Don’t fret about Brexit

Finweek English Edition - - MARKETPLACE -

A num­ber of peo­ple have con­tacted me with con­cerns about the fact that I’ve been punt­ing Cap­i­tal & Coun­ties Prop­er­ties (Capco), ex­press­ing con­cerns about the fact that Bri­tain could de­cide to exit the EU in the ref­er­en­dum next month. Make no mis­take: an exit would be bad for the pound and the Bri­tish econ­omy. This would im­pact Capco in the short term, po­ten­tially of­fer­ing an even cheaper en­try. I, how­ever, do not be­lieve that the vote will go in favour of an exit and, that be­ing the case, the pound will im­prove and the share will rally. So one can wait and get a lower risk but po­ten­tially pay a higher price af­ter the vote. Ul­ti­mately this is a great stock, re­gard­less of the vote’s out­come next month, and I am of the view (that may end up be­ing wrong) that we’re be­ing of­fered an op­por­tu­nity to buy qual­ity at a de­cent price thanks to con­cerns over the vote.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.