By Alec Hogg
A quarter century ago, when I had the privilege of working closely with my former mentor Dr. Danie Cronje, he bestowed numerous valuable lessons. However, none were as significant as his insistence on the importance of travel, particularly international trips which he likened to obtaining a fresh university degree.
Over the years, I have heavily relied on this advice, opting to embark on flights even when staying home would have been more convenient. Specific examples are my annual visit to Davos, as well as the pilgrimage to Omaha for the Berkshire Hathaway event, until it became available through a live webcast.
___STEADY_PAYWALL___Unfortunately, yesterday marked the demise of any remaining hope for Steinhoff shareholders who had been clinging to the possibility of a miracle. A Dutch court ruled in favour of management’s WHOA proposal, eradicating the last perceived value that shareholders still held. As a result, the shares plummeted by over half, ending at an all-time low of 11 cents following the news.
In December 2017 when the Steinhoff scandal erupted, we owned the stock in the BizNews model portfolio. Just two days later, we sold it for R6.50. While there was a brief period during which optimists drove the price above R10, the subsequent five years has been like Chinese drip torture for ever hopeful shareholders (see above).
Those who follow the portfolio avoided such agony by adhering to Warren Buffett’s wise counsel, gained from one of the Omaha AGMs. He explained the best time to sell after a scandal hit a company you co-own is immediately. Because, in Omaha speak, when you see one cockroach in the kitchen, its family is sure to be nearby.
Sterkte.
Alec
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