QUINTON IVAN: Offshore heaven?
It’s well-known that the road to hell is paved with good intentions, and in a weak domestic economy, virtually every management team must feel the temptation to diversify offshore
22 August 2019 - 05:00
Warren Buffett frequently uses the concept of the "circle of competence" to illustrate the importance of staying focused. This also applies to capital allocation decisions.
Despite building formidable businesses in a closed domestic economy before 1994, many SA management teams seem to feel that the grass is greener elsewhere. This led many of them to expand offshore, usually by acquisition — mostly with disastrous consequences for shareholders. And it was pervasive: virtually every major life insurer and bank bought some business outside SA...
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