BN Confidential: Two SA entrepreneurial giants depart for boardroom upstairs

By Alec Hogg.Back in the mid-1980s, when compliance hadn't been thought about and young journos were even worse paid than today, I had the bright idea to start what became the Finance Writer's Golf Club. Its stated intention was to introduce financial journalists to company executives in a relaxed environment. In reality, the club's popularity was due largely to reporters getting to play a monthly round at courses otherwise inaccessible to them..Each event was staged as a team competition, with some companies taking it seriously enough to book the date a year ahead and provide Floating Trophies with the name of the annual winner engraved in the base. It was only years later that it dawned how the club had provided far more than imagined. A round of golf is one of the best ways to see the real person beneath the facade..___STEADY_PAYWALL___.The golf day I looked forward to more than any other was with City Lodge. Not just because it was always held at the exclusive River Club with its legendary fillet steak rolls. Mostly because, as our side's "organiser", I got to play with the disruptive hotel group's founder Hans Enderle, and his long-time pal and fellow City Lodge director Keith Shongwe – as dependable a tonic as you'll find anywhere..Given that he created the business from a single hotel in Randburg acquired in 1985 for R6m (now City Lodge Bryanston), Hans obviously had a serious side. But for me, he was always pure fun. He wore the world like a loose cloak, doing his best to ensure everyone around was better off for being around him. As we always were..I last bumped into Hans a few years years back at the Erinvale Golf Course in Somerset West on a day when the Cape weather had driven everyone indoors. It gave us the opportunity to catch up. He had retired in 2010 and looked fit and happy..This morning I received news that he had passed away on Saturday morning from post-operative complications. He'd had a long battle with cancer..Hans was 77. He leaves his wife Barbara, a son and daughter and three grandchildren. And a mourning team of 2,000 staff at the City Lodge group with its 7,600 rooms in 60 hotels through SA, Botswana, Kenya, Namibia and Tanzania. He was truly a giant of SA business. And a wonderful human being to go with it..Saturday also saw the passing of asset management icon Allan Gray, whose name graces South Africa's most prestigious money management firm. According to the family, Gray, who was 81, died in Bermuda after a heart attack. He is survived by his wife Gill and three children..Despite many attempts, I never got to meet Allan, an excruciatingly private man. He left SA for the Caribbean some thirty years ago, globalising his business through the creation of Orbis, which was one of Biznews's closest partners during my three year stay in London..Before he took his private life underground, Gray was featured as a rising value investing manager by the prestigious Fortune magazine, highlighting the role he had played at helping to establish the US's Fidelity Management, one of the world's major money managers which now has an astonishing $2.5trn in assets under its watch (that's seven times SA's GDP)..Gray, who was born in the Eastern Cape, returned to his homeland in 1973 to found the company which bears his name, introducing the message of long-term value investing into South Africa. He established the Allan Gray Foundation in 2005 and like so many other global billionaires, spent the last period of his life focused on giving away his wealth. Four years ago his stake in the money manager was transferred to the Allan & Gill Gray Foundation whose income must ultimately be used in philanthropy..To quote his cousin Don, whose beautiful tribute you'll find below: "We celebrate the life of a man who, through his philanthropy, changed the direction of many young people and who through his undoubted skill, changed the financial circumstances of many South Africans and around the world.".Don Gray on his cousin Allan:.A gentleman from the first 'meet' Allan, our cousin and wonderful friend, was an icon in the Gray family. He is remembered with endearing thoughts as a man of substance and repute..Born to a family that espoused the old virtues of humility, kindness, pragmatism and selflessness, Allan was the 'leader of the tribe' – not by power but rather by inspiration and example..Never one to make a judgement without questions and detail examination of the principles and background, people who spent time with Allan would always remark – '……he asked me about myself -….but hang on – I did not learn about Allan'. He knew the art of asking questions..Our family came to South Africa from Aberdeen, Scotland in the 1890s. Landing by ship at East London they made their way to Butterworth to start a life in the 'sticks' in those days..Our grandmother took to building – she was a maths' wizard – and had been brought up in the hard days of the Scottish fishing village of Aberdeen. She attended Aberdeen University and wished for a good education for all her children. Grandma Gray' knew what it was to live with little..'Education' was what Allan encouraged all through his illustrious