The Vodacom brand is no stranger in South Africa or Africa as a whole, servicing over 500 million customers and holding a market-leading position in six countries, including Tanzania, Lesotho, Egypt, and South Africa.
Nomtha Ngumbela
Despite a slew of difficulties and multiple changes, the Group has emerged with the intention of restoring earnings and returns profile back to its former glory, and a performance that signals to Umthombo Wealth that this could well be possible.
The South African minimum wage is a hotly debated topic given that many are of the view that the amount does not represent a figure that any South African can be expected to survive off of as it does not provide the adequate social security a wage should.
In February of 2002, the Capitec share price closed at a price of R1.17. A mere twenty years later, the same company ended August of 2022 at a trading price of R2043.55. A tremendous, mostly upward, trajectory for a company which exhibited a growth path few believed was truly possible.
The volatility in the share price gave us a good opportunity to build a position in the company, as Umthombo believes that Richemont offers a distinctive and sustainable investment case given its solid financial position and consistent ability to generate free cash flows.