Investing into Compounding Earnings

Rezco Asset Management hosted an investment webinar on 16 July 2026, with Chief Investment Officer Rob Spanjaard and CEO & Portfolio Manager Simon Sylvester presenting views on investing into compounding earnings. As a South African asset manager, Rezco explains how long market cycles, valuation discipline and SA Inc. opportunity sets shape unit trust and segregated portfolio decisions.

What this webinar covers

This webinar replay covers Investing into Compounding Earnings and how Rezco interprets current markets for clients seeking risk-adjusted returns. The session focuses on why quality businesses that grow earnings year after year, bought at a sensible multiple, can build wealth at lower risk — with a half-year check-in on South Africa’s reform cycle and SA Inc. valuations.

Key themes discussed

• Long cycles — and the wrong short-term lesson
• Compounding earnings at a fair (often cheap) price
• SA Inc. as an opportunity set, not a blind macro call
• When narratives and flows outrun fundamentals
• South African macro and politics
• equity opportunities
• valuation and growth
• portfolio construction

Macro and market context

Markets move in long regimes. The last decade rewarded market-cap concentration and momentum; Rezco’s view is that fundamentals and patience matter again — and that looking only at recent winners can teach the wrong lesson. Consensus forward growth for the equal-weight SA Inc. basket is around 8% — a clear step-up from the state-capture and load-shedding years. Country risk looks more balanced post-GNU, yet local share prices have lagged.

Companies, sectors and ideas mentioned

• SA Inc.
• Nubank
• SpaceX
• defence sector
• Discovery
• FirstRand
• Naspers
• Standard Bank

Rezco's risk and portfolio views

The core idea: quality businesses that grow earnings year after year, bought at a sensible multiple — not junk, and not value for value’s sake. A company growing around 15% with about a 5% dividend at around 12× earnings is simple maths in the client’s favour. Rezco’s point on SA Inc.: this is a pond worth fishing in — under-allocated in many SA portfolios — while still picking stocks (equal-weight SA Inc. around 10% versus their researched portfolio around 21% over the period shown). Index flows and leverage can misprice businesses both ways; Rezco’s answer is to stay with present-value earnings, diversify, and accept lower correlation.