career, supporting the education of talented children in schools around South Africa. '.Grandma Gray had seven children while at the same time running her building company. She built the first hospital in Butterworth..She became the first lady mayor of South Africa – mayor of Butterworth. Maybe different then from what Butterworth looks like today..Allan grew up in East London. Having attended Selbourne College he studied at Rhodes University before joining Deloitte in Cape Town..Married early in life (21 years of age) to a lass from a Port Elizabeth family, his Gill was always the supportive and strong wife. Related to Pam Golding (her cousin), Gill held the family together while Allan built his business. Allan was always involved with the goodness of family life, not just his own but the wider family as well..Time spent at the London School of Economics was followed by his two year 'real' MBA program at Harvard Business School. Thereafter he was appointed as a financial analyst at Fidelity in Boston where he developed his 'contrarian' investment thinking..In the stock market crash of the late 1960s, Allan's Fidelity portfolio grew 10% compared with the underperforming funds of his colleagues..After 10 years in the US, Allan returned to South Africa and started Allan Gray Investment Counsel in Cape Town. Allan recognised the quality of life to be had in South Africa and for his children he wanted them to share in this same experience..He was an intensely private person..He built his 'brand' around one thing only – performance. As he said to me once – '…….in this game you have to be very humble – as what you hold in the way of a value shares today – you may have to change your mind tomorrow'. That was one of his undoubted strengths – his ability to find 'true value' – his contrarian investment approach..The Allan Gray business only took a more public position after Allan had left for Bermuda to exercise his investment skills in the global market. Again motivated by the challenge of working with the best – he would say of his leaving – '…. I'd rather be a small fish in a big pond that be a big fish in a small pond.'.And so he passed the mantle of the quiet Allan Gray 'mysterious brand' to his colleagues the likes of Jack Mitchell (who has since passed on). The team did and continues to do wonderful work – the results remain for everyone to see..Never did Allan Gray 'push' himself. In fact only when he looked to grow the business in fields afar did the Allan Gray brand take a more prominent role in South Africa..But Allan remained true to family and friends. The education of all his nephews and nieces – boys and girls – was his mission. They were all educated through the funds made available by Allan..Further to that work, he established the Allan Gray Orbis Foundation – where support for talented young people became one of his priorities. Anthony Farr was appointed as the able founder with Allan to drive this initiative..The Allan Gray Orbis Foundation continues to build young people to levels that they maybe would have not been able to get to without the funding of Allan and his investment team. Today, Anthony remains a part of the Allan & Gill Gray Foundation where his work is to make work the financial and community legacy for a long time to come..Each year Allan returned to South Africa to spend time with his family. Each family member was dear to Allan. Nephews and nieces were invited to dinner with Allan and Gill in their individual capacity to talk about life and their future – Allan and Gill knew exactly of the academic performance of each 'young Gray' ..Allan made available the fees to pay for any Gray who wished to attend the Harvard MBA school – a foundation that any young person at the time would be honoured to receive..Allan was a good man – in the true sense of the word. He loved people more than he loved money – to him money was the measure of the work he did – his 'scorecard'. Allan Gray did NOT live for money – he knew that if he performed for his clients with strong asset growth, that was enough for the business to grow..A man from humble upbringings who instilled values of honesty, integrity, hope and a vision for the future for those near to him – as well as his clients..Finally, a story related to me by a wonderful fellow of Indian upbringing after he heard of my relationship with Allan. He told me that his mother, well known in the Indian community down the South Coast of KZN, had been one of the original investors with Allan – over 45 years ago..She died in 2017 leaving an endowment of R150 million to her family – not a bad investment for family who 'took a chance' on Allan and live well to tell the tale..We celebrate a life of meaning and value – where giving of himself and his means was for Allan all that really mattered..His life was the epitome of living with the principles of '…..my life for you' – such a difference from what so many of us live by today '….your life for me' –.His life was one I would like to live – but struggle to live – but the heart is there for us all – to live as we should for the lives of others.

BN Confidential: Two SA entrepreneurial giants depart for boardroom upstairs

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