The case of Tongaat Hulett: When sweet dreams turn sour

When you come up with a theory on how a stock will perform, there is a chance that you could be mistaken. The trick is to know when you’re wrong, and to have an exit plan.

Simon Brown

as a kid, I was fascinated by Modjadji, the Rain Queen. She could call the clouds and make it rain. I also loved that she is part of a matrilineal monarchy so her eldest daughter is the heir and males are not entitled to the throne. Now older and wiser, I know predicting rain may be easy, but profiting from it less so. In the middle of last year I started talking about the one certainty of a drought – which is that the rains would eventually return. Putting my investment hat on, I looked for shares that would benefit. I got the rain part right as the rains did return in most areas. But so far, the stock I’d bought to benefit from the rains,Tongaat Hulett*, has not been moving higher.…

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Finweek - English (Digital) - 1 Issue, 19-oct-17

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