Steven Nathan, then a research analyst, was among the favourite guests on my SAFM business radio show. Back in the late 1990s, listeners loved what was then his unusual take-no-prisoners attitude. From what I read on Biznews yesterday, Nathan is taking that disruptive approach to an entirely new level.
When Steve launched his independent money manager 10X, cynics predicted a quick end to the fee-slashing enterprise. Conventional wisdom said South Africans had to be “sold” investments. That meant the way for money managers to flourish was via smooth-talking sales reps and witty advertising hoardings.
Eleven years later, Nathan’s point has been proven. Comprehensively. During those years, the two percentage points less which 10X clients pay in fees has translated into massively higher benefits. Their funds grew – get this – by 34% more than the average. No airport advert can ever compete with that reality.
Warren Buffett calls compound interest the eighth wonder of the world. And has long tried to teach us that costs are the most critical item in any investment plan. Nathan believed the Oracle of Omaha long before it became commercially popular. Now he is proving the point. And then some.
