- E.A. Cables (post-split) has dropped to 77/- (15 Sep 2006) from a high of 105/-
- Valuations are out of whack e.g. P/Es are routinely over 15 even if there is minimal expected growth
- Speculation seems to be the name of the game. The brokers' offices are packed with folks who don't know or care what they are buying! The "tips" are from inexperienced clerks who can't even read a balance sheet let alone analyse one!
- The economy, though growing, can't seem to hit the "magic" annual +8% GDP growth
- The KRA is cracking down on tax defaulters who will have to pay taxes thus leave less for "other" ventures & investments
Many are buying stocks coz its fashionable not coz it makes investment sense!
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years - WB
Well, many current buyers can't wait to sell. They want an instant increase so they can "churn" the funds! 10 years is a lifetime to them!
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. - WB
My favourite quote! Others are getting very greedy so I think I need to be fearful!
WB = Warren Buffett (My mentor - he just doesn't know it yet!)