mlennyma wrote:I thought banks hav reached growth pick but seems the sky will be the limit.
dunkang wrote:WOLOLO!
Yaani this Tier 1 banks are still making double digit profits growth???? And the way i had written them off!
Mid-tier banks must make us much more! Lets just hope so!
There is one thing that wazuans get wrong and they repeat over and over without being challenged. The assumption that some companies (And especially Banks in the case of Wazuans) have reached maturity level. Just the other day I saw someone being advised to avoid Equity and KCB because "...they have reached maturity and there is little growth/upward movement (something like that)...".
Nothing can be further from the truth!!! If you want to know if a company has reached maturity, ask yourself (or the people managing the company), where (according to long term plans) was the company headed? Has it reached there? If so, what is the next plan (in terms of growth). If not, how far of are they??
For Equity bank, the long term plan is to become a Pan African bank. James Mwangi will tell you this any day of the week free of charge!!! How much of Africa has Equity Bank covered?
Less than 5%!!! You get my drift??? The journey has just began. We have 95% of the journey to cover.
As people are busy saying "Tanzanians will always be hostile to Kenyan business", "It will be impossible for a Kenya bank to compete in Nigeria", "The South African financial system is too developed and mature bla bla bla", the companies are busy growing!!!
If Equity and other companies are serious about their "Afican Agenda", they can grow at the current rates (or even more) for
decades - not years!!
Multinationals - Like Barclays Bank - Don't hold your breath. Barclays Bank
Kenya - the one whose shares you own, will be limited to Kenya. If they want to grow, they must grow within Kenya!!! And that is the disadvantage of Vodafone owning a huge percentage of Safaricom. They will not allow Safaricom to compete with them in other African (or World) countries. But that is a story for another day.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.