IN­VEST­ING IN THE TECH SU­PER­STARS

TECH COM­PA­NIES LIKE AMA­ZON, AP­PLE, GOOGLE AND FACE­BOOK HAVE CHANGED THE WAY WE WORK, SHOP, LIVE AND PLAY. HERE'S YOUR GUIDE TO IN­VEST­ING IN THESE WORLD-FA­MOUS HOUSE­HOLD NAMES.

Finweek English Edition - - FRONT PAGE - By Mar­cia Klein

eq­uity in­vestors in South Africa tend to think they are lim­ited to the few hun­dred shares trad­ing on the JSE. In fact, they can in­vest in any share on any ma­jor ex­change in the world. The most al­lur­ing and ob­vi­ous off­shore in­vest­ment op­tions are the fast-grow­ing big tech stocks – Ama­zon, Ap­ple, Al­pha­bet (Google) and Face­book – as one of the only lo­cal op­tions is to in­vest in­di­rectly in Chi­nese in­ter­net group Ten­cent via Naspers*.

“They are rapidly grow­ing com­pa­nies with in­her­ently high mar­gins.”

“What many in­vestors get wrong is that they think these stocks are ex­pen­sive from a val­u­a­tion per­spec­tive,” says Coro­na­tion Fund Man­agers’ global emerg­ing mar­kets an­a­lyst Marc Talpert. “But they are rapidly grow­ing com­pa­nies with in­her­ently high mar­gins.

“The tech sec­tor is hugely dis­rup­tive and it is im­por­tant to un­der­stand the ef­fect on other in­dus­tries like re­tail.” It may not be as ev­i­dent in SA, but in the US, “the rate of store clo­sure is phe­nom­e­nal at the mo­ment”.

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