@tom_boy I share the highlighted pain. I never thought I would see this ever!

I have seen it courtesy of amana




@XSK what is happening at AMANA Capital?

Kenya power has risen from 3.15 to 4.20 in less than 2 weeks

Part of the money market fund was invested in Nakumatt. If you invested before 2018 part of the investment is now locked (unavailable) for a year hopefully

Right now I don't think NSE prices fully reflect all available information. There is a lot of damage to SMEs/jua kali sector from the interest rate cap. That damage is yet to get baked in the prices. KE economy moves on 2 track system the formal and informal. GoK reliably tracks the formal economy which the foreign investors also rely on and who by and large control the market. That to me is the fundamental flaw.

GoK has done a lot of wrong things to prolong the 'recession'in the informal economy. KE economy needs structural adjustment but that is unlikely to happen-status quo benefits and insulates a tiny portion of society(similar to white privilege during colonial KE).

I agree there are more fertile soils out there to plant for the long term. Maybe a govt that is more in touch with the informal sector will emerge and unlock the value. But right now it's wise to stay away from NSE. By the time we are done with successions politics you will not like your portfolio.

A stock is a piece of a business, not a piece of paper or numbers on a screen. That is the first and most important step in understanding the stock market.

My main thesis here has been to state that there is a better option than the NSE to achieve economic prosperity precisely funding or starting a new venture with a very small portion of your assets say 10%.

Here's why this is especially an important and profitable way to earn your wealth not only for yourself but for the country or continent at large.

1. Most good businesses go and seek out a solution to a problem that affects society or business. Solving this problem usually makes some other people's life or businesses' life easier. That creates additional second order benefits to society.

2. Starting and being successful at a business implies that you have gained new knowledge and experience that can usually be translated into other businesses or fields. That additional knowledge you have gained will likely empower you to do more and bigger projects in future.

3. Even failing at a new business leads to new knowledge about what doesn't work etc which further builds up on point no 2 above.

4. Starting a business usually forces you to learn new things, push your intellect, interact with people in new ways etc. That translates into concrete knowledge not just an almost video game like experience of stock picking at the NSE.

5. Attaining success in a business will typically lead to an increase in employment, payment of taxes, becoming a customer for other services etc which leads to multiple positive effects in the economy.

6. The fact is that we are at a stage as a country where we need a lot of pioneers to build new businesses that will solve the problems we face and open up new possibilities for the future. We are a very young economy with very few companies, we NEED a lot more companies and that means we need a lot of entrepreneurs to be active and build them.

7. Entrepreneurship is the only source of new wealth in an economy. As an entrepreneur you have the possibility of almost creating wealth out of nothing but your creativity that leads to customer satisfaction.

Given a 1M KES capital, you could invest that in the NSE and if you're very lucky (like the Sportpesa jackpot guys) you could do a 100% return in a year. An entrepreneur could take that 1M KES and turn it into 100M KES worth by creating a business that addresses an important need in society while employing people, paying taxes, gaining a lot of real knowledge about how to run a business and creating new capabilities in the country.

Because of the stage where we are as a country, the opportunities for entrepreneurs are myriad and that promises to be where the new wealth will be created.

Easier said than done----->According to a survey released Monday this week by the Kenya National Bureau of Statistics (KNBS), approximately 400,000 micro, small and medium enterprises (MSMEs) did not get to celebrate their second anniversary in the last five years raising concern over sustainability of this critical sector.

https://www.standardmedi...-smes-are-dying-annually

So how many businesses have survived? Statistics need to be complete to make sense. Thus they also need to tell us how many businesses were started and how many are surviving. May be over 1 million were started and only 400k collapsed. We need more info.

.

1. What is the success rate of new businesses?
How much money has been lost in the NSE with nothing to show for it? Well for the period April to September 2018, NSE lost investors 568bn according to this Business Daily Article NSE sheds Sh568bn investor wealth in 5 months

Imagine, if this money had been put into starting/funding new businesses! We need a mindset change to direct more money into start ups so we can really start moving ahead as an economy.

2.It is obvious that you do not understand the meaning of a stock. A stock is part ownership in a business. Therefore, if you buy shares, you are indeed addressing an important need in society through business ownership, employing people and paying taxes. Stop thinking of stocks as pieces of paper or numbers on a screen
Unless you are taking on a controlling stake in an NSE company there is not much of a difference you are making by joining the shareholder list of an NSE company. Try calling Bob Collymore to advise him to ask SCOM to improve customer service because you own 100,000 SCOM stock and see how far you get. Are there any new people that will be hired at SCOM because you have bought 100k of SCOM stock?

There is a big difference between buying some stock on the NSE compared to using the money to start a new business or fund a start up. The difference is your ability to influence and use your intellect to direct how the start up will perform versus your hands being tied in the big NSE company that you can't really influence. It's the difference between being a spectator versus being in the ring.

Did you open the Link? ----->“A total of 2.2 million MSMEs were closed in the last five years, 2016 inclusive,” read the report in part which found that a significant 46 per cent of the MSMEs surveyed died in their first year of establishment.