Ericsson wrote:My 2 cents wrote:VituVingiSana wrote:maka wrote:Ebenyo wrote:Ericsson wrote:85% of Jubilee Holdings investments is in government securities.
They should diversify to stocks and real estate.
Not now...
It's about the price of entry. If they can load up on cheap (good dividend payers) stocks today then the payoff will come in a few years. Firms like JHL can't look at small stakes but large purchases so they have to start accumulating NOW rather than wait for a decrease in price on small/light trades.
You and I can wait for a slight cheaper price since we buy "few" shares but JHL needs to deploy billions. I am also OK with them buying/holding some IFBs yielding 12.5% tax-free.
They can start with buying DTB shares - super cheap. And they are affiliated to DTB anyways.
They already own a stake in DTB
So? Buy more. Heck, if they can [regulations] they should buy 25% - 100% of the bank out and instill discipline and sense!
Of course, the 51% owners are AKFED/AKDN who are also the primary shareholders of Jubilee.
They need to send some JHL people to kick DTB's management.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett