Saturday, September 6, 2008

NSE NIGHTMARES

After watching my value continue to slide in the last 2 months, this week I have taken a bold move which I never thought I could; I bailed out of all my counters.

I, like most investors come in strongly post KENGEN when the market was bullish, and therefore most of my portfolio was bought almost at their peak however I preyed on some stocks which I had handsome gain in capital. As a result factoring in all dividends received, bonus issue and Rights issue gains, my loss averaged to something like -8%

Counters contributing major loses include
Mumias
Kenya Airways
Barclays Bank
BAT

Counters with reasonable Capital gains include
CENTUM
EQUITY
KENGEN
NIC
CMC
KENYA RE

WAY FORWARD
After this bold move I can now watch the market with an opportunistic view than with the dread I have doing lately as I observed my value get eroded by the current bear. However I am a much more experienced player and the lessons I have learned iclude
1 Do not over diversify, concentrate on a maximum of 4 counters whose value you believe in and can provide future growth prospects.
2. Never follow the herd, Safaricom being my most bitter experience. In future I will not participate in very liquid IPO's, in short over supply in shares is counter productive for an an investor with an eye on capital gains

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