The Genius in Naspers’ New Strategy to Continue Creating Value for Investors

Africa’s largest company by market cap, Naspers, has a big problem: over-capacity and over-concentration of its shares in the Johannesburg Stock Exchange (JSE). When one company accounts for 25% of the total value of an exchange (from 5% just few years ago), that firm has a big problem. Why? The stock will tank because market forces will cease working for it, as most pension funds and institutional investors will not buy the stock to avoid over-concentration in a single company. TheseĀ  investing entities do have asset diversification guidelines and risk models they follow. The African media giant Naspers, which owns … Continue reading The Genius in Naspers’ New Strategy to Continue Creating Value for Investors