Shifting gears: from instant gratification to long-term investing

Ever wondered what mountain biking and long-term investment success have in common? Well, according to Fedgroup’s managing director of wealth and investments, Paul Counihan, quite a lot actually! And no, it’s not just bruised egos and the occasional uphill battle.

He explained it all kicked off with the recent debut edition of the Fedgroup Cradle 100 mountain bike race in April, set in the jaw-dropping Cradle of Humankind. Over 400 riders, from seasoned pros to weekend warriors, showed up for this 100km thigh-burning, trail-shredding, stage race adventure. But what happened after the race is where things got really interesting.

Doing things differently for the right reasons

Counihan elaborated and said, “Instead of the usual prize ceremony, Fedgroup did what we do best – something a little different. Winners were given a choice: take the cash and ride off into the sunset, or double their winnings by investing it in our flagship Secured Investment product. Spoiler alert: most of them chose the long game, which means we had 16 Secured Investment winners and the total prize money tallied to almost R200 000.”

Yup, even the minor category champs said “no thanks” to instant gratification and “yes please” to future growth. That meant their original prize money, plus a matching amount from Fedgroup, was invested into our Secured Investment.

“And our Secured Investment isn’t just a product, it’s a tried-and-tested cornerstone of long-term wealth building. Counihan clarifies that “With a five-year term and lump-sum structure, it’s been delivering consistent income and protecting investor capital for over 30 years. And while it quietly outpaces many market returns, it still sits comfortably in the medium-risk category. All due to the safeguarding measures we are able to employ due to our extensive experience and specialist capabilities and expertise - giving you growth without the guesswork. And of course, we charge ZERO fees on Secured Investment! So why does this matter? Because it underscores our commitment to maximise your long-term growth potential without eroding your savings. Just as the right bike lets you focus on the ride, we let you focus on growth, without the drag of fees.”

Gearing up for growth

In a world where quick wins and fast clicks dominate, staying committed to long-term goals can be tough. But just like pushing through the last kilometre of a brutal climb, sticking with your investments even when the markets wobble, pays off. Counihan summarises by saying “In uncertain times, people tend to hold back. But long-term investing is actually the antidote to uncertainty.”

And make no mistake: markets will dip. That’s just how the game works. But history shows that, over time, they recover and rise. Selling in a panic locks in your investment losses, but staying invested gives your money the chance to bounce back, and even leap ahead.

From singletrack to stacked returns

The longer you stay invested, the more your money works for you. And when you reinvest your earnings instead of cashing them out? That’s when compounding kicks in, turning modest gains into serious growth.

Which is why setting clear long-term financial goals is vital! It is very similar to marking checkpoints on your mountain bike trail route. It helps block out the noise and reminds you why you’re investing in the first place. And here’s the kicker: long-term investments usually do a better job of beating inflation, meaning your money keeps its buying power over time.

Diversify and multiply

When asked if he thinks there is still a place for fixed investments in a volatile market, when investors hesitate to invest for extended periods of time, Counihan’s answer was clear: “Absolutely. Products such as our Secured Investment offer much-needed stability, especially when part of a well-diversified portfolio. Add in some term-based commitment, and you’ve got a solid setup to handle whatever the markets throw your way.”

So whether you're on a bike trail or building long-term wealth, the lesson is the same: pace yourself, stay the course, and think long-term. After all, that’s how you turn a tough ride into a great story – and a good investment into a great one!