Piet Viljoen is one of the few remaining authentic value fund managers in South Africa. And while the investment philosophy has come under pressure recently given the lower returns, Viljoen has remained true to his word. Viljoen is executive chairman of RECM, the investment company he founded in 2003. This is his dream for South Africa in 2017. – Stuart Lowman
By Piet Viljoen*
I dream of a South Africa where our business and political leaders act with integrity and are accountable for their actions, setting an example for the rest of us. In my dream, we live harmoniously as the positive network effects of such behaviour increases the welfare of our society exponentially.
I dream of a South Africa where decisions are based on true long-term cost-benefit analysis, not short term expedience. In my dream, such decisions lead to the benefit of society as a whole.
I dream of a South Africa where quality education is a national priority. In my dream, a highly educated population is not perceived to be a threat by the powers that be.
I dream of a South Africa where the rule of law is respected by all her citizens, and especially by our leaders. In my dream, criminal activity is not a socially acceptable way to advance yourself.
I dream of a South Africa where the mistakes of yesterday are not seen as the best tool to correct the outcomes of those very same mistakes. Where policies that create confidence and result in growing resources, replace policies that aim to redistribute a shrinking pool of existing resources. In my dream, all of us are better off.
I dream of a South Africa where being in government is not seen as a path to power and fortune, but as an opportunity to serve the country. Where power does not corrupt so absolutely, and ethics doesn’t take a back seat whenever personal and public interest intersect. Where public service is what the name implies, not a conduit for loyal cadres to enrich themselves in a zero sum game with their constituency. In my dream, a virtuous circle of earned trust makes us a strong nation.
I dream of a South Africa where remuneration committees of businesses stop replicating each other’s poorly constructed incentive schemes. Instead they implement true long term schemes which create “skin-in-the-game” situations for business executives. As a result, the country has a positive self-reinforcing system of increasingly valuable local franchises, leading to more jobs, better investment returns for pensioners and an overall increase in wealth for all South Africans. In my dream, local is lekker.
I dream of a South Africa where there is enough wealth to create a proper safety net for those unfortunate enough not able to fulfil their potential, for whatever reason, in my dream, no-one falls through the cracks.
I dream of a South Africa where there is an abundance of mutual trust and earned respect. As a result, government, business and society work together – each in their own sphere of competence – creating a system conducive to wealth generation.
I dream of a South Africa where our shared humanity is emphasised and respected, not our differences.
I dream of a South Africa which is prosperous and where individuals are afforded dignity and opportunity. We have the raw material, all we need is the will to serve each other.
- Piet Viljoen is Executive Chairman of both listed investment company RAC as well as RECM, the investment company he founded in 2003.
