Where Dawie Roodt will invest his money in 2025

Award-winning economist Dawie Roodt recommends a diversified investment portfolio this year, including local and international stocks and South African bonds.

Roodt is the Efficient Group’s founder, director, and chief economist. The company has 77,000 clients across South Africa and manages more than R30 billion in assets.

Smart Money’s Alishia Seckam asked him which investments he would advise South Africans to optimise returns and safeguard their wealth.

He highlighted that an investment portfolio differs significantly from one individual to the next based on their personal needs and characteristics.

Generally, Roodt said he liked to diversify his investment portfolio with a big portion of international assets.

South African equities are reasonably cheap compared to global standards, offering a good investment opportunity.

Local bonds also offer investors a good yield, making them a good pick for those looking for a stable investment.

Regarding international investments, Roodt said he does not like the United States market as much as others.

“The American equity markets are a bit rich for my liking. I would be careful to go overweight on United States equities,” he said.

However, other international equity markets, like the European market, are more attractive to Roodt. “Some of the companies listed in Europe are relatively cheap,” he said.

He explained that investors can achieve good returns through South African bonds or equities, but they should ensure they also diversify internationally.

Roodt previously explained that buying property in South Africa is not a particularly good investment and associated with many negatives.

The first is that the transaction cost associated with buying property is very high. “Buying and selling property is much more expensive than other asset classes,” he said.

Owning property also comes with many expenses, including rates and taxes, maintenance costs, and levies.

When buying a property for rental income comes with its own challenges. “Collecting rent from tenants is not always easy or guaranteed,” he said.

Roodt said considering all these factors, property is not a good option from an investment point of view.

“I would rather go for something else. If you want to invest in property, rather put your money in a listed property stock,” he advised.