The idea of splitting international assets up into a series of regional portfolios is certainly out of fashion. After all, the headquarters of a company often has little relevance to its sales footprint. Nestlé, for example, gathers far more revenue from emerging markets than from its home market in Switzerland. 

Theoretically, it is possible to diversify a portfolio with eight or nine shares, but I certainly wouldn’t be comfortable with the specific risk inherent in such a portfolio. Imagine if one of those shares was JSE bomb Steinhoff, for example...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now