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Why investing in the NSE is fool's gold and a waste
Rank: Member Joined: 2/20/2007 Posts: 767
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MugundaMan wrote:tom_boy wrote:In my investment philosophy, one should approach investing in shares the same way you approac investing in land
- do due diligence. Invest in companies you are willing to hold for next 10yrs.
- Once you buy, forget about it. Who here upon buying land goes back to enquire on the cost of land in that area every week/ month or even year.
- Ignore what the price is doing. Who here would buy a piece of land and then upon hearing that their neighbour has sold his plot of similar size at 50% less than you bought it would spend sleepless nights and rush to sell theirs ati cause land price is coming down.
- of course shares trump land on liquidity, ease of purchase, cashflow and ability to diversify. This is good advice that would work in a normal, civilised country where the rule of law applies and big thieves have filled the jails. But this Ghenya my mbraddah. You cannot think and act in an orderly way when you are deep in a lake of chaos. The same chaos apply to land purchase. Even in land deals, hyenas are lurking to steal your hard earned cash. A guy whose house has been demolished for building on riparian or road reserve or govt land is no different from investors in ARM, Mumias, etc etc. Its all a loss. At least in stocks one may have diversified. Stocks have their place in a portfolio and so does land. Diversification is key. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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MugundaMan wrote:tom_boy wrote:In my investment philosophy, one should approach investing in shares the same way you approac investing in land
- do due diligence. Invest in companies you are willing to hold for next 10yrs.
- Once you buy, forget about it. Who here upon buying land goes back to enquire on the cost of land in that area every week/ month or even year.
- Ignore what the price is doing. Who here would buy a piece of land and then upon hearing that their neighbour has sold his plot of similar size at 50% less than you bought it would spend sleepless nights and rush to sell theirs ati cause land price is coming down.
- of course shares trump land on liquidity, ease of purchase, cashflow and ability to diversify. This is good advice that would work in a normal, civilised country where the rule of law applies and big thieves have filled the jails. But this Ghenya my mbraddah. You cannot think and act in an orderly way when you are deep in a lake of chaos. How is it any different with land in Kenya? Case 1: https://www.usiu.ac.ke/1...s-bedevil-moi-17-years/
Case 2: https://mobile.nation.co...273068-ty9hb/index.html
And many, many more. Most we do not hear about. Family disputes, disputes with neighbors, etc Wazee being killed or accused of being witches. Then those who, even after all the due diligence, find out the entire system has been rigged and their title deeds are fake or invalidated. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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MugundaMan wrote:VituVingiSana wrote:  I am invested in real estate just not directly. I have no interest in dealing directly with tenants, etc. I pay Centum's Management/CEO a heavy fee to do so for me  I am quite comfy in my holdings despite some setbacks. Show me someone who has not had one and I will show you a liar. No idea where you got the idea that I said CBK is bandia though I have said it plays favorites eg NBK was allowed to stay in business despite 3-4 years of not meeting its ratios. KNBS - I just wanted to point out that all might not be what you interpret it to be. The GDP growth of 5% as claimed may be true but it includes loan funded growth while kicking the can down the road. It's like the jamaa who buys a V8 using a loan.  I prefer buying a probox without a loan. Or the guy who lives in Lavington and borrows from Peter and Paul. *BTW, I know a jamaa/friend like that. I have stopped taking his calls when all they became about asking for a "small" loan. Once bitten, twice shy. Plus given my timeframe and choices in the NSE, I am not overly bothered. I expect some losses but not stressed about the future of the firms I am invested in. VVS, Investing "indirectly" through the casino and saying you are in real estate is like me investing "indirectly" in Mumias and saying I am in real estate because Mumias owns land and property in Western. But you forgot the small matter of the corrupt and mismanaged company's balance sheet between you and the real estate. If you wake up to news of a HACO or Uchumi type cooking the books scandal at Centum, you will find out fast you own a big fat nothing in Vipingo Ridge indirectly . Nunua ploti, maisonettes, apartments, farms na kadhalika before it is too late my braddah. Time is running OUT for you!In ten years time a 40*80 squalid plot in Joska will cost 20m and a simple Maisonette in DC will cost 100m. You would have to go to Arusha and tango with Magufuli to get something affordable at that point. And the casino (NSE) will be at close to zero. You have been warned I will take that chance. If we do end up as you say, in 2029, may I be one of the caretakers in your massive real estate empire? