Rupert: Market for the brave

Cape Town - Anyone buying into the stock market now should be prepared to hold shares for six to eight years, Venfin chairperson Johann Rupert told shareholders at an AGM on Thursday afternoon.

He said the stock market was for very brave people. "I would not buy a single thing today that I would not be prepared to hold for a long time."

But Rupert reassured Venfin shareholders that their company was in good shape. "It has a lot of cash. It is a sound company and management knows what it's doing."

The Venfin annual report as at end June 2008 showed a cash pile of R1.66bn - of which R879m is denominated in dollars, euros and pound.

Rupert noted Venfin - which is an unlisted investment company with a technology bias - was "in better shape than last year".

Although Rupert asked shareholders to let him off the traditional chairperson's address as he had attended so many AGMs and EGMs in the last few weeks, he still accommodated queries from shareholders about the jittery global economy.

He said the debt was now being wrung out of the world economies. "I've stopped watching equity prices six to eight weeks ago, and have rather been looking at the availability and pricing of debt. It seems the gridlock is slowly unravelling."

Rupert said the next big worry was trade. "When people stop trading then you have real problems."

He said information on the Baltic Exchange - which provides shipping information - suggested charter rates were dropping fast. "Last year you could not find a ship. Now you have shipping capacity available."

Rupert again reiterated that exchange controls were a blessing in disguise, helping to ensure the local banking system was sound.

He also gave credit to former Reserve Bank governor Christ Stals, who "really tightened things up during his time."

- Fin24.com

* The writer holds shares in Venfin.