Companies category

Companies

We ignore market sentiment and look for businesses we believe are undervalued. We sell them when they reach our estimate of fair value. Here we provide our views on a selection of companies and sectors. 

Articles in "Companies"

Companies category

How has your investment been impacted by the fall in the price of Steinhoff?

By Andrew Lapping on 11 Dec 2017

reading time: 2 mins

Global retailer Steinhoff International Holdings NV’s share price had fallen 86.9% by close of trade on Friday 8 December, following CEO Markus Jooste’s...

Companies category

Woolworths: Value investing in action

By Andrew Lapping on 23 Nov 2017

reading time: 4 mins

It can be difficult for investors to choose an investment manager when many of us seem to sound and look the same. Using Woolworths as an example, Andrew...

Companies category

The benefits of being counter-cyclical in a cyclical world

By Rory Kutisker-Jacobson on 24 Oct 2017

reading time: 13 mins

“Prediction is very difficult, especially about the future.” – Niels Bohr. In cyclical industries, understanding where we  are in the cycle and acting...

Companies category

Allan Gray welcomes new Group Five board

By Leonard Krüger on 24 Jul 2017

reading time: 1 min

Allan Gray welcomes the results of today’s Group Five shareholders’ meeting, where eight individuals were elected to serve on Group Five’s board as...

Companies category

Barclays Group Africa: Seizing the opportunity

By Simon Raubenheimer on 20 Jul 2017

reading time: 9 mins

Earlier this quarter our clients had the chance to participate in a rare opportunity: on 31 May 2017, UK-based Barclays PLC announced the sale of 33.7% of BG...

Companies category

Allan Gray condemns Net1 CEO severance payment

By Andrew Lapping on 31 May 2017

reading time: 1 min

Allan Gray notes with outrage the financial settlement claimed by Serge Belamant upon his retirement as CEO of Net1.  We are very surprised that Mr Belamant...

Companies category

Net1 announces Serge Belamant’s retirement

By Andrew Lapping on 25 May 2017

reading time: 1 min

Net1 has announced that Serge Belamant will retire as chief executive officer (CEO) and director of the company at the end of this month and Herman Kotzé,...

Companies category

Net1: Do the right thing

By Andrew Lapping on 17 Mar 2017

reading time: 3 mins

We are very concerned about the situation surrounding Net1 – both the immediate need to ensure that 17 million beneficiaries receive their payments on time a...

Companies category

Clarifying our position on Net1

By Rob Dower on 09 Mar 2017

reading time: 6 mins

There has been a lot of press coverage on Net1, the parent company of the current social grants payment provider Cash Paymaster Services (CPS), much of which...

Companies category

An investment case for Life Healthcare

By Ruan Stander on 31 Dec 2016

reading time: 8 mins

Recent news about private hospital operator Life Healthcare’s international investments has created negative sentiment about the company’s ability to allocat...

Companies category

Ownership responsibilities: Focus on remuneration policy

By on 27 Jul 2016

reading time: 1 min

As we discuss in detail in our Policy on ownership responsibilities, we believe that a company’s remuneration policy should aim to attract and retain compete...

Companies category

Commodities: Opportunity or risk?

By Mark Dunley-Owen on 31 May 2016

reading time: 4 mins

We are ‘bottom-up’ investors who pay more attention to valuations than to macroeconomic forecasts. We do extensive research to calculate what we believe is...

Companies category

Africa ex-SA Equity Fund: Finding value in Nigeria

By Andrew Lapping on 01 Apr 2016

reading time: 4 mins

The first quarter of the year was particularly volatile. The Africa ex-SA Equity Fund closed unchanged for the quarter, masking substantial intra-quarter mov...

Companies category

Top quality

By Jacques Plaut on 31 Mar 2016

reading time: 8 mins

Richemont is one of the world’s top luxury goods companies. It sells watches, jewellery, pens, clothes, and even guns. Its most well-known brand is Cartier....

Companies category

South African Banks: Do valuations support the risks?

By Mark Dunley-Owen on 31 Mar 2016

reading time: 9 mins

There has been much volatility in the banking sector over the last few months: Barclays is exiting Africa, Old Mutual may be selling its stake in Nedbank,...

Companies category

Manufacturing in meltdown

By Simon Raubenheimer on 30 Jun 2015

reading time: 13 mins

The manufacturing sector is currently in a woeful state. Simon Raubenheimer discusses why we are where we are. 'The Board of Directors has taken the decision...

Companies category

The sentiment pendulum

By Andrew Lapping on 01 Apr 2015

reading time: 4 mins

Investor sentiment is a delicate thing, which changes with surprising rapidity. Kenyan banks… Three years ago Kenya and the Kenyan banks were very out of...

Companies category

Deconstructing the investment case for property

By Jacques Plaut and Yusuf Mowlana on 31 Mar 2015

reading time: 9 mins

The South African property sector has been a huge winner over the last decade, returning 22% per year compared with 18% for the FTSE/JSE All Share Index...

