How South Africa’s richest are investing in 2025

Investors have been bombarded with uncertainty and volatility so far in 2025, with many opting to take their money out and sit on the sidelines to wait for the storm to settle. 

Despite this volatility, however, markets have generated remarkable returns both locally and globally. If investors have sold out of their position, they are likely to have left some returns on the table. 

Apart from the issue with trying to time the market on the way out, there is the issue with trying to time it on the way back in, with there always being a reason to wait. 

The inability of investors to time the market, no matter how wealthy, is why Melville Douglas has spent much of 2025 focusing on managing client emotions and behaviour rather than trying to predict the next event to capitalise on. 

Melville Douglas is a boutique investment management company within the Standard Bank Group that invests funds on behalf of endowments, charities, families, and high-net-worth individuals.

Its managing director, Mike Laws, explained at its annual investment conference how it has dealt with 2025’s volatility and how it has managed its wealth clients’ behaviour. 

“I believe we need to help our clients zoom out to see the forest, not just the trees. If they are caught up in the daily noise, they will make mistakes,” Laws said. 

“They are going to panic, and they are going to lose sight of their long-term plan. They forget that volatility is the price we pay for growth.” 

Laws explained that the vast majority of the outcomes achieved by investing are based on individual emotion and behaviour. 

Investors have to stick to the long-term principles of wealth creation, the core of which is staying invested for a long period of time to allow compounding to work in their favour. 

“Apart from that, most investors tend to forget that corrections are normal and that uncertainty is not a bug in the system – it is a constant feature of investing,” Laws said. 

“It is really about having a plan, not panicking, and sticking to an investment philosophy that will endure over time. It sounds easy, but it is difficult to stay disciplined.” 

Laws explained that Melville Douglas believes in buying superior businesses at a fair price, which delivers strong returns over time. 

“We understand that there will be times where other styles outperform over the short term. But over time, buying quality companies will endure and deliver superior returns,” he said. 

A man walking a dog

Laws explained that most of Melville Douglas’ job is to manage client behaviour and emotions to ensure they do not make mistakes amid heightened volatility. 

In effect, the asset manager aims to be the voice of reason amidst the storm, with data showing that staying invested is generally the best course of action. 

To explain the point, Laws said that investment can be compared to a man walking a dog, with the man being the fundamentals of the economy or a business and the dog being the stock market. 

“The man takes the walk and has a leisurely stroll, going step by step, meter by meter at a slow and steady pace,” Laws explained. 

“But the dog is all over the place. It darts around, chasing birds, sniffing rocks, and maybe laying a dog egg on the way or two.”

“Ultimately, the man and the dog get to exactly the same destination, which is the intrinsic value of the business and investor is invested in.” 

Laws explained that this shows the fact that your returns will be superior if you buy great businesses in a growing economy. 

“So what do we do in a time like this? We pause and bring our clients back to their goals to remind them that the portfolio is not built for the next quarter or the next headline. It is built for the next decade,” he said.

“We show them the data, the history and the resilience of our markets over time and, most importantly, we stay calm ourselves.” 

Laws explained that there will always be reasons to act in financial markets, from uncertainty to the next big thing. In contrast, oftentimes the best course of action is to do nothing and stay invested in high-quality investments. 

In the coming years, Trump will still be a factor, global wars will still occur, and artificial intelligence may change the world, but due to these events, wealth won’t be created by acting on impulse.