close menu

Capitalism and Sable International’s investment philosophy

by Sable International | Jul 09, 2014
  • Creating goods and taking them to market for profit is a process which has been around for many centuries, but the origin of the term ‘capitalism’ remains a topic of debate amongst academics. In recent times it has been used with negative connotations to describe an economy where the owners of capital – the capitalists – are the sole beneficiaries of production, and thus suggests an environment where labourers are exploited for the capitalist’s benefit. This is not the definition to which Sable subscribes.
    1 million ticking clock

    At Sable International, we believe that capital, in the form of investment, is required for any productive venture to get off the ground, and the so-called capitalist will only invest his capital into a project which he deems to have the potential to yield a profitable return. The enthusiastic entrepreneur holding a new idea may not have the means with which to implement his project, and must therefore attract new capital investment. However, in order to attract this capital, he must compete with other potentially profitable ventures, spurring an incentive to differentiate.

    This concept has been well researched and documented, most notably by Nobel Laureates Robert Shiller, who puts forward his case here, and Edmund Phelps, who recently published a book on the topic [1].

    Take Henry Ford as an example. Whilst he may not have invented the motorcar, he forever changed the industry by taking an existing product and innovating the way in which it was manufactured.

    Through his ability to drastically reduce the cost of production, he afforded millions of Americans the opportunity to become vehicle owners, and permanently altered the economic landscape. With it came higher employee wages, and significant returns for the initial backers of Ford’s idea, encapsulating the benefits of the capitalist market.

    There are hundreds of examples like this both historical and contemporary, but the common theme throughout is the capitalist’s desire for monetary reward. Whilst not all of us have vast sums of excess capital with which to back new ventures, we can capture some of this return through tightly-regulated capital markets in the exchange of shares and bonds.

    Our investment portfolios have been constructed with this philosophy in mind, and offer the investor access to the potential returns offered by the efficiency of the capitalist market. However, rather than actively seeking out each firm within which to invest, we will invest your money across the market and skew your portfolio to those dimensions of the market that academia has demonstrated offer a higher investment return over time. This will enable you to capture the returns of capitalist innovation, whilst taking advantage of diversification to mitigate any potential losses on your investment.

    Should you have any queries regarding our investments, philosophy or process, please feel free to contact us.

    For additional reading see:

     


     

    [1] See: Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change (2013)

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Man-on-a-rocket
      Are you a UK contractor? Maximise tax-efficiency by using your pension
      Sep 25, 2018  |  by Bill Monty
    • terraced-houses-in-london
      Are you a UK contractor? Here’s how to get your mortgage approved
      Sep 12, 2018  |  by Marlon Borez
    • property-feud
      The hidden dangers of not having a will in the UK
      Sep 07, 2018  |  by Sherron Alexander-Bedingfield
    • carrot-incentive-running-track
      UK pensions: Between a QROP and a hard place? Or is it a damp SIPP?
      Jun 21, 2018  |  by Niel Pretorius
    • piggy-bank-dollar
      What to do with your living annuity when you retire abroad
      Jun 11, 2018  |  by Niel Pretorius
    • house-london
      In the UK, mortgage inaction is pickpocketing thousands of homeowners
      Jun 07, 2018  |  by Bill Monty
    • Hand-currency-blue
      Saying goodbye to South Africa? Financial emigration can give you access to your RA before you turn 55
      Apr 13, 2018  |  by Niel Pretorius
    • Dubai_skyline
      Lessons learned on a trip to Dubai: South Africans take note
      Nov 10, 2017  |  by Mike Abbott
    • Piggy-banks-thinking
      Financial emigration: Transfer your retirement annuities out of South Africa
      Oct 20, 2017  |  by Niel Pretorius
    • row-of-houses-UK
      Bank of England overhauls mortgage affordability rates: Here’s what you need to know
      Oct 09, 2017  |  by Ian Henning
     
     

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120

    Durban

    201 The Annex
    Ridgeside Office Park
    Umhlanga +27 (0) 31 536 8843

    United Kingdom

    London

    Castlewood House
    77/91 New Oxford Street
    WC1A 1DG +44 (0) 20 7759 7514

    Croydon

    5-7 Selsdon Road
    South Croydon
    CR2 6PU +44 (0) 20 7759 7581

    Australia

    Melbourne

    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services License issued by ASIC to deal in foreign exchange (1st Contact Group - AFS License number 335 126).

    This site uses cookies, read more or close this notice.