Companies category

Platinum and palladium: Low-risk opportunities

By Tim Acker on 31 Mar 2015

reading time: 7 mins

Investing in platinum or palladium directly is taking a view that the prices of these commodities will increase. Tim Acker explains why we currently prefer...

Companies category

Building confidence in construction

By Rory Kutisker-Jacobson on 31 Dec 2014

reading time: 12 mins

'Success in investing is not a question of what you buy, it is a question of what you pay.' Howard Marks Buying above-average companies at average or hopeful...

Companies category

Changing the odds

By Duncan Artus on 30 Sep 2014

reading time: 6 mins

Sun International, South Africa's second largest casino and resort operator, is undergoing significant change after a number of years of underperformance....

Companies category

Astral Foods: Unappreciated Quality

By Leonard Krüger on 30 Jun 2014

reading time: 5 mins

Good quality companies at decent prices are hard to come by these days on the local market. Leonard Krüger explains the investment case for Astral Foods.

Companies category

Diamonds in the rough

By Leonard Krüger, Ian Liddle, Birte Schneider, Victor Seanie and Ruan Stander on 31 Mar 2014

reading time: 10 mins

Small- and mid-cap companies make up 16% of the FTSE/JSE All Share Index, but 25-30% of our clients' South African equity holdings. Although many of these...

Companies category

Gold and platinum mines: 'Eating sardines' or 'trading sardines'?

By Ian Liddle on 31 Dec 2013

reading time: 12 mins

"There is the old story about the market craze in sardine trading when the sardines disappeared from their traditional waters in Monterey, California. The...

Companies category

Standard Bank: Has anything changed?

By Mark Dunley-Owen on 30 Sep 2013

reading time: 7 mins

Standard Bank is a Top Five holding in the Allan Gray Equity and Balanced Funds. Mark Dunley-Owen discusses why we believe it is an attractive investment for...

Companies category

Sasol: A history of underestimation

By Rory Kutisker-Jacobson on 30 Jun 2013

reading time: 10 mins

Sasol is our clients' largest equity investment. Founded in 1950 and listed in 1979, Sasol's core business is to produce synthetic liquid fuels and chemicals...

Companies category

Buy OUTsurance

By Ruan Stander on 31 Mar 2013

reading time: 6 mins

In capitalism it is most often the case that competitive advantages do not last. One only needs to think about the ongoing competition between cellphone...

Companies category

Tobacco economics

By Ruan Stander on 30 Jun 2012

reading time: 8 mins

Most industries have a single factor that helps investors to understand them better. Unfortunately for investors looking for easy wins, it does not necessari...

Companies category

Insurance: better than you think

By Duncan Artus and Leonard Krüger on 31 Mar 2012

reading time: 7 mins

We have previously set out the reasons Sanlam has an above-benchmark position in our clients’ portfolios (see Quarterly Commentary 1, 2010). On a...

Companies category

Anglo American: Getting what you pay for?

By Rory Kutisker-Jacobson on 31 Dec 2011

reading time: 9 mins

As contrarian investors we are always on the lookout for assets which we can buy for less than our estimate of their intrinsic value. As a result, much of ou...

Companies category

Money for everyone

By Jacques Plaut on 30 Sep 2011

reading time: 7 mins

Microlending has a history that can be traced back to 3 000 BC. Throughout this period people have shown a tendency to become over-indebted, and when this...

Companies category

An alternative view of commodity demand and supply

By Mark Dunley-Owen on 30 Jun 2011

reading time: 5 mins

In Quarterly Commentary 1, 2011 Sandy McGregor discussed how high commodity prices are being supported by the mining sector's inability to keep pace with...

Companies category

The investment case for Royal Bafokeng Platinum

By Rory Kutisker-Jacobson on 31 Dec 2010

reading time: 7 mins

On a relative basis, we believe Royal Bafokeng Platinum represents the most attractive value in the platinum sector. Upon listing, the Royal Bafokeng Nation...

Companies category

You win some...

By Delphine Govender on 30 Sep 2010

reading time: 11 mins

Building and managing a portfolio of investments inevitably includes shares that will prove to be winners but also those that will fail to deliver on their...

Companies category

The investment case for BAT

By Simon Raubenheimer on 30 Jun 2010

reading time: 9 mins

British American Tobacco provides the rare opportunity to invest in a superior quality business in a stable industry at a discount to the average company. Wi...

Companies category

Sanlam justifies heavy weighting

By Ruan Stander on 31 Mar 2010

reading time: 7 mins

The recent financial crisis was a stark reminder of the impact that management has on the wellbeing of a financial services business. With complex products a...

Companies category

Why Sasol is our preferred resource share

By Andrew Lapping on 31 Mar 2010

reading time: 8 mins

Sasol's share price has fared poorly over the past year compared to the 28% appreciation of the FTSE/JSE All Share Index (ALSI). Going forward, Sasol will be...

Companies category

South African banks - Not just a bad debt story

By Jacques Plaut on 30 Sep 2009

reading time: 7 mins

Record-high bad debts are currently weighing on the banking sector. Typically, an industry experiencing depressed profits due to cyclical factors is a good...

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