Ghost Stories #111: International Titans Basket Ltd - 100% capital protection, geared upside (with Japie Lubbe)

Very, very interesting.

I know for sure that 100% capital protection is music to the ears of any investment audience, that's for sure.

And I just want to confirm there that up to 8.3% per annum, that's in US dollars.

So that needs to be thought of as a hard currency return, right? When you hear a percentage like that, you shouldn't immediately think, oh, Rand, what can I get at the bank? You need to think dollars, right? I just want to confirm that.

Absolutely.

And I think to your point, what we're seeing in the performance of the markets is that the MSCI world total return has done that 7.1 average for the 26 years.

But the last period from September 22 to now, it's done 22 and a half per year.

So you've got to say to yourself, if something performed for 26 years at 7.1 per annum total return, but just the last three and a half years, it's done 22 and a half per annum.

That should be ample proof that it's time to be cautious.

And the caution should come from the fact that firstly, the portfolios that have done very well you know, that's fantastic.

We're very pleased about that.

But if I'm allocating money to the market now, or if I'm thinking, how do I capitalize on where the market is? Might not be a bad idea to cash in some of the very highly valued shares, but keep with shares if they carry on doing well.

But in this case, then you're choosing the indices because as we know, the indices from a passive perspective still pick up the shares that are doing very well.

They dominate the index.

And the ones that aren't doing well fall out of the index.

But if the entire market corrects massively like in 2008, 2009, then you just get your 100 back in dollars.

So that's very valuable in the context of a portfolio.