If You Have Money To Invest, Then Safaricom is your BEST BET at the NSE for the 2018/19 period

Data: History lays a pattern for how the future unfolds

Benjamin Graham once said that Outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook. I believe he was talking about Kenyans and their unique ways of investments.

Graham further noted that there is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are:

1. Speculating when you think you are investing
2. Speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it
3. Risking more money in speculation than you can afford to lose.

In all honesty, this simply described how we Kenyans invest and how we seek out investment options, like a loaded missile in the dark without the guiding tech to send it to its target.

We invest with information gotten from bars, from Google, from twitter and facebook and WhatsApp chats and this is where we always go wrong but it’s like we never listen. The need for instant gratification is the Achilles of our generation.

Paul Samuelson put it very well when he said Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.

I believe as a trade analyst that games are won by players who focus on the playing field –-, not by those whose eyes are glued to the scoreboard. If I am to echo the famous strategy of Warren Buffet.

This year started on a shaky ground with the prolonged politics and the uncertainty that surrounded the same. We have now done two quarters and us all taking stock of how we have performed.

Investor wealth at the Nairobi Securities Exchange has fallen 241 billion shillings in the second quarter of the year as blue-chip stocks slid under the weight of profit-taking.

The decline significantly reversed the gains that investors made in the first three months of 2018, when the market turnover rose 296 billion shillings, leaving a net gain of Sh55 billion for the first half of 2018 as reported by Business Daily.

So, many investors are asking, where are the chances, where are the opportunities to invest. Where do we tie our monies to so that we can also do some profit taking?

The biggest challenge to investing is how to identify an opportunity or chance. How do you tell this will work? How do you measure the level of risk, how do you tell if it’s not a con?

These are the many questions that we ask and eventually hold us back from investing and we miss the opportunity.

The NSE presents us with the best opportunities to invest, with calculated risks and modules to monitor, enabling us to react when a crisis comes hence being able to control what we invest.

Safaricom is the denominator of the NSE. When it sneezes, everyone else catches a cold. Its daily movements have a great and significant impact on the market.

To be able to understand how best to invest with Safaricom as a shareholder, its key to understand its numbers in every aspect. I did a project that by end of 2019, the Safaricom share will be retailing at 35 shillings per share and this will be one of the best shares anyone can buy. This is why.</