In Kenya we had 2 retail giants. Uchumi and Nakumatt. There are other chain stores but these two dominated the market.
One would expect that with the fall of one, the shares of the other should gradually rise.
Not the case.
In Nov 2 Uchumi shares were trading at Kshs 3.30 and by Dec 26 they were trading and an impressive Kshs 4.50. Today they’re trading at Kshs 3.25.
Uchumi was dead even before Nakumatt went down
I believe the two missed on something that the likes of Tuskys and Naivas did…and in a capitalistic economy you can’t afford to lose sight, your death is usually slow and very painful.
Which market? has uchumi been anywhere close to tuskys or naivas?
They didnt miss anything. The senior management looted these companies to the core. Nakumatt’s directors made off with Ksh 30 billion leaving the company on its knees. Uchumi, is a similar case. Since the government owns a significant stake, management knew it was their turn to eat. Uchumi is exactly where it was before it was bailed out by the government, if not worse. That’s why I would never support any government bailout because they fail most of the time and that cash is just pocketed by management while the show continues.
I really thought Uchumi would fill the void left by Nakumatt. The good thing is I didn’t put any money in.
Never invest in a GOK controlled/owned company. Your grandkids will thank me on your behalf. You are welcome btw
I bought a handful of shares of NBK in 2006. They haven’t moved in any significant way. I watch the market but never participate
KQ, NBK, Kengen, KPLC, Uchumi, Kenya Re and any other company where the government owns more than 25% of the shares, just avoid. It becomes a cash cow for politicians. There are some special cases though, like safaricom. The only reason safaricom is not bankrupt despite the government owning a big stake is because Vodafone owns a bigger stake and keeps G.O.K officials in check.
Valuable piece of information, am planning to sink some cash in stocks…
Plots over shares any time, call me old fashioned or not.
I was there in the stock market in 2006 and bailed out 5 years later after seeing my investments gradually decline and apart from Safaricom, none other of the counters I disposed has ever risen above the amount I sold at.
Once bitten, twice shy.
Dont blame the stock market. Blame your knowledge level. If you cant decipher a cashflow statement, balance sheet, income statement and never follow business news, how on earth do you expect to make money? It is like expecting to pass an examination without studying. Investing without knowledge is gambling. You were a gambler, not an investor. Stick to plots because unless you have some background in basic accounts, buying shares will always be a gamble for you. A large majority of ordinary Kenyans like you throw money into stocks without knowledge and that is our joy.
Sawa Warren Buffet but you have said a lot of nothing.
You have no business buying shares if you dont understand them. Kwa hivyo wacha mafeelings kama uliungua. The unfortunate thing is that you learned nothing from it.
I learned and that’s the reason I no longer invest in them.
How many Kenyans personally known to you have grown rich trading in shares?
Na usilete story za watu umeskia or newspaper articles by business journalists.
Me. I have made a substantial percentage of my networth from shares. I know I am not rich but I believe I am headed in the right direction. From time ya elections to now, my portfolio is up 46%. With say 2 million, that is almost 1 mil profit in seven months. Investing in shares makes sense if you know what you are doing and you have at least 1 mil to invest. Smaller amounts are better invested elsewhere where there are better returns (businesses). You know that it is harder to double millions in business than in stocks that’s why stocks only make sense ukiinvest at least 1 mil. Ama hata 500k minimum. Not below that. I have been investing in stocks since 2011 before I joined university. Luckily for me, I was broke back then and I learned the greatest lessons by losing small sums of money. Since 2014, my worst year nimepata 12% return in a bear market. The best year 106% return on investment. The portfolio literally doubled in 12 months. Kwa hivyo nikikwambia shares zina pesa, ni wewe hauna ujuzi dont argue.
So what shares are you holding? And are you a licensed stock broker or a money manager eg in a mutual fund… etc? Just wondering.
No. I just invest my own money from other ventures. I am a retail investor. That’s all. All I know is that it is easier to make a 50% return on stocks on average every year, than in land> nowadays, plots hardly appreciate by 50% in a single year. Even when they do “supposedly”, selling them and buying is a nightmare, especially selling. If your stock portfolio baloons by 50%, you can sell it off entirely in one day without hustling for a buyer. The other main advantage is that you can invest smaller amounts unlike land. For land you have to save up that 1 million before you buy but for stocks even 50k can be invested as you accumulate slowly into sensible values like 1mil or more.
Fine you must be a really good stock picker. I am personally scared of the stock market because it is rigged. Other than Safaricom, what do you recommend?