Duma Mxenge, Head of Business and Market Development at Satrix*
Amid global uncertainty and financial market noise, Duma Mxenge, Head of Business and Market Development at Satrix*, is making a strong case for the power of steady, consistent investing. “It’s boring,” he says, “but it works.” In a world defined by volatility, his approach is refreshingly calm – and highly intentional.
Mxenge’s portfolio has a theme song: Around the World by Daft Punk. It reflects his globally diversified strategy and steady rhythm, a reminder that the best investing isn’t reactive, but rather repeatable.
Right now, we’re all seeking stability. And that should also apply to investment portfolios.
A Balanced View: Global Diversification, Local Discipline
“My portfolio tilts toward global equities,” he says. “South Africa is important, but small in the global context. I want that geographic diversification – and I also want the hedge in case the rand depreciates.”
At the same time, Mxenge is focused on capitalising on opportunities both locally and abroad. “I still have exposure to the local market through ETFs like the Satrix Top 40, and I look for opportunities in large or mid-cap counters when the valuation is compelling. But I want balance. I want resilience.”
Exposure First, Excitement Later
Mxenge is a strong advocate for ETFs. “When people think of investing, they often think about choosing a specific company. But the first question should be: where do I want exposure? If you want to benefit from equity growth, there are ETFs that give you that exposure instantly – they’re diversified, low cost, and easy to access.”
That doesn’t mean he’s opposed to more concentrated decisions – just that it should come later, once the investor has built confidence and understanding. “ETFs let you learn as you earn. You start to understand which companies you’re exposed to, what sectors they’re in, and how they respond to different market environments. Then, when something stands out – maybe a well-managed business going through a temporary dip – you can take a position, but from a place of insight and understanding, not emotion.”
The Power of Patience
In today’s environment, Mxenge urges investors to keep their cool. “There’s always a hot topic. But I’m not going to build my portfolio around a single binary event. That’s not a strategy, it’s a gamble.”
He recalls fielding panicked calls from friends earlier this year when global tariffs dominated headlines. “Everyone wanted to know what to do. My advice? Do nothing. Sometimes the smartest move is to hold your position and keep building. Doing nothing is a strategy.”
History, the Great Teacher
According to Mxenge, the past offers some perspective on the results of investing around single events, or fads. “Centuries ago, the Dutch experienced the first ever stock market bubble with the Dutch Tulip Bubble between 1634 to 1637, where speculation drove the price of the exotic flower to extremes.” However, this wouldn’t be the last example of extreme buying influenced by speculative trends rather than true value.
“A more recent example of a speculative bubble is the NFT, or non-fungible token, craze. According to Forbes Australia, by mid-2023, 95% of NFT collections were deemed worthless. The NFT’s lack of utility and oversaturation, similar to the Dutch Tulips, ultimately led to their collapse.”
Boring is the New Brave
For Mxenge, the long game isn’t about hype or heroics – it’s about building wealth steadily, over time. “When everything else is uncertain, your investments should bring you peace of mind. ETFs allow that. Boring is the new brave.”
And if you’re just getting started? His advice is simple: start with exposure, build knowledge, and only then consider taking more targeted positions. “Doing nothing, staying invested, and staying diversified, that’s what works.”
ENDS
*Satrix is a division of Sanlam Investment Management.
