Sandton-based financial services group, Discovery Limited, experienced a significant decline in its market value, causing a substantial loss for South African businessman Barry Swartzberg.
Swartzberg has seen a decrease of R403.43 million ($20.6 million) over the past 87 days, according to data tracked by Billionaires.Africa. Yet, despite this setback, he remains one of the wealthiest investors on the Johannesburg Stock Exchange.
Discovery, founded as a medical insurer in 1992, has grown to become one of South Africa’s largest and most diverse global financial services firms. Its offerings include long- and short-term insurance, asset management, savings, investment, and employee benefits.
As an executive director of Discovery, Swartzberg owns a 3.92-percent stake in the Sandton-based financial services group.
Since Feb. 28, the sustained selling pressures on the Johannesburg Stock Exchange have caused Discovery shares to decline by 10.45 percent, dropping from R149.75 ($7.645) to R134.1 ($6.84), causing the group’s market capitalization to fall below the R90 billion ($4.6 billion) mark.
The decline in Discovery shares has directly affected the market value of Swartzberg’s stake, resulting in a loss of R403.43 million ($20.6 million) over the past 87 days.
His stake, valued at R3.86 billion ($197.07 million) on Feb. 28, is now worth R3.45 billion ($176.48 million) as of May 26.
Despite the significant slump in his fortune, Swartzberg holds a prominent position among South Africa’s wealthiest business people. With a stake now valued at $176 million, he remains one of the most affluent investors on the Johannesburg Stock Exchange.
The recent decline in Discovery’s market value and the subsequent loss experienced by Swartzberg highlight the volatility of the financial markets.
Investors like Swartzberg face the inherent risks of stock investments, and their fortunes can fluctuate rapidly.