H Monday, 17 December 2007 Star biZ - Rich · Can YOU outsmart the expert? 22 Nairobi Star H...
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Can YOU outsmart the expert? 22 NAIROBI STAR H Monday, 17 December 2007 Up to date, accurate business information NEWS YOU CAN USE, EVERY DAY. PETER Lynch, one of the most successful investors of recent times, has often shared his thoughts. There are Lynch’s three key points which I want to share today; The first point he makes is that “the person that turns over the most rocks wins the game.” And that’s always been my philosophy. There is no shortcut to investing, you have to do your research. The second point is how he described his most successful investment. It was in a woman’s pantyhose company called Hanes. His wife came home one evening and she described how she loved Hanes’ new L’Eggs pantyhose line, the first department-store- quality pantyhose sold to American women via supermarkets. “I did a little bit of research,” Lynch said (turning over the rocks). “I found out the average woman goes to the supermarket or a drugstore once a week. And they go to a woman’s specialty store or department store once every six weeks. And all the good hosiery, all the good pantyhose is being sold in department stores. They were selling junk in the supermarkets. They were selling junk in the drugstores.” Lynch knew Hanes had a winner. L’Eggs became a huge success, and Hanes became Magellan’s biggest position. Open your mind, information that can help you excel financially can come from anywhere. The third and possibly my favourite is: “Go for a business that any idiot can run,” he has said, “because sooner or later, any idiot probably is going to run it.” Aly-Khan Satchu www.rich.co.ke is the author of Anyone Can Be Rich, available in local bookshops Sameer Africa (12.05) Worth a nibble Access Kenya (23.75) First recommended at 14 Buy more Athi River Mining (93.50) expanding across the region Buy Housing Finance (41.25) Buy More ICDCI (27.00) short term underperformance to end Shares go up and down and readers are advised that this column represents Mr Satchu’s personal opinions. 5 TO BUY t By PETER KIRAGU ABOUT 85 per cent of busi- nesses in the informal sector stand to benefit from the re- cently launched Sh1 billion Women’s Enterprise Develop- ment Fund. The United Nations Devel- opment Programme (UNDP) estimates that apart from run- ning 85 percent of informal enterprises, Kenyan women own 48 per cent of small and micro-enterprises in the coun- try, and face the twin challenge of lack of business skills and financing. The launch of the fund is indeed good news to women who comprise 52.9 per cent of the population, and especially to those above 18 years. The UNDP estimates that 53 per cent of rural women and 63 per cent of urban women live below the poverty line. But for the fund to achieve its objective, it must be under- stood well by all the women it targets. First, it is important for women to understand it is a loan and must be repaid. It will attract an interest of eight per cent on a reducing balance. According to a guideline re- leased by the Gender ministry, the Fund would be accessible thorough two components, micro-finance intermediaries and through the constituency women enterprise scheme. The first tranche will be ac- cessed from intermediaries such as banks, NGOs, savings and credit corporative societies and microfinance institutions. The constituency women enter- prise scheme has an allocation of Sh1 million per constituency and targets viable businesses run by women groups. “This portion of the Fund will ensure that all women, especially those living in re- mote areas not well served by financial intermediaries are not disadvantaged in accessing the fund,” said Maina Kamanda, Gender and Sports minister during the launch. Among the conditions for accessing the fund is that one must be 18 years and above and must be a Kenyan woman. One must also have intentions of investing in income generating activities. Additionally, the groups must be registered by appropriate authoritaties, and must have been in existence for at least three months. According to the guidelines, the loan amount will depend- end on the nature of the busi- ness proposed and lending terms of the financial interme- diaries but any loan amount exceeding Sh500,000 will have to be approved by the Funds Advisory Board. Applicants must also have identification details such as business regis- tration certificates or IDs. SOME FACTS ABOUT THE WOMEN FUND SAFARICOM has received International Standard Organization 9001:2000 certification, a first among mobile operators. The certification process was done by International audit firm Bureau Veritas which focused on the quality of services, network perform- ance and