WORLDVIEW: Value of Naspers’ reputation – quick R1.5bn on German IPO

It has taken Berkshire Hathaway chairman Warren Buffett over half a century to become the world's go-to man for large family owned companies seeking a fair selling price and a secure home for their business. This comes via Buffett's well-earned reputation as a hands-off capital allocator who can be trusted.

South Africa's Naspers appears to have acquired a similar reputation in the global tech field. It, too, has been well earned. Even before that famous $34m investment in 2001 for half ownership of a Hong Kong startup called TenCent, the South African company was admired as a loyal and supportive shareholder.

Just like Buffett, Naspers buys to hold. Despite occasional clamour from some short-sighted shareholders, it has steadfastly resisted the temptation to cash in its profits. That irritates thrill-seeking traders and sometimes means Naspers shares trade at a big discount to their see-through value of its holdings. But this approach is a massive attraction for entrepreneurs looking for a solid Big Brother.

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