Thursday, November 23, 2006

Thanksgiving Portfolio

Shares I own
Crown Berger
Diamond Trust
Express Kenya
Kenya Airways
Kenya Commercial Bank
Kenya Electricity Generation Company
Sameer Africa
* Uchumi (suspended)

Verdict: Surprisingly little change from six months ago

Performance: The Motley Fool advises that investors should beat the share index to consider their returns a success. The NSE 20 share index is up 30% in six months while my portfolio is up about 35% from May. *(The NSE index still lists Uchumi and if I zero it from my calculations my portfolio is up only about 30% in six months)

What’s changed?
In: Scangroup
Out: Housing Finance
Reduced: KCB, Kengen
In-n-Out: Sold Sameer Africa high bought it back low
Dividends: Payments from Kenya Airways KCB, D-Trust, Crown and Kengen (not factored into my performance return)
Bonus share: Express
Best performers: Scangroup, HFCK, D-Trust
Worst: Uchumi
Risk vs. Return: Some Nyramids give 30% a month returns, but I can’t afford to take those risks
Looking forward to: Kenya Re, Diamond Trust (rights), and Safaricom


Anonymous said...

Nice going, great return... and you beat the savings interest rate... Plus waiting for 2H...

Anonymous said...

30% is good, and quite rightly thanksgiving day remembrance. So long as you follow the compounding rule, is poa all the way.
Going for an american thanksgiving bash today evening so will celebrate on your behalf...

Anonymous said...

its hard work to not b anonymous, please accept annonymous posts. Your portfolio has performed well. Why those with v high P/E like HFCK? why scangroup again?
Just a young speculator trying to understand when to break the rules

Kudrinketh said...

You beat the inflation rate hands down and to me thats the indicator to beat in emerging markets.I'm glad i dont have to worry about the inflation rate(its rather high at annualised rate of 18%).

The exchange rate is what the diaspora investors have to factor in their returns.I'm still praying for exchange rate of 100 Ksh per US dollar(with elections aproaching,my wish may be granted)

I hate turkey so we're going to kichinjio for some usual we'll keep the head and bones for some supu.

Ssembonge said...

Talking about the nyramids, I know two of the guys who own the communications company. These guys are very shrewd businessmen. I don't doubt their ability to make money but I wouldn't trust them with my hard earned money.

What I would like to know is how much commissions does one pay to transact shares. I've never seen the numbers disclosed anywhere.

For some odd reason, I've always been disinterested with NSE. I bought into most of the IPO's in the 90's and I'm still holding on. Heck, I've never cashed in most of the dividend checks as I closed my kenyan bank accounts in 2001 after I realised my shillings were depreciating against the major currencies.

Anonymous said...

Banks - Any unlisted shares e.g. Mobitelea? LOL...

Now, Shouldn't the PUBLIC officials (feeding at Kenya's trough) be forced to show their holdings?

Kudrinketh said...


Brokerage commision 2.1%(1.8% for transactions over Ksh.100,000),NSE levy 0.14%,CMA fees 0.14%,CMA compensation fund 0.02%

Ssembonge said...

@kudri, Thanks for the information. The commissions seem reasonable.

I understand trades take eons to execute from the time you instruct your broker. Wasn't the bourse computerized a while ago?

Or are the delays due to the limitations of clearing the funds?

Over here I have upto 3 days to send the check from the day my broker makes a purchase. And that's just for him to receive my check.

bankelele said...

coldtusker: Thanks.could I have done better? maybe - but portfolio is better when it's passive

mwasjd: enjoy the holiday

mukwano: anonymous open for now. I guess I have to live with that

Kudrinketh: inflation is invisible in most lives, unless you track it. e.g a litre of petrol is up 7% in the same period. My shilling prediction for '07 is the other way - it will be stronger.e njoy goat's head supu

Ssembonge: I can assure you that since i first wrote taht piece, the number of Nyramids I am aware of has doubled (and with most of them the financing of the owners is unknown). Get those dividend checks organized and cashed soon. One company i know is reducing the window of uncliamed divdends that revert to the company to 7 years

also depends on the broker and what shares you're selling.

coldtusker: My mobitelea stake is intact. Some companies dislose the holdings of directors in the annual reports e.g. the AG has shares in Mumias sugar - but not enough disclosure, and wealth declarations remain secret

Kudrinketh; Thanks

Anonymous said...

Whats your goal long term growth or short term speculation i.e. zip in and out as soon as a counter doubles?

Kudrinketh said...

I think you're right about the future of the dollar,it's been on a free fall for a while now.And the more i look at the declining bond yields, the more i worry about further weakness.The Fed sure aint helping much by keeping interest rates so low.

But on the flip side,a weak dollar translates into higher returns in the rest of the world due to increased capital investings especially in emerging markets such as Kenya's.Let's enjoy it while it lasts.

Anonymous said...

Banks, your portfolio: are you considering acquiring a few of the KES 2.85 shares on offer for the Stanbic UG IPO?


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