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Kenyan Investors; A case of Ignorance or Misinformation??
jammo
#1 Posted : Tuesday, May 26, 2009 5:24:00 AM
Rank: Member


Joined: 2/12/2008
Posts: 345
..cma is satisfied that equity does indeed owe cdsc just about KSH48million..on ksh1000 per account held in lien..
..translatin to about 48000 safaricom ipo applications done ON LOAN!!!..thro Equity bank alone..48THOUSAND???

A story on standard's financial journal purportin fishy dealing in 'carbacid issuing new shares to centum' is yet to be retracted or corrected!!
Makes me wonder...just how informed is the kenyan investor on a scale of 1 to 10..?

A question asked on a christian radio yesterday had the radio presenter and respondin Pastor conclude that buyin shares with intention to sell soon anticipated price increase happens is GAMBLING!??? Tradin in stocks is gambling??? I'm so totally at loss. Totally. Now my business is more or less like actin on divination or witchcraft!!

Why lie,sieselewa!!

..if it is not expressly prohibited in law.. DO IT!!!!
eli
#2 Posted : Tuesday, May 26, 2009 5:29:00 AM
Rank: Member


Joined: 6/17/2008
Posts: 294
Is so easy to conclude that its all gambling! Majority of people are still dreaming of KenGen. They think you should invest 10 bob and it shoots to 40bob,and if it does not,then its purely gambling! Well,I can tell them to get knowledge,get understanding,than rush into conclusions

But you shall remember the LORD your God,for it is He who is giving you power to make wealth,that He may confirm His covenant which He swore to your fathers,as it is this day. Deu 8:18
Kaigangio
#3 Posted : Tuesday, May 26, 2009 3:33:00 PM
Rank: Elder


Joined: 2/27/2007
Posts: 2,768
the way i see it is that buying any kind of security and selling it later at a profit is trade...just like buying commodities,hoarding them for a period of time till the prices become favourable. many Kenyans understand this far too well,but the real problem is analysing the companies performances and future projections with respect to the stocks valuation parameters...very few kenyans go into this!


NEVER TALK OF A RHINO IF THERE IS NO TREE NEAREBY - ZULU PROVERB
...besides, the presence of a safe alone does not signify that there is money inside...
virji1988
#4 Posted : Wednesday, May 27, 2009 6:10:00 AM
Rank: Member


Joined: 12/7/2006
Posts: 48
In Gambling if 1 person wins then another person looses AT THE SAME TIME!...

In Stock market,if prices go down,everyone is loosing,so their is no winner!.. everyone is a looser,Hence,stock market trading isnt gambling
The General
#5 Posted : Wednesday, May 27, 2009 6:17:00 AM
Rank: Member


Joined: 6/3/2006
Posts: 553
@virji,

This statement is false: 'In Stock market,if prices go down,everyone is loosing,so their is no winner!'

The thicker the thigh the sweeter the pie.
The thicker the thigh the sweeter the pie.
longterm
#6 Posted : Wednesday, May 27, 2009 7:57:00 AM
Rank: Member


Joined: 5/25/2009
Posts: 3
I believe an investment should produce peace of mind.Any investment you are not sure of is a gamble with gambling like results.You make 10* your money in a successful speculation but you are guaranteed to loose more in the long run.An expectation of more than 20%p.a is not realistic...always hope for the best but expecting for the worst.
Seles83
#7 Posted : Wednesday, May 27, 2009 8:17:00 AM
Rank: Member


Joined: 11/9/2007
Posts: 288
Location: OZ
In my experience in the course of investing,one thing has come out very clearly....Good information is not available in the print media read standard,Nation etc...A Kenyan investor is not informed at all...very few guys outside there have solid info....i tend to laugh when i read the some of posts and replies in this forum......If u want to put monies in NSE,take your time learn the basics like reading a balance sheet,what is PE/ EPS/DPS,NPL and Liabilities and Revenues....Once you understand this info well....now try and seek constantly help from professional.....who makes a decent chunk of monies from the bourse,then u r set to go......

