Cheap vs Expensive Shares in Kenya: What Investors Should Know
Cheap vs Expensive Shares in Kenya: What Investors Should Know Cheap vs Expensive Shares in Kenya: What Investors Should Know Introduction Many beginner investors in Kenya make one critical mistake when entering the stock market—they judge shares purely based on price. There is a widespread belief that cheap shares are good deals while expensive shares are risky or “too late” to invest in. This thinking often leads to poor investment decisions and missed opportunities in the Nairobi Securities Exchange (NSE). The reality is simple: the biggest mistake NSE beginners make is confusing share price with value. Understanding this difference is what separates smart investors from those who struggle to make consistent returns. What Are Shares? Shares represent ownership in a company. When you buy shares, you become a part-owner of that business. This means you can benefit in two main ways: Capital gains (when the share price increases) Dividends (profits s...
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