customer satisfac- tion. “The ISO certification guarantees the quality of our services, providing clients’ peace of mind that we live up to our promises and are fully legally compliant,” said Safaricom chief executive Michael Joseph. The ISO is an international body that sets the standards for quality assurance and quality management systems. The ISO 9001:2000 standard was specifically developed to assess companies in the service industry. “As far as we can ascer- tain, we are one of the few mobile phone operators in the world to receive this in- ternational recognition,” said Joseph. The ISO 9001 stand- ard controls and documents the activities of the business while the standard require- ments are implemented in the organisation, inefficien- cies and waste are targeted, detected and eliminated. To maintain ISO certifica- tion, Safaricom’s business processes will be regularly audited. Safaricom awarded ISO certification By LOLA OKULO INVESTORS have been ad- vised to consider offshore investment to reduce their risks. Paul Mwai, an invest- ment manager at Old Mutual Company, said it was good to diversify and maximise on investment opportunities in the emerging markets of the world. He spoke during a meeting with members of the Kenya Commercial Bank pension fund and benefit scheme. “It is not good to put all your eggs in one basket and that is why offshore investments are also a good option,” Mwai said. Offshore investing refers to a wide range of investment strategies that capitalise on advantages offered outside an investor’s home country. Simply put, offshore invest- ment occurs when offshore investors form a corporation in a foreign country. He commended KCB’s idea to invest some of the pension funds in offshore investments, a move that saw the pension and benefits fund for the year reap a total of over Sh114 million in profits from invest- ments alone. He noted that though economic growth in the country had slowed down due to increased political ac- tivity, he was optimistic that the growth trend was going to resume after elections. KCB’s chairman for the benefits scheme fund, Pe- ter Kimuyu, said despite the elections, the gross domestic product growth for the year was likely to continue. Mwai however warned that infrastructural constraints may hinder growth as they affect the implementation of trade agreements that boost economic prosperity. Kenyans are urged to diversify KCB: Embracing the spirit of offshore investment. ALY KHAN’S H STAR PORTFOLIO STAR BIZ THE PANTYHOSE THEORY OF INVESTING SUPPORTING WOMEN: The government has released Sh1 billion in support of women owned enterprises. More education is needed to ensure proper utilisation of the fund.
Transcript of H Monday, 17 December 2007 Star biZ - Rich · Can YOU outsmart the expert? 22 Nairobi Star H...
Can YOU outsmart the expert?
22 Nairobi Star H Monday, 17 December 2007
Up to date, accuratebusiness information
NEWS YoU CaN USE, EVErY DaY.
Peter Lynch, one of the most successful investors of recent times, has often shared his thoughts. there are Lynch’s three key points which I want to share today;
the first point he makes is that “the person that turns over the most rocks wins the game.” And that’s always been my philosophy. there is no shortcut to investing, you have to do your research.
the second point is how he described his most successful investment. It was in a woman’s pantyhose company called Hanes.
His wife came home one evening and she described how she loved Hanes’ new L’eggs pantyhose line, the first department-store-quality pantyhose sold to American women via supermarkets.
“I did a little bit of research,” Lynch said (turning over the rocks).
“I found out the average woman goes
to the supermarket or a drugstore once a week. And they go to a woman’s specialty store or department store once every six weeks. And all the good hosiery, all the good pantyhose is being sold in department stores. they were selling junk in the supermarkets. they were selling junk in the drugstores.”
Lynch knew Hanes had a winner. L’eggs became a huge success, and Hanes became Magellan’s biggest position.
Open your mind, information that can help you excel financially can come from anywhere.
the third and possibly my favourite is: “Go for a business that any idiot can run,” he has said, “because sooner or later, any idiot probably is going to run it.”
Aly-Khan Satchu www.rich.co.ke is the author of Anyone Can Be Rich, available in local bookshops
Sameer africa (12.05) Worth a nibble
access Kenya (23.75)First recommended at 14 Buy more
athi river Mining (93.50)expanding across the region Buy
Housing Finance (41.25) Buy More
iCDCi (27.00)short term underperformance to end
Shares go up and down and readers are advised that this column represents Mr Satchu’s personal opinions.
5 to bUY
tby peter kiragu
About 85 per cent of busi-nesses in the informal sector stand to benefit from the re-cently launched Sh1 billion Women’s Enterprise Develop-ment Fund.
the united Nations Devel-opment Programme (uNDP) estimates that apart from run-ning 85 percent of informal enterprises, Kenyan women own 48 per cent of small and micro-enterprises in the coun-try, and face the twin challenge of lack of business skills and financing.
the launch of the fund is indeed good news to women who comprise 52.9 per cent of the population, and especially to those above 18 years. the uNDP estimates that 53 per cent of rural women and 63 per cent of urban women live below the poverty line.
but for the fund to achieve its objective, it must be under-stood well by all the women it targets. First, it is important for women to understand it is a loan and must be repaid. It will attract an interest of eight per cent on a reducing balance. According to a guideline re-leased by the Gender ministry, the Fund would be accessible thorough two components,
micro-finance intermediaries and through the constituency women enterprise scheme.
the first tranche will be ac-cessed from intermediaries such as banks, NGos, savings and credit corporative societies and microfinance institutions. the constituency women enter-prise scheme has an allocation of Sh1 million per constituency and targets viable businesses run by women groups.
“this portion of the Fund will ensure that all women,
especially those living in re-mote areas not well served by financial intermediaries are not disadvantaged in accessing the fund,” said Maina Kamanda, Gender and Sports minister during the launch. Among the conditions for accessing the fund is that one must be 18 years and above and must be a Kenyan woman. one must also have intentions of investing in income generating activities. Additionally, the groups must be registered by appropriate
authoritaties, and must have been in existence for at least three months.
According to the guidelines, the loan amount will depend-end on the nature of the busi-ness proposed and lending terms of the financial interme-diaries but any loan amount exceeding Sh500,000 will have to be approved by the Funds Advisory board. Applicants must also have identification details such as business regis-tration certificates or IDs.
SoME FaCtS aboUt tHE WoMEN FUND
SAFArIcoM has received International Standard organization 9001:2000 certification, a first among mobile operators.
the certification process was done by International audit firm bureau Veritas which focused on the quality of services, network perform-ance and customer satisfac-
tion. “the ISo certification guarantees the quality of our services, providing clients’ peace of mind that we live up to our promises and are fully legally compliant,” said Safaricom chief executive Michael Joseph.
the ISo is an international body that sets the standards for quality assurance and
quality management systems. the ISo 9001:2000 standard was specifically developed to assess companies in the service industry.
“As far as we can ascer-tain, we are one of the few mobile phone operators in the world to receive this in-ternational recognition,” said Joseph. the ISo 9001 stand-
ard controls and documents the activities of the business while the standard require-ments are implemented in the organisation, inefficien-cies and waste are targeted, detected and eliminated.
to maintain ISo certifica-tion, Safaricom’s business processes will be regularly audited.
Safaricom awarded ISO certification
by LoLa okuLo
INVEStorS have been ad-vised to consider offshore investment to reduce their risks.
Paul Mwai, an invest-ment manager at old Mutual company, said it was good to diversify and maximise on investment opportunities in the emerging markets of the world.
He spoke during a meeting with members of the Kenya commercial bank pension fund and benefit scheme. “It is not good to put all your eggs in one basket and that is
why offshore investments are also a good option,” Mwai said.
offshore investing refers to a wide range of investment strategies that capitalise on advantages offered outside an investor’s home country. Simply put, offshore invest-ment occurs when offshore investors form a corporation in a foreign country.
He commended Kcb’s idea to invest some of the pension funds in offshore investments, a move that saw the pension and benefits fund for the year reap a total of over Sh114 million in profits from invest-
ments alone. He noted that though economic growth in the country had slowed down due to increased political ac-tivity, he was optimistic that the growth trend was going to resume after elections.
Kcb’s chairman for the benefits scheme fund, Pe-ter Kimuyu, said despite the elections, the gross domestic product growth for the year was likely to continue.
Mwai however warned that infrastructural constraints may hinder growth as they affect the implementation of trade agreements that boost economic prosperity.
Kenyans are urged to diversify
KCb: embracing the spirit of offshore investment.
aLY KHaN’SH Star PortFoLio
Star biZ
the pantyhose theory of investing
SUPPortiNG WoMEN: the government has released sh1 billion in support of women owned enterprises. More education is needed to ensure proper utilisation of the fund.
