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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Elder Joined: 7/22/2009 Posts: 7,858
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obiero wrote:The market is crashing with your dividends 😅 I pay you KES 3.75 in exchange I take KES 7 and you are happy? Watch and learn The price crash is irrational. It does not bother people like me, @VVS and Warren Buffett. So long as the Fundamentals are good and the value (not the price) is there, why worry?? We are not selling!! Actually this is a great time if one has free cash. Buy the same value at a lower price. Believe me, if this goes on up to the time I get my dividends, I am putting in every single cent back to go get me more money. Every single cent! For me that is always the plan (compounding) but at times you get dividends when there is no value out there. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,858
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Rank: Elder Joined: 6/23/2009 Posts: 14,240 Location: nairobi
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Truly the mindset of traders and investors will never align. Water and oil
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Rank: Chief Joined: 1/3/2007 Posts: 18,356 Location: Nairobi
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obiero wrote:MaichBlack wrote:VituVingiSana wrote:MaichBlack wrote:Ericsson wrote:MaichBlack wrote:My 2 cents wrote:No need for talking in codes or needless theatrics. All global markets are down on account of Iran. As soon as Trump tweets cessation of war, markets will rebound. It’s that simple. No codes needed. Exactly!! Simple! Not rocket science!! I wish I had free cash!! A beautiful buying window coming up! Hopefully by the time I get my dividends the window will not have shut!!! I thought I had all the Equity shares I needed (It is my largest holding) but listening to James Mwangi during the release of FY 25 Results, I think if a window opens up I should load more. Much much more. Equity Group in 10 years will be unnoticeable! In 20 years... Will James Mwangi be still there and what is the succession plan? Equity is now an extremely well oiled machine. It is not dependent on James Mwangi. He is no longer involved in day to day running and is basically the vision carrier. 1. Role Evolution. In November 2024, Dr. James Mwangi stated he has moved from a daily "manager" role to an investor role, operating within a non-operating investment company to identify opportunities for shareholder funds. His role is now focused on high-level regional expansion, strategy, and sustainability rather than day-to-day branch operations. And of course he does not work alone on this! 2. Decentralized Operations. While James Mwangi remains the Group CEO, Equity Bank’s commercial business is now conducted through distinct subsidiaries with their own boards and leadership (such as Moses Nyabanda at Equity Bank Kenya). 3. Governance and Nominations Committee - This committee overseen by the board, is in charge of formal succession planning framework, focusing on nurturing internal talent and grooming next-generation leaders. The plan addresses both board-level and senior management turnover to ensure continuity. Key Aspects of Equity Bank's Succession Planning:Board Charter Focus: The Group Board Charter dictates the structured approach to talent identification, board development, and evaluation, ensuring smooth transitions in senior leadership. Internal Talent Development: The bank utilizes mentorship programs, rotational assignments, and talent identification initiatives to build a sustainable leadership pipeline. Nurturing Future Leaders: The bank focuses on identifying high-performing employees for "shadow positioning" to train for future roles. Culture Maintenance: To mitigate the reliance on its charismatic leadership, Equity focuses on embedding its core values and culture deeply within staff, sometimes through "culture ambassadors". External Focus: While nurturing internally, the group also utilizes external recruitment to bring in new skills as needed for strategic growth. In other words, Equity is not a fish vendor pale Bondo.  Dividend yield looking sweeter with each passing day. Time to buy? Yes Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,356 Location: Nairobi
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MaichBlack wrote:obiero wrote:MaichBlack wrote:VituVingiSana wrote:MaichBlack wrote:Ericsson wrote:MaichBlack wrote:My 2 cents wrote:No need for talking in codes or needless theatrics. All global markets are down on account of Iran. As soon as Trump tweets cessation of war, markets will rebound. It’s that simple. No codes needed. Exactly!! Simple! Not rocket science!! I wish I had free cash!! A beautiful buying window coming up! Hopefully by the time I get my dividends the window will not have shut!!! I thought I had all the Equity shares I needed (It is my largest holding) but listening to James Mwangi during the release of FY 25 Results, I think if a window opens up I should load more. Much much more. Equity Group in 10 years will be unnoticeable! In 20 years... Will James Mwangi be still there and what is the succession plan? Equity is now an extremely well oiled machine. It is not dependent on James Mwangi. He is no longer involved in day to day running and is basically the vision carrier. 1. Role Evolution. In November 2024, Dr. James Mwangi stated he has moved from a daily "manager" role to an investor role, operating within a non-operating investment company to identify opportunities for shareholder funds. His role is now focused on high-level regional expansion, strategy, and sustainability rather than day-to-day branch operations. And of course he does not work alone on this! 2. Decentralized Operations. While James Mwangi remains the Group CEO, Equity Bank’s commercial business is now conducted through distinct subsidiaries with their own boards and leadership (such as Moses Nyabanda at Equity Bank Kenya). 3. Governance and Nominations Committee - This committee overseen by the board, is in charge of formal succession planning framework, focusing on nurturing internal talent and grooming next-generation leaders. The plan addresses both board-level and senior management turnover to ensure continuity. Key Aspects of Equity Bank's Succession Planning:Board Charter Focus: The Group Board Charter dictates the structured approach to talent identification, board development, and evaluation, ensuring smooth transitions in senior leadership. Internal Talent Development: The bank utilizes mentorship programs, rotational assignments, and talent identification initiatives to build a sustainable leadership pipeline. Nurturing Future Leaders: The bank focuses on identifying high-performing employees for "shadow positioning" to train for future roles. Culture Maintenance: To mitigate the reliance on its charismatic leadership, Equity focuses on embedding its core values and culture deeply within staff, sometimes through "culture ambassadors". External Focus: While nurturing internally, the group also utilizes external recruitment to bring in new skills as needed for strategic growth. In other words, Equity is not a fish vendor pale Bondo. Dividend yield looking sweeter with each passing day. Time to buy? There is room for more irrationality as long as the Iran war is going on and the Strait of Hormuz remains closed. Prices will go lower. Weka pesa kwa your CDS account and wait. As long as the war is on, keep waiting. As soon as there is positive news, pull the trigger. Unfortunately for me I don't have free cash at the moment. It is all tied up. My nearest incoming bulk free cash will be from the dividends. But unfortunately with some if it coming in June, things might have gone back to normal. But whatever will come before then, naiweka stand by ni pull trigger positive news zikiingia tu hivi! Timing is very hard. Sometimes, just buy if the price is "fair"... and wait. And diversify to an extent. I am going to use Equity though one can use others to make the same point. Equity is 67/- with EPS of 19 and DPS of 5.75 PER 3.5 Gross DY 8.5% ; Net 8% There are many risks including the Middle East's indirect effects and direct issues in DRC and upcoming elections in KE. Once things calm down, as they usually do, things could start looking good. I expect Equity will try to pay a higher DPS YOY. I think JM saw what the lower DPS did to the price and confidence UNLESS it was signaled in good time. Looking ahead 10 years, without cray shocks, I think Equity will either become of the largest African banks to rival SA banks OR will be taken over. Equity might choose to invest in growth. It can use cash or shares just as NedBank is using its shares as currency. If cash, it can signal a lower dividend by telling us why. I suspect Equity will look to acquire a bank in resource rich countries like Zambia, Angola and Ethiopia. OR Just as Nedbank picked NCBA for exposure to EAC where it is not. Perhaps we may find a Chinese, Indian or SA bank looking for exposure to EAC does the same with Equity. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,240 Location: nairobi
