For years I resisted the temptation to invest funds abroad. Capital is the oil that greases the wheel of every economy. The more of it you have, the more wealth can be created. South Africa is very much a developing country which relies heavily on foreign inflows of capital to fund economic growth. So it went against my personal grain to channel funds abroad – no matter how much financial sense it made. But I have changed my mind. It a bit like the way Adam Smith explained his support for the concept of free enterprise in The Wealth of Nations. Capitalism flourishes, Smith argued, when it has a moral foundation. When the greedy and self-interested subvert the system, capitalism’s consequences are less than ideal. Similarly, a Government which loses its economic way will only comes to its senses when forced to face consequences of its actions (the old Soviet Union and reformed Red China prove the point). It is senseless to go down with a financial ship whose course I strongly disagree with. So after decades of resistance, I’ve joined the “invest offshore” camp. And am delighted to introduce the Biznews Global Share portfolio. In the weeks and months ahead, I’ll be offering my thoughts on what international shares you should be considering adding to your own portfolio of global equities – the best ways to immunise your savings against an SA Government’s insistence on pursuing idealistic but misguided economic policies.
Posted on: Sun, 05 Oct 2014 18:40:22 +0000
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