Quality Benefits of Offshore Diversification
- September 3, 2019
- Posted by: Activ8 Capital Management
- Category: Investment
For the South African investor there are many obvious benefits to investing offshore, with Rand hedge and reducing geopolitical risk, being the most often touted. However, a very important, but often overlooked benefit is the fact that the JSE simply cannot give investors quality exposure to some sectors of major world growth drivers. Listed below are some shares which dominate some very sustainable investment themes were there are no quality equivalent counters listed on the JSE.
Starbucks is a roaster, marketer and retailer of coffee and operates in 75 countries around the world. The largest Starbucks store in the world is in Shanghai and it has been termed the Macdonald’s on the 21stcentury. Millennials around the world see Starbucks as a place to hang out, meet friends and work.
Walt Disney is a household name the world over. It recently announced its plans to offer an online streaming service and it is at an advanced stage of revamping its highly profitable theme parks. The Star Wars and Marvel super-hero’s franchises have been highly profitable investments for Disney. It is a well run company, defensively positioned, that gives a consistently solid dividend yield.
Microsoft is a household name all over the world and has grown its business far beyond the Office suite of products. Through its Azure business it has become one of the dominant players in the “cloud” computing business and it is hard to imagine operating in a world without Microsoft.
These are but a few examples of companies in cutting edge niche industries that still have good growth opportunities ahead of them and that seek to dominate the industries within which they operate. The question that investors should be asking is, why stick only to traditional JSE stocks when there is literally a world of opportunity that is available? Activ8 are able to give investors an opportunity to diversify their portfolio and gain exposure to virtually any stock listed anywhere in the world. Take the time to discuss this with your Activ8 advisor.