15 Timeless Lessons for Long-Term Success
By Andró Griessel
I didn’t grow up in a household where money was discussed—probably because there wasn’t much to discuss.
My parents did their best with what they had, and my Sanlam study policy got me through the first six months of university. After that, a student loan from Standard Bank took me the rest of the way.
For both of those, I’ll be forever grateful.
Studying investment management and economics (certainly not financial accounting!) sparked my interest in the world of investing—or maybe it was simply the hope of striking it rich quickly.
Either way, I invested in a weekend course and a technical analysis software package—on credit, no less—to educate myself about stock trading. After weeks of studying head-and-shoulder charts and who-knows-what other formations, and armed with the arrogance of youth, I was determined to breathe new life into my financial reality.
My first trade? A penny stock. My result? A 100% loss.
That was my first expensive lesson in wealth management, but it wouldn’t be my last. That was back in 1995.
Three decades later, my colleagues and I have collected more valuable—sometimes painful—lessons that hold true no matter the market cycle. Here are 15 I’d like to share with you.
1. To Measure Is to Know
You can tell wonderful investment stories, but if you don’t measure your actual performance—and understand it in relative terms—you’re flying blind.
I’m still amazed at how many people don’t know the growth rate of their wealth, or whether the active management fees they’re paying are justified.
2. Risk Is Not the Same as Volatility
Risk is the possibility of a permanent loss of capital. Volatility is simply short-term price movement.
Avoid risk, manage volatility.
3. Be Cautious with Unlisted Assets
Unlisted investments can offer exceptional returns—but they also carry the risk of total capital loss.
Think very carefully before deciding a) whether to make such an allocation, and b) what percentage of your portfolio it should represent.
4. Recognise Market Emotion
When diversified portfolios rise or fall by 20–30% over a short period, that’s emotion at play—not lasting reality.
Your goal is to take advantage of it and not fall victim to your emotions. Few investors manage this well.
5. Beware of Over-Concentration
Too little diversification can look like genius for a while—until it doesn’t.
Portfolios with 50% or more in a single stock are not uncommon. Steinhoff remains a costly reminder of what can go wrong.
6. Avoid Over-Diversification
Too much diversification dilutes your ability to outperform.
This is especially true in index-based investing. Being average is fine when the index is rising, but when the tide turns, a more focused strategy can be an advantage.
7. Go Offshore When the Rand Is Strong
The rand is famously volatile, but big currency moves are usually temporary. Take advantage when the rand is strong.
Yet, most people do the opposite—sending money offshore after the rand has already weakened significantly.
8. Rebalance Regularly
Portfolio rebalancing isn’t glamorous, but it’s critical—especially if your holdings aren’t in a managed mandate where someone does it for you.
9. Process Beats IQ
Even the smartest investors make bad decisions when they think “this time is different” or believe they see something others can’t.
A disciplined, repeatable process gives you a far better chance of success.
10. Investing Is a Marathon, Not a Sprint
Short-term performance is not the same as long-term success.
The favourite in a marathon doesn’t panic about the pace set by the front-runner in the opening kilometre.
11. Past Performance ≠ Future Results
One brilliant—or one disastrous—year can skew long-term performance figures.
This often creates the illusion that an asset class or fund has been consistently good or bad. Gold is a prime example right now.
12. Timing Does Matter
The saying “It’s time in the market, not timing the market” is catchy—but not entirely true.
Valuations matter. Buying a great asset at the wrong (too high) price can result in years of weak returns.
13. Limit Your Losses
“He who loses least, wins,” said investment writer Richard Russell.
Avoiding large losses is more important than scoring big gains.
As Warren Buffett puts it:
Rule 1: Don’t lose money.
Rule 2: Don’t forget Rule 1.
Remember: A 50% loss requires a 100% gain just to break even.
14. Use Tax Advantages
Tax-efficient investments are one of the few “free lunches” in investing. Always take a seat at that table—even if it’s just for dessert.
15. Start Fresh
Imagine building your portfolio from scratch.
If you wouldn’t buy a certain asset with new money today, why are you still holding it? The same goes for its weight in your portfolio.
Closing Thought
This list will grow over time. My hope is that Aldous Huxley’s warning won’t apply to us:
“That men do not learn very much from the lessons of history is the most important of all the lessons of history.”
Feel free to email me your own lessons learned.
Andró Griessel is a certified financial planner at Woodland Wealth. Contact him at info@woodlandwealth.co.za.
Although all possible care has been taken in the preparation of this document, the factual correctness of the information contained herein cannot be guaranteed. This document does not constitute advice and anyone who intends to take any financial action based on this document is strongly advised to first consult with his/her personal financial advisor. Woodland Wealth is an authorized financial service provider with FSP no. 5966.