Stanley Goetsch, a long-time executive director at Dis-Chem, has sold shares worth nearly $19 million, indicating a significant shift in his investment approach.
Goetsch sold ten million shares in two separate transactions this year, as he strives to diversify his investment portfolio in the face of uncertain market conditions.
Goetsch’s recent trades were carried out through STANSH Proprietary Limited, a personal investment firm he owns. The first tranche of five million shares was sold in June for R165 million ($9 million), followed by another five million shares in September for R178.2 million ($9.9 million).
According to Dis-Chem, Goetsch’s sales were part of his “long-term portfolio planning and diversification,” a common method used by experienced executives to balance risk and reward in financial investments.
Goetsch joined Dis-Chem in 1984 and will join the executive board in 2022, having previously held positions such as pharmacist and shop manager.
He initially held about 85 million shares through his STANSH vehicle when Dis-Chem was listed on the Johannesburg Stock Exchange (JSE) in 2017, but has subsequently gradually reduced his shareholding.
This slow sell-off lowered his ownership to 39.9 million shares by February 2024, and with the most recent sales, just under 30 million shares remain, representing approximately 3.4 percent of the firm.
Goetsch’s divestiture is consistent with similar steps taken by Dis-Chem’s founders, Ivan and Lyn Saltzman, who have also been lowering their interests to diversify their investments and maybe prepare for succession planning.
Strategic divestments by top executives and founders can be important signs of their confidence in the company’s future, as well as providing insight into expected corporate governance and strategic initiatives.
Goetsch’s share sale teaches investors and market watchers a vital lesson about portfolio management and risk assessment. As Dis-Chem navigates the competitive pharmaceutical retail marketplace, its executives’ actions will surely have a significant impact on the company’s strategic priorities and market perceptions.