Saturday, February 08, 2020

Notes from Jannie and Piet Mouton

Notes from Piet's talk:

He agreed with our Curro Price versus Value analysis. 'Price was frothy. Company misunderstood now.' 

He doesn't get a fuzzy feeling from the 27% PSG share price discount to Sum Of The Parts. Is considering options which should be beneficial for PSG shareholders.

 1. Invest in small easy to understand business in a big market (TAM total addressable market)

2. An industry with lazy and inefficient incumbents. Banks were only open weekdays from 10 to 15:00 and only located in the center of town. Opportunity for Capitec Bank (part of PSG)

 3. Key guy in direct contact with customers.

2a. Fragmented industry. Create one 1 brand 1 back office backbone but allow independent decisions locally.

(Reminds me of IKEA beer glass model)

 4. Management, the individual. Provide capital so management can focus on business instead of fund raising.

Work hard and smart in an environment where others are not. Easier to earn 25 South African Rand than 1 GB Pound.

3a. Distribute the guys of quality to the underlying businesses, don't keep them in the central office.

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