The Rupert Empire

A Lesson in Long-term Strategy

- Marcia Klein

Richemont, Reinet and Remgro were founded and are still to a large extent controlled by the Rupert family. These stocks are invested in a diverse array of sectors, from jewellery and food production to healthcare, and have rewarded patient long-term holders well. But will the old adage of “slow and steady” continue to ring true?

It must irk Johann Rupert to know that the Google search of his name has been captured by wmcleaks.com, which not only managed to secure the top search under his name, but also alleges that he owns or controls all of South Africa’s banks, auditing firms and its media.

It goes further, alleging that he has a “team of scoundrels” in state institutions, including the top names at National Treasury and the South African Reserve Bank.

What this site, which has unsurprisingly been linked to the Guptas, fails to mention, are the companies Rupert actually owns and controls, which cover a broad spectrum of the South African economy, as well as some substantial offshore assets.

Whether he is called one of SA’s best investors or the symbol of white monopoly capital, the implication is that Rupert has made exceptional profit from his investments, and various rich lists bear this out.

So should you “bank” where Rupert banks and invest in Richemont, Remgro and Reinet, the companies under his control? Or, more specifically, should you be investing in them at this time?

The Rupert family has accumulated its wealth over decades, and long-term investors have benefitted as he has. The question, however, is whether he has kept these companies relevant as investment propositions for now, and the future.