From Russia With Cash

When it comes to trading socks, I have found out that making the decision to sell is usually harder than the buy decision. I guess this is because investors are a bunch of optimistic people. They always expect that the stocks they hold will appreciate higher. And when their position is under water, they hold on with the expectation that they will at least break even some day.

With this in mind, I decided to sell off one of the positions that I should have disposed last week. Instead of a 70% gain, I ended up with a 60% gain after I sold RSX (a Russian index) today.

I can't count the number of times this has happened but I have decided that this year I will not be slow when it comes to selling a stock position. For this reason, I will be setting my selling price as soon as I have bought a stock, an exit strategy if you will.

After all, i never hurts to take the profits from the table.

Reviewing Kenya's Land Policy

Here is a video of the late James Bett being interviewed on his organization's efforts to buy land in North Rift. I find his views on land ownership to be very insightful.

Business Rivalry

The last few days have been very interesting in that I have received several emails, one of them threatening, regarding my business ventures.

In all instances the emails were from my competitors who may have realized that I am taking away their lunch. It did cross my mind that I may receive this kind of reception but they all seem to be coming at the same time.

I'm not sure what to make of it but I am documenting everything in preparation for bigger battles ahead.

I guess this is the stuff that is not taught in classes and one has to learn from the school of hard knocks.

The Loss Of A Friend

I received an email yesterday notifying me of the death of my friend, James Bett. I've known JB for probably close to 15 years and the news came to me as a shock because he died suddenly.

For all the years that I have known JB, he has always traveled to his upcountry home during the Easter holidays and also on other extended holidays. This time round, as he traveled back to Nairobi their car collided with some buffaloes along the Nakuru - Nairobi Highway. After a few days in hospital, he succumbed to a heart attack most probably resulting from a blood clot.

My relationship with JB has always been a very interesting one. Every time when I visit Kenya, he is one of the few guys that I always meet. ANd on his trips to the US he used to call me up. Once we planned on meeting when we were both in Washington DC but we missed each other due to our tight schedules.

During my last trip to Kenya a few months ago, we met at his office and we had planned on going out for lunch but I had to leave abruptly to attend to someone who called me while we were together. Had I known that I would never see him again, I would have stayed on for lunch.

This is the second time that I have skipped having lunch with a friend only for them to pass away afterwards.

The previous time I was in Kenya, I met with a friend for lunch but I had to leave before the food was served as I was required elsewhere. A few weeks later he passed away. Considering that he was someone I had known all my life, I received the news with shock. I promised myself to visit his mum but I never got to when I was in Kenya.

Right now my heart goes out to his dear wife Vicky and his children. Despite the differences that I may have had with JB over the years, I treasure the times we spent together. I am glad to have been friends with him.

RIP JB.

Taking Profits

I've not been keenly following the market during the current bull run because I think that this is a classic bear market rally. The economic slowdown is decelerating but I believe we are still not out of the woods.

High unemployment and falling house prices means that we still have some way to go before the situation improves. For these reasons, I believe the stock market way over bought and ready for a pull back.

This past week I sold almost everything that I bought in the last few months for a tidy profit and I will just wait for the pull back, re-enter the market and then ride it up again.

We may never re-test the March lows and it is possible that the market will continue to appreciate but it never hurts to pocket the profits. I'm still holding onto commodities and emerging markets as I have more faith in these markets.

Focus Is Key

Even though we think that we know it, it doesn't hurt if one is reminded that focus is the key to success.

I couldn't help but share this timely blog post from one of the blogs that I follow.

Entrepreneurs are known as crazy people running around with ADD. They jump from one idea to the next. They cannot pay attention to details. They are hyperactive and get distracted easily. They find it hard to concentrate. As with most stereotypes, there are elements of truth to this perception.

However, I've known few entrepreneurs who end up successful and are truly unable to concentrate on one idea. Unless you're lucky, it takes years and not quarters to build a valuable company. And because it takes an effort of endurance, there is very little room for distractions or significant side project. Not if you plan on building a serious company that stands a chance of being bigger than you are.

Jumping from one business idea to another is a sure recipe for failure.

That means I will have to delay the second business that I had in mind until I have really established the first one.

You can read the rest of the article here; You Can't Bring More Than One Bat to the Plate.

In Search Of Internet Real Estate

I'm at it again. Looking for an internet address for my next business venture.

With online sales, I think you have a 50% chance of a success if you get the right url. For this reason, I will not attempt to start to work on my business plan until I have found a good name.

Everything that I have thought of, are already taken up and are legitimate businesses outside the area that I am thinking of venturing. On the other hand, I have a couple of internet addresses that I'm hoarding but there are not suitable for what I intend to do.

If I don't get something pleasing then I will put my business idea to rest and move on to something else.

What Makes America So Successful?

As someone who is starting out in the world of business, it would prudent for me to find out why America is the most successful country in the world if I want to succeed. I'd be hard pressed to find any nation that comes close to this country when it comes to making money.

I can pin point so many things that make this country great but I think everything stems from the people in this country. And I believe this can be traced back to when this nation was founded more than 200 years ago.

Some people may call it greed, others may call it arrogance but I think the can-do attitude of the average American is what has driven this country to what it is today.

Simply put, everything is a choice in this country. Even something as inevitable as death is a choice.

This may explain why Americans have a hard time admitting failure and are quick to blame others for their failures. In their minds, one can choose between failure and success. And since nobody chooses failure, it must be someones (other than yourself) fault.

The whole notion is founded on the belief that you have only one life to live, and it is up to you to get it right. Everyone is supposed to hold their life in their own hands. And if one fails, it is because they are not trying hard enough.

My views may be wrong but this is what I have observed during the period that I have lived in this country.

What Bear Market?

The last few weeks we've seen the best run in a very long time. Everything seems to be on an upward trend, except for profits.

Those who bought when the stock market was at its worst, the pay-offs could not have been better. Seeing the way the market has risen, I can only wish that I deployed most of my cash into stocks.

Knowing that very little has changed in terms of the deteriorating economic conditions, I don't expect this bear market rally to last for long. However, I must say that the trading volumes have been impressive. For instance, 8.7 billion shares changed hands on the NYSE with another 2.2 billion traded on the NASDAQ against the backdrop of the Easter weekend.

I haven't been monitoring the trading volumes closely but it looks like everyone is out to make the most out of the rally.

Personally, I am tempted to take short positions because there is hardly any positive macro-economic news out there. I doubt if we will retest the March lows but if we do I'll be sure to take advantage of the dips.

Western Aid Paradox

I have recently noticed that many of Africa's most vocal opponents of foreign aid run not-for profit organizations that are funded by Western aid.