Garth Mackenzie’s graphs expose Ramaphoria disaster for investors via “corrupt, inept” Govt.

Former money manager turned independent investor, the well known share market commentator Garth Mackenzie, today quantified the cost to investors of “Ramaphoria”. A series of graphs published on Twitter exposes the “inconceivable” wealth destruction suffered by those who drank Cyril Ramaphosa’s Koolaid after the former trade unionist billionaire assumed South Africa’s presidency in 2018. They are republished, with the author’s permission, accompanied by his comments.

By Garth Mackenzie*

Counting the cost of Ramaphoria: If you’d piled into SA Inc stocks in Feb 2018 on the promise of a “new dawn” and held on, you’d have suffered wealth destruction that seemed inconceivable at the time.

Assuming a $10,000 investment into each of a variety of domestic focused stocks, here’s what your money would be worth today (in USD)…..

Retailers.. a disaster. Only Clicks Group held up somewhat.

Banks….half your dollars gone, unless you owned Capitec

Telecoms… awful. Blue Label down 80% in USD. And this chart doesn’t include this week’s snot-klap for Telkom.

Healthcare… not very healthy. Only MediClinic stands out as a “leader” at minus 22% because it’s about to be taken out..

Listed property? Surely high grade property was a safe place to hide? Nope, Hyprop (Rosebank Mall etc) the worst of the lot, down 84% in USD.

Private education? Kids’ education is the last thing people cut back on, right? Hmmmm… Curro Holdings down 85% in USD

Food Producers? People still have to eat no matter what the economic conditions are..? TigerBrands down 73% in USD.

Fast food and restaurants? Some recovery post the pandemic slump, but still a disastrous investment since those hopeful days in early 2018.

This shows the extent of wealth destruction brought on by a corrupt, inept government. A desperate local economic environment and sharply weaker rand over 5 years have left domestic SA shares looking like a tornado has ripped through them, esp in hard currency terms…

• Garth Mackenzie owns traderscorner.co.za. You can follow him on Twitter @TradersCorner

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