I have applied a loan of ksh 100000 to buy Mumias shares now that there been upward movement.Is that a good investment?

6880186

boss,you are asking after you've already decided?...what informed your decision? give more information if you want advise not consolation.

Let me get this. Asking for a loan..with a fixed predictable interest rate charge...to invest in shares..whose return on investment is uncertain..unpredictable.. unquantifiable...????? You my friend,are what makes people call investing gambling. Please note,the house always....ALWAYS wins. Best of luck.

..if it is not expressly prohibited in law.. DO IT!!!!

@ptor;

You are putting the cart before the horse!

Jammo has said this inumerable time: you never buy your stock in one large order! So if you get the sh100k from the bank,and decide that you want to nuy the MSC shares,don't give the broker one fat order!

Split the 100k into,say,ten portions of sh10,000 each. Then commit to purchase 10k worth of the shares each month for the next 10 months.

In the ten months,you will be paying back the loan to the bank,presumably using your salary. If your loan is repayable in 12 months at,say 15% interest,the bank will expect you to pay about sh9k each month. This means that you can get sh9k per month,si-ndio?

So here comes the question: why take the loan [and pay interest] while you can actually afford to buy the shares with your salary?




Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

Im repaying the loan using salo

6880186

I get your sentiments my kenyan fellow.

Let me give you the two sides of the coin:-

Our kenya NSE is an emerging market and there is no guarantee that most of the counters are driven by 'KEY' fundamentals....we need to appreciate that speculations also plays a key factor here at NSE...

Peolple who have made money will tell you clearly that it has been a combination of both.

So my advise is this:-

Have a reflection of your portfolio and see what do you really want;

* Is it pure Investemnt ?? i.e Long-term Investments of being a part of Blue Chip

* Or is it making and loosing $$$and move....& by-the way when you go the speculative way be ready to burn your fingers as well at one given time....BUT you can also gain highly.

NOW with your Loan of 100K....Think deeply of:-

-a) Interest you'll pay,payback period for the loan to elapse vs rate of return in your NSE Investment.

As per the previous trends - Remember Mumias moved from 49 to now 6 after split. Is there any gain?? and by how much?? This is now your homework.

For me whichever way you take,you can still gain - But remember NSE as i said is an emerging market any thing is possible with your 100K. Think Think Think & dont be moved by emotions and stocks euphoria.

@mtaalam,

Exactly,but only applicable to investors

The thicker the thigh the sweeter the pie.

@ stonewewe

If it was a bbk loan then they would have to pay six month interest early repayment penalty


Me first,U next

It's always easy to make arguments with the benefit of hindsight.

The real question right now is: Do you think MCS will touch 9bob in the next three months?

If YES,what is your percentage level of confidence? 90%,80%,70%....what?

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

Today Mr. Obiero you are starting to heal. You are really digging for old information which is good. That is how healing starts.