Becoming an Intelligent Investor: Insights from Mfundo Shabangu’s Investment Journey
The world of investing is complex and multifaceted, demanding not only knowledge but the ability to adapt and thrive amidst market fluctuations. For Mfundo Shabangu, Lead Equity Investment Analyst at Mentenova, his journey into the investment field has been one shaped by both passion and perseverance. In this in-depth interview, he reflects on the pivotal moments that shaped his career and shares the lessons learned along the way.
A Foundation in Accounting
Mfundo Shabangu’s journey into the financial world began in 2015 when he received a bursary from PwC to study Accounting at the University of Cape Town (UCT). However, while immersed in accounting, he discovered a deeper interest in finance and analytical courses.
“I enjoyed finance a lot more as well as analytical-type courses,” he recalls. But as is often the case, life took unexpected turns. After experiencing some challenges during university, Mfundo found himself changing degrees multiple times before ultimately completing his undergraduate degree in Accounting just before the COVID-19 pandemic in 2020.
Despite his academic struggles, his passion for investments remained steadfast. Inspired by financial movies and TV shows such as Wall Street and Billions, he shifted his focus towards the Chartered Financial Analyst (CFA) designation. “I inherently had a desire to analyze companies, not necessarily auditing and accounting,” he explains. This set him on a path that would later see him break into the investment field.
Finding His Way into the Investment Industry
Like many career journeys, Mfundo’s road to the investment industry was not linear. After completing his undergraduate degree, he joined a graduate program at ABB, an engineering company, due to the difficulty of securing a role in financial services during the COVID-19 lockdown. However, his passion for investments never wavered.
In 2021, he received a call from NBC Holdings, where he had applied for an Investment Analyst role. This opportunity proved to be a turning point in his career. “I joined NBC Investment Consulting Services mid-2021 as an Investment Analyst, and that’s where I truly got exposed to the vast universe of investing.”
Looking back, Mfundo recognizes that his journey may not have been straightforward, but each detour played a critical role in shaping his career. “The road had many turns, but eventually, I found my way,” he says. “It always works out in ways you never expected.”
Overcoming Challenges: Imposter Syndrome in Finance
One of the most significant challenges Mfundo faced in his career was imposter syndrome. Even after breaking into the investment industry, self-doubt persisted, particularly when he assumed the role of Lead Equity Analyst, where he covers local equity and asset class managers.
“The industry is essentially clever gambling as we never know what the market will do,” Mfundo says. “Having to guide the team about the asset class was a mental obstacle where I had to remove self-doubt and be open to learning.”
For Mfundo, overcoming these feelings of inadequacy required faith and trust in his abilities. He credits prayer and his belief in a higher purpose for helping him navigate the mental hurdles of the investment world. “I’ve tried to overcome that feeling through prayer and trusting that God placed me here for a reason and a season,” he explains.
Early Investments and Key Lessons Learned
Mfundo’s first notable investment wasn’t in stocks or bonds but in his side business—event management. While it was capital-intensive initially, the lessons he learned from managing the business would later influence his approach to investing. “My approach has been focused on minimizing costs to maximize potential returns,” he explains. His early investments in this business taught him the importance of looking for opportunities in the supply chain and using relationships to secure corporate gigs.
One of his most memorable investments was in property. “The most memorable is investing in a flat in Alberton, which I inherited from my mother,” he says. Beyond its sentimental value, managing the property gave him valuable experience as a landlord and in building a property portfolio. “The experience I gained from managing it can’t be replicated.”
Not every investment has been a success, however. Mfundo admits that some of his ventures, particularly in his event business, did not go as planned. “The biggest lesson was to manage the costs and maximize the profit per ticket,” he reflects. These setbacks only strengthened his focus on managing risk and looking for sustainable returns.
Managing Risk and Evolving Investment Strategies
As Mfundo’s life has evolved, so has his approach to managing risk. Now married with children, he takes a more cautious stance on investments, emphasizing the importance of protecting capital. “I aim to not lose money or capital by all means and try to implement measures that make an investment self-sustainable,” he explains.
His investment philosophy has also shifted towards an absolute return approach, prioritizing capital preservation while seeking consistent returns over both the short and long term.
The Qualities of a Successful Investor
When asked about the key qualities that make someone a successful investor, Mfundo emphasizes pragmatism and foresight. “Being pragmatic as well as forward-looking is crucial,” he says. The recent volatility in the market has tested even the most seasoned investors, but Mfundo believes that staying grounded in history while adapting to current conditions is essential.
“Having a holistic view and not looking at investments in silos is key,” he adds, explaining that while fundamentals drive investments to a certain extent, macroeconomic events and investor psychology play significant roles in market movements.
Advice for Aspiring Investors
For young professionals looking to make their first investment, Mfundo’s advice is clear: involve faith in your decision-making process. “Involve God in all that you do,” he advises. Setting clear short-term, medium-term, and long-term goals is equally important, as is understanding that the investment journey is rarely linear.
To his younger self, Mfundo would offer the following advice: “Get a mentor in the space that you can relate to. Involve God more in the journey, and learn to rely on Him more.”
For young investors looking to build long-term wealth, financial discipline is critical. “Live beneath your means always,” he cautions. Avoid the temptation to chase a lifestyle advertised on social media, and instead, focus on the fundamentals of saving, investing, and continuous learning.
About the Expert
Mfundo Danny Shabangu is a Lead Equity Investment Analyst specializing in Manager Research at Mentenova, a financial services firm. With a BCom in Financial Accounting and CFA Level 1 certification, he has extensive experience in analyzing local equity and asset class managers. Driven by a passion for finance and a desire to guide investment strategies, Mfundo shares valuable insights into the world of investments, risk management, and personal finance.
About Author
