Becoming an Intelligent Investor: Lessons and Insights from Thato Manchidi
Investing is often perceived as a complex domain reserved for financial experts. Yet, for Thato Manchidi, a seasoned professional in Private Banking and Wealth Management, it is also a transformative journey of patience, discipline, and strategic decision-making. Through his inspiring story, we explore his entry into the investment world, the lessons learned along the way, and his advice for aspiring investors.
A Journey Into the World of Investing
From Civil Servant Dreams to Wealth Management
Thato Manchidi grew up in a township where traditional career paths were highly regarded. However, his first graduate role at Allan Gray opened his eyes to the world of investing. “It sparked further curiosity regarding investing, specifically taking a long-term view and seeking true value in the market before committing your capital,” he explains.
Initially, investing was just a job for Thato. However, witnessing the tangible impact of his advice on clients’ financial goals was a turning point. “The feedback contextualised how my input created real-world outcomes. That’s when I realised the transformative power of sound financial decisions.”
A Pivotal Realisation
The most defining moment in Thato’s career came when he understood the importance of looking beyond popular investment trends. “It’s not good enough to invest in what everyone is chasing due to popularity. You need to take a long-term view and assess whether the investment will remain viable and relevant in the future.”
Personal Investment Lessons
The First Investment and Early Lessons
Thato’s first investment—a modest unit trust focused on capital protection and modest returns—still holds value in his portfolio today. “It complements what I know now,” he notes, emphasizing the importance of starting with simple, sustainable investments.
Highs and Lows in Investing
A standout moment in Thato’s journey was his 2021 investment in a Resources Fund, yielding returns that allowed him to take a career break and invest in his education. However, not all investments went as planned. “I’ve held equities that didn’t attract market value despite giving them time,” he admits. This taught him the importance of taking calculated risk and diversifying in asset classes: “Never put all your eggs in one basket and never count them before they hatch either.”
Managing Risks and Adapting Strategies
To manage risks, Thato diversifies his investments and monitors social and economic indicators. Over time, his strategy has evolved to include unlisted investments such as property and crypto assets. “I still seek undervalued equities and look for portfolio managers with consistent track records,” he explains.
Professional Wisdom
Qualities of a Successful Investor
According to Thato, patience is a cornerstone of successful investing. “You need to commit capital to well-researched opportunities and give your investments time to work for you.” Research and education also play a vital role. “Rigorous research guards against emotional, biased decisions that can erode potential growth.”
Addressing Misconceptions
Thato often encounters misconceptions, particularly the belief that investing is a quick fix for financial problems. “Investing is a tool to help you reach financial goals, but it requires patience and commitment,” he stresses.
Advice for Aspiring Investors
Advice for Aspiring InvestorsFor young professionals venturing into the world of investing, Thato offers practical guidance:
- Focus on Education: “Learn about successful investor behavior, economic factors, and leading indicators. Use updated news sources to inform your decisions.”
- Start with a Budget: “Set a monthly budget upfront, including a savings component, and work your expenses around it.”
- Partner Wisely: “Collaborate with a reputable asset manager or do your own ground research to identify undervalued stocks if you wish to trade independently.”
- Be Patient: “Don’t be afraid of equities, and allow your investments the time they need to grow.”
Advice to His Younger Self
When asked what he would tell his younger self, Thato’s response is simple yet profound: ““Dare to commit and be disciplined enough to execute.”
About the Expert
Thato Manchidi is a professional in Private Banking and Wealth Management with a wealth of academic and practical expertise. He holds a BCom Law degree (Eduvos), Postgraduate Diploma in Financial Planning (UFS), Postgraduate Diploma in Financial Markets (Novia), Postgraduate Diploma in General Management (GIBS), and a Masters in Business Administration (MBA) from GIBS. His journey, rooted in a township upbringing and evolving through leading financial institutions, is a testament to the transformative power of education, patience, and strategic investment.
