Buying Behaviour20 Apr 2012 22:01
Porche12, I think that institutions (and canny investors) are interested in Lonrho because Africa is a big growth story averaging 5% or 6% for the forseeable future -- at least as long as China carries on growing, that is. But what a lot of people don't realise is that a lot of growth in Africa is driven in the 'weightless' sectors -- banking, insurance, travel and tourism etc -- rather than just commodities. What Lonrho is doing is a combination of both the 'weighty' and 'weightless' sectors, the latter demonstrated in the tie-up with Stelios, who very wisely has decided not to risk his reputation by taking on EasyJet in Europe but using his business experience in pastures new i.e. Africa.Unless the world economy falls off a cliff, Lonrho will prosper. That said, possibly not a share for widows and orphans.