DIAMONDS & DOGS: Is a portfolio without geographic diversification sheer lunacy?
A quick glance around the political and economic landscape should show that it would be an act of sheer lunacy to construct a portfolio without a large portion of geographic diversification, writes Jamie Carr
Mapping out successThe great Miguel de Cervantes is cited by some experts as the father of modern portfolio diversification, with his advice in 1605’s Don Quixote that the wise man should “not venture all his eggs in one basket”. Giovanni Torriano, writing in 1666, picked up the theme and tweaked it with his stipulation that one should not “hazard all in one bottom”. Here of course the word bottom refers to a ship, rather than any Kardashian-style protuberance the fevered imagination may conjure up. A quick glance around the political and economic landscape should suffice for even the most patriotic of investors to agree that it would be an act of sheer lunacy to construct a portfolio without a large portion of geographic diversification.There’s nothing like having a few tons of Rolls-Royce’s finest sitting in your driveway if you want to announce to the world that you’re the bloke Daddy Warbucks approaches when he’s a bit light at the end of the month. Nor is there anything wrong w...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.