Pyjama Profits: The Couch Potato Approach

Lying on the couch for hours, doing nothing, may be seen as unproductive, but it’s being heralded as a form of self-care. When it comes to investing, Siyabulela Nomoyi, Quantitative Portfolio Manager at Satrix, says this mindset might be exactly what you need. 

A recent Fidelity study in the US found that 36% of newer investors (started their journey in the last five years) make their investing decisions based off social media. This suggests they’re reacting to what they see online. In fact, they may need to react less. In investing circles, the “couch potato approach” is simple, low-effort and surprisingly effective at building wealth over time.

Nomoyi says, “Building wealth doesn’t have to be complicated. Long-term investing in index-tracking ETFs (Exchange Traded Funds) follows a straightforward approach: set up your investments, automate contributions, and let time do the heavy lifting. This method removes the stress of market timing and encourages a disciplined, patient habit.”

By avoiding the urge to constantly monitor your portfolio, you steer clear of chasing trends or panicking at market dips. Instead, you let compound growth work quietly in the background while you kick back on the couch.

Don’t Let the Scroll Startle You into Action

Digital platforms have made investing more accessible than ever, but they’ve also made it easier to overthink. Fidelity found that many investors review their portfolios monthly; for 14% this is a daily habit that may lead to impulsive decisions and hurt long-term returns.

Nomoyi adds, “Here’s the truth: wealth grows over time. The magic lies in compound growth – earning returns on your returns – and in time smoothing out the inevitable market dips. Markets rise and fall, but over the long term, they’ve trended upward. Staying invested allows your money to ride out the bumps and capture the rebounds that often follow declines. It’s still important to check your portfolio, especially as the markets and your personal circumstances change, but it’s critical to avoid knee-jerk reactions when markets take a turn.”

Grow Wealth While You Relax

Here are some steps to make your money work hard while you recharge: 

1. Start Small, Start Now 
Open an investment account. Consider choosing a few index-tracking ETFs (your go-to genres for long-term growth). These give you broad market exposure, spreading risk across hundreds of companies.

2. Automate It 
Set up a debit order to invest monthly – whether markets are up or down. This “set-and-forget” approach avoids the stress of timing the market and builds discipline.

3. Reinvest Your Dividends 
Make sure income distributions are automatically reinvested. This lets you benefit from compounding: your dividends buy more units, which in turn earn their own returns.

4. Log Out and Let Time Work 
Don’t obsessively check your portfolio. Constant monitoring is like weighing yourself after every snack – anxiety-inducing and unhelpful. Over time, market volatility smooths out and steady contributions stack up.

5. Sit Back and Relax  
While you’re unwinding on the couch, your money is quietly working in the background, growing without you having to lift a finger. “The key is to start the journey and set the right foundations before you ‘chill’,” says Nomoyi. “Once you’ve done that, you can relax knowing your wealth is building in the background.” 
ends 
 

Disclaimer 

_{Satrix Investments (Pty) Ltd is an approved FSP in terms of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision. Satrix Managers (RF) (Pty) Ltd (Satrix) is a registered and approved Manager in Collective Investment Schemes in Securities and an authorised financial services provider in terms of the FAIS. While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSPs, their shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaim all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.}