BULL’S EYE: Share buybacks sound cool, but can burn you


BULL’S EYE: Share buybacks sound cool, but can burn you

Traditional wisdom is that when a company buys back its own shares, the price goes up ... well, not always

Jeremy Thomas

I have been a contented client of PSG (https://www.sharenet.co.za/v3/quickshare.php?scode=PSG) since appointing its Konsult division to manage my retirement assets a few years ago. Indeed, after a chance meeting with the grandee of the firm, Jannie Mouton, at a Sunday Times dinner, I have been a fan of most things PSG does. 

I admire its wealth management side for not just staying afloat in this dreary economy but actually growing – despite paying me my monthly tip. But I also like the kind of mini-Naspers (https://www.sharenet.co.za/v3/quickshare.php?scode=NPN) the group has become, beyond its seismic investment in Capitec (https://www.sharenet.co.za/v3/quickshare.php?scode=CPI). 

Keep an eye out for stories by Marc Hasenfuss, who roams the golden boulevards of Bellville to cover PSG offshoots such as Zeder (https://www.sharenet.co.za/v3/quickshare.php?scode=ZED) and Curro (https://www.sharenet.co.za/v3/quickshare.php?scode=COH), plus more fabulous stuff that happens under the radar in its seed-capital hothouse, PSG Alpha...

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