The greatest mistakes are of omission, not commission
By Alec Hogg
South Africa's favourite stockbroker David Shapiro is too independent to pull punches. Yesterday he gave Tiger Brands a roasting on our CNBC Africa Power Lunch show – asking why no heads had rolled after a disastrous Nigerian acquisition where almost R1bn has been written off.
Tiger's sorry story once again emphasised the high cost of making a mistake. CEO Peter Matlare is being roasted by the likes of my interviewing self and Mr Shaps because he overpaid for Dangote Flour Mills. But life is full of paradoxes. Including this one.
Shareholders should applaud Matlare for not sitting on his hands. A surging share price reflects demand from global investors who've bought the African story. They regard Tiger as an option precisely of the strategy that led to its Nigerian black eye. These investors appreciate the biggest mistakes, by far, are those of omission rather than commission. So keep committing Peter. Even if you do make the odd mistake. It's far better than doing nothing.
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