Nerina Visser of etfSA once said something about risk that has stuck with me. She commented that risk is when the unexpected happens. She was talking about exchange-traded funds (ETFs) and her logic was that if you bought an ETF to track an index, your expectation is that it will track that index and if it does, nothing unexpected has happened. So, falling or rising markets are neither a worry nor a risk.
Now, this sounds odd, because if the market falls, so does the ETF which tracks that market. But that is the point she was making, and it changes how we see risk. Instead of risk being solely about losing money, it becomes expectation against reality.
Continue reading your story on the app
Continue reading your story in the magazine
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.