BRIAN KANTOR: Why a holding company is sometimes worth more dead than alive
Market value can be considerably less than NAV if the company is running its offices badly and paying managers too much
28 June 2019 - 05:07
Investment holding companies have long played a large role on the JSE. Two of the more important of them, Naspers and PSG, have provided spectacular returns for their shareholders in recent years.
One hundred rand invested in PSG in January 2010 with dividends reinvested in the stock had grown to R1,435 by late June 2019. The same R100 invested in Naspers would have done almost as well for its shareholders over the same period, having increased its rand value by 14 times...
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