Rupert comforted by cash

Cape Town – Investment conglomerate Remgro [JSE:REM] continues to be comforted by its large cash holdings in these uncertain times.

This was the message from chairperson Johann Rupert to shareholders who packed the Erinvale Hotel auditorium for Remgro’s annual general meeting in Somerset West on Wednesday afternoon.

Shareholder activist Theo Botha noted that Remgro’s cash pile – mainly held in foreign currencies - would extend to over R5bn following the sale of the company’s stake in packaging group Nampak [JSE:NPK].

Botha asked if there were any plans to invest the cash.

Rupert responded: "I can’t tell you. Is there going to be inflation or deflation? You tell me."

He noted that acquaintances that he held in high regard were currently sitting on cash.

Rupert believed that in this decade there would be big problems but also big opportunities.

He argued that investors needed to ponder the buying power of assets in ten years’ time. "If you extend your investment horizons then you feel more comfortable... that’s why our money is not burning a hole in our pockets."

Rupert also intimated that in times of uncertainty it might be better to err on the side of caution when it came to investments.

Recalling a quote from financier James Goldsmith, Rupert suggested: "If you are in real doubt you probably serve your shareholders best by remaining on the sidelines."

- Fin24.com