, is what makes us different. Here we offer some insight into how we think about investing and our investment process.

Articles in "Investment insights"

Investment insights

Orbis: Think like a business owner

By Rob Perrone on 02 Nov 2018

reading time: 5 mins

Say you own a small stake in a company. Every day, one of your partners tells you what he thinks the business is worth, and he offers to buy your stake or se...

Investment insights

Skilled Investing: Separating the wheat from the chaff

By Vuyo Nogantshi on 17 Oct 2018

reading time: 7 mins

The difference between skilled and lucky investment managers is that over extended periods, skill should prevail in delivering good investment outcomes, whil...

Investment insights

Executive remuneration: Skin in the game

By Pieter Koornhof on 17 Oct 2018

reading time: 9 mins

At Allan Gray, we think carefully about the executive remuneration policies of companies in which we invest our clients’ capital. Why is this a worthwhile...

Investment insights

How to spot investment red flags

By Duncan Artus on 03 Aug 2018

reading time: 5 mins

South Africa has been rocked by a series of corporate scandals in recent years that have sent the share prices of former blue-chip companies like Steinhoff a...

Investment insights

Do you enjoy pain? How about the platinum industry?

By Andrew Lapping on 30 Jun 2018

reading time: 9 mins

Over the past two years we have invested in certain platinum mining companies. These investments have performed extremely poorly. Andrew Lapping looks back a...

Investment insights

Long-term investing should have nothing to fear from the Viceroys

By Leonard Krüger on 19 Apr 2018

reading time: 7 mins

Activist short sellers have been a prominent feature in stock markets for many years. It’s easy to get caught up in the hype when their ideas hit the news....

Investment insights

How to be a responsible investor

By Raine Naudé on 19 Apr 2018

reading time: 7 mins

Responsible investing has become a front-page issue in the last year as companies, investors and asset managers have had to respond to a number of ethical an...

Investment insights

Finding opportunity in the volatility

By Andrew Lapping on 19 Apr 2018

reading time: 5 mins

The first quarter proved to be a difficult one with the Allan Gray Equity, Balanced and Stable Funds all delivering negative returns. The most significant...

Investment insights

Study reveals reliance on recent performance in picking unit trusts

By Shaheed Mohamed on 09 Mar 2018

reading time: 3 mins

Shaheed Mohamed surveyed more than 400 financial advisers in South Africa to identify attributes that financial advisers in South Africa consider when...

Investment insights

Investment lessons from 2017: be patient and trust your analysis

By Andrew Lapping on 01 Feb 2018

reading time: 5 mins

Separating oneself from the noise is tricky. There is an enormous amount of information out there; you can listen to experts on television, read newspapers,...

Investment insights

The value of bitcoin

By Jacques Plaut on 24 Oct 2017

reading time: 10 mins

The total market value of all bitcoins is US$80bn, which is more than the value of Richemont and triple the value of Anglo American. It is the topic on which...

Investment insights

LISTEN : Corporate governance and shareholder responsibility

By Richard Carter on 12 Jun 2017

listening time: 10 mins

What is the role of a shareholder and where does their responsibility end? Listen to this 10 minute interview with Andile Khumalo on PowerFM as Richard Carte...

Investment insights

LISTEN : What to focus on when choosing shares and other assets

By Duncan Artus on 18 Nov 2016

listening time: 15 mins

How do you distinguish a good investment from a lemon? And how do you create a well-diversified portfolio? Listen to this 15-minute interview on PowerFM...

Investment insights

Did we get lucky?

By Simon Raubenheimer on 14 Nov 2016

reading time: 5 mins

The Allan Gray domestic equity strategy delivered returns of 17.2% for the 12 months ending September 2016, after having subtracted all fees and costs. The...

Investment insights

Orbis: We welcome the rise of passive investing

By Ben Preston and Rob Perrone on 11 Nov 2016

reading time: 6 mins

The Wall Street Journal ran a series this month commemorating the rise of passive investing. The articles make ‘the case for the triumph of passive’, calling...

Investment insights

How to select an investment manager

By Mahesh Cooper on 19 Oct 2016

reading time: 3 mins

Focusing on past performance is often the first and only port of call for investors when trying to differentiate between investment managers. But there is no...

Investment insights

Nuanced numbers and valuation pitfalls

By Leonard Krüger on 30 Sep 2016

reading time: 8 mins

We pick shares for client portfolios following a rigorous, bottom-up, fundamental research process. This involves, among many other considerations, the caref...

Investment insights

Investing tutorial: Our approach to value investing

By Wanita Isaacs on 30 Jun 2016

reading time: 8 mins

Our investment philosophy and process is so much part of our DNA that we forget not all clients are familiar with what we actually do and how we make our...

Investment insights

Actively adding value

By Grant Pitt and Pieter Koornhof on 31 Mar 2016

reading time: 8 mins

The trend towards passive management – where investment managers track market indices rather than pick individual stocks – has caused some to question the...

Investment insights

How things change

By Andrew Lapping on 31 Dec 2015

reading time: 13 mins

Global mining businesses have had a remarkable fall from grace over the past 18 months. Talk has moved from a 20-year supercycle and commodity shortages to...

Investment insights

Asset allocation: Top down, or bottom up?

By Mahesh Cooper on 07 Dec 2015

reading time: 4 mins

Within a multi-asset class balanced portfolio , there are different ways to manage the asset allocation. Some managers prefer to follow a ‘top-down’ strategy...

Investment insights

SA mining and the sunk cost fallacy

By Ian Liddle on 30 Sep 2015

reading time: 10 mins

Ian Liddle discusses why the challenges in South African mining provide an interesting case study of the 'sunk cost fallacy', a behavioural bias that sees us...

Investment insights

Avoiding the overwhelming bias for action

By Dr Suhas Nayak on 30 Jul 2015

reading time: 8 mins

In life, we have a natural bias for action. From a young age, we are told stories about heroes who overcame great odds and many setbacks to do something grea...

Investment insights

What is a PE ratio?

By Wanita Isaacs on 30 Jun 2015

reading time: 4 mins

Central to our investment philosophy at Allan Gray is buying shares that the market has priced below what we believe they are worth. We then sell these share...

Investment insights

The upside to downside protection

By Shaun Duddy on 30 Jun 2015

reading time: 10 mins

Warren Buffet famously said that there are two rules when investing, 'Rule No.1: Never lose money, Rule No.2: Never forget rule No.1.' Shaun Duddy discusses...

Investment insights

Building an investment team that thrives (not just survives) on generational transition

By Ian Liddle on 31 Dec 2012

reading time: 8 mins

We aim to provide you with benchmark-beating investment returns for at least the next 100 years. But we can succeed in this ambition only for as long as we a...

Investment insights

It is the price you pay that counts, not the headlines

By Andrew Lapping on 31 Dec 2011

reading time: 9 mins

People enjoy stories; they are fun. This is true in all facets of life, including investing. Investors often have stories to tell about individual equities,...

Investment insights

The risk that matters

By Delphine Govender on 30 Jun 2011

reading time: 9 mins

Discussions about investing are incomplete without including the topic of risk. Delphine Govender elaborates, focusing on the most important risk in investin...

Investment insights

Happy equilibrium

By Duncan Artus on 30 Sep 2010

reading time: 7 mins

Duncan Artus discusses the implications of the growth in the local asset management industry being focused on asset managers who variously describe their...

Investment insights

The role dividends play in generating returns

By Chris du Toit on 31 Mar 2010

reading time: 6 mins

In the previous edition of the Quarterly Commentary, Richard Carter and Roenica Botha demonstrated the importance of reinvesting income distributions from un...

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