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SHARES versus REAL ESTATE
Gatheuzi
#61 Posted : Friday, April 17, 2015 7:48:37 AM
Rank: Veteran


Joined: 8/16/2009
Posts: 994
murchr wrote:
Sufficiently Philanga....thropic wrote:
A friend of mine is just concluding selling land that he bought in 2009 at ten times the buying price. But he tells me he has made more in stocks.


I wonder what stock would have made him richer 10 times if he bought it in 2009


Kenya Orchards or Kakuzi.

But on a serious note, suppose you make those seemingly small gains of 15% per trade and you do this repeatedly like 3 times a year, that will be around 52% compounded gains a year.

Over the 6 years period that is a whooping 12 times your original investment. But for this to happen you have to be a pro, a real master of the game.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
Sufficiently Philanga....thropic
#62 Posted : Friday, April 17, 2015 8:43:21 AM
Rank: Elder


Joined: 9/23/2010
Posts: 2,220
Location: Sundowner,Amboseli
murchr wrote:
Sufficiently Philanga....thropic wrote:
A friend of mine is just concluding selling land that he bought in 2009 at ten times the buying price. But he tells me he has made more in stocks.


I wonder what stock would have made him richer 10 times if he bought it in 2009

The stock gains are from the investments he made prior to 2009 and cummulatively have surpassed his real estate gains to date.
@SufficientlyP
maka
#63 Posted : Friday, April 17, 2015 8:48:34 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
Sufficiently Philanga....thropic wrote:
murchr wrote:
Sufficiently Philanga....thropic wrote:
A friend of mine is just concluding selling land that he bought in 2009 at ten times the buying price. But he tells me he has made more in stocks.


I wonder what stock would have made him richer 10 times if he bought it in 2009

The stock gains are from the investments he made prior to 2009 and cummulatively have surpassed his real estate gains to date.


Let me give an example:in 2003 the KEBS sacco was selling some land hapo mlolongo 280k for an eigth...a transaction done on Monday for the same land was done @ 4.1m...1365% gain...going forward 2027 will the land have gained that much?another 1365% gain I believe not...If I had the same 4.1m I wouldnt have bought land I would have gone for stocks....
possunt quia posse videntur
josimar
#64 Posted : Friday, April 17, 2015 9:32:33 AM
Rank: Member


Joined: 7/6/2010
Posts: 242
Quote:
Let me give an example:in 2003 the KEBS sacco was selling some land hapo mlolongo 280k for an eigth...a transaction done on Monday for the same land was done @ 4.1m...1365% gain...going forward 2027 will the land have gained that much?another 1365% gain I believe not...If I had the same 4.1m I wouldnt have bought land I would have gone for stocks....


The above was inevitable , if You are investing in land for resale then You need to hold on to it
for atleast 5 to 10 Years.
kaifastus
#65 Posted : Friday, April 17, 2015 12:18:20 PM
Rank: Member


Joined: 8/17/2011
Posts: 207
Location: humu humu
Open your minds here! You are trading shares courtesy of a few brave pple who decided to set up that business. Suppose Mwangi(and other Equity bank founders) had decided many years ago to invest in a few companies shares.perhaps their returns upto to date cud ave been stellar. however their choice to invest and grow a bizness as we have seen have mind boggling implications to our econ in terms of employment,support to agric and other linkages to various sectors of our economy. It is crazy to even imagine comparing shares trading to owning a RE biz (or any other biz for that matter)! One is as a result of the other.
Aguytrying
#66 Posted : Friday, April 17, 2015 12:57:34 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
kaifastus wrote:
Open your minds here! You are trading shares courtesy of a few brave pple who decided to set up that business. Suppose Mwangi(and other Equity bank founders) had decided many years ago to invest in a few companies shares.perhaps their returns upto to date cud ave been stellar. however their choice to invest and grow a bizness as we have seen have mind boggling implications to our econ in terms of employment,support to agric and other linkages to various sectors of our economy. It is crazy to even imagine comparing shares trading to owning a RE biz (or any other biz for that matter)! One is as a result of the other.


