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Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 12/7/2012 Posts: 11,937
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mawinder wrote:MaichBlack wrote:Fact with fun:  Since Equity's debut at the Nairobi Securities Exchange (NSE) on August 7, 2006, its stock has appreciated by 1061% when share splits and bonuses are taken into account. [If my maths is correct]. I stand to be " collected" though! If you bought Equity Bank shares worth Kshs. 1 million in 2006 as of today you are a bloody Billionaire - With a B! And that is without factoring in the dividends which for this year alone would have been more than Kshs. 50 million!!!This is the point where you are supposed to say "Bloody hell!!!" You will make me commit suicide.I regret very much!!!!!!!!!!!!!!!!! @Maich, is that correct! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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knight026 wrote:@MaichBlack its true people are making money. But a hypothesis like yours of compounding 25% return for 20 years needs numbers. You cant try to prove a theory based on few individuals. I trust you went to school. The least you could do is take a sample of 10% of listed companies shares, and show how they have performed over 10-20 years. That way you have a backing of solid numbers. And you are very good at ignoring links. Have you visited the link on post# 146 Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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Angelica _ann wrote:mawinder wrote:MaichBlack wrote:Fact with fun: Since Equity's debut at the Nairobi Securities Exchange (NSE) on August 7, 2006, its stock has appreciated by 1061% when share splits and bonuses are taken into account. [If my maths is correct]. I stand to be " collected" though! If you bought Equity Bank shares worth Kshs. 1 million in 2006 as of today you are a bloody Billionaire - With a B! And that is without factoring in the dividends which for this year alone would have been more than Kshs. 50 million!!!This is the point where you are supposed to say "Bloody hell!!!" You will make me commit suicide.I regret very much!!!!!!!!!!!!!!!!! @Maich, is that correct! Absolutely!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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MaichBlack wrote:Angelica _ann wrote:mawinder wrote:MaichBlack wrote:Fact with fun: Since Equity's debut at the Nairobi Securities Exchange (NSE) on August 7, 2006, its stock has appreciated by 1061% when share splits and bonuses are taken into account. [If my maths is correct]. I stand to be " collected" though! If you bought Equity Bank shares worth Kshs. 1 million in 2006 as of today you are a bloody Billionaire - With a B! And that is without factoring in the dividends which for this year alone would have been more than Kshs. 50 million!!!This is the point where you are supposed to say "Bloody hell!!!" You will make me commit suicide.I regret very much!!!!!!!!!!!!!!!!! @Maich, is that correct! Absolutely!!! Maich, you are WRONG on the figures, though right on the "concept". 1000% means 10 times, i.e if bought Equity Bank shares worth 1M/- in 2006, now they will be worth 10.61M/- Not bad in 8 years. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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@Angelica_ann - See the link below. Please note the article was posted in May 2013. At the time the stock was treading at 34 - 35 levels. Today is at 42/=. Do the math! Equity BankNever count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: New-farer Joined: 5/7/2014 Posts: 40
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Hindsight is 20/20. It's easy to look back and choose equity bank now that the returns are in. Does it mean that Equity will make 1,000% over the next 8 years? If I asked you to choose which stocks will make 1,000% in the future, can you say? Fact is that no one knows the future (unless you have insider information). I'm not saying the stock market is a bad investment vehicle. I'm simply saying that if you don't diversify your holdings, you may miss out on the 1,000% gainer in the name of cherry picking. And diversification means your returns will roughly match those of the index.
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Rank: Elder Joined: 12/6/2008 Posts: 3,585
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This is some nice "jua kali" risk analysis but given i have been deep in jua kali sector let me try: 1. A Prime Mortgage Candidate:"We - the world -can't do without You" kind of EMPLOYEE. For them this is NOT even something to think about, it can never be a WORST DECISION ever as you put it, it is a simple decision, say an actuarial scientist or whatever they are called ( i understand they are very high in demand "high value professionals" and can do all the fancy maths up there), or a specialist surgeon, highly sought after intellectual, Judge e.t.c, IMMEDIATELY go shopping for a GREAT house within perhaps a quarter of your salo, people can't do without you so you better start right off living la vida loca, remember people can't do without you so your salary will always rise, no need to save, for what? (Ok save and invest another quarter and)if money is too much "tumia watu nyumbani" And you are an EMPLOYEE not BUSINESS MAN, let your family start living well. 2. SUB PRIME "We can do without you",.EMPLOYEE..before you take a mortgage on this one, do th MATHS properly, hawa ni ma-undegrads, some tu accountants polytechnic people, some MBAs and sijui Master's in making movies and reading news e.t.c. 3. MWANA BIATHARA...i dont know if they get mortgages or they are called "home loans", this one you have to pima yourself using above criteria adjusted for free kiwanja! Ras Kienyeji Man
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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dunkang wrote:MaichBlack wrote:Angelica _ann wrote:mawinder wrote:MaichBlack wrote:Fact with fun: Since Equity's debut at the Nairobi Securities Exchange (NSE) on August 7, 2006, its stock has appreciated by 1061% when share splits and bonuses are taken into account. [If my maths is correct]. I stand to be " collected" though! If you bought Equity Bank shares worth Kshs. 1 million in 2006 as of today you are a bloody Billionaire - With a B! And that is without factoring in the dividends which for this year alone would have been more than Kshs. 50 million!!!This is the point where you are supposed to say "Bloody hell!!!" You will make me commit suicide.I regret very much!!!!!!!!!!!!!!!!! @Maich, is that correct! Absolutely!!! Maich, you are WRONG on the figures, though right on the "concept". 1000% means 10 times, i.e if bought Equity Bank shares worth 1M/- in 2006, now they will be worth 10.61M/- Not bad in 8 years. Yeah @dunkang - I made a computation error. Thanks for the correction. I hope @mawinder has not committed suicide yet!!! The percentage rise is still 1061% but not a billionaire yet! He he he. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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KenyanEconomist wrote:Hindsight is 20/20. It's easy to look back and choose equity bank now that the returns are in. Does it mean that Equity will make 1,000% over the next 8 years? If I asked you to choose which stocks will make 1,000% in the future, can you say? Fact is that no one knows the future (unless you have insider information). I'm not saying the stock market is a bad investment vehicle. I'm simply saying that if you don't diversify your holdings, you may miss out on the 1,000% gainer in the name of cherry picking. And diversification means your returns will roughly match those of the index. Again, any one who was in the NSE before 2006 and didn't get into Equity has no business being in the stock exchange! It used to be the darling of skerians [now wazuans]. It has made most of them rich. Most have made more than 1000% returns over this period because they knew when to get out and when to get back in. Just search the archives and you'll see. This is not "in hindsight". We lived it - and still are - my brother/sister. That is why I advised you, be a regular; watch and learn. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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Just to add some perspective to this conversation, the decision to take out a mortgage is not all about returns on money spent, there are other qualitative aspects that one cannot monetise. Many are talking about the option of acquiring land and putting their own dream house, in case you want to do that, i would suggest you talk to people who have done that. You see, free land is not anywhere near convinent areas, so you can put up a nice house somewhere in Rongai, then you have to contend with insecurity, endless traffic jams (spending 4 hours in traffic every day), the pain of waking the children at 4.00 am to prepare them for school, bad roads and undeveloped utilities etc. I know a few people who abandoned their dream houses to return to the city to rent a house where they can operate normally. So mortgages may be expensive but you get to retain your sanity, you will not have peace of mind in that dream house if its in the wrong neighbourhood "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Is Taking a Mortgage the WORST Decision Ever??
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