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Delete - Double Posted Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Usicheke That is a real possibility. We will happily give you odd jobs za kufyeka nyasi. I remember in the mid nineties when nobody was talking much about satellite towns as boom zones. Rongai had reports of crime daily. It was a cheap, scary low income suburb scantily settled. A close friend of mine bought 11 acres there. I told him mbradza u is kurazy! Your money is lost! That place will never develop in 100 years! Fast forward to today. Same chap is retired in Sandton living like a rockstar after having cashed out his single investment in that property to a sacco for unbelievable figures in 2014 and reinvesting it hapo. When we talk now I tell him boss you had the foresight of a savannah giraffe! Check the price of an acre in Ronga CBD today. Surely even if you bought all the stocks on nse for same amount of money in the mid nineties, you would not even come close to matching the same returns. Laghini gila mtu na sumu yaghe. Some people like nyanis others invest in real assets with literally GUARANTEED long term returns. Shalom
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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MugundaMan wrote:[quote=VituVingiSana] I will take that chance. If we do end up as you say, in 2029, may I be one of the caretakers in your massive real estate empire? Usicheke That is a real possibility. We will happily give you odd jobs za kufyeka nyasi. I remember in the mid nineties when nobody was talking much about satellite towns as boom zones. Rongai had reports of crime daily. It was a cheap, scary low income suburb scantily settled. A close friend of mine bought 11 acres there. I told him mbradza u is kurazy! Your money is lost! That place will never develop in 100 years! Fast forward to today. Same chap is retired in Sandton living like a rockstar after having cashed out his single investment in that property to a sacco for unbelievable figures in 2014 and reinvesting it hapo. When we talk now I tell him boss you had the foresight of a savannah giraffe! Check the price of an acre in Ronga CBD today. Surely even if you bought all the stocks on nse for same amount of money in the mid nineties, you would not even come close to matching the same returns. Laghini gila mtu na sumu yaghe. Some people like nyanis others invest in real assets with literally GUARANTEED long term returns. Shalom John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Member Joined: 3/9/2010 Posts: 320 Location: kenya
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Spikes wrote:MugundaMan wrote:[quote=VituVingiSana] I will take that chance. If we do end up as you say, in 2029, may I be one of the caretakers in your massive real estate empire? Usicheke That is a real possibility. We will happily give you odd jobs za kufyeka nyasi. I remember in the mid nineties when nobody was talking much about satellite towns as boom zones. Rongai had reports of crime daily. It was a cheap, scary low income suburb scantily settled. A close friend of mine bought 11 acres there. I told him mbradza u is kurazy! Your money is lost! That place will never develop in 100 years! Fast forward to today. Same chap is retired in Sandton living like a rockstar after having cashed out his single investment in that property to a sacco for unbelievable figures in 2014 and reinvesting it hapo. When we talk now I tell him boss you had the foresight of a savannah giraffe! Check the price of an acre in Ronga CBD today. Surely even if you bought all the stocks on nse for same amount of money in the mid nineties, you would not even come close to matching the same returns. Laghini gila mtu na sumu yaghe. Some people like nyanis others invest in real assets with literally GUARANTEED long term returns. Shalom Work hard at your job and you can make a living. Work hard on yourself and you can make a fortune.
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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MugundaMan wrote:Usicheke That is a real possibility. We will happily give you odd jobs za kufyeka nyasi. I remember in the mid nineties when nobody was talking much about satellite towns as boom zones. Rongai had reports of crime daily. It was a cheap, scary low income suburb scantily settled. A close friend of mine bought 11 acres there. I told him mbradza u is kurazy! Your money is lost! That place will never develop in 100 years! Fast forward to today. Same chap is retired in Sandton living like a rockstar after having cashed out his single investment in that property to a sacco for unbelievable figures in 2014 and reinvesting it hapo. When we talk now I tell him boss you had the foresight of a savannah giraffe! Check the price of an acre in Ronga CBD today. Surely even if you bought all the stocks on nse for same amount of money in the mid nineties, you would not even come close to matching the same returns. Laghini gila mtu na sumu yaghe. Some people like nyanis others invest in real assets with literally GUARANTEED long term returns. Shalom Equity listed in 2006 and is 15x in 13 years. More than 15x given dividends. Lost track. Safaricom is 5.5x + dividends = 7x since 2008. Nitafyeka nyasi Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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VituVingiSana wrote:Equity listed in 2006 and is 15x in 13 years. More than 15x given dividends. Lost track. Safaricom is 5.5x + dividends = 7x since 2008. Nitafyeka nyasi ONLY??
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