“Whenever you find yourself on the side of the majority, it’s time to pause and reflect.” - Mark Twain.

It’s been almost two years since I wrote a controversial post about Facebook. That article recently got published in WPP’s The Wire, which was voted as the world’s best publication in its field. What surprised me most is the fact that even after all this time, the subject matter is still relevant after all this time. Yes, individual sites have changed (and some are actually making money), but the sentiment remains.

(To download your completely free copy of the South African or International edition of Work in Progress, right-click and save the relevant link. Then open, enjoy, and repeat as needed.)

“The true mystery of the world is the visible, not the invisible.” – Oscar Wilde

I just finished reading The Picture of Dorian Gray as part of my quest to read the 100 greatest books of all time before I turn 30. Oscar Wilde really is incredible. In addition to wit that had me laughing out loud and moments that literally made me gasp, I definitely came away feeling quite changed.

One aspect I found particularly fascinating (and have been thinking about ever since) is the philosophy embodied by Lord Henry when he said, “Nothing can cure the soul but the senses, just as nothing can cure the senses but the soul.” There’s no denying that the experience of a sunrise or a symphony really does tug at our innermost core. But what about experiences that aren’t all sunshine and roses? Do those cure the soul too?

I’m starting to think they do. All experiences, whether they bring pleasure or pain, write on the slate of who we are. They define us. I strongly believe that emotions shouldn’t be labeled as either good or bad. They just are. Any feeling that reminds us we’re alive and ultimately pushes us towards action to develop and grow is something we should embrace. What do you think?

(To download your completely free copy of the South African or International edition of Work in Progress, right-click and save the relevant link. Then open, enjoy, and repeat as needed.)

“Knowledge comes, but wisdom lingers.” – Alfred Lord Tennyson

Now that you’ve decided on a certain amount of income you’d like to invest every month, where exactly should it go? While I will be talking about active investing and how to select winning stocks in a series of upcoming posts, I’d like to start off by looking at the other side.

Passive investing puts all the work into someone else’s hands. Basically, you can either go with mutual funds (unit trusts) or index funds:

Mutual Funds

By putting money behind a fund manager and the company he or she works for, you’re buying into a certain philosophy on investing and risk. You’re hoping that they know more about the market and can outperform everyone else.

A great way to chose fund managers is to look out for open communication, thorough research, good governance, low expenses, and a willingness to invest their own money alongside yours. Be thorough in checking out their past performance in order to determine whether or not it will be sustainable going forward. 

Index Funds

Instead of struggling to determine who to invest with, you effectively invest with everyone when you buy “the market” in the form of an index like the S&P 500 or ALSI. Because expenses charged for mutual funds are more than those charged for index funds, mutual funds must perform even better to achieve the same end return.

Index funds recognise that predicting the future is impossible, which means beating the market consistently is incredibly unlikely. Of course there are exceptions to the rule (like Warren Buffet or Peter Lynch) but finding these people in advance and hoping they prove just as prescient going forward is hard. As with most things in life, safety should be your first concern.

(To download your completely free copy of the South African or International edition of Work in Progress, right-click and save the relevant link. Then open, enjoy, and repeat as needed.)