ANALYSE THIS: Sasfin Wealth’s Lwando Ngwane
We analyse Lwando Ngwane, Sasfin Wealth equity analyst
If someone came to you tomorrow with R100m to invest in just one company, which would it be?
Estée Lauder. Beauty will never go out of fashion. I think Estée Lauder offers resilience, given its brand strength in skin-care products. Its recent results proved that it is a brand that continues to exploit trends in the beauty industry and strategically position itself to outperform its peers by focusing on its key growth areas and gaining market share. I believe it offers more growth potential in the Asia Pacific region.
Do you own bitcoin or any other cryptocurrencies? Why?
No. Bitcoin and cryptocurrencies remind me of events like "Tulip mania". I generally like to calculate my risks and anything that reaches extraordinarily high levels makes me nervous about a dramatic collapse.
What was your first job?
While I was a university student I worked as a customer care agent for a company that was outsourced by Vodafone UK. It was a low-paying job with unpleasant working hours, but on the positive side, I made extra money, upskilled my phonetic alphabet and learnt how to differentiate between various UK accents.
Which talent would you most like to have?
Precognition. Having precise foresight into stock performances and the markets is a talent that would come in very handy to an equity analyst.
What’s the best investment you’ve ever made?
It was in a dummy portfolio which I created about June 2017. I invested about R250,000 in Anglo American, which was then trading about R178 a share. The share price rallied to just under R326 a share within a year, up 83% between June 2017 and June 2018. I essentially would have made a R207,500 return on my capital in absolute terms had that been real cash.
And the worst?
Again, in my dummy portfolio, investing in Aveng at about 43c a share. I may have had a tad too much faith in the construction industry then. The share has plunged to 4c since.
What’s your favourite song?
You Love Me by Mahalia Buchanan. I’m a big fan of gospel music.
If you could turn back time, what would you change in your life?
I would change my last planned hospital visit to see my father. My grandmother and I had planned to visit him on a Monday but sadly he passed on the Friday before.
On what occasion do you lie?
Mostly when I’m asked: "How are you?" and I give the default "I’m fine" answer when I am far from "fine".
Name a place you’ve been to that lived up to the hype?
The South Coast — Port Edward. Generally, the coastal areas in KwaZulu-Natal get uncomfortably full around the Christmas holiday period. Port Edward, on the other hand, is relatively small, more peaceful and still offers the perfect coastal experience that us "Joburg people" usually yearn for around that time of the year.
If you could fix one thing in SA today, what would it be?
Eskom! I think SA’s fiscus is in a dire state and the operational issues at Eskom have disastrous implications for our country’s economy, especially in industries that contribute significantly to the country’s GDP.
How much was your first pay cheque and what did you do with it?
About R6,000. I remember buying myself a study table and chair. I hardly remember what I did with the rest.