Hi there,
It’s a reality that a developing country like South Africa needs all the capital it can get. So for years, I’ve been reluctant to encourage our community to take money offshore. Even though the rational argument of having greater investment choice is compelling, it felt like suggesting something that would hurt my homeland.
But over the past year my thinking has changed. While ever hopeful this country will rediscover its courage and turf out the looters and incompetents, being a committed South African doesn’t mean one must suffer the consequences of poor judgement by inept leaders.
The ruling political party’s lack of resolve, its inability to reflect and then change direction by taking the tough decisions is condemning South Africa to a low growth path.
The Eskom disaster aside, insipid economic growth is the most logical consequence of an agenda driven by Cadre Deployment, inflexible labour legislation and enrichment of a new elite under the guise of BEE.
Whatever your perspectives of these political decisions, in the investment context, weak economic growth translates into a declining currency. And that continuously erodes the true value of every saved Rand.
After making the philosophical shift to protect capital against domestic economic mismanagement and invest abroad, a new world opens up. I’d like to share these discoveries and interesting ideas with you every month through this newsletter.
If my monthly missives no longer add value, click on the unsubscribe button. But before you do, please give it a couple of editions. Also, if you have thoughts on ways to improve this newsletter, please do let me know and I’ll be sure to add them.
Best
Alec
For your diary – Wednesday 24 June at 12:30
The Biznews Global Share portfolio is performing really well with a couple of our stocks jumping over 30% in the six months since we started. While we all celebrate appreciation of share prices, it’s not necessarily a good thing when you’re wanting to accumulate stocks for the long-term. Fortunately opportunities abound in the global stock markets and we’re close to deciding on a new counter to add to the five we own. Join us for the half hour webcast on the 24th for the latest on the portfolio. Book your place now by clicking here.
From Biznews – May’s best read Global Investment articles
Searching for renewable energy’s holy grail:
Expat South Africans Elon Musk and the Rive Brothers Lyndon and Peter, are making a lot of the running in renewable energy as cost falls with Moore’s Law taking hold of the technology. Now that Bill Gates has joined the party, it’s little wonder this is becoming the hottest sector for speculative investment.
Yellen warns – not a great time to be buying shares:
An announcement from the US Fed chairman gave the bond markets a fright – and it could also translate into a warning that share market investors tread lightly. The next move for US interest rates is upwards, and that’s not ideal for equities.
Boiler rooms are booming – don’t trust that cold call:
A timely warning in this excellent article. When times get tougher, the ruthless prey on the ignorant – especially in financial services. Boiler rooms of the “Wolf of Wall Street” ilk have been springing up all over. Beware of that overseas phone call from someone offering you something too good to be true.
Some interviews to catch up on:
Standard Bank OST’s Richard Hirsch popped over to the Biznews offices in the past few weeks to talk through some great trading and investment opportunities. Listen, watch of read the transcript of why he earmarked Google as the “perfect trade” and some ideas about the tech board’s newest hot stock Alibaba.
And don’t forget to visit the dedicated Global Investing section of Biznews.com updated daily for the freshest news of investment opportunities available outside of South Africa.
Feedback from the Biznews Community
Dear Alec
I share your sentiments regarding local vs international investments and have started tentatively to invest off shore but as a typical South African have gone the property route – buying an apartment paying 30% in the form of a deposit and the balance has been financed via a mortgage which my tenant is paying off for me. So far so good however I do think the admin fees and all the other charges which just never seem to stop make this a costly investment. Id like to invest more money off shore on a monthly basis but just have no idea where to start. I do believe there is no-one other than oneself to manage your wealth and have little faith in investment and financial institutions so would rather plod along with simple structures that I can understand so I look forward to your newsletters. Possibly more frequently – Monthly seems far too long to wait for these pearls of wisdom.
Thanks for a great newsletter I never go a day without reading it.
Regards
Carey Farrell
Hi Alec
I do find Biznews useful and enjoy your leader each day. I will enthusiastically read Global Investing. I agree 100% with your sentiments about investing offshore and have already sent much of my meagre capital offshore via Allan Grey although 30 years at Treverton College in Mooi River teaching Geography to the likes of Tim Wood hasn’t given me as much as I would have liked.
Keep up the good work and thanks
Tony Hambly
Thanks for your monthly letter.
I must confess that my personal level of frustration and disgust with our Government’s lack of leadership in all things economic and the levels of corruption peaked some years ago and so I made the decision then to look at opportunities beyond our borders. I mean, loyalty to the flag only goes so far!
Before reading your letter below, I was travelling in my car earlier this morning to an appointment and tuned in to the ANC’s (radio) mouthpiece. I became engrossed in an interview between Ike Phaahla and Jeremy Cronin, one of the leftist loony’s in charge of a critical department. Truly amazing stuff.
After reading your letter it occurred to me what a wonderful interview it would make if you were to be the interviewer (instead of Ike) and press Mr Cronin on the doctrine he so vigorously espouses.
Regards
Cliff Hall
The post Read Alec Hogg’s new Global Investing newsletter appeared first on BizNews.com.