This article looks at the Nairobi Stock Exchange (NSE) to identify which from a number of strategies would produce winning stocks on a consistent basis. The article involves a study in which six hypothetical investment dates are considered between 2008 and 2010 and stocks picked on the basis of three strategies for four annual and two eight-month periods prior to these investment dates.
Stocks are picked on the basis of their out-performance in the investment periods prior to the investment dates. The strategies include a dividend yield strategy, a capital growth strategy and a total return (hybrid) strategy to identify which among these would provide the highest number of winners in the period following the investment dates.
The investment dates considered are:
17 January