JOHANNESBURG – Amid rapidly changing economic conditions, trends and technology, South African investors seeking to grow their wealth should be wary of attempting to identify the next Bitcoin or Apple. Instead, choosing to invest in well-established, multinational brands with proven track records is a far better predictor of future investment success, says Scott Cooper, chief executive of CybiWealth.
CybiWealth is a low-cost digital platform that enables investors to purchase shares in an offshore investment portfolio of 20 select, high-quality multinational companies including Colgate, Coca-Cola, Unilever, Johnson and Johnson, L’Oréal and Nestlé.
Cooper states that the immediate benefits of choosing to invest in global companies versus tech start-ups lies in their pre-established positions as market leaders, with global distribution networks and a history of reliable capital growth.
“Consider, for instance, that 15 years ago it would have been extremely difficult to predict that Apple would be where it is today. There were perhaps ten other companies that were similar to Apple that simply didn’t succeed in the same way that Apple has. So, when looking at start-ups, you may choose the next market leader, but there’s also a strong possibility of getting it wrong.”
Likewise, he points to the example of Bitcoin, which has plunged some 70% since reaching record highs in December 2017.