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Im i on the right track?
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mkonomtupu
#21 Posted : Friday, October 22, 2010 4:22:37 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,001
Location: River Road
@Arusha, as a beginner in stocks i wouldn't advise you take a loan especially for short term investment. But loans are not a bad idea to grow you portfolio especially sacco loans but you have to know the stocks and have other sources to repay the loan. I will give you two examples of how loans have helped kengen IPO i didn't have a dime but i borrowed a Kshs. 100,000/= and got the max allocation of 6k shares which i sold on the second day of trading.
This year i took out another sacco loan and put it into stocks and i have no regrets for now. It's risky but every investment has its risks even waking up and going to work is risky.
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Njung'e
#22 Posted : Friday, October 22, 2010 4:23:20 PM
Rank: Elder


Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
The urge to borrow and invest is always there but i end up asking myself one question.Can i live on a borrowed life?
Nothing great was ever achieved without enthusiasm.
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2012
#23 Posted : Friday, October 22, 2010 4:27:51 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
obiero wrote:
@ jerry and twenty twelve. its not exactly gambling, but its v closely related! even wit all the TA and fundamentals check, money can still be lost, Enron style.


If you look at it that way it's like saying nothing in life is guaranteed from your job to the money in your account to the plot you just build on, not even your life. And that's all true. I personally don't see it as gambling but taking acceptable risk since there's nothing you'll do in life that doesn't have a bit of risk.

BBI will solve it :)
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Arusha
#24 Posted : Friday, October 22, 2010 4:29:53 PM
Rank: New-farer


Joined: 10/19/2010
Posts: 5
Location: Mwanza
Hello all

Thanks alot for ur thoughts. They have indeed got me re-evaluating my strategies. Its said that experience is the best teacher and im glad to hear from they that have had experience with loans. I guess some of us young ones who are starting out are yet to really experience the world out there.

Im really greatful for ur contributions!!Applause Applause

Now just one thing remains, i wish to have this kind of contribution for atleast a period of 2yrs.Which stocks would best fit into this kind of a plan?
Mundu wa Nja
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mjuaji wa stocks
#25 Posted : Friday, October 22, 2010 4:33:35 PM
Rank: Member


Joined: 1/16/2010
Posts: 672
Location: nairobi
My 2 cents wrote:
@Mjuaji...what a load of CRAP!!!!!!!!!!!!!!

Never compare your situation to that of a company. Remember companies expense interest before they declare profits. You on the other hand pay interest with your after tax shillings.

You sound like a person who is up to their neck in debt......in the name of investing. Read WBs investment philosophy on debt. I choose him because he is one of the greatest investors.



My friend..... i dont understand why you seem soo hurt!!

Tone done your language ..... the fact is whether a company or an individual ..... a loan is a loan.

I wonder what you will tell those who are buying houses via mortgage.

The truth is .... people make money ...... but not in the same way ...others dont .... whether they have loans or not.

Arusha was asking for an opinion....... why do you want yours to be the final?? ..... experience teaches better...

Give you opinion ...... when i give mine ..... dont write it off ..... coz that is how i make my money ...... you make yours in your own!

Let people give their opinions my friend .....

God gave me the power to make wealth ... Blessed the work of my hands & enabled be A SELF MADE BILLIONAIRE ...... TO GOD THE FATHER OF MY LORD JESUS CHRIST; BE THE GLORY NOW & FOREVER MORE!
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My 2 cents
#26 Posted : Friday, October 22, 2010 4:48:45 PM
Rank: Veteran


Joined: 6/2/2010
Posts: 1,075
Arusha, I am glad that you will go with the majority consensus that taking loans to buy shares is a NO - NO.

Invest what you have at hand. Do not throw money away paying interest. Why do you think most banks in Kenya are currently making crazy profits....it is because some people have decided to make the banks rich....
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KIRTI
#27 Posted : Friday, October 22, 2010 5:31:59 PM
Rank: Member


Joined: 8/17/2010
Posts: 116
To get the loan from bank means marry with bank. By all means marry. if you get a good wife, you 'll be happy. if you get a bad one, you 'll become a philosopher - Socrates. Now if you make money, you will be happy, If you loose the money, you will become a philosopher.
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2012
#28 Posted : Friday, October 22, 2010 5:43:42 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Let's discuss this soberly and without insults.

Personally, I have taken loans to invest and the first one burned my fingers because I lacked wisdom and knowledge. But after that I've taken to supplement and I've never regretted. I've put aside 3 months rent, a full year school fees for my son and emergency cash. This is a no go zone and I would rather borrow than touch that. You too can do it just never borrow money you cannot repay in 6 months and if you have a sacco even better.

BBI will solve it :)
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the deal
#29 Posted : Friday, October 22, 2010 6:13:01 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
It doesnt matter the source of the cash...as long as u make money on the market who gives a damn...i personally invest my pocket money...incidentally i think my parents give me more than enough...but i dont spend the money on skirts n booze instead i spend it on stocks...
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youcan'tstopusnow
#30 Posted : Friday, October 22, 2010 6:29:31 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
the deal wrote:
It doesnt matter the source of the cash...as long as u make money on the market who gives a damn...

Applause Applause
GOD BLESS YOUR LIFE
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youcan'tstopusnow
#31 Posted : Friday, October 22, 2010 6:32:07 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
the deal wrote:
It doesnt matter the source of the cash...as long as u make money on the market who gives a damn...

Applause
GOD BLESS YOUR LIFE
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sparkly
#32 Posted : Friday, October 22, 2010 7:59:51 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
@arusha my two cents. Should you substitute your savings plan with a loan? Not advisable coz the loan has a cost. Should you borrow to invest in stocks? Why not, if you will make money. You have to match your return and cashflows. Its sad that people borrow to buy cars and pimp their houses, but not to buy stocks! At beginning of 2010 when it was obvious that a bull was starting i borrowed a 6 month loan, leveraged my free cash and bought cfc,tps and bbk at 40, 48 and 50. I repaid the loan and interest with proceeds from cfc and tps, put the profits in kcb and bbk is still in profits. Market is now fairly valued and it would be risky to try the stunt now.
Life is short. Live passionately.
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2012
#33 Posted : Friday, October 22, 2010 8:06:42 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
sparkly wrote:
Market is now fairly valued and it would be risky to try the stunt now.


Very true but there's still an opportunity for the strong hearted. Let's talk when KPLC hits 35/- after split n' rights. I place it at around March '11.

BBI will solve it :)
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