Introduction In 1951, a twenty-one-year-old Warren Buffett wrote an article about GEICO titled “The Security I like Best”. He begins by admitting the broader market was “riding [the] wave of prosperity”, but that the auto-insurance industry had not shared in this ride and was home to many under-priced stocks. In the article, he outlines GEICO’sContinue reading “Cartrack: A Deep(er) Dive.”
Category Archives: Companies
PBT Group: An undervalued spinoff with strong industry tailwinds.
The PBT Group, previously Prescient, was an amalgamated financial services and business technology service provider. In 2017 they spun out their financial services holding to focus exclusively on business technology and data analytics…
Sygnia Limited: A scalable disruptor in a growing industry.
SYG is a passive-strategy asset management firm based out of Cape Town, South Africa. They are run by an intelligent and divisive owner-operator in Magda Wierzycka. As market leaders in the passive investment …
Santova Limited: Tech-enabled, steady growth and a low-price tag.
SNV is a resilient, well-run business, which is well positioned to capitalise on broader market adoption of newer technologies. Its offerings confer cost-savings benefits to clients that occasionally exceed the cost of purchase…
Alaris Holdings: A case study on intelligent international expansion.
Alaris is a Radio Frequency (RF) oriented company which designs, manufactures, and supplies defence and specialised antennas. It has historically been underfollowed and under-priced by the market and has undergone a period of acquisitional and organic growth over the past 6 years which has not been accounted for by the market…
Stadio Holdings: Strong growth prospects in an undersupplied sector.
Stadio (JSE:SDO) is an investment holding company containing a collection of private higher education institutions. It listed on the JSE 3 years ago and has since outperformed every target management has set for it…
ISA Holdings: The investment thesis and a case study on mental models and factoring for ignorance.
At the current price level, ISA Holdings provides the opportunity for a very lopsided bet on a cash generative company with an excellent managerial track record, growing dividends, and solid industry headwinds…
Afrimat: A High-Quality Acquirer.
Afrimat is a BEE-certified company specialising in mid-tier open pit mining. It produces industrial and construction materials (like limestone, various bricks and cement) and as of 2016, iron ore. At the time of writing, its shares are trading at R24.8/share…
African Rainbow Capital Investments: A Growth bet at a Deep Value price (Part 2)
This is the second of a long, three-part article. Here is the first. If you are interested and looking to invest into ARC, we recommend reading the whole thing. Should you be pressed for time, you can skim the bold sections and you will get the gist of it all. If your interest is merely cursory or a fleeting thought, then we would recommend the “Explain Like I’m Five” section of the summary above.
African Rainbow Capital Investments: A Growth bet at a Deep Value price (Part 1).
ARC Investments is a holding company trading at a very significant discount to the sum of its parts. It offers access to high-growth potential subsidiaries (Rain and TymeBank), as well as very quality companies (Afrimat and Alexander Forbes) all well below their intrinsic value (shares trade at approximately 50-70% discount to NAV)…
Vineyard Holdings 