Our conviction based on research, our personal life experiences (we may not be that old but have picked some lessons along our investment journeys) and our direct involvement in the decision making table of several huge projects is that there is an opportunity that can relatively yield more benefit for less.
Take Kenyatta Road, Juja for instance. In 2010 the properties were going for KES 20,000 being the cost of acquiring a certificate of shareholding to some of them. Today the same plots, with a title, are going for KES 800,000. Simple maths indicates that that’s a 4,000% growth in networth in 10 years! An average of 400% growth annually. At the time the plot was bought, a friend was convinced to buy sleek NZE car going for KES 660,000. With that figure it was possible to easily buy 33 plots, which would fetch not less than KES 26.4m today. Even if the car was used for a taxi business, am convinced that the friend would not have made KES 26.4m in a clean taxi business.
Consider also someone who bought shares or other paper securities investment options in 2000. Many, including some of us, wouldn’t want to take that particular alternative again.