I for one appreciate the difficulty of running a successful business and that's why I invest in stocks with the brilliant minds.
The investor's chief problem - and even his worst enemy - is likely to be himself
sparkly
#67 Posted : Friday, April 17, 2015 1:33:19 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
kaifastus wrote:
Open your minds here! You are trading shares courtesy of a few brave pple who decided to set up that business. Suppose Mwangi(and other Equity bank founders) had decided many years ago to invest in a few companies shares.perhaps their returns upto to date cud ave been stellar. however their choice to invest and grow a bizness as we have seen have mind boggling implications to our econ in terms of employment,support to agric and other linkages to various sectors of our economy. It is crazy to even imagine comparing shares trading to owning a RE biz (or any other biz for that matter)! One is as a result of the other.


Very true. A share is a piece of a business!
Life is short. Live passionately.
murchr
#68 Posted : Friday, April 17, 2015 2:14:24 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
Sufficiently Philanga....thropic wrote:
murchr wrote:
Sufficiently Philanga....thropic wrote:
A friend of mine is just concluding selling land that he bought in 2009 at ten times the buying price. But he tells me he has made more in stocks.


I wonder what stock would have made him richer 10 times if he bought it in 2009

The stock gains are from the investments he made prior to 2009 and cummulatively have surpassed his real estate gains to date.


Depends on WHICH stock, just as it depends on WHERE the Real estate is located.

Some Masai sold me a piece of land in Kitengela for 450K in 2010, 4 years down the line, the price is about 3.5M the temptation to sell is there but the town has grown so much that am now dreaming of developing the land...point is. I have no investment in the NSE that has grown in those leaps and bounds....probably if I got ARM at 18 that would be the case, or Equity just when they introduced the share. Another advantage my land has over the any stock I own is that it does not run the risk of dilution by some overzealous manager. I get to choose what I would do with it.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
guru267
#69 Posted : Saturday, April 18, 2015 4:46:25 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
murchr wrote:
Sufficiently Philanga....thropic wrote:
murchr wrote:
Sufficiently Philanga....thropic wrote:
A friend of mine is just concluding selling land that he bought in 2009 at ten times the buying price. But he tells me he has made more in stocks.


I wonder what stock would have made him richer 10 times if he bought it in 2009

The stock gains are from the investments he made prior to 2009 and cummulatively have surpassed his real estate gains to date.


Depends on WHICH stock, just as it depends on WHERE the Real estate is located.

Some Masai sold me a piece of land in Kitengela for 450K in 2010, 4 years down the line, the price is about 3.5M the temptation to sell is there but the town has grown so much that am now dreaming of developing the land...point is. I have no investment in the NSE that has grown in those leaps and bounds....probably if I got ARM at 18 that would be the case, or Equity just when they introduced the share. Another advantage my land has over the any stock I own is that it does not run the risk of dilution by some overzealous manager. I get to choose what I would do with it.


What are the statistics of percentage of fake titles out there versus the percentage of companies on the NSE that have gone bankrupt?
Mark 12:29
Deuteronomy 4:16
murchr
#70 Posted : Saturday, April 18, 2015 5:14:48 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
guru267 wrote:
murchr wrote:
Sufficiently Philanga....thropic wrote:
murchr wrote:
Sufficiently Philanga....thropic wrote:
A friend of mine is just concluding selling land that he bought in 2009 at ten times the buying price. But he tells me he has made more in stocks.


I wonder what stock would have made him richer 10 times if he bought it in 2009

The stock gains are from the investments he made prior to 2009 and cummulatively have surpassed his real estate gains to date.


Depends on WHICH stock, just as it depends on WHERE the Real estate is located.

Some Masai sold me a piece of land in Kitengela for 450K in 2010, 4 years down the line, the price is about 3.5M the temptation to sell is there but the town has grown so much that am now dreaming of developing the land...point is. I have no investment in the NSE that has grown in those leaps and bounds....probably if I got ARM at 18 that would be the case, or Equity just when they introduced the share. Another advantage my land has over the any stock I own is that it does not run the risk of dilution by some overzealous manager. I get to choose what I would do with it.


What are the statistics of percentage of fake titles out there versus the percentage of companies on the NSE that have gone bankrupt?


