I am noob in the stock market. But if there is any regret that I have, it is not buying Safaricom shares when they were trading below 5bob.
[ATTACH=full]255141[/ATTACH][ATTACH=full]255142[/ATTACH][ATTACH=full]255141[/ATTACH]It is no secret that companies are facing rough operating times, if the NSE market is anything to go by. Some shares go for below 1bob.
Would it make sound economic sense to buy these shares at their depressed states? And I am talking about the long term (>10 years) speculation.
that depends on what policies are in place 10 years from now. with Kibaki we all knew he was about business and economy so it was easy to predict with him. with konyagi it is more a problem than it is a solution.
I’ll probably check on those with above average performance for the last 10years, then go with it.
No. Because you can’t differentiate price from value. Just because a share trades at Ksh 1 doesn’t mean that it is cheap. If a share trades at Ksh 300, it doesn’t necessarily mean that it is expensive. My point is, you are not educated enough to invest in shares. Luckily, you can learn. Learn first or you will make guys like me very rich in future. Until you can tell whether a stock is cheap or expensive using some basic accounting knowledge, you will lose this game in the long run. Learn fundamental analysis.
Example:
If I was selling two cars, a range rover autobiography 2018 model for 3 million, or a Suzuki alto for 1.5 million, which one would you buy if you had 3 million??
Because you know the true value of a Range Rover and the value of the Suzuki Alto (Chap Chap dudus), you will buy the range because it is selling at a big discount and you can resell it soon after for almost triple the price. The suzuki’s value is probably 700k so paying 1.5 million would be a big mistake. Now, as you can see from this example, the Suzuki only looks “cheap” on paper. But you wouldn’t know it if you don’t know how to value a vehicle. Use the same analogy on stocks. First learn fundamental analysis i.e how to value a stock so that you can know exactly what you are paying for. Without this knowledge, you are basically gambling and no wonder most people make wall-street rich because they don’t know how to value the stocks they are buying.
NB: Anyone who says Ksh 1 stock is cheap is a classic noob with a lot of learning to do. So, let me save you some money and a lot of agony so that you don’t participate in a game you don’t understand and call the stock market a casino a few years later like most Wanjikus.
Thanks for this insight. It is true I am extremely ignorant on this issue. Any leads ama i make gugu my friend?
Kama ni wewe what are your best bet kwa hiyo list above and why. Pick your top 6 and give reasons why . That’s how you help a brother
No. I don’t give a brother a fish. I show him how to fish and set him free to fish on his own. The first step is to google what fundamental analysis is. Better still, watch a youtube video or tutorial. If you can’t do that simple initiative, you aren’t fit for investing or motivated enough.
Use youtube tutorials. They save a lot of time and energy. Learn how to value a stock using fundamental analysis.
Wacha ninunue green maize from Nakuru,
Potatoes and cabbages from Kinangop,
Oranges from wherever,
Tomatoes,
Mangoes,
Green peas,
Beans,
Onions.
Etc etc you get the drift nikuje niuze marikiti.
Stock market is bull crap unless you are a billionaire with tons of idle money.
Get real.
That’s the beauty of education. As you are busy buying cabbages, beans, etc and getting tired like a donkey, I can trade commodities on my laptop in my home office using commodity futures. I don’t need to own the actual commodities or get tired using old-fashioned trade. I can trade coffee derivatives, oil, gold etc without leaving the house. The best thing is that I can get in and out of positions in seconds. You have to deal with rotten cabbages, etc etc. To each his own. I just wanted you to know there are easier ways of doing exactly what you are doing physically. We will be in the same business, but you will work 100 times harder and make less money. I can use leverage, you can’t. Happy Hunting
We have no evidence of what you purport to be.
This is the internet, you can be all you dream to be and post it here as lifetime achievements.
From what you post your usual jaunts are just ordinary clubs frequented by average people.
You have never posted about an industrialist that you met, a high flying pilot, a decorated army major, a renown surgeon etc etc.
I’m still learning. That’s why. Anyway, see you in a few years.
If I told you that there is an easier way of crossing the Indian Ocean (air travel) apart from swimming, would you:
a) Find out more about airlines and how much they charge
b) Laugh at me for not owning an airplane
Start with what you know top of your head, as you explore fundamental analysis. You most likely know Safaricom, KCB, Member, Tusker and the rest. I.e. dominant brands used by almost everybody on a daily basis
Spot on. Performance in most of these listed firms is manipulated to suit the major shareholders and directors.
They inflate earnings when they want bonuses and run down companies when they want kickbacks from takeovers.
Achana na hii brown skin iendelee kudaganya washenzi.
It makes alot of sense buying in the current harsh conditions, demand for stocks is low, poor returns keep investors at bay.
You’ll need to do a deep dive into the companies background, financials and the industry they operate in, the aim is to understand how they got where they are and where they are headed.
Do not buy stocks if you cannot answer these questions:
How well are they doing right now?
How far they have come?
Are they set for a favourable future? Growth opportunities?
Most important, the current leadership, do they have the best people at the helm?
Are you in it for the dividends or capital gains?
With stocks you are betting on your interests and the management’s interests converging, you have to be sure they are as interested in the profits as much as you are hence the need for lots of info.
Son, sometimes you make me very very proud. If half of Kenyans had your IQ hii country ingekuwa kama Singapore. And I mean it…
This market reacts more to emotions than fundamentals. Trade here with that in mind.
It makes me sad when I see wazees “investing” in shares yet they cannot even tell what a PE ratio is. Money earned over decades and saved for their grandkids is lost to corporate mercenaries and wolfs of wallstreet. In a way, stocks are a casino for 95% of the population because they don’t even understand what they are buying. Some get lucky, most don’t.
He sounds so sophisticated. High flying knowledge and even pretending to teach others. Mr. Elite! But when asked for an example, Mr. Elite stands on his high horse to ride even higher, by boasting how he doesn’t give out fish but teaches how to fish. Oh Mr. Fisherman, you don’t toil to sweat by buying physical beans, cabbages, tomatoes etc since you know how to trade on gold and silver from your home office. Alas! What a comfort. But…a spider boasts of its complex web which bring juicy flies on its mouth without breaking a sweat…but woe unto it, sooner than later, the flies will dine on its flesh, for its own web caught it. Mr. Suzuki alto