South African businessman Barry Swartzberg's stake in Discovery drops by $12 million

South African business magnate Barry Swartzberg has encountered a notable downturn in his wealth as the market value of his shares in the leading insurance conglomerate, Discovery Limited, experienced a significant decline. This drop, totaling $12 million, is linked to the sharp decrease in the share price of Discovery on the Johannesburg Stock Exchange (JSE).

The sudden slump in Discovery’s shares follows a cautionary note from a team of strategists at investment banking giant Goldman Sachs, who forewarned investors about an impending shift from tranquil markets to heightened volatility. Investors were urged to capitalize on the opportunity to secure affordable portfolio insurance before market conditions worsen.

According to data tracked by Billionaires.Africa, Swartzberg’s stake in Discovery Limited saw its market value plummet by R239.22 million ($12.61 million) in a mere four days, primarily attributed to the downward trajectory of Discovery Limited shares on the JSE.

Discovery faces market turbulence with 6.96-percent share decline

Discovery Limited, initially established as a medical insurer in 1992, stands as one of South Africa’s largest and most diversified global financial services firms, specializing in various sectors such as long- and short-term insurance, asset management, savings, investment, and employee benefits.

In recent trading sessions, Discovery Limited shares on the local bourse experienced a 6.96-percent decline, slipping from R133.36 ($7.027) on March 15 to R124.08 ($6.538), causing the market capitalization to dip below $5 billion and resulting in substantial losses for shareholders, including Swartzberg.

As one of the co-founders of the esteemed group, with operational presence in South Africa and subsidiaries spanning the United Kingdom, United States, China, Singapore, and Australia, Swartzberg holds a 3.92-percent stake in the Sandton-based financial services giant. This translates to a total of 25,778,420 ordinary shares in the company.

Swartzberg’s wealth takes hit: Share price plunge costs him $12.6 million in four days

The recent 6.96-percent drop in the group’s share price has led to a staggering decline of R239.22 million ($12.61 million) in Swartzberg’s stake over the past four days. His holding, which stood at R3.44 billion ($181.15 million) on March 15, has now dwindled to R3.19 billion ($168.54 million) as of the drafting of this report.

Despite the recent setback in Swartzberg’s holdings, he retains his position as one of South Africa’s wealthiest businessmen and remains esteemed as one of the most successful investors on the JSE.