TAMIM's Top Investing Tips

Investing can be very difficult yet highly rewarding pass time. At TAMIM we work with highly skilled investment managers on a daily basis and we thought it would be interesting to understand their views on investing. We have posted their top tips for investing below.

Each of these managers have their own philosophies, priorities and strategies when it comes to investing. We asked our managers to submit their views separately which means there may be some overlap (or even some conflicting ideas).

Robert Swift
Portfolio Manager, Global Equity High Conviction portfolio
CIO, Delft Partners

1. You only actually get the dividend. The rest is up to the other market participants and their view of the ‘correct valuation’.
2. Remember, equities come last in terms of claims on the company cash flows.
3. Reinvesting equity dividends is a winning strategy in the long run.
4. Equity prices are volatile. Counter this with diversification.
5. A portfolio is more than a collection of best ideas chosen in isolation – Gestalt is relevant (look it up)
6. Know your advantage or you are the ‘patsy at the table’. Many other people are competing with you.​

Ron Shamgar
Portfolio Manager, TAMIM Fund: Australia Small Cap Income portfolio
CIO, TVG Capital

1. Identify your investment goals.
2. Set your risk tolerance.
3. Always diversify.
4. Do not use leverage.
5. Surround yourself with smarter investors then yourself.
6. Avoid buying “Hot Tips”. Do the work yourself first.
7. Research research research.
8. Don’t be greedy, know when to sell and stick to it.
9. Stay disciplined and don’t sway.
10. Understand what you’re investing in. If you can’t understand it, don’t invest.​​

​Bonus tip - When the ducks are quacking, feed them.

Kevin Smith
Portfolio Manager, TAMIM Fund: ​Asia Small Companies portfolio
Head of Asia Pacific Equities, Delft Partners

1. Look at things you can control - especially entry timing and price.
2. Time horizon should be at least three years. As long as the reasons for purchase are still valid, don’t worry about short term moves in the share price.
3. Focus on sustainability/future dividend growth and companies that have a good balance of investing in their business and paying returns to shareholders.
4. Buying should be a process spread over several transactions, avoid creating a single point of entry, price and time. It can become a source of regret in the future.
5. Admit mistakes, they do happen, deal with it, take the pain and move on.

Darren Katz
Managing Director, TAMIM Asset Management

1. Don't be afraid to ride a winner -  If circumstances change you should reconsider these changes in your valuations, consider a stock on its own merits. 
2. Sell your losers - Same as above, consider a stock on its own merits. Don't hang on waiting for a rebound if there isn't realistically a chance of one coming. Your first loss is normally your best.
3. Do the work - Hot tips are all well and good but do the work for yourself before you even think about buying. Deep dives are key.
4. Think long term - If you're going to worry about minute by minute and day by day price fluctuations you'll have no time to worry about the stuff you should be looking at.
5. Diversify! - Ideally across sectors AND markets (and asset classes).
6. Temperament is all important when investing, if you get caught up with the crowd you become the fool.
7. Keep an open mind - There are many great household names to invest in but there are just as many, if not more, companies you've never heard of that will make equally good investments.
8. Be aware of tax implications but don't let them dictate your portfolio - Too often we hear "I know I should sell "X" but can't possibly do that because the capital gains will hurt too much." If you know you shouldn't hold or are  overweight a stock then why haven't you sold already?