Imagine travelling to Lesotho by road with no map and GPS.......now thats gambling..

Investing in NSE with no info....is also gambling...


Failure inspires winners...winners are made not born
More monies, more problems...
Obi 1 Kanobi
#8 Posted : Wednesday, May 27, 2009 5:49:00 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,017
I don't think there's any country in the world that its citizenry can claim to have a better understanding of the stock market than kenyans. The stock market anywhere is complicated even for the analysts who are paid to analyse it. Try watching Bloomberg and see how the experts try to wriggle out of giving a definite opinion on a security

Ordinary people should not invest directly in a stock market. Reason being,majority of the people do not understand how the market works,cannot interpret financial statements and certainly cannot relate economic data to brick and motar elements of the economy. Thats why the shareholders of Kakuzi get free tea sachets while those of KQ demand free air rides.

The average kenyan should be advised to invest through unit trusts or pension schemes if they want to secure their financial future.

But this never happens in Kenya,the land where 'everybody knows something about everything but can't get anything right'.

A comparison of my ping pong investment with my steady pension contributions are starting to indicate some interesting stats. I barely feel the amounts I contribute to the pension yet suddenly the balance is starting to look very healthy,while my direct investments continue to vary wildly and are not giving me the level of satisfaction I expected. I suspect its coz the pension contributions are passive,almost risk free and definitely stress free.

@Jammo,I understand when your pastor claims investing in the market is a gamble,think about it,he does not have a guarantee of any returns,and has no idea how it works. Please do him a favour and introduce him to a unit trust with guaranteed returns.

I guess if you can't win with facts,you can always pen bile-laced,xenophobic rants to distract everyone.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
stonemimi
#9 Posted : Thursday, May 28, 2009 9:51:00 AM
Rank: Member


Joined: 5/16/2009
Posts: 145
@obi: excellent views. However,as much as i understand little about how the market works,i am convinced many experts do pumbavu kazi hiooo.

I recently analysed how my pension has been invested in the stock market and concluded i could have done better. The managers have invested across the NSE counters. KQ was bought at 91,TPS @83,EAPC@ 129 (can't remember when it was that much. the last time i had eapc shares,i got in at 45 and out at 90). They bought Kenol at 130 and BAT @ 206. Moreover,they are still holding on to eveready. I can do better,and am sure many kenyans with no idea of market fundamentals can.


Happiness is not a right - except for children. You won't be happy if you think too much. The search of happiness is one cause os sorrow.
virji1988
#10 Posted : Thursday, May 28, 2009 8:57:00 PM
Rank: Member


Joined: 12/7/2006
Posts: 48
In Kenya the problem is the ''Lack of Transperancy''
Mainat
#11 Posted : Thursday, May 28, 2009 9:45:00 PM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,590
Fear of learning?
Many of us aspire to be wajuaji but fear learning new things.
What new thang have you learned in the last month that has added to your life?
What have you learned this yr that has made you a better investor?
et al.

All the great investors are great learners...

www.mjengakenya.blogspot.com
Sehemu ndio nyumba
jammo
#12 Posted : Friday, May 29, 2009 4:58:00 AM
Rank: Member


Joined: 2/12/2008
Posts: 345
True dat maina. True. Wonder how many read thro the Tony Oz book...even after splashing our emails all over sk angling for a copy to be sent over...for free! Persistence n consistency..very hard values in kenya.. The oracle of omaha defines stocks research as most boring tedious thing to do...for easy money.

..if it is not expressly prohibited in law.. DO IT!!!!
Brewer
#13 Posted : Friday, May 29, 2009 9:54:00 AM
Rank: Member


Joined: 6/24/2008
Posts: 238
virji,agreed- the so called 'experts' are not any better. just check the thread on safaricom when the ipo was around and you will understand why. it is not exactly a bad thing to have a population fambling around on stocks because that is how they learn; some of the best investors have been 'lay' people with a wealth of experience in direct trading and who will laugh off so called experts out of town. some of the biggest losers in the latest meltdown have been 'experts'. it is the spirit of enterprise and risk taking that moves people forward.
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