May 18, 2021
Rudi van Niekerk is the Founder and CIO of Desert Lion Capital, a specialist stock fund investing in the unfrequented market of South Africa. Rudi is a fundamental, value-oriented investor that has been able to generate stellar returns with a contrarian, opportunistic and concentrated approach. The frontier of the South African equity market is still a lonely and inhospitable space, which gives investors like Rudi a significant edge. Learn about Rudi’s humble childhood growing up in a farm as well the ‘catalyst ‘ for focusing on intrinsic value.
To learn more about Rudi please visit www.desertlioncapital.com.
To learn more about Richard please visit www.thinkaen.com.
Show Notes:
(01:15) Rudy's Background, Growing up in South Africa, Buffett: The Making of an American Capitalist - Roger Lowenstein
(03:31) CapeTown and South Africa, Roughly 325 Companies in the Stock Market
(05:33) The hunt for companies trading below intrinsic value
(07:28) Generalist versus Specialist Investing
(10:29) Margin of Safety Investing, Occasionally looking at resource stocks, macroeconomic factors
(14:40) Process of idea generation, Organic, Bottoms Up Research
(15:47) How companies can create value
(17:43) Going over the portfolio, concentration, cash and holdings
(20:28) Attending shareholder meetings, speaking with management, overcoming behavioral biases
(23:32) Delving into portfolio holdings, Cartrack Holdings - Smart Mobility SaaS company, fanatical management teams, taking market share
(32:30) Selling criteria, change in growth outlook or fundamentals
(34:51) Common sense approach to investing, Quality versus Cigar Butts, generating high returns
(40:55) Navigating inefficient markets and managing volatility
(43:22) South African stock correlations versus the rest of the world
(45:32) Rudy's current thoughts on South Africa as a whole
(48:28) Closing remarks and contact information