Investing: Finding the next big thing

Renier van Zyl, Global investment specialist at Efficient Wealth

Have you ever tried to find the proverbial investment needle in a haystack? In a world with more than 41 000 exchange-listed companies, at a combined market value of more than USD 80 trillion, global investing decisions can feel like trying to find a needle in a haystack. How do you approach this vast listed landscape to preserve and grow wealth over long periods?

There are only about 310 listed companies in South Africa, and the number is shrinking every year. For this reason, it is increasingly important to diversify your portfolio with offshore investments. Offshore markets offer investors greater diversity, including access to long-term options that are not available in South Africa. These include the transition to cleaner energy, the need for cybersecurity, global infrastructure spending and the ongoing investment in automation. Diversification of this kind is what the United States economist and Nobel Prize laureate Harry Markowitz considered the only free lunch in investments ─ where the whole is greater than the sum of its parts.