The stats favor stocks, but that's not to say that stocks haven't had their nasty experiences. Ask those who bought Mumias at 49/- or that farmer who might have A Baumman etc.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
S.Mutaga III
#71 Posted : Saturday, April 18, 2015 9:49:28 AM
Rank: Member


Joined: 3/26/2012
Posts: 830
Your choice of investment should be dependent on two things
1. How much you know about the investment.
2. In case you have good knowledge in both, then you will be in a position to compare the two and choose the best option at any given time.

Therefore, for a guy working in NSE or a wazua veteran, stocksmaster et al, investing in stocks would seem the best option if they have limited knowledge in real estate. On the other hand, Mwalimu Marty, A4Architect et al, would choose real estate any day. So knowledge should be your investment compass, and if you are lucky to be knowledgeable in both, then you can make even more money by continuously choosing the best deals in both types of investments.
A successful man is not he who gets the best, it is he who makes the best from what he gets.
enyands
#72 Posted : Saturday, April 18, 2015 10:04:42 AM
Rank: Elder


Joined: 12/25/2014
Posts: 2,300
Location: kenya
S.Mutaga III wrote:
Your choice of investment should be dependent on two things
1. How much you know about the investment.
2. In case you have good knowledge in both, then you will be in a position to compare the two and choose the best option at any given time.

Therefore, for a guy working in NSE or a wazua veteran, stocksmaster et al, investing in stocks would seem the best option if they have limited knowledge in real estate. On the other hand, Mwalimu Marty, A4Architect et al, would choose real estate any day. So knowledge should be your investment compass, and if you are lucky to be knowledgeable in both, then you can make even more money by continuously choosing the best deals in both types of investments.

I'VE come to realize you are one of few wazuans with wise reasoning. You always say the truth and never criticize others opinion . I always heed to your advise alot . Thank you for generous ideas
mawinder
#73 Posted : Saturday, April 18, 2015 12:17:12 PM
Rank: Elder


Joined: 4/30/2008
Posts: 6,029
enyands wrote:
S.Mutaga III wrote:
Your choice of investment should be dependent on two things
1. How much you know about the investment.
2. In case you have good knowledge in both, then you will be in a position to compare the two and choose the best option at any given time.

Therefore, for a guy working in NSE or a wazua veteran, stocksmaster et al, investing in stocks would seem the best option if they have limited knowledge in real estate. On the other hand, Mwalimu Marty, A4Architect et al, would choose real estate any day. So knowledge should be your investment compass, and if you are lucky to be knowledgeable in both, then you can make even more money by continuously choosing the best deals in both types of investments.

I'VE come to realize you are one of few wazuans with wise reasoning. You always say the truth and never criticize others opinion . I always heed to your advise alot . Thank you for generous ideas

Are you sure????Links coming soon to disapprove you!!!!!!!!!!!!!!!!
sparkly
#74 Posted : Saturday, April 18, 2015 12:20:34 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
www.financialsamurai.com...t-real-estate-or-stocks/
Life is short. Live passionately.
S.Mutaga III
#75 Posted : Saturday, April 18, 2015 3:13:54 PM
Rank: Member


Joined: 3/26/2012
Posts: 830
As an economics student, Adam Smith's theory of absolute advantage comes into play. According to his theory, individuals have fixed resources (in our case money). However, each individual ought to pursue the investment which he is likely to yield the most gain, which is contingent on his level of knowledge, experience and access to critical information. An architect for instance has an absolute advantage in the development of real estate, and so does a stock broker in the trading of shares. Therefore, if any investment was to be made by both parties, the theory supports that the architect would go for real estate while the stock broker would buy stocks. But what about a person who is in neither the real estate business or the stocks business, but who is interested in investing? Assuming that his knowledge of the two investments is equal, the theory of comparative advantage by David Ricardo would apply. The theory holds that, an individual could still invest even if he has no absolute advantage in the two investments. Such an individual would mainly consider the opportunity costs of investing in either of the two. For instance, if he invests in stocks, how much income will he forego in the form of real estate income? And if he invests in real estate, how much is he likely to forego in stock market returns? He would then choose the investment where the opportunity costs are lowest for him. Both theories are used in international trade but have been modified to solve this investor's dilemma. #My 2 Zimbabwe bucks#
A successful man is not he who gets the best, it is he who makes the best from what he gets.
Boris Boyka
#76 Posted : Saturday, April 18, 2015 8:38:09 PM
Rank: Veteran


