/ 2 February 2006

Tips to take off

Gidon Novick, who founded no-frills airline kulula at the age of 32, believes in the power of compounding and giving to charities.

What are the best and worst investments you ever made?

My best investment was our house in Atholl, my worst was buying shares that I thought were bargains. I’ve generally got it badly wrong. Now I leave it to the experts.

Do you have a savings plan?

My wife has ensured that my savings plans are kept to a minimum by reminding me every night that “I better make more than she can spend!”

Do you use an adviser or do you look after it yourself?

I have a good friend, Roger Williams, who runs a first-class portfolio management company called Centaur Asset Management — he does magical things with my money.

Is there an investment you wish you had made?

Sure, an investment in one of the cellphone companies would have been a really good idea four years ago, but I reckon they are past their prime. (But then again, I’m usually wrong when it comes to picking shares.)

What is the best advice you ever received?

Warren Buffet is always on about the “power of compounding” and it does make a lot of sense when it comes to investment. The lesson for me is not to be too greedy and to trust the power of compounding.

What financial advice would you give your children?

Saving is important. But equally important is to enjoy your life and spend your money. Also, don’t forget to keep a good chunk aside for worthy charities.

Do you have any personal finance tricks that save you money?

By far and away the best way — not only to save lots of money — is to travel with kulula.com.

What are the best and worst gifts you ever received?

Any gift I receive that is sent from the heart is a great gift, regardless of what it is.

Is there one thing you would do if you could do it all again?

Nothing, my life is not about could haves and would haves, it’s about learning from the past and making the best of whatever situation I am in.

What would you do if you had enough money to do anything?

I don’t have “money” targets in my life. Yes, money is important to support my lifestyle, but I am entirely convinced that money can’t buy happiness. Did you know that in a survey done among countries on personal well-being and happiness, Bangladesh, one of the poorest countries in the world, came out tops?