kanda wrote:mwanahisa wrote:We stand to gain a lot more as investors than as customers, and the company we can invest is Safaricom.
that is not true!! just because you feel that way doesnt make it true. do the math first! i think what you mean to say is that you are afraid of losing money coz of your heavy investment in an unsustainable business
@kanda. I just could not let this pass, lest it be misconstrued as the truth. If you look at my post no. 28 on the thread titled "Safaricom Half Year Results ...", you will see my declaration that I have 100 Safaricom shares. If that is a massive investment, so be it.
Now back to my argument, I have been spending about Kshs 6,000 on my communication costs a month including data. Saving 50% of this cost yields 3,000. On the other hand, if I buy 10,000 shares at a price of 4.50 and sell it at 4.95, I make a net gain of 2,515.50 assuming a commission rate of 2.1%. Now, I can conceivably do this more than once a month and I could even increase the investment (by a facor of X where X could be 10,100 etc).
It therefore stands to reason that I would be more concerned about my ability to make money by trading on Safaricom than the savings I make on my communication costs, which are limited.
Of course, one can counter this by the fact that Safaricom is not the only counter that one can invest in, which I agree with. Mine was only to try and explain why some folks on this counter support Safaricom so vigorously.
Naturally, I take exception to kanda's insinuation that my argument is based on my huge investment in Safaricom. At the moment that investment is inconsequential.