Joined: 11/15/2013
Posts: 1,977
Location: Here
mawinder wrote:
enyands wrote:
S.Mutaga III wrote:
Your choice of investment should be dependent on two things
1. How much you know about the investment.
2. In case you have good knowledge in both, then you will be in a position to compare the two and choose the best option at any given time.

Therefore, for a guy working in NSE or a wazua veteran, stocksmaster et al, investing in stocks would seem the best option if they have limited knowledge in real estate. On the other hand, Mwalimu Marty, A4Architect et al, would choose real estate any day. So knowledge should be your investment compass, and if you are lucky to be knowledgeable in both, then you can make even more money by continuously choosing the best deals in both types of investments.

I'VE come to realize you are one of few wazuans with wise reasoning. You always say the truth and never criticize others opinion . I always heed to your advise alot . Thank you for generous ideas

Are you sure????Links coming soon to disapprove you!!!!!!!!!!!!!!!!

@Mawinder human beings change with time and experirnce....recognise that over time and treat each season as it appears...Former issues of Mutaga may have been covered by his/her recent sound practical explanations.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
S.Mutaga III
#77 Posted : Saturday, April 18, 2015 11:59:06 PM
Rank: Member


Joined: 3/26/2012
Posts: 830
enyands wrote:
S.Mutaga III wrote:
Your choice of investment should be dependent on two things
1. How much you know about the investment.
2. In case you have good knowledge in both, then you will be in a position to compare the two and choose the best option at any given time.

Therefore, for a guy working in NSE or a wazua veteran, stocksmaster et al, investing in stocks would seem the best option if they have limited knowledge in real estate. On the other hand, Mwalimu Marty, A4Architect et al, would choose real estate any day. So knowledge should be your investment compass, and if you are lucky to be knowledgeable in both, then you can make even more money by continuously choosing the best deals in both types of investments.

I'VE come to realize you are one of few wazuans with wise reasoning. You always say the truth and never criticize others opinion . I always heed to your advise alot . Thank you for generous ideas

Thanks man. I am humbled
A successful man is not he who gets the best, it is he who makes the best from what he gets.
tom_boy
#78 Posted : Sunday, April 19, 2015 3:07:33 PM
Rank: Member


Joined: 2/20/2007
Posts: 767
Either shares or real estate will give good returns for long investment horizon. However, what matters most is the specific share one is considering buying vs the specific real estate one is considering. The other factor is liquidity. Here, shares win hands down. Also, Good quality shares will act as security for a loan with much less hussle and expense than compared with using land as security.
They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
S.Mutaga III
#79 Posted : Sunday, April 19, 2015 6:27:44 PM
Rank: Member


Joined: 3/26/2012
Posts: 830
tom_boy wrote:
Either shares or real estate will give good returns for long investment horizon. However, what matters most is the specific share one is considering buying vs the specific real estate one is considering. The other factor is liquidity. Here, shares win hands down. Also, Good quality shares will act as security for a loan with much less hussle and expense than compared with using land as security.

Kindly explain the highlighted part. What is the procedure? By how much do they discount the shares while valuing them, because I cant accept the security to be valued at more than 20% below market prices
A successful man is not he who gets the best, it is he who makes the best from what he gets.
madebe
#80 Posted : Monday, April 20, 2015 11:30:14 AM
Rank: Member


Joined: 10/7/2010
Posts: 251
Location: nairobi
The debate about shares vs real estate has been here in wazua for a long time. I am invested in half -real estate and NSE. I however love NSE because of two reasons. The prices are real and easy to obtain and two the shares are liquid. The problem of land is that it is not readily liquid and you hear about the prices but try selling your piece that is when you realise that the prices being mentioned are hot air....i've tried selling land in KBC and Utawala and i know.....
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