Dear reader,

Welcome back to FarSight AI, by father-and-son team, Rob and Matt Worthington-Smith.
 
Last week we brought you appraisals of Anglo American, African Bank, Ascendis Health, Aspen Pharmacare, Blue Label Telecoms, Cashbuild, Glencore, Famous Brands, Tharisa and the KAL Group.
 
This week, we’ve added two more retail banks, Capitec and Absa, a poultry producer, Astral Foods, Cell C, the network operator (and soon-to-be listed division of Blue Label Telecoms), the edutech group, ADvTech, and finally, Sun International, turning itself around after its near-death experience during the COVID-19 pandemic.
 
What should you be looking for in these appraisals? 
 
In devising the FarSight Model, we drew on advice from arguably the most successful long-term investor of all time, Warren Buffett.
 
Buffett says that a business must be able to articulate clearly how it creates value. This story should be simple and straight-forward, showing consistent profitability, strong brand loyalty, and a durable competitive advantage. 
 
Here at FarSight AI, we apply Buffett’s principles to our analysis, appraising a company’s value-creation story across this simple narrative arc: 

• Purpose: Clarity of mission and talent-driven delivery
• Foundations: Financial and operational resilience
• Relationships: Trust with customers, partners, and society
• Leadership: Competence and accountability

 
We look for companies that both talk and walk a positive value-creation story. Matching the talk with the walk requires that we look for Intangible predictors of value - many of them not to be found in the financials. Finding these ‘tells’ in corporate communications is both an Art and an Intelligent craft, it’s FarSight with AI.   
 
Here are some of the key ‘tells’ we extract from a company’s reporting:
- Leadership’s understanding of what impacts on shareholder value
- Leadership’s commitment to solutions that drive and defend value
- How useful and truthful is reporting on the most critical value-driving issues 
- How FarSighted is leadership’s strategic thinking and action
 
Curious to see the results?
 
Visit Research
 
Thank you, in anticipation, for engaging in this Beta-test of the FarSight AI product.