Microsoft is diversified

The combined market capitalisation of all the shares listed on the JSE is around $1.2 trillion. Microsoft has a market cap of $3 trillion, operates in over 200 countries, has annual revenues of $211 billion and sits on around $100 billion in cash and cash equivalents.

Why am I telling you this? Because our clients often get advised by outsiders that a Vestact portfolio is risky because it is too focused, which is complete rubbish. I would argue that a portfolio that consisted only of Microsoft shares is less risky than a fully diversified portfolio of JSE stocks. Just that one company is bigger, has better financial fundamentals and is more diversified geographically than any portfolio of JSE stocks. Plus, they service every industry on the planet.

Not only is a Vestact portfolio risk appropriate, but is far more liquid and transparent than any crappy fund-of-funds your financial advisor might be pitching. With us you know exactly what you own and you can get your money back in 1 working day. We regularly see how long it takes for clients to extract money from their investments with big-name South African financial service providers. It's painful and slow going.