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Is stock trading harmful to the economy?
guru267
#21 Posted : Friday, October 18, 2013 8:32:35 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
mv_ufanisi wrote:
Wouldn't the country be better of if a lot of smart people who spend their time and money speculating on the stock market used those resources to actually create businesses and employment? Isn't it likely that more wealth would be generated that way? Wouldn't the gurus here on Wazua probably generate more wealth building businesses that tracking the ticker?



Hmmmm.... Let me see Think

If I put 10million in Safcom shares last year I would have a tidy 30 -40 Million waiting in the bank today!

If I put that same 10 million in some "venture" instead I would probably be looking for another 10million today just to keep it afloat!

Basically stocks is way less stress and logistics...

Although I do contribute to building business through rights issues and some IPOs
Mark 12:29
Deuteronomy 4:16
jerry
#22 Posted : Friday, October 18, 2013 9:12:44 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
guru267 wrote:
mv_ufanisi wrote:
Wouldn't the country be better of if a lot of smart people who spend their time and money speculating on the stock market used those resources to actually create businesses and employment? Isn't it likely that more wealth would be generated that way? Wouldn't the gurus here on Wazua probably generate more wealth building businesses that tracking the ticker?



Hmmmm.... Let me see Think

If I put 10million in Safcom shares last year I would have a tidy 30 -40 Million waiting in the bank today!

If I put that same 10 million in some "venture" instead I would probably be looking for another 10million today just to keep it afloat!

Basically stocks is way less stress and logistics...

Although I do contribute to building business through rights issues and some IPOs

Depends on how you look at it. By buying shares you become a part owner of an already existing biz. If you start your own business would you not have the option of selling it one day??
The opposite of courage is not cowardice, it's conformity.
Pesa Nane
#23 Posted : Friday, October 18, 2013 9:13:45 PM
Rank: Elder


Joined: 5/25/2012
Posts: 4,105
Location: 08c
Imagine there was no one to 'buy into' James Mwangi's vision?? We would surely have a poorer world! (Please don't mention safcom)
Pesa Nane plans to be shilingi when he grows up.
xtina
#24 Posted : Wednesday, January 29, 2014 10:14:50 AM
Rank: Member


Joined: 6/26/2008
Posts: 384
As someone who is doing both (business and stocks) I get to experience the best and worst of both worlds. Started in stocks in 2008 when I joined wazua and was still in campus. Got bored with stocks, and stumbled into the business world in 2009/10.

I admire the Chris Kirubi/Mama Ngina model, do business and dabble into stocks at the same time (Centum/KPLC). My advice is, if you can do both, do it. The rush I get whenever we close business deals, watching the balance sheet grow and the cash-flow going from negative to positive, banks harassing you to take loans, people requesting to be investors/shareholders, landlords begging you to hire their retail spaces, you will never get that rush anywhere else. I do agree that businesses not for the faint-hearted, if you don't like hard, dirty work, keep away and stick to stocks coz hautatoboa.
maka
#25 Posted : Wednesday, January 29, 2014 11:07:55 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
guru267 wrote:
mv_ufanisi wrote:
Wouldn't the country be better of if a lot of smart people who spend their time and money speculating on the stock market used those resources to actually create businesses and employment? Isn't it likely that more wealth would be generated that way? Wouldn't the gurus here on Wazua probably generate more wealth building businesses that tracking the ticker?



Hmmmm.... Let me see Think

If I put 10million in Safcom shares last year I would have a tidy 30 -40 Million waiting in the bank today!

If I put that same 10 million in some "venture" instead I would probably be looking for another 10million today just to keep it afloat!

Basically stocks is way less stress and logistics...

Although I do contribute to building business through rights issues and some IPOs

What about the reverse the person who bought scom post IPO at 6.50 tanked to 2.80-3.30 for ages in comparison to one who started a small venture that has grown over the 5 years to being big and profitable,both sides are good and as someone said balance is always created somehow...I think I have ever posted this here before...A study by Barclays Capital shows that £100 invested in cash deposits since 1899, with income reinvested, would have grown to just £286 by the end of 2006, after adjusting for inflation. The same amount invested in gilts would have grown to £323. £100 invested in equities (shares) with dividends reinvested would have grown to £25,022 over the same period, again in real terms...
possunt quia posse videntur
ProverB
#26 Posted : Wednesday, January 29, 2014 12:04:17 PM
Rank: Veteran


Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
Sloan Sabbith - Newsroom Ssn 1 Episode 10 wrote:
The Greater Fool Theory - The greater fool is actually an economic term. It’s a patsy. For the rest of us to profit, we need a greater fool— someone who will buy long and sell short. Most people spend their life trying not to be the greater fool; we toss him the hot potato, we dive for his seat when the music stops. The greater fool is someone with the perfect blend of self-delusion and ego to think that he can succeed where others have failed. This whole country was made by greater fools.


As long as there's someone out there more ignorant than you who has a higher level of greed..even a crap stock you hold will make you money.. You just need to stroke his greed.
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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