Nabwire wrote:erifloss wrote:Nabwire wrote:[quote=erifloss]Everything held constant for the year at the current rate of 20.696%, if one rolls over their investment the effective rate will be around 22.35% now where else can one get a safe return like this.
20% is roughly 5% every 3 months, even if we get generous and stretch it to 9% every 3 months, thats only 3% per month!! Nimekataa, there are stocks that rally 10% in a couple of days, I just dont get it. But then again, Im not loking for a safe return.
I think you should check the average loss for the last 6 months alone at the NSE and also remember this is an elections year. To be true to ourselves foreigners are the ones who initiate most of the rallies and this year i don't see them coming in but getting out in droves.
The economic environment is not also that promising. I'm totally happy with a 20% return.[/quote
And here is where the true investors are separated from the wannabes. If you look at the market as being down and that foreigners are fleeing, you miss the half full analogy of this being a great buying opportunity. We all know markets are cyclical, so even if they are fleeing, they will be back
There is money to be made. I see alot of herd mentality here, Tbills are safe, they are not great. It takes great risk to make great money, why would one want to preserve their capital when they could grow it? (Granted there is a chance of "losing" the capital) A good example, EK has more than doubled in less than a week
Granted it is a huge risk coz the comapny may be going to bankruptcy, but no pain no gain. Why in hell would I tie up my money in Tbills for a paltry 3% per month???!!!
http://finance.yahoo.com/q?s=EK&ql=1
I think you are mistaking what a true investor is all about. A true investor thinks of returns both today and in the future. If i don't preserve my capital, what will i use in the future and remember capital is a scarce resource and if well preserved you'll always make good returns on it.
That said, as you've been asked name one company that will give a return of 20%!
1. Interest rates are up with no signal of going down.
2. Though inflation has gone down, all indicators point to it going up which basically means interest rates might be pushed up further.
3. The largest consumers of our horticultural products and tourism are in a financial mess created by their own over-spending and over-borrowing. I don't see this sector growing any further with this trend and remember these are our highest forex earners. This simply means the forex rates will be on their way up again very soon.(Interest rates further up again).
4. If your are in the US, you know what is common about LinkedIn, Groupon, Zynga & Pandora. They all had IPOs in 2011, they are good investments, big but what strikes me is that all but LinkedIn are trading below their IPO prices (Its all over not in Kenya alone)
4. Elections! elections! elections!
Simply said Nabwire, i like investing but i love my money more and i hate losing it if i don't see a glimpse of making anything out of any loss.
T bills rein supreme as of now.
Check these stats:
http://www.knbs.or.ke/news/lei112011.pdf
http://www.knbs.or.ke/cpi/cpi122011.pdf
http://www.knbs.or.ke/news/gdp32011.pdf
Smart money had seen this way before and gone for Gold or Govt securities.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary