12 February 2011

Diversify your assets - also geographically!

The history of the past 100 plus years has provided ample illustration for the fact that even the mightiest empires may fall. So any investor is well advised to plan for the worst case scenario - however unlikely it may appear at the moment. The costs of doing so are very moderate in comparison with the potential gain: to have a nest egg to fall back on if one has to leave one's country because of political turmoil. As geographical diversification of assets provides a benefit in any case the investor in effect is incentivised to put some - or the larger part - of his assets beyond the reach of the authorities in his homeland.