@merkava and @Ebenyo - That is the spirit! Kufikiria maslahi ya "mitoto" yetu.

Though I am over invested in financials, I have my eye on KCB too. I have a feeling (based on market emotions, bear environment, the rights - Not fundamentals!) that the price will go lower! Not pulling the trigger yet. But my eyes are wide open.

After I get into KCB (If and when) I will have a good chunk of my money in financials but I don't think that is such a big problem (There different schools of thought when it comes to diversification). And if I feel it is a problem in two or more years, I can always re-balance my portfolio.

My only issue with KCB is their appetite for rights money. Every couple of years they come for more!

don't buy stocks to pay for your child's school fees, that's not a wise gamble. There is life insurance for children's education for this. I suggest you go down that route.

Disclaimer: I am in the insurance industry.

@Merkava,thanks for sharing.Honestly im not an expert in NSE.Im also learning.This site of wazua has really been helpful to me.Though be very careful as every good place has its madmen too.
So you have a two year old boy,and i have a three year old girl.Maybe one day in future they will meet and get married.Then we will be inlaws!
Your father portfolio was good.But co-op bank lacks creativity and innovation to grow going forward.So i wont advice you to rope into that yet.
Nation media group has fell victim to generation change from analogue to digital.Instead of embracing change of times, they tried to resist and fight.Dont get into it untill they go digital.
Stanchart is still finding it difficult to go to the low income bracket segment.They are still in the old system of targeting high income end.Growth here will be slow and difficult.
Centum is a company whose priorities are to benefit 1.Employees 2.Speculators.
As a long term investor you will suffer here.
From your father portfolio,I will only pick KCB.My reasons:
1.Innovation- the company has been busy creating new products to meet the needs of the market.They started kcbmpesa last year.
2.Growth-new target markets to venture include somalia and mozambique.
3.Faith in the MGT-kcb board led by Ngeny Biwott and a young CEO Joshua Oigara,is vibrant enough to guarantee shareholder returns.


You are in Safcom,Kengen and Fahari i reit.
Safcom is a dream company,mpesa product will be difficult to rival.Banks are trying but they are not yet near.It generated 45 bilion revenue in the last financial year.Thats a good pick for you.As this is a bear market,continue working on your average buying price.My current average buying price for safaricom is 16.20.So the current price of 18.10 is not good for me.Whats your current average price?
Kengen-Im worried at huge debt to equity ratio currently at 74%.My entry price was 6.80.
I dont know if kengen will ever try to reduce dependency on debts.Huge reliance on debts makes shareholders equity look like cramps.
I give this counter 3-5 years to observe trends.But i like the CEO,Albert Mugo.He seems to have shareholders interest at heart.
There was a rights issue recently.There will be dilution going forward which i will wait to see.
I dont know much about stanlib fahari i reit.I only know its a real estate investment.Going by what i saw with Home afrika,i wont touch untill i see their forthcoming financial results.
From your portfolio,i will only pick safaricom.Though im in kengen,high debt to equity ratio is a discouraging factor which in future if it doesnt reduce,might see me opt out.
fahari i reit is a wait and see for me.
As to the stocks you are planning to acquire,buy KCB and Equity.
I have shared my thoughts on centum already from your father portfolio.
CIC is a sister of co-op bank.They share the same heredity disease.
On insurance counters,i like kenya Re.
My portfolio currently stand as follows:
1.Equity
2.Safaricom
3.Kcb
4.Kengen
im thinking to add Bamburi,Kenya Re,Total,Nse,Eabl,Kapchorua.
My target is to posses ten companies only out of the possible 64 in NSE.I will try to be diverse as much as possible.
Speculators are the ones who will just keep two or three stocks for quick play.Why should a long term investor do that? i believe you should have atleast five and above.

it was very honest of you to state your interest.
I could have agreed with you,if the money the policy holder pays monthly was used by the insurance company in other ways that i might not be able to do.As it is,insurance companies are the most active speculators in the bourse,which sometimes they loss heavily,
they are heavily invested in treasury bills and bonds and they are in real estate.All these are things which im able to do myself and generate good returns.Insurance business thrive because most people lack self discipline to delay instant gratification.

i agree with you, but i advise that you leave some responsibilities to 'specialists' i.e. the insurers. it is not advisable to manage all the aspects of your financial planning.
re: insurance policy returns, using football as an analogy, insurance is the defence/keeper, savings are the midfield, stocks/investments are the strikers. so, set your finances up accordingly.