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Online Share Trading

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RMI OR DISCOVERY

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partridge
Super Contributor
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16 REPLIES 16
partridge
Super Contributor
In an effort to lure out the seemingly somnolent forum members onto the field of robust debate ( which beats me wading through a long trust deed dumped on me for comment - mind you pretty much anything beats that!) I would like to know the answer to an obvious question - would you buy Discovery with its smoke and mirrors or RMI as a cheaper route in to the same smoke filled room- plus the outsurance lot and MMI - ( more funeral for your buck?) ..? Light blue touch paper and step back.
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Blik
Super Contributor
I own both - have for some time. But I am not sure I would add to either at the moment....maybe its more market sentiment now - markets being high, PEs high etc etc....not sure if the noise is getting to me. I am holding - but not adding.
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partridge
Super Contributor
Why own both?
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kwagga
Super Contributor
Discovery. I'm a big Adrian Gore fan. He has all the makings of a captain of industry. He disrupts markets. The only negative about discovery is it's price - right ? That's what I told myself when it traded at R 49 not so long ago. Buy and hold for 5-10 years, and you'll reap the rewards. RMI - Conservative, in a downtrend since April and has limited growth in an already competitive environment.
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kwagga
Super Contributor
Oh, and another thing about Discovery - They use technology as an enabler to drive new product development like very, very few companies in SA. FNB might come close.
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partridge
Super Contributor
Dear Stripey horse - the big USP with Discovery is the use of technology - but the problem is that that PER SE is not a moat around your business - only around your existing clients - and everyone is doing the same thing?? - RMI gets you a direct line business9 and this is a big plus as this business might spin off and the modus is really low cost) -the outsurance lot - plus MMI ( conservative ) and Discovery. The PE is more expensive into RMI - and there is a reason...
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partridge
Super Contributor
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Blik
Super Contributor
My RMI was a spinoff from my RMB - all I did was add to it. I forget why I bought RMB, it was a long time ago - it might have had something to do with originally owning FSR and then wanting a little diversification. I bought my DSY when they first listed; part of the reason being I like to own shares in companies that I pay to - one way of getting something back.
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Not applicable
I am a Discovery fan, because I like their China growth story - I believe that they will replicate the success they have had in South Africa there. I don't see RMI coming out with anything other than a dependence on the South African economy (although, to be fair, I don't really track them)
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kwagga
Super Contributor
I don't agree that everyone is doing the same. Adrian Gore is a actuary and if there is one thing they do we'll it is developing financial products that make money. They are also harvesting business intelligence from the current clients to drive new product development like no other company I know off. This enabled Discovery to transform from a medical insurer to a general insurer in a very short period of time (used technology as enabler) They have settled nicely into countries like China and the sky is really the limit. If you're so concerned about the price, then buy both RMI and Discovery.
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suki
Super Contributor
Money is the medium by which earthly success is measured.Money makes possible the enjoyment of the best the earth affords. Money is plentiful for those who understand the simple laws which govern its acquisition.Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago. THE RICHEST MAN IN BABYLON, George S. Clason
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partridge
Super Contributor
My dear Sheep I am favorably disposed towards you because my wife is from the Karoo. But I 'm afraid I cannot see how you can conclude that there is only an SA exposure in RMI - 'cos it holds Discovery ( including the actuary in charge of the potted plants) - so offshore exposure there - ditto it owns most of outsurance - which is now exposed to OZ and the people( ? or sheep) to the deep South - and I heard that MMI is also ( no details ) pottering off into Africa with a war chest - or trading beads or whatever?
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SimonPB
Valued Contributor
in theory the IP DSY has should be easy to replicate, but than why did John Han***** tie up with Vitality ?? they surely tried to reverse engineer it and couldn't or they figured cheap ride ? if former it good and add China possible, could be massive .. my money and skin in the game is on DSY
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partridge
Super Contributor
As we all know Regulatory requirements to do a start up in US or UK are enormous - and companies like Discovery don't have the HR to engage in this - except to risk their own core business. That also ignores existing environment( US, uk) ,capital funding, branding credibility outside RSA( Discovery who??) so it no surprise that link up's occur....( DONE this sort of thing myself in the UK) : its obvious from John HC and the UK operations that there is something in this for both parties...its not like this stuff is the secret ingredient to COKE!! In these modelS the barriers to entry are not AS HIGH AS PEOPLE Alike to believe; if you have pockets like Pru and JHC....no problem. Its the positioning of the business that is more NB. DISCOVERY came the right route in dear old RSA - It launched its life business ( opaque and rewarding for the shareholder ) off its MA business- and credit to them....
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Russ
Super Contributor
Dsy has made a good breakout from a symmetrical triangle and has made a new all time high. It looks like a good one to hold for the long term. RMI has been consolidating for a while but is also in a symmetrical triangle. It just touched the upper side today at 43.60. I think it will break upward in the next couple of days and then really get going. I might well get in tomorrow even if it doesn't make sense to hold both-I like them both. The lower side of RMI's triangle is at about 41.90 at the moment. I will only get worried if it drops below that.
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