IF AN AWARD WAS TO BE GIVEN,I WILL PLACE MY VOTE ON YOUNG. HE'S BEEN SO CAREFUL ON HIS ADVICES UNLIKE SOME DUDES HERE.........

ANYWAY THANK YOUNG AND JAH BLESS!!



Life is short,enjoy to the fullest,But only AFTER investing

I give credance to young and in support of his advise I copy paste an article I have just read,heed so you may not loose all:

'Benjamin Graham,Warren Buffett's mentor,is the famous father of value investing. Among his many brilliant observations is that the markets are a voting machine over the short term but a weighing machine over the long term. Over the short term traders 'vote' their emotions by buying or selling,sometimes resulting in wild and irrational stock prices. But over the long term stocks are truly weighed and will ultimately reflect their fundamental value to create earnings for their shareholders.

With stocks 'voted' down to ridiculously low levels through highly emotional panic selling,great opportunities exist today for investors and speculators. Even though we are deep in a secular bear,this current cyclical bear has driven stocks down near the bottom part of this cyclical bear. While the SPX could fall lower still,it isn't likely to go much lower than 800 before a big cyclical bull erupts that should eventually drive a double in this index. You can invest now when prices are artificially low.

For speculators,this incredible fear that drove such bear extremes cannot persist. And when it yields,after everyone who is going to sell has sold,the resulting V-bounce and bear rally should be massive. Since there is often symmetry between the size and sharpness of the preceding downleg and the resulting rally,we should be in for a big one. While tough to time,speculators long when this erupts will make a killing.

As life-long investors and speculators ourselves at Zeal,we have been hit hard by this brutal selloff too. Companies in sectors that have done really well in previous bears,mainly commodities,have been beaten into pulps this time around. Nevertheless,despite all of the short-term pain it is essential to maintain perspective and keep the long view. This selloff,like all before it,shall pass as well.

The bottom line is this incredible recent selloff has indeed been largely unprecedented in market history. It was compressed into a lot shorter period of time than normal,even for a major cyclical bear. Nevertheless,even this fear is finite and has to soon burn itself out. All bears ebb and flow and this one will be no exception. Don't make the mistake of extrapolating the present into infinity. It never works in the markets.

While it is awfully hard to buy when everyone thinks it is lunacy,that the markets are going to spiral lower indefinitely,this is the time when fortunes are made. It is not often that an irrational selling frenzy drives virtually every stock you've ever been interested in owning to multi-year or even multi-decade lows. Brave contrarians willing to buy into this fear are going to reap fortunes as the markets recover.'



Good Luck


Raheel

Biggest lessons learned with this meltdown?


Never,ever,ever trade with other people's money.
Trade only with money you can afford to lose i.e. your own cash money and if you lose it all then you can still feed your family and pay rent.
Never rush despite what your broker tells you i.e. 'time is now... if you wait you will miss the gravy train...'
Never stress yourself again! The stress I have experienced over the past week is enough to light up Nairobi for a month if it were to be converted to power! Its just not worth it. Life is too short to worry about how much will KQ open with tomorrow!

All those six points were useful. Good thought / research. Can i have your opinion about investing in stock market after the wall street issues?

http://www.myinvestorsplace.com/

http://www.myinvestorsplace.com/

learn't to listen/study folk in Sk

Learn something new everyday

During the bearish cycle,we need to bear in mind the wisdom of the richest value investor,Warren Buffet. For him,when everybody else is moaning,hes all smiles because the meltdown presents the best opportunity to invest. He has alreadt invested 10billion dollars in wallstreet since the madness began.

His advice when investing,(1) do you understand the bss the company is in? (2) will the coy be in bss in the next 10 years plus?,(3) is the management honest and ethical?(4) does the coy have some competitive advantage in the market? If the answers are affirmative and the price is right,buy.

Remember when you are buying a share,you are buying a part of the business.So if the above factors are ok,buy and dont worry about the price movements! e.g. KCB results are very good,the business model is right,expansion,etc.,but the NSE is irrational,it has punished the share for good performance. Buy the bss not price movements.

Does this reduce your agony? dont bother with the brokers/predictions/ etc. If these guys were correct most of the time,they would be billionaires. ON average,they are not better than you and I.


mke

I've noted this thought doing repeated rounds here that 'holding shares in a bear will cost you' - yes it may but you also need to ask yourself how far along are you into that bear before you offload??

Boss,just simply have a stop-loss and you will not need to worry whether it is a bear,market correction,price manipulation etc Beyond that is guesswork,tracking buy/sell orders and even more sleepless nights.

...... the sword of Damocles.....

Nothing personal.... Kila kitu kiasi...hata ujinga...

Investors in stocks are perennial learners!

All that glitters is not gold

One thing i like about this site is that its sooo informative if your mind is open. Other than my own research and a few sprinklings from an analyst friend,SK tops my list when it comes to investing in the exchange.

That said,i have made it my policy to have a portfolio of 70% blue chips and 20% growth counters,the other 10% i speculate and buy junk stocks e.g Safcom.

I have learnt that the Blue chips are worth more holding in turbulent times as well as good times especially the dividends that come with them e.g EABL,Jubilee,BAT,NMG and Bamburi.


The Hedonist