@mukiri assuming you bought a farm at say 1 million.The farm productivity is satisfactory to you. then two years down the line everyone says that the most they d buy the farm is a half a million.would you panick and sell off the farm just because of that?
The point is to ignore the noise of the emotional stock market so long as the economics of the underlying business are intact

@a guy trying...how about equity which is fairly valued at 41.00 in the banking industry but potential for growth is high if telecoms/mobile money etc works. In your opinion would buffet rules apply I.e buy low sell high cause Equity is definitely not cheap at the moment

In my opinion, NAV is a useful indicator but should not be the only criteria. We've got a lot of discounted stocks esp in the agricultural sector on the NSE which are asset rich but earnings poor. In order to realize the value of your purchase you have to wait for an asset sale event such as with Rea Vipingo. The quality of management, earnings growth record are equally important. Even on the global scale, we've got a lot of countries with huge assets esp in Africa but they are unable to take advantage of them because of poor management. Japan which is very physical asset poor still manages to outperform. It's always important to understand the rationale behind a theory than to copy paste without giving it some context.

In view of this thread I'd love if we shared some of the currently undervalued companies with massive potential for growth. A good example to start with would be KPLC and KQ(I know this is debatable but I still believe there's great potential if project mawingu is something to go by)

@guru what do you think of Total kenya.