How long have you been investing and what got you started?
I have been investing since 1997. I started working in 1996 at an investment company and the JSE was in the middle of a great boom. My colleague and I started a joint portfolio of shares with the aim of retiring by the time we were 35. I missed that target by a few years, but starting early was certainly a massive benefit to me.
What was the first ETF you bought and why did you buy it?
My first ETF was also the first ETF available in South Africa – the Satrix Top 40. I was really excited about index investing and thrilled when the Top 40 ETF was launched. I still own the ETF and it remains one of my best performing investments.
How many ETFs do you currently hold?
3, as well as some index-tracking unit trusts.
What’s your favourite local listed ETF, and why?
It has to be the Satrix Top 40 because it represents the bulk of the local stock market value. It is also low cost, well managed and highly liquid.
What’s your favourite offshore listed ETF, and why?
The Vanguard FTSE All-World High Dividend Yield UCITS ETF, because it’s low cost, listed outside of the USA and provides exposure to high quality dividend paying shares around the world.
Do you also hold individual shares?
I only own one individual share in South Africa – Afrimat (the best management team in the country). Offshore, I own Berkshire Hathaway, Scottish Mortgage and Personal Assets because of the great portfolio of companies each of these three businesses own.
If you’re holding individual shares, what is the percentage split between ETFs and shares?
More than 50% of my investments are in index-trackers. I also own index-tracking unit trusts as these are ideal for my retirement funds.
You can find Warren on Twitter @warreningram and his weekly podcast is here.
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.