2 minute read
Profile: Sithembiso Garane Head: Listed Credit, Futuregrowth Asset Management
How did you get involved in financial services – was it something you always wanted to do?
I never really had a career plan; I have always wanted to do whatever I enjoyed in an environment that fulfils me. It has always been important to me to follow my passion and explore all accessible learning territories to enrich myself. I feel like it would be more appropriate, then, to say my passion for solving problems, and desire for understanding underlying drivers of what is easily observable, propelled me toward financial services. So, it was never something I had actively worked toward, but I’m glad it happened.
What was your first investment – and do you still have it?
My first investment was Merafe Resources. I really did not have any investment thesis nor enough money to buy a sizable amount of shares. I just remembered one of my former bosses who used to ask us to check Merafe’s share price every morning. Somehow, I just wanted to replicate his experience – classic way to lose some money. Long story short, I no longer have Merafe – nor do I have any emotionally triggered investments.
What have been your best – and worst – financial moments?
My worst financial moment was losing money in a trade working for a brokerage firm. I quoted an incorrect rate resulting in a substantial loss for the client. The firm I was working for at the time had to pay for the error. I learned the hard way that attention to detail is important. My best moment – other than all those ‘light bulb’ moments when one finally figures out a solution to a problem that’s been depriving one of sleep – would be all those right calls/trades I made both on behalf of clients and in my personal capacity.
What do you tell investors who are worried about their investments due to SA’s current economic environment and COVID-19?
It has been a volatile period for close to a year now due to COVID-19. Even though there seems to be a slight return to normalcy with government relaxing the restrictions to life activity, it is important for investors to understand that the impact of COVID-19 will remain with capital markets for some time. In fact, the total impact of COVID-19 is yet to manifest in corporate SA’s balance sheets and thus the economy. Consequently, risk management should trump return maximisation. During these times, reckless search for yield often leads to a loose downside.
What’s your view on Bitcoin and other cryptocurrencies?
Bitcoin has gained major popularity especially among the contrarian financial sect. While I know very little about the technology backing these cryptocurrencies, I think the biggest risk remains regulatory. Crypto pundits have ventilated in the market a lot of advantages about the Blockchain technology on which Bitcoin is built, and have likened it to gold. But what conventionally maintains the value of the currency is government declaration, and the gold trade is highly regulated. I hold the view that when regulations come to cryptocurrency – which is a matter of time – the value may be impacted. I do think the future may be cryptocurrency, but I have doubts that it will occur without government declaration.
