October 2023 will go down for many as one of the most exhausting and nail-biting months in their lives. The week in and week out late nights and anxiety around the next big match, the next ominous opposition, the deafening crowd and the latest controversy culminated in one of the most spectacular wins in sporting history by the Springboks!
This journey began long before October and long before the announcement of the RWC Springbok squad. It began six years ago when SA Rugby made the bold decision to invest in a new approach to make SA rugby great again. Rassie Erasmus was appointed to overhaul the team and strategy, and SARU gave him an important tool: freedom to do it his way. The restrictions on utilising SA players participating overseas and the interference in team selection fell away. These freedoms, among others, gave Rassie both the opportunity and the accountability to make the changes he deemed necessary. The goal laid out six years ago was to win the RWC in 2023. But as in investment markets, sometimes things come together more quickly than you anticipate, and you can outperform even your own expectations.
The 2019 RWC was one of those unexpected yet glorious outcomes! Rassie could have hung up his whistle then and there, job done, out on a high – disinvest and head for a comfortable retirement. But that was not the plan – the journey was only one-third complete and, although ahead, the people of SA and the team all believed the 2023 double-header was now a real possibility. The years that followed the 2019 World Cup were tumultuous, disruptive and marred by international conflict. Covid-19 pandemic, KZN Riots, Trump, Boris, Russia-Ukraine and now Palestine-Israel. All of these have had substantial impacts on international markets and most probably (have not asked them myself) RasNaber’s plans.
The important factor when faced with crises is to be able to adjust quickly and nimbly to the current environment while still holding the overall strategy and objective in place. There are so many parallels between investments and sport, and the story of the Springboks’ grit, hard work, determination and unwavering commitment to delivering the World Cup to the nation should be an inspiration to all investors. The importance of having a plan, ensuring everyone is on board, and then following it through regardless of the challenges should deliver results in the long term.
At Laurium Capital, we believe equity markets will deliver real wealth over the long term. Short-term fluctuations present opportunities to add additional capital over time and to allocate to risky assets when bad news is priced in. However, the first step is to assess your future, plan, and then commit to the plan, month after month. Early contributors have the unmatchable advantage of time in the market, and those with the discipline to stay invested, especially when it feels like the world is against you, become the RWC (retirement wealth champions). Hopefully the Springboks will be investing some of their hard-earned prize (and advertising) money for the long term. Well done, Bokke!
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