South African tycoon Barry Swartzberg’s stake in Discovery slumps below $155 million

Feyisayo Ajayi -

Key Points:

  • Barry Swartzberg’s stake in Discovery Limited fell below $155 million due to a recent 5.64% drop in share price on the JSE.
  • Swartzberg’s stake value plummeted by $89.21 million over the past six days, adding to a previous $7.91 million loss in May.
  • Discovery’s shares have dropped 22.71% year-to-date, significantly impacting investors and reducing a $100,000 investment to $77,290.

South African businessman Barry Swartzberg has seen a significant decrease in his fortune, as the market value of his stake in Discovery Limited fell below $155 million, attributed to the recent decline in the leading insurer’s share price on the Johannesburg Stock Exchange (JSE).

According to data tracked by Billionaires.Africa, Swartzberg’s stake has dropped by R171.17 million ($9.21 million) over the past six days. This recent slump compounds a previous loss of $7.91 million recorded between April 30 and May 16.

Discovery’s market struggle

Discovery, established as a medical insurer in 1992, is one of South Africa’s largest and most diversified global financial services firms. The company specializes in various sectors, including long- and short-term insurance, asset management, savings, investment, and employee benefits.

Since May 24, Discovery shares on the JSE have experienced a decline of 5.64 percent, sliding from R117.69 ($6.33) on May 24 to R111.05 ($5.98) at the time of reporting. This drop has pushed its market capitalization below $4.5 billion.

Swartzberg’s stake value takes a hit of over $9 million

Swartzberg holds a 3.92 percent stake in the Sandton-based giant, representing 25,778,420 shares. The recent downturn in Discovery shares has resulted in a substantial decline in Swartzberg’s stake, falling by R171.17 million ($9.21 million) over the past six days.

The market value of his stake has declined from R3.03 billion ($163.31 million) on May 24 to R2.86 billion ($154.10 million). Despite this setback, Swartzberg remains one of South Africa’s richest businessmen and is still regarded as one of the most successful investors on the JSE.

Your Money and Your Life: Caution advised

Investors eyeing Discovery Limited as a wealth-building opportunity should exercise caution following its recent downturn. Year-to-date, the share price has plummeted by 22.71 percent.

Investors who purchased shares on January 1, 2024, are now experiencing significant losses. A $100,000 investment at the start of the year would now be worth only $77,290, reflecting a decline of $22,710.