Brimstone: Balancing yield and capital growth
Brimstone Investment Corp has endured, and now holds a well-diversified portfolio of investments with a gross value of more than R11bn
Brimstone Investment Corp was one of the first black empowerment investment companies launched at the dawn of democracy in the mid-1990s. It has endured, and now holds a well-diversified portfolio of investments with a gross value of more than R11bn. In some ways, Brimstone follows the old Rembrandt (now Remgro) model with its main investments being well managed, brand rich, cash-spinning and profitable. The group also prides itself on generous dividend payouts, aligned to its determination to support its large community shareholder base. Co-founders Fred Robertson and Mustaq Brey are still the prime movers, though a new generation is coming through. Robertson and Brey must be acutely aware of the large discount the market is placing on Brimstone’s shares. At the end of December Brimstone showed an intrinsic NAV of 1,615c a share — which, at the time of writing, represented a discount of close to 45%. This is a hectic discount for a counter that has consistently delivered dividends,...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.