Ronel Talks Money: Brand Pretorius

Introduction:

Brand Pretorius is broadly recognised as one of South Africa’s greatest business leaders. Brand was appointed managing director of Toyota SA Marketing in 1988 and under his leadership Toyota became the leader in both market share and customer satisfaction. Thereafter Brand joined McCarthy Motor Holdings as chairman and CEO and was promoted to chief executive officer of the holding company, McCarthy Retail Limited, in October 1999. It is widely acknowledged that Brand played a pivotal role in turning McCarthy around after it was declared technically insolvent in 2001. Thousands of jobs were saved!

Brand has received numerous national marketing, motor industry and leadership awards including Marketing Person of the Year, Automobile Man of the Year and Boss of the Year. He holds three honorary professorships and two honorary doctorate degrees. Brand is a Fellow in Leadership at the Gordon Institute of Business Science and a Professor of Practice at the Johannesburg College of Business and Economics. He is actively involved in a number of initiatives aimed at improving the quality of education in South Africa and founded the acclaimed Rally to Read literacy program in 1998.

Brand published his book entitled “In the driving seat – lessons in leadership” in February 2013. According to Nielsen Bookstats it was the most popular business biography in South Africa in 2013 and has subsequently been reprinted nine times. In total more than 23 000 copies have already been sold, which makes the book one of the most popular local business biographies of all time. He is married to Tillie and they have three sons and seven grandchildren.

Let’s meet:

Name and surname:  

Brand Pretorius

Profession / title / business:

Retired businessman

How would you describe yourself?  

An active “pensioner” who is still trying to make a difference in the country he loves.

Tell us about your career?

I started my career at Toyota South Africa in March 1973 after attaining an M.Com degree in Business Economics. In 1988 I was appointed managing director of Toyota SA Marketing. In March 1995 I joined McCarthy Motor Holdings as chairman and CEO and was promoted to chief executive officer of the holding company, McCarthy Retail Limited, in October 1999. I retired as CEO of McCarthy and as an executive director of its controlling shareholder Bidvest on 1 March 2011.

What do you consider your proudest achievements / highlights?

Toyota attaining market leadership both in terms of sales and customer satisfaction (1992) and the successful turnaround of McCarthy after it was declared insolvent in 2001.

What was your biggest failure or lowest point in your career?

The liquidation of the Retail Apparel Group in 2002 – I was the non-executive chairman.

How did you get back up after failure?

With the help of my faith and family.

Optimise your income by being the best you can be in your field, discipline yourself to save a meaningful amount every month, live within your means and invest wisely with the help of a knowledgeable financial advisor.

Let’s talk money:

How would you describe your money mind-set?

Conservative, frugal in relative terms.

What was your biggest discovery about money?

Compound interest over time delivers amazing growth in value.

What is your view about the importance of budgeting and do you have a budget?  

It is of vital importance and I still have a monthly expense budget.

How do you save money?

By living frugally and forcing myself to optimise my contributions to retirement annuities, life policies, unit trust purchases, etc.

What is your favourite investment type / -s?

Unit Trusts.

What is your view about having an emergency fund?

Absolutely imperative, considering the unpredictable macro environment.

Do you believe there is merit in being financially well organised – have all your policies in place, have a life file and a signed will etc.? 

Absolutely essential – many unexpected things happen!

What tips do you have with regards to retirement planning?

Overprovide as price inflation and exchange rate deterioration erode the value of your retirement savings in real terms. Work for as long as you can, as your and your spouse’s life expectancy continues to increase. Lastly, healthcare costs are escalating at an alarming rate.

Knowing what you know today, what would you have done differently when it comes to money decisions / management?

I would have accumulated more assets / investments in “solid currency” countries like the USA, United Kingdom and Germany earlier.

What is your advice to people with regards to money management and building a better financial future for themselves and their families?

Optimise your income by being the best you can be in your field, discipline yourself to save a meaningful amount every month, live within your means and invest wisely with the help of a knowledgeable financial advisor.

Good leaders prize truth, respect, results and service above power, position, status and self-enrichment. They stand for the truth, the affirmation of the good.

Let’s talk business, leadership and buying cars

Brand you are highly regarded for your exceptional leadership qualities and employees of Toyota / McCarthy are still talking about the lessons they learned from you. What are the qualities you possess that made you stand out as a leader and how can people develop themselves to become good leaders?  

I am not qualified to talk about myself but can make a few comments about the qualities of good leaders. They are visionary and principled and lead by example. Good leaders supress their egos and build their characters. They care about their people and are willing to serve them. Good leaders prize truth, respect, results and service above power, position, status and self-enrichment. They stand for the truth, the affirmation of the good. People can develop themselves to become good leaders by learning to lead themselves successfully in the first instance. Attributes required are high levels of moral, emotional and relational intelligence, as well as self-discipline and perseverance. At the functional level they must learn to direct, inspire, enable and focus efforts.

You are widely acknowledged for the fundamental role you played to save the McCarthy Motor Group from bankruptcy. What advice will you give to businesses with regards to good financial management?

Watch your balance sheet more intently than your income statement. Be prudent, watch your cash flow like a hawk – it is the lifeblood of your business.

You have been in the motor trade industry for many years, but from a buyer’s point of view, what are the pros and cons of buying a brand new motor vehicle and buying a used vehicle?  

Buying a new vehicle is obviously the more expensive but low risk option. Used vehicles are obviously more affordable, but more risky. Mitigate the risk by buying from a reputable dealer and insisting on a comprehensive multi-year warranty.

There are so many diverse opinions whether buying a vehicle cash is a good option or not. If somebody has to ask you – should I buy a vehicle cash or should I finance it, and if I finance it what is a good financing option to consider – what will your response be? 

It all depends on your financial position – I prefer paying cash and saving the hefty interest that is often charged. Should you have no option but to finance, use a reputable finance house which won’t surprise you with hidden charges or unreasonable terms and conditions.

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