At the beginning of the year, I was very pessimistic about investing in the stock exchange. So far, results have been trickling in thereby changing my perspective and revealing that 2015 may still have some bargains especially for the LONG TERM INVESTOR.So far, I have spotted three opportunities that will constitute my portfolio going forward in 2015. My investment horizon is long term and since my policy is not to have more than 4 stocks at a single time, I will constantly rebalance this portfolio to book gains and pursue more attractive opportunities as they arise.
Kenya Re:- Cheap valuation with P/E of 5.5 and good growth prospects. The government recently guaranteed its business for the next five years in Kenya. Counter to watch going forward.The company has been recording increases in profitability. This year’s half year results were a 4% increase from last year. The flat growth was due to a non recurring event namely the JKIA fire which cost the company half a billion in claims. FY 2012 = 1.914 Billion, FY 2013 = 2.801 Billion, HY 2014= 1.248 Billion.
Unga Group: - Cheap valuation with P/E of 6.3. Acquisition of bakeries and venture into selling cereals expected to boost revenues. Profits increased by 40% in 2014. This years half year profits increased by 70%. I expect a stellar 2015.
KPLC:- Cheap valuation with P/E of around 4.2. Profits increased by 87% in 2014. Half year profits for 2015 increased by 38%. Massive government contracts to light bypasses in the offing. I expect massive increase in revenue from this monopoly going forward.
NB: Large government shareholding in Kenya Re and Kenya Power is not proving to have any negative effects on profitability. In fact, the government is a major KPLC client and has guaranteed Kenya Re's business for the next five years.
My Portfolio composition is therefore as follows for 2015:
40% of Portfolio (Unga Group) :- Buying Price Ksh 43.25/share
30% of Portfolio (Kenya Re) :- Buying Price Ksh 18.60/share
30% of Portfolio (KPLC) :- Buying Price Ksh 18.35/share

I will constantly update this post in case of any developments.
Happy Investing 2015.

Great respect to your style of investing.. all the best and keep us updated

welcome to stocks our prodigal son,what is your brother jimnah saying?is he still pessimistic??

Please note that I only invested after the Kenya Power and Unga results were out and the government guaranteed Kenya Re's business...before then, no company met my strict criteria and therefore I was ready to stay out. As for Mbaru, we are totally independent and I am not authorized to speak on his behalf.

At least you've avoided overvalued banks, ill give you that

Its common knowledge here that KQ is a monkey, Mutaga is smart to avoid mentioning it.

I will load more Kenya Re and KPLC if their prices hit KSh 15 per share. This will signal my second phase of buying. Low prices = Better bargains on the same companies. Unga seems stuck at around 45

I went heavy on Safaricom before half year results at 12 now offloading at 18 since it is overpriced past that price at the moment

KPLC and Kenya Re are currently testing lower lows. I view this as a bargain hunting opportunity. I will accumulate a huge chunk once they hit Ksh 16. My investment horizon is 3 years. The lower prices fall, the sweeter the deal.

Contradicting yourself eh ?