Bright Khumalo is a portfolio manager, a Vestact analyst, and a guy who loves a good run and mountain bike ride. But what about his own money? We peeled back the layers to reveal how this finance expert handles his personal wealth.
If money could talk, what would it say about your spending habits?
If money could talk, it would probably pull up a chair, sigh dramatically, and say: “Bright, my guy … we need to talk. I appreciate the investments, truly. I love the way you let me grow in equities. But do we really need another gadget? And cycling gear? You already have enough kit to outfit a Cape Epic team!”
What’s the most significant financial lesson you’ve learnt from your own investment experiences?
One lesson that stands out is “being right isn’t enough – you have to be right and make money from that”. Only active market participants with their own hard-earned cash will understand this one. Skin in the game!
If there’s a stock you wish you’d invested in earlier, what would it be and why?
Nvidia. The signs were all there – dominance in GPUs, the rise of cloud/data centres, and the sheer pace of innovation. Yet, for years, it was mostly seen as a gaming hardware company. The real breakthrough came when AI workloads exploded, and Nvidia’s chips became the gold standard. Looking back, the mistake wasn’t missing the trend entirely – it was underestimating how big it would become. The lesson? Sometimes, a great company is already in front of you and you own it, but your imagination isn’t bullish enough.
What’s the most extravagant purchase you’ve made, and do you still think it was worth it?
Good question. It has to be my BMW with a B58 engine. I convinced myself it was a necessity but, in reality, it was just a splurge.
Was it worth it? Absolutely, very memorable and YOLO [you only live once]! But looking back, I could’ve gone for something a little less flashy with the same functionality. The real takeaway? Extravagance feels great in the moment, but long-term value is what truly matters.
What’s an unconventional asset class you’ve considered investing in?
I’ve definitely looked at collectibles – things like rare watches, vintage tech, and even high-end sneakers. There’s something fascinating about assets that combine passion, scarcity and potential appreciation. But we live in South Africa and I don’t wanna get robbed; the most exotic [investment] was solar panels and honey. It was all a waste of time because I could’ve compounded that capital at a much higher rate than these “alts”.
What advice would you give to young professionals about building wealth and managing their finances?
I’d say three things:
- Master the art of budgeting. Wealth isn’t just about what you earn; it’s about what you keep. Track your income, control expenses, and automate savings so you don’t spend first and save what’s left – flip that mindset.
- Invest ASAP and stay invested. Time is your biggest ally; the earlier you start, the more compounding works for you. Don’t stress about timing the market – just be in it, ideally with a mix of hard currency equities that align with your long-term goals.
- Build skills, not just savings. Your ability to earn is your biggest asset. Invest in yourself – whether that’s upskilling, networking or finding ways to create multiple income streams. The more valuable you become, the more wealth-building opportunities come your way.
What is your retirement plan?
Simple, spend less than I earn and rand-cost average into a diversified portfolio of high-quality US equities, reinvesting dividends along the way. On the side, I’m making meaningful relationships that I hope will last forever.
What financial trend do you think is overrated, and why?
Cryptocurrencies as a “replacement” for traditional finance was overrated. The idea that bitcoin or other cryptos would completely replace banks, fiat currency or even gold was always a bit extreme. While blockchain tech has clear use cases, the hype often ignored regulation, adoption hurdles, and real-world utility beyond speculation.
If you could give your younger self one piece of financial advice, what would it be – and would you actually listen?
I’d tell my younger self to focus less on trying to time the market perfectly and more on consistently allocating capital to quality businesses. The power of compounding is real, and the earlier you start, the better.
Would I have listened? Probably not entirely. The younger me would’ve still tried to outsmart the market a few times, but hopefully, I’d at least take the advice to be more patient with great investments.
How can South Africa achieve widespread financial literacy and inclusion?
Many have expressed this idea, and there’s no harm in repeating the right message: financial literacy should be introduced in schools to enhance the value of the “life orientation” subject. It should begin with the basics – understanding money, distinguishing between quantity and value, saving and investing for the long term, budgeting, and managing personal loans and debt. This approach would foster the right financial mindset and behaviour. By understanding the various financial paths and products available, students can make informed decisions. While this won’t eliminate excessive spending at clubs or dealerships, for those who grasp the key concepts, it will have a profound impact on their lives, families, communities and work.
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