Investment decisions in a changing South Africa from 1990 to 1999 (transition) : analysis of the decade of the 1990s

[摘要] ENGLISH ABSTRACT:This study is an investment performance review covering the ten years from 1990 to 1999.To many investors the 1990s were a tough decade because of the political, economic andsocial changes, which caused investment uncertainty. The primary focus is to examine theimplications of these changes during the 1990s on the investment strategies of SouthAfricans. Furthermore, the aim is to provide insight into investment decision-makingduring the period of transition and transformation. The analyses specifically address theimportance of the investment environment on portfolio construction and maintenance.The objective is to see how far the investors ventured in their efforts to 'beat the SouthAfrican share market under changing conditions. The structure of the portfolio wasevaluated as well as the investor's preferences and beliefs during the period under review.It also looked at the investors' attitudes and philosophies. Effective portfolio managementwas important because changing conditions were becoming challenging. The investor'sinvestment mix and the risk associated with each investment determined the effectivenessof managing the portfolio. Furthermore, this study examines the investors' objectives,constraints and strategies.In the final analysis, this study examines investment strategy and investment performancein retrospect. It presents a ten-year historical analysis of the South African environmentwhich was affecting investment decisions. It was also found that investors were fulfillingtheir expectations, they were looking at medium and long-term investment opportunities.Furthermore, stock-picking was done with greater caution. The opening of globalinvestment markets further enhanced the investment opportunities. Moreover theinvestors realised the importance of diversification in order to reduce risk.The investors will be presented with challenges and opportunities in the next decade (orcentury). Therefore this study also concludes with an assessment of possible future investmentscenarios for the South African investors.Finally, investment decision was interpreted against the political, economical, social andother changes that took place during the period of transition. The key to investment successwas the investor's ability to manage the changing South African environment.

[发布机构] Stellenbosch University