ANALYSE THIS: Stanlib Equities’ Ndinavhushavhelo Rabali
We analyse Ndinavhushavhelo Rabali, portfolio manager at Stanlib Equities.
If someone came to you tomorrow with R100m to invest in just one company, which would it be?
Sanlam. You won’t find many financial services companies that give you exposure to diversified emerging market economies, but Sanlam does that right on our doorstep. I love investing in long-term compounders that allow me the opportunity to sleep peacefully at night while growing my investments — Sanlam fits the bill for me.
Which talent would you most like to possess?
I think (and know) that I am an excellent football player, but my friends think otherwise. It would be nice to close this "perception" gap.
What was your first job?
I started my career in 2004 as a market risk consultant at Investec. I worked on a research project on risk calculation methodologies for the trading desk. It was while working on it back then that I realised that I hated the idea of being a policeman and needed to be on the front-line making investment decisions.
What’s your biggest regret?
Not learning how to play golf.
What is the worst investment mistake you have made?
Back in 2006, I invested most of my savings into a highly geared option on Edcon. I lost 30% of my savings in the next four months. I decided to sell and take the pain on the chin. A few months later, Edcon shareholders received a buy-out offer from private equity investors. If I had been just a little more patient, I would have made three times more on my investment. I learnt then that time is of the essence when investing, and not to invest in instruments that lose money simply because time is moving on.
What’s the best investment you’ve ever made?
At university, before I got inculcated into the world of professional investing, I bought Awethu breweries at 3c and sold at 9c after six months. Though I would never take such a decision today, it brings a big smile to my face when I think of the simplicity with which I made this investment. All I did was search the JSE for a 10c company trading at the very bottom. My philosophy back then was to buy companies trading at 1c/share (very low probability of going to 0), but it could easily rise to 2c/share which would easily be a 100% return on the investment.
If you found a lottery ticket tomorrow that had won US$100m, what would you do?
I would give it away to charity just as quickly as I found it.
What’s your favourite song?
I spend most of my time listening to gospel songs and hymns. My favourite song is "Criminal On The Cross" sung by the group Acapella.
On what occasion do you lie?
My kids hate eating vegetables and I don’t have the patience to force the issue. So I make them fresh orange juice and I quietly add some broccoli or carrots into the mix. When they complain that the taste is funny, I assure them that it is 100% homemade orange juice and nothing else.
Your greatest extravagance?
I don’t believe in being extravagant. We live in a country where many people cannot afford basic commodities and I believe that it would be highly irresponsible of me to display extravagance.