Peekay arrives at the Johannesburg train station where he meets Morrie Levy, a wealthy, comical Jewish student with a mind for business who describes himself as the “token Jew.” Morrie is initially surprised by Peekay’s lack of surname. The boys quickly bond.

Sergeant Bolter is sent by the school to meet the boys. He uses a strict military roll call to call them to attention. He is also shocked by Peekay’s name, but quickly accepts it and moves on.

Peekay soon realizes that money will be important while he attends the Prince of Wales School. Morrie offers to help Peekay. Unwilling to accept charity and still wary of trusting others, Peekay agrees to become Morrie’s partner while at school, adding a business element to their friendship.

Peekay learns that the school boxing team is the worst in the league, possessing the “Wooden Spoon,” a symbol of their status as losers. Peekay joins the team. Morrie, aware of Peekay’s undefeated status, becomes Peekay’s manager, devising a gambling scheme based on careful observation and risk assessment to earn money and build the reputation of the boxing team.

Peekay fights against the Afrikaans school, Helpmekaar, for his first fight. Helpmekaar is renowned for its boxing team.