When we talk about environmental risk, climate change tends to dominate the conversation. Carbon footprints, greenhouse gas emissions, and net-zero targets fill sustainability reports and shareholder updates.
Talya Ginsberg
In 2003, new legislation came into effect in South Africa allowing non-pharmacists and corporates to own pharmacies—something previously reserved for qualified pharmacists only. This opened the door to the mass corporatisation of the pharmacy industry.
Mr Price is top of mind for South Africans when it comes to retail, with the company’s ubiquitous stores known for affordable apparel, homeware, and sporting goods. While consumers might look to the retailer for a stylish skirt, decent bed sheets, or relatively affordable soccer boots, investors see Mr Price as a solid thanks to its debt-free balance sheet, defensive margins, and high returns on equity (ROEs).
The stock market is often seen as a barometer of economic conditions. Much like people glance at
the weather to decide how to dress, many look at market movements to gauge the state of the economy.
Conventional wisdom suggests that investing in hospital groups should provide investors with a sense of security, as the sector is considered
defensive and non-cyclical.
Like many asset managers around the world, our office is furnished with a TV permanently tuned to Bloomberg — on low volume — from market
open to close. It adds to the asset manager vibe.
This practice is simply a natural consequence of how privatised systems operate, where economic incentives often take priority.
In healthcare, overservicing is an unfortunate side effect of privatisation, driven by financial motives that encourage
unnecessary or excessive treatments, tests, and prescriptions. It’s far more common—and often more insidious—than it appears on
the surface
The dawn of a new year presents an exciting opportunity for asset managers. It is a time to reflect on the past year, with the clarity that
hindsight offers, and to forecast the trends and themes we expect to see in the months ahead.
For those in the know, Hudaco is ideal for preserving and growing capital. This perception might seem counterintuitive given Hudaco’s prominent position in South Africa’s industrial sector—a sector that has been experiencing deindustrialisation for years.
There’s a piece of folk wisdom floating around that suggests 70% of the things we worry about won’t happen; some sources even quote 85% or 90%. The exact number is irrelevant, as the figure is more illustrative than based on empirical research. This nugget of wisdom comes to mind when considering the results of South Africa’s election.