Offshore Investments – What Should I Consider?

Background

South Africa accounts for just more than 0,5% of the world economy. The market value of Apple, Microsoft and Amazon together is 21⁄2 times more than the total value of all our JSE listed companies (the total value of the JSE is about USD1,100 billion, and together Apple, Microsoft and Amazon are worth about USD2,600 billion). The market capitalisation of the American market is just more than USD24 000 billion, which means that the value of the American listed companies is about 22 times more than the total value of all the South African companies together!

1. The three main reasons to make offshore investments

   1. Diversifying risk – by moving some of your investments to another geographic area, you lower

      the risk of your portfolio and you hedge your investments against things that might go wrong in

      South Africa.

   2. Diversifying return – your investments will be supported by various sources of income and growth,

      which will soften the possible impact of weaker growth in South Africa.

   3. Exposure to world class businesses – your portfolio will include world class companies and will

      be exposed to international giants not listed locally.

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