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Treasury Bills Investing-Procedure?
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selah
#61 Posted : Tuesday, January 10, 2012 10:39:37 AM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
bird_man wrote:
So you take a loan of 1M to make about 70K that whole year?
You had better even buy cows or plant something.1M for 70K.....


What about a guy who borrow 100k from a sacco @ 10% to make 9k without breaking a sweat by buying the treasury bills.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Cde Monomotapa
#62 Posted : Tuesday, January 10, 2012 10:40:43 AM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Mainat wrote:
Impunity-you are right. I believe this is how the money market funds are doing it...

If he stops us from going to work, then i'll be very concerned. OTW, as long as we'll be discussing Ocampo during our regular daily routines...I'll gladly be profiteering off that 'fear'.
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  | | Edit by user: Tuesday, January 10, 2012 10:46 AM | Reason: Not specified
QW25081985
#63 Posted : Tuesday, January 10, 2012 10:47:51 AM
Rank: User

Joined: 8/29/2011
Posts: 1,045
Location: Mtaani
selah wrote:
bird_man wrote:
So you take a loan of 1M to make about 70K that whole year?
You had better even buy cows or plant something.1M for 70K.....


What about a guy who borrow 100k from a sacco @ 10% to make 9k without breaking a sweat by buying the treasury bills.


9k ???? thats peanuts ...even per month
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selah
#64 Posted : Tuesday, January 10, 2012 10:48:17 AM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
If you remember the controversial trader who said Goldmansachs rules the world you must have heard what they do in a down market they usually like recessions because they create opportunities to make huge sums of money just like some are doing by exploiting GSECs.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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QW25081985
#65 Posted : Tuesday, January 10, 2012 10:49:36 AM
Rank: User

Joined: 8/29/2011
Posts: 1,045
Location: Mtaani
bird_man wrote:
So you take a loan of 1M to make about 70K that whole year?
You had better even buy cows or plant something.1M for 70K.....



Laughing out loudly Laughing out loudly Laughing out loudly
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Impunity
#66 Posted : Tuesday, January 10, 2012 11:57:42 AM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
bird_man wrote:
So you take a loan of 1M to make about 70K that whole year?
You had better even buy cows or plant something.1M for 70K.....


You think cow bizna is a walk in the path?
Let say you buy 50 heifers (for beef) at 20,000 (50x20,000= 1,000,000) and bread them for 12 months.
How much will they be worth after that period?
What will be the cost of feed?
The cost of cowboys?
The cost of medication?
The cost personal stress since these are live animal and they coud die anytime!?

If you are lucky to sell at 25,000 thats 250,000 gross.
Then pay 5K pm for 5 cowboys for 12 months = 300,000.
And mambo bado yet yu are at aloss already.
Dont even think of daily cows!smile
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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bird_man
#67 Posted : Tuesday, January 10, 2012 2:38:28 PM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
@Impunity...that was just an example didn't really mean it.All the same you cannot buy a cow at 20K and sell it at 25K after 12months.Maziwa na watoto je?
Anyway....different strokes,different folks I guess.With 1M I know what I would do for more than 5,800sh a month.
Formally employed people often live their employers' dream & forget about their own.
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selah
#68 Posted : Tuesday, January 10, 2012 3:01:42 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
bird_man wrote:
@Impunity...that was just an example didn't really mean it.All the same you cannot buy a cow at 20K and sell it at 25K after 12months.Maziwa na watoto je?
Anyway....different strokes,different folks I guess.With 1M I know what I would do for more than 5,800sh a month.


@birdman give us that example...a risk free investment that can give you 20% return without breaking a sweat.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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bird_man
#69 Posted : Tuesday, January 10, 2012 3:17:47 PM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
Selah...without getting into details,I run a small business on the side.With a loan of about 400K I have been able to get the biz generating about 30K in net profit per month.It has taken time though & it is not RISK free.
Give 1M to different people & they will do diff things.So nobody is wrong or right here.I just felt 1M for 70K profit in one year can be utilized in other more profitable ways.
Formally employed people often live their employers' dream & forget about their own.
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selah
#70 Posted : Tuesday, January 10, 2012 3:29:01 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
@bird_man am not disputing that but here we are talking about taking a loan and investing it on T/bills with a view of getting a profit from doing absolutely nothing.The catch though is that you will have to a pay the loan from other sources until maturity date.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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bird_man
#71 Posted : Tuesday, January 10, 2012 3:36:41 PM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
@Selah....point taken.Interesting scenario though.
A guy that can pay the 89K/month is unlikely to view 70K/yr as worthy investment income...even when doing "absolutely nothing".
Formally employed people often live their employers' dream & forget about their own.
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erifloss
#72 Posted : Wednesday, January 11, 2012 9:40:10 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
Nabwire wrote:
erifloss wrote:
Everything held constant for the year at the current rate of 20.696%, if one rolls over their investment the effective rate will be around 22.35% now where else can one get a safe return like this.



20% is roughly 5% every 3 months, even if we get generous and stretch it to 9% every 3 months, thats only 3% per month!! Nimekataa, there are stocks that rally 10% in a couple of days, I just dont get it. But then again, Im not loking for a safe return.

I think you should check the average loss for the last 6 months alone at the NSE and also remember this is an elections year. To be true to ourselves foreigners are the ones who initiate most of the rallies and this year i don't see them coming in but getting out in droves.
The economic environment is not also that promising. I'm totally happy with a 20% return.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Nabwire
#73 Posted : Wednesday, January 11, 2012 9:08:54 PM
Rank: Veteran

Joined: 7/22/2011
Posts: 1,325
erifloss wrote:
Nabwire wrote:
[quote=erifloss]Everything held constant for the year at the current rate of 20.696%, if one rolls over their investment the effective rate will be around 22.35% now where else can one get a safe return like this.



20% is roughly 5% every 3 months, even if we get generous and stretch it to 9% every 3 months, thats only 3% per month!! Nimekataa, there are stocks that rally 10% in a couple of days, I just dont get it. But then again, Im not loking for a safe return.

I think you should check the average loss for the last 6 months alone at the NSE and also remember this is an elections year. To be true to ourselves foreigners are the ones who initiate most of the rallies and this year i don't see them coming in but getting out in droves.
The economic environment is not also that promising. I'm totally happy with a 20% return.[/quote

And here is where the true investors are separated from the wannabes. If you look at the market as being down and that foreigners are fleeing, you miss the half full analogy of this being a great buying opportunity. We all know markets are cyclical, so even if they are fleeing, they will be back smile There is money to be made. I see alot of herd mentality here, Tbills are safe, they are not great. It takes great risk to make great money, why would one want to preserve their capital when they could grow it? (Granted there is a chance of "losing" the capital) A good example, EK has more than doubled in less than a week smileGranted it is a huge risk coz the comapny may be going to bankruptcy, but no pain no gain. Why in hell would I tie up my money in Tbills for a paltry 3% per month???!!!


http://finance.yahoo.com/q?s=EK&ql=1

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hisah
#74 Posted : Wednesday, January 11, 2012 10:02:28 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
@Nabwire - list one or a few stocks that will return 20% or more by end of March 2012. That way u help more people and prove your point clearly.

Happy investing smile
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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mzeekijana
#75 Posted : Wednesday, January 11, 2012 10:48:56 PM
Rank: Member

Joined: 11/12/2010
Posts: 111
Location: MOMBASA
hisah wrote:
@Nabwire - list one or a few stocks that will return 20% or more by end of March 2012. That way u help more people and prove your point clearly.

Happy investing smile

Sad Haiya Laughing out loudly what a challenge..Nabwire give us 5 stocks only and let's c if it works...
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