The price of the last cent

Feel free to reach out to PSG Wealth Manager  Dawie Klopper directly.

In the investment world, however, few temptations are as persistent as the pursuit of the ‘last cent.’ Headlines shout, and the idea of extracting just a little more return from a portfolio can feel irresistible. In fact, there are those who expect this to be done, and who do not understand it when you do not necessarily think the same way.

Yet behind every additional basis point that is chased lies an important question: At what cost?

The reality is that investing has never been merely a numbers game. It is a discipline that combines rationality with temperament, long-term planning with daily noise, and ambition with self-control.

Daily noise is a very real factor. One can so easily regret not having taken note of the fact that the rand strengthened, and that you should perhaps have waited a day or two longer before taking money offshore. You could have bought more dollars had you waited – but remember, it is part of your strategy to take funds offshore on a regular basis.

Chasing every last cent often places investors on an endless treadmill of comparison, anxiety, and constant doubt. What begins as a healthy ambition easily degenerates into emotional exhaustion – and, ironically, this often leads to poorer decisions rather than better ones.

A more sustainable approach recognises that the goal is not perfection, but satisfaction with an outcome that is nevertheless rewarding. A ‘satisfactory outcome’ does not mean settling for mediocrity; it means constructing a portfolio that works for you: one that aligns with your time horizon, your liquidity needs, your tolerance for volatility, and your lifestyle. It implies the understanding that financial well-being is not measured only by maximum returns, but also by the peace of mind with which you can approach your future.

A satisfactory outcome is not passive; it is intentional. It rests on clear objectives, disciplined processes, and the crucial acceptance that markets will always be unpredictable. Investors who can develop this mindset often avoid the emotional turbulence of chasing trends, reacting to every downturn, or constantly restructuring their portfolios.

Instead, they reap the benefits of compound growth, thoughtful diversification, and the mental resilience that flows from a plan designed for the long term.

There is also a human element that is too often overlooked. Money is a tool to enable a life – not a life devoted to the pursuit of money. The quiet victory of a satisfactory investment outcome lies in the absence of unnecessary stress: the peace of mind that allows you to sleep at night, enjoy your relationships and do meaningful work. The cost of a heart attack – literally or figuratively – is simply too high for a few extra decimals on a performance report.

A satisfactory outcome is not a compromise – it is a victory. It represents balance, stability, and the realisation that true wealth is not measured only in rands and cents, but in the freedom and security it brings.

Morgan Housel describes it as follows:

The greatest benefit of money is not the highest possible return, but the control it gives you over your time and your life – to do what you want, when you want, with whom you want. This freedom is far more valuable than chasing the next small, incremental gain.