From tomorrow we at the pesatalk will be taking you, our beloved reader, through the investing process in an interactive and understandable way. We’ve dubbed this PesaPortfolio. We believe that when talking about money and where to invest it, it would be even more useful if you could be able to see a portfolio of investments modelled using the insight and analysis we at pesatalk strive to relay to our readers.

The hypothetical PesaPortfolio will be constructed as follows:

• The initial value of the portfolio will be KES 100,000.
• At any given time the money will be invested in no more than 10 securities listed on the Nairobi Stock Exchange (NSE).
• During the period of existence of the PesaPortfolio transactions are to be based on the price at which the counter closed on the particular trading day
• For every transaction supporting reasons are to be provided.
• The value of the portfolio will be disclosed the next day

We hope that through this our readers will be able to give the information we provide on a daily basis a practical perspective that they may try and implement themselves.

The PesaPortfolio wil be governed by the following parameters:

• Should a stock gain 10% or fall 5% on three consecutive days we shall sell it.
• For each transaction we shall pay 3% as transaction costs.
• A minimum of 100 shares can be purchased or sold.
• The portfolio will be eligible for any rights issues, bonus issues or dividends as provided for by the company whose stocks we will be holding.

Of course should you have any suggestions or preferences on how we should construct or restructure the portfolio or just questions on how all this works feel free to contact us through the comment section, our twitter handle (@Pesatalk) or our Facebook page.