If someone came to you tomorrow with R100m to invest in just one company, which would it be?
Assuming this client has no prerequisites, such as a minimum income from investment or limited investment time horizon, I think a great mix of income, security and growth potential comes from AB InBev after the SABMiller deal. Though AB InBev was the largest global brewer before the deal, this now combines the number one and number two brewers into a true mega-brewer. In case you think this title will breed laziness and complacency, this has not been the case for the lean operators of AB InBev prior to the deal. I think there are significant cost savings to be gained, as well as operating synergies. The stock will also be on a dividend yield of about 3%, with growth coming from improving in some current geographies, new geographies and continued premiumisation of the portfolio.