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VituVingiSana wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:VituVingiSana wrote:MaichBlack wrote:Ericsson wrote:MaichBlack wrote:My 2 cents wrote:No need for talking in codes or needless theatrics. All global markets are down on account of Iran. As soon as Trump tweets cessation of war, markets will rebound. It’s that simple. No codes needed. Exactly!! Simple! Not rocket science!! I wish I had free cash!! A beautiful buying window coming up! Hopefully by the time I get my dividends the window will not have shut!!! I thought I had all the Equity shares I needed (It is my largest holding) but listening to James Mwangi during the release of FY 25 Results, I think if a window opens up I should load more. Much much more. Equity Group in 10 years will be unnoticeable! In 20 years... Will James Mwangi be still there and what is the succession plan? Equity is now an extremely well oiled machine. It is not dependent on James Mwangi. He is no longer involved in day to day running and is basically the vision carrier. 1. Role Evolution. In November 2024, Dr. James Mwangi stated he has moved from a daily "manager" role to an investor role, operating within a non-operating investment company to identify opportunities for shareholder funds. His role is now focused on high-level regional expansion, strategy, and sustainability rather than day-to-day branch operations. And of course he does not work alone on this! 2. Decentralized Operations. While James Mwangi remains the Group CEO, Equity Bank’s commercial business is now conducted through distinct subsidiaries with their own boards and leadership (such as Moses Nyabanda at Equity Bank Kenya). 3. Governance and Nominations Committee - This committee overseen by the board, is in charge of formal succession planning framework, focusing on nurturing internal talent and grooming next-generation leaders. The plan addresses both board-level and senior management turnover to ensure continuity. Key Aspects of Equity Bank's Succession Planning:Board Charter Focus: The Group Board Charter dictates the structured approach to talent identification, board development, and evaluation, ensuring smooth transitions in senior leadership. Internal Talent Development: The bank utilizes mentorship programs, rotational assignments, and talent identification initiatives to build a sustainable leadership pipeline. Nurturing Future Leaders: The bank focuses on identifying high-performing employees for "shadow positioning" to train for future roles. Culture Maintenance: To mitigate the reliance on its charismatic leadership, Equity focuses on embedding its core values and culture deeply within staff, sometimes through "culture ambassadors". External Focus: While nurturing internally, the group also utilizes external recruitment to bring in new skills as needed for strategic growth. In other words, Equity is not a fish vendor pale Bondo. Dividend yield looking sweeter with each passing day. Time to buy? There is room for more irrationality as long as the Iran war is going on and the Strait of Hormuz remains closed. Prices will go lower. Weka pesa kwa your CDS account and wait. As long as the war is on, keep waiting. As soon as there is positive news, pull the trigger. Unfortunately for me I don't have free cash at the moment. It is all tied up. My nearest incoming bulk free cash will be from the dividends. But unfortunately with some if it coming in June, things might have gone back to normal. But whatever will come before then, naiweka stand by ni pull trigger positive news zikiingia tu hivi! Timing is very hard. Sometimes, just buy if the price is "fair"... and wait. And diversify to an extent. I am going to use Equity though one can use others to make the same point. Equity is 67/- with EPS of 19 and DPS of 5.75 PER 3.5 Gross DY 8.5% ; Net 8% There are many risks including the Middle East's indirect effects and direct issues in DRC and upcoming elections in KE. Once things calm down, as they usually do, things could start looking good. I expect Equity will try to pay a higher DPS YOY. I think JM saw what the lower DPS did to the price and confidence UNLESS it was signaled in good time. Looking ahead 10 years, without cray shocks, I think Equity will either become of the largest African banks to rival SA banks OR will be taken over. Equity might choose to invest in growth. It can use cash or shares just as NedBank is using its shares as currency. If cash, it can signal a lower dividend by telling us why. I suspect Equity will look to acquire a bank in resource rich countries like Zambia, Angola and Ethiopia. OR Just as Nedbank picked NCBA for exposure to EAC where it is not. Perhaps we may find a Chinese, Indian or SA bank looking for exposure to EAC does the same with Equity. Mzee what are you suspecting about Angola and JM already said it this week. They are going there
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