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Longhorn FY17
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VituVingiSana
#11 Posted : Friday, December 15, 2017 11:28:54 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
Ericsson wrote:
Ebenyo wrote:
Centum has successfully influenced the resolution to sell the company land hosting the head office.
The company will now rent offices.
This is not a good move.


The proceeds from the sale will be given as special dividends.
You can guess the biggest beneficiary will be

Land may not be the best investment for Longhorn. They may be better off renting at 6% (rental yield) and investing in a business that makes 15% or paying down debt.
Berkshire Hathaway, run by billionaire Warren Buffett, has rented its offices at Kiewet Plaza for decades.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#12 Posted : Friday, December 15, 2017 1:11:19 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
Ebenyo wrote:
Centum has successfully influenced the resolution to sell the company land hosting the head office.
The company will now rent offices.
This is not a good move.


The proceeds from the sale will be given as special dividends.
You can guess the biggest beneficiary will be

Land may not be the best investment for Longhorn. They may be better off renting at 6% (rental yield) and investing in a business that makes 15% or paying down debt.
Berkshire Hathaway, run by billionaire Warren Buffett, has rented its offices at Kiewet Plaza for decades.



That land is a sunken cost.It was bought a long time ago and by now they recovered their money.
I hope this is not a strategy of Longhorn to prop up profits through asset sales
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ebenyo
#13 Posted : Friday, December 15, 2017 2:24:24 PM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
VituVingiSana wrote:
Ericsson wrote:
Ebenyo wrote:
Centum has successfully influenced the resolution to sell the company land hosting the head office.
The company will now rent offices.
This is not a good move.


The proceeds from the sale will be given as special dividends.
You can guess the biggest beneficiary will be

Land may not be the best investment for Longhorn. They may be better off renting at 6% (rental yield) and investing in a business that makes 15% or paying down debt.
Berkshire Hathaway, run by billionaire Warren Buffett, has rented its offices at Kiewet Plaza for decades.



The administrative costs will shoot up.
Towards the goal of financial freedom
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VituVingiSana
#14 Posted : Friday, December 15, 2017 4:53:46 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
Ebenyo wrote:
Centum has successfully influenced the resolution to sell the company land hosting the head office.
The company will now rent offices.
This is not a good move.


The proceeds from the sale will be given as special dividends.
You can guess the biggest beneficiary will be

Land may not be the best investment for Longhorn. They may be better off renting at 6% (rental yield) and investing in a business that makes 15% or paying down debt.
Berkshire Hathaway, run by billionaire Warren Buffett, has rented its offices at Kiewet Plaza for decades.


That land is a sunken cost.It was bought a long time ago and by now they recovered their money.
I hope this is not a strategy of Longhorn to prop up profits through asset sales

Assets cannot be looked at in isolation. The best use has to be considered. Can the proceeds from the sale be used to boost other income or savings?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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