DP&R Investments.

27/11/2024

Financial inclusion in Money Market Fund.

10/11/2024

"The Higher the Risk the Higher the returns"most Financial planners will say this statement more often to potential investors.
How true is this statement?
The Truth is, the lower your Financial Intelligence the higher the risk, the higher your Financial intelligence the lower risk.
Financial Intelligence is the only way you can reduce the risks, avoid or both.
Warren Buffet said; " Risk is not knowing what you are doing" Risk has to do more of you* than the investment.
There is no investment that guarantees 100% returns free from loss but there are some things an investor can do to increase the chances of successful investment.
1.Have control over your investments.
2.Understand Investment and return on investments.
3.Gain experience by investing the small amount at hand.
4.Get yourself a financial education.

Investment Risks include the following but not limited.
1.Lack of training.
Get knowledge about the investment you want to Invest in, without the proper knowledge on investment investment became risky.

2.Lack control
Have an investment plan,
Invest in business that you have power in the making of decisions about the investments.
In both cases the investors have control of what happens with said investment.

3.Lack of Investment knowledge.
If you're not on the inside, you're outside,
Be the driver of the Business or investment,
Having the knowledge from inside will make the investment less riskier.

4.Mindset
Get knowledge and put it in use,nothing teaches us better than trying, failing and trying again.
Look at your investments keenly and take necessary steps to gain knowledge, training and control, this is the best decision you can ever make.

05/11/2024

Sustainability Investment,
Creation of Wealth through conservation of the environment.
Sustainability means; decisions and actions made today will not affect the future generations to thrive.
As the World evolves, a smart investor will like to align their investment portfolio with their values such as Sustainable investing also knows Socially Responsible Investing(SRI), Environmental, Social and Governance(ESG)
This combines the Investor ability to get returns and at the same time be cautious about the positive Social and environmental impact.
These are some of the approaches to Sustainable investing.
1.Positive screening,
Actively seek companies that are good at sustainability either though Afforestation, innovative waste management,and eco-friendly practises.

2.ESG Integration.
Seek companies that Incorporate Environmental, social and Governance into their investment plans.
This enables investors to align values and at the same time get a higher return.

3.lmpact Investing,
Choose Investment that ensures conservation of the environment alongside return.

4.Negative Screening.
Avoid investments that are harmful to the environment such as fossil fuels, deforestation and high carbon emissions.

Benefits of Sustainable investing.
~Long term value.
~Consumer preference.
~Regulatory incentives.

30/10/2024

8 Key Financial Ratios to know about Health Business.

This key Ratios are derived from Financial statements,Income statement and Cashflow statements of a business.
They represent key aspects of the Business or company financial picture. such as liquidity, profitability, earnings and use of debts.

#1 Gross Margin.
This help investor to have a better view of how the business is organised and the cost of operations.
If there is no Gross margin, there's no net.

#2 Net Operating Margin Percentage.
This ratio tell you the profitability of the business before you factor in taxes and cost of money, which are beyond business control( Earning Before Interest and Taxes(EBIT).
A higher EBIT can indicates a risky Business while a stable one indicates good management.

#3 Operating Leverage.
Operating leverage= Contribution/ Fixed costs
Contribution is Gross margin(Sales -cost of goods) minus variable cost(all costs that are not fixed and cost that fluctuate with sales)
Examples of fixed costs are costs relating to the payment of employees also know as Overheads.

#4 Financial Leverage.
Financial Leverage= Total capital employed/ shareholders equity.
This ratio indicates how the business uses borrowed money.
Total Capital employed is is accounting of all interests bearing debts+owners equity.
Shareholders Equity is amount that investors invest in the Business.
#5 Total Leverage
Total leverage = operating leverage × Financial leverage.
Total leverage gives an investor information relating to risks that a company carries in present business.

#6 Debt to equity ratio.
Debt to equity ratio=Total liability/Total Equity
This what the business borrows versus what it own.
Most companies maintain ratio of 1:1 or below.

#7 Quick and Current Ratio.
Quick Ratio= Liquid Asset/Current Liabilities
Current ratio = Current Asset/Current Liabilities
This help to determine if the company has enough asset to meet their current obligations.
Quick Ratio takes liquid Assets into account only.

#8 Return on Equity.
Return on Equity= Net income /Average shareholders equity.
This is considered one of the key financial ratio,
It helps investors to compare the returns the company is making on shareholders investment compared to alternatives investments.
If the business has a low return on Equity it's not worth you time.
It's important to utilize all the ratios, if there are hidden opportunities in the business,

Most companies do not include this financial ratio,
It is prudent for investors to consider these ratios to determine the strength of a company they wish to Invest in.

28/10/2024

Derivatives
These are Assets, whose value depends on the underlying asset such as ordinary shares, currencies or Commodities,
An example of Derivatives includes; Forward , Future Swaps, Options,
They are used as hedging or risk management in anticipation of future market directions.

27/10/2024

"I don't remember the money I gave today,l remember
a hot waru l shared with a customer"
Peter Ndengwa
Safaricom C.E.O
.

Customer is the King 👑.

27/10/2024

For you to select a good product on the Capital Market to buy or even the Company to invest in.this is one major tip for you to select

1.Due Diligence.
Always be up-to-date with the Companies information regarding their Financial Statement, Management Team, Societal Fair, Is it a registered and regulated company by the Government bodies responsible for such investments.
The Strategic approach in the ever changing Economies and so on.

26/10/2024

DP&R investments.

DP&R Investments offer Financial Literacy Education,trains,analyses,and advice on the Capital Markets products regulated by the Capital Markets Authority of Kenya.(CMA)

email address; [email protected]

26/10/2024

Welcome to DP&R Investments.
A Consultant company that trains,analyses, invests on capital markets products regulated by the Capital Markets Authority of Kenya.