ANALYSE THIS: Cadiz’s Razeen Dinath
We analyse head of equity research at Cadiz Razeen Dinath
If someone came to you tomorrow with R100m to invest in just one company, which would it be?
Berkshire Hathaway. To put a large amount in just one company is risky. The best way to limit the possibility of losing all of the capital is to buy a high-quality business with low financial risk run by great management at an attractive price. Berkshire Hathaway has diverse operations which have been meticulously pieced together by Warren Buffett and Charlie Munger over a long time and has the firepower to take advantage of any market dislocations which could turn a modest but appealing prospective return into an excellent return.
What travel experience is on your bucket list?
Japan is a fascinating country with a unique and intriguing culture which has achieved a lot of success after the destruction it suffered during World War 2.
Which talent would you most like to have?
The ability to build an artificial intelligence system that can be used in investment research.
What was your first job?
Working in my parents’ takeaway business after school.
How much was your first pay cheque and what did you do with it?
My first full-time job was as an articled clerk and my salary was R3,500. Besides using it for rent, fuel and food, I gave a small gift to my grandmother.
If you could fix one thing in SA today, what would it be?
There are so many things that need to be fixed, but we need to put in place the right environment and infrastructure to create lots of jobs and eradicate poverty.
What’s the best investment you’ve ever made?
I took a salary cut and gave up my senior position at a fantastic business to pursue my passion for investing. Sometimes you have to take a step back to go forward in a different direction.
And the worst?
Selling Coronation at R18, before it went over R100. I learnt that selling a great business that is still growing rapidly is a bigger mistake than buying a lemon and taking a loss.
If you found a lottery ticket tomorrow that had won $100m, what would you do with it?
Invest 95% of it and use the return on the investment to fund orphanages, with the balance going to my personal retirement fund.
What’s your favourite song?
I don’t have a favourite song, but I have recently downloaded the Blinkist app, which provides key takeaways from over 2,500 books, and I listen to this to and from work.
On what occasion do you lie?
I believe that honesty is a vital characteristic of good character, so I try my best not to lie.
If you could turn back time, what would you change in your life?
I believe that it is always best to look at someone who is less fortunate than yourself to find contentment in what you have. Painful experiences build character, so it is best to learn from mistakes and focus on improving your future.
What is your greatest extravagance?
I really enjoy playing golf, but this takes up time and costs money.
Do you own bitcoin or any other cryptocurrencies? And why?
No. The main reason I didn’t buy bitcoin was due to the ability to create unlimited supply of competing cryptocurrencies. This indicates that cryptocurrencies are a commodity which should have a low intrinsic value.