PSG.JSE - PSG Group

[wknecht]

PSG has a track record that is in mind-boggling territory. The company is a South African investment holding company. Their biggest investment is in Capitec bank, but they recently completed their biggest transaction ever through Zeder, another holding. I'm just discovering this company (from an MOI interview with Pat Dorsey), and haven't bought it yet, so would appreciate thoughts from folks that may be familiar with the company. A couple notes:

• Since being founded 20 years ago by Jannie Mouton, they have compounded value at 50% annually, with a lot of volatility around that number, and not just huge returns in the beginning.
  
• Their shareholder disclosure and communication is excellent. In addition to great shareholder letters, their website is one of the more investor friendly I've seen. It has management's sum-of-parts valuation (which is mostly marketable securities) as well as history of their recurring look-through earnings, and similar metrics for each of their holdings.
  
• Inside ownership is very large.
  
• A couple concerns include: the fact that they recently issued shares (and they seem to know what they're doing capital allocation-wise), and the underlying investments (which I am unfamiliar with) appear to trade at very high multiples with the correspondent risk that that changes. Also, the founder/CEO is probably nearing retirement (and has described himself as being in 'partial retirement'), but this seems mitigated because one of his sons, who is only 37, has been running the day to day for close to 5 years.
  

Currently this trades at a bit of a premium to management's SOTP valuation, whereas historically it has traded at a 7% discount. If I decide to buy at some point, I will wait for it to trade at discount to that (particularly because Interactive Brokers doesn't appear to support JSE, so a purchase would be very expensive).