Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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Every year in November the Sunday Times announces their top 100 companies. It is not the top 100 companies to work for nor is it the biggest companies in South Africa but it is really just the companies whose share price has gone up the most over the last 5 years. Ultimately, either a new company or a company whose share price was down substantially 5 years ago is likely to then be the biggest improver over the 5 years.
This year the winner, with its share price up the most over the last 5 years is Capitec Bank where the share price has gone up 45% a year compounded over 5 years followed by Mr Price whose share price has gone up by 43% a year. Another big riser during the last 5 years is Woolworths whose share price 5 years ago was R17,90 and at the time the Sunday Times took the closing price, was at R60.79. What is noticeable, and that is perhaps because share prices have not increased tremendously over the last 5 years, is that to make the 100th position all your company had to do was to have a compounded growth of 3,4% a year. I think that also illustrates precisely how difficult a business environment it has been in recent years, why so many businesses have gone under, and why so many businesses are also struggling.
Posted by Michael de Broglio on Wednesday 05-Dec-12
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Comments
Tans said:
on Wednesday 12-Dec-12 05:14 AM
Seems pretty dangerous to judge a company simply on share price growth - remember this could be breed the Enron-mentality with mark to market accounting and all the inherent evils that brings. Surely there should be other criteria - for example, employee loyalty? Length of service? Share options? Unfortunately the human element seems to be lacking when we evaluate companies. Yet the best companies - read google - seem to be their people first and then leads to substantial profits (a lot more than Capitec will ever see).
Safia said:
on Friday 07-Dec-12 04:04 PM
I would love to have a rich uncle who would leave me few millions. Preferably an uncle from capitec and another uncle from woolworth. but not Warren Buffet ....
Julie said:
on Friday 07-Dec-12 12:23 PM
Service to public has in general become extremely bad. It's no pleasure to go to some "average" restaurants lately. The service at Mugg & Bean in Killarney Mall for instance, is beyond pathetic. If your management sucks, your business will suck and growth will obviously decrease and surely clientelle too. I am amazed at how poorly some place are managed - Pick and Pay in Killarney Mall as well. I blame it on a complete lack of proper training. You CANNOT have a 23-year old manage a supermarket or popular restaurant. Well done to the mentioned companies however.
moenisha said:
on Wednesday 05-Dec-12 03:21 PM
They have not only gone under through inflation but also because we are having endless strikes all over the country.
they are trying to cripple our country
Jessica said:
on Wednesday 05-Dec-12 01:48 PM
It is very difficult these days for businesses and for people in general, with all the inflammation prices of petrol, food, clothes etc.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
