LIKE GARDENING, INVESTING REQUIRES PLANNING

When you design a garden, you consider many facts. The soil type, weather conditions, availability of sufficient water and the space for a brilliant garden design to deliver the gardening success you desire. Investing is the same. You need to consider your investment goals, risk profile, investment horizon, asset classes and investment products. There are compelling reasons to invest offshore:

The South African market makes up less than 1% of the world index. This means that a global portfolio should include global assets, and most South Africans are underweight when they look at the percentage of offshore exposure they have.

Some of the most innovative companies are listed in the US and Europe. Industries such as global tech, cybersecurity and artificial intelligence are also found inoffshore markets.

Investing in well-established companies with strong and healthy balance sheets is a great way to build a robust portfolio. These companies have a diversified earnings base and make money worldwide, even if listed in the US, Europe or other territories.

Some local commentators argue not to invest in offshore markets because they are expensive. Sure, there are global companies that are currently trading on expensive levels. On the other hand, we also find some stocks that trade cheaply for those that look in areas such as the UK, Europe, and Japan. By including assets from these jurisdictions, you also include other currencies such as the pound, euro and yen – this is important should the US Dollar weaken during specific cycles.

One of the most important elements is “the only free lunch in investing”. Diversification helps reduce portfolio volatility and the specific risk attached to one investment, style, or jurisdiction.

At Brenthurst Wealth we are committed to your financial success. We extend a warm invitation for you to visit our office at Polo Village Offices, Block A3, where our dedicated team is ready to assist you in engaging with your investment journey. Contact us on 021 100 3901.

We look forward to helping you achieve your financial goals.