ANALYSE THIS: Investec’s Andrew Joannou
We analyse Andrew Joannou, portfolio manager at Investec Asset Management
If someone came to you tomorrow with R100m to invest in just one company, which would it be??
Corruption. I’m pretty sure that if we don’t end corruption our infrastructure will collapse, our honest entrepreneurs won’t be able to compete and eventually SA will default. The solution is pretty simple. We need to re-establish the rule of law and start holding corrupt individuals to account.
What’s the worst investment mistake you’ve made?
Selling Cashbuild at about R20 a share in 2004. That said, it was also one of my best investments, having bought it at about R4 a share. But it would have been nice to have held it all the way to R500 a share.
What is your greatest extravagance?
A custom-made sword cane.
Big Tech or old-fashioned industrial stalwart?
Old-fashioned industrial stalwart. I buy "low expectations"; Big Tech almost never prices in low expectations.
Why small caps?
I love the focused business models and the direct impact management can have on the direction of the company. I also love that they are not well covered by the larger investors due to their poor liquidity. This provides good investment opportunities.
Do you own bitcoin or any other cryptocurrencies?
No. I don’t understand how to assess its worth. I always ask myself: "If this asset fell 50% tomorrow without any real fundamental change, would I buy more?" I would want to sell bitcoin if this happened, not buy.
Facebook, Twitter or Instagram?
None. I really dislike social media and strongly believe society would be better off without it.
How much of a portfolio should be for the wildcard picks?
None. I believe the best returns are made by concentrating as much of a fund’s weight as possible in your best ideas.
Do you listen to podcasts? Which are your faves?
Yes, mainly with my daughter on the way to school. Her faves are therefore my faves. Some of them are "Brains On", "Tumble" and "Good Night Stories for Rebel Girls".
Art, wine, rare books or cars?
Rare books. I love knowledge and rare knowledge might be hiding in rare books.
Do you cycle?
No. There are still a few fund managers in Cape Town who don’t cycle. I’m one of them.