Allan Gray The Allan Gray Podcast

35. The investment case for preparation over prediction

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In an environment defined by ongoing change, investors may be tempted to reduce uncertainty by trying to predict what lies ahead. However, as forecasts are seldom accurate, investors may be better served by accepting that uncertainty is inherent and by preparing for a world that will continue to surprise.

In the latest episode of The Allan Gray Podcast, Marise Bester, a manager in the ManCo Distribution team, hosts Allan Gray portfolio managers Varshan Maharaj and Kamal Govan to discuss the factors currently shaping markets and influencing investment decisions. They cover a broad range of themes, from the disconnect between South Africa’s sluggish economy and its strong market performance to how interest rates and inflation influence global markets. They also explore the underlying drivers of AI-related capital flows and delve into our approach to offshore allocation.
Chapters
  • 04:21 Reconciling SA's weak economy with strong equity returns
  • 07:41 Building conviction in SA Inc businesses
  • 11:14 Navigating global interest rates and inflation trends
  • 17:22 Market concentration and the paradox of diversification
  • 18:35 Is US tech in a bubble?
  • 27:02 Managing offshore exposure
  • 30:25 Applying core investment principles in uncertain times
  • 32:57 Focusing on the numbers not the narratives
  • 34:30 Closing thoughts
1 Jul English South Africa Business · Investing

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