BACKSTORY: David Lerche of Sanlam Private Wealth

What’s your one top tip for doing a deal?  

A bad deal is 10 times worse than no deal, so do your research thoroughly to have confidence in the terms of the deal, and be willing to walk away if it doesn’t meet them.

What was your first job?

My first “real” job was as a trainee accountant at an auditing firm.

How much was your first pay cheque, and how did you spend it?

About R3,400 — this was in 2004. I and a group of colleagues who were also fresh out of university went to a nightclub.

What is the one thing you wish somebody had told you when you were starting out?

There are so many smart people out there — what will make you stand out from the rest are work ethic and passion.  

If you could fix only one thing in South Africa, what would it be?

Corruption, at various levels of society.

What’s the most interesting thing about you that people don’t know?

I once found the strength to lift the front end of a Toyota Tazz off the ground to impress a girl (she was unfortunately quite blasé about the whole thing).

What’s the worst investment mistake you’ve made?

I believed the management team of a micro-cap company when they told me what they would achieve. Fortunately, only my own money was involved and not client funds.

What’s the best investment you’ve ever made? And how much of it was due to luck?

In mid-2009, I had no real money of my own, but I convinced my mother to put a large proportion of her savings into Naspers, which is up about 18 times since then on a total return basis. The extent of the returns does contain an element of luck, but the first tripling was due to thorough analysis of the stock. Also, every cent I’ve ever spent on my own education has delivered handsomely.

What is the hardest life lesson you’ve learnt?

No matter how smart you are or what your level of education is — if you can’t sell your ideas, they won’t be worth much.

What do you consider the most overrated virtue?

Being busy. Many people confuse motion with action. And for me the most underrated virtue is determination to succeed.  

Was there ever a point at which you wanted to trade it all in for a different career? And if so, what would that career be?

I’ve been lucky enough to really enjoy my time in asset management. But if I were to do something else, I would be a car mechanic.

If you were President Cyril Ramaphosa, what would you change, or do, tomorrow? 

I would institute extreme penalties for corruption. I would also liberalise all aspects of education.