Why a Mutual Fund’s Like a Herd of Cattle

A mutual fund is like a herd of cattle.

Dear Ryan,

I have a unit trust that I track every day. One day it goes up R5.00 or more. The next day it’s lower. I fail to understand how that works. What makes the price change? Say I want to sell my units. What determines the price I will receive?

Sincerely,
Brenda from South Africa

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9 Ways Smart Africa Investors Avoid Losing Their Shirts

Graham's Tips for Not Losing Your Shirt

Benjamin Graham, one of the best stock investors in history, provided some great tips for moderating speculative urges in his essential tome, The Intelligent Investor.

Here are nine from the first chapter alone, that can make you a better Africa investor.

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Africa’s 10 Most Transparent Countries (and Why Stock Investors Should Care)

Photo: Leandro's World Tour

Transparency International released its 2013 Corruption Perceptions Index last week. The index ranks 177 countries according to how corrupt their governments are perceived to be by investors, businesspeople, and international lenders.

Here are the ten African countries that ranked highest and why you as a stock investor should take note.

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Stash Cash Before Investing in Shares

Photo: Quiquemendizabal

Reader Tunde writes:

Dear Ryan,

I am a 22-year-old graduate from a polytechnic in Nigeria with a diploma in business administration and management.

I’m from a poor background but have had dreams of a great future since I was a young boy.

Can you help me invest in the stock market? I would welcome any tips you may have.

Thank you,
Tunde

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Kenya’s Dividend Kings: Two Stocks for Income Investors

Photo by Travis S.

It’s tough to beat a company that pays out a regular dividend.

They generate income for shareholders. They typically boast sharp management teams. And, historically, their shares have outperformed their non-dividend-paying counterparts.

The Nairobi Securities Exchange is chock full of dividend stocks. Almost all companies listed on the market presently pay a dividend.

But not all dividend stocks are created equal. Some don’t yield much in relation to their price. Others pay out so much of their earnings that it hampers their future growth. And some disappoint shareholders with frequent dividend cuts.

So, which Kenyan stocks offer the most substantial, reliable, and growing income stream?

Let’s take a closer look.

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A Simple System to Stalk Super African Stocks

Photo by Yathin

The stock market can be a pretty confusing, intimidating place for new investors.

With all of its charts, ratios, and jargon, it’s clear why many people choose to either hire a professional to manage their stock portfolios or to ignore stocks altogether.

Are you one of these people?

If so, I’m glad you’re here, because, today, I’m going to show you a magic formula for picking great African stocks.

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What Is a Stock, Really? (The Story of Boniface, Part 2)

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When we last left Boniface and Mercy, they had just agreed on a business deal. Mercy and the other members of her investment club would give Boniface $10,000 for the purpose of opening a new shop in a promising location near a new textile factory.

In return, Boniface would give the club a 10% ownership stake in his business, SmileSave Supermarkets.

Let’s see how the venture fared since then.

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What Is a Stock, Really? (The Story of Boniface, Part 1)

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Let me tell you a story about the entrepreneurial Boniface, his analytical friend Mercy, and how they learned first-hand why companies choose to issue stock and why investors love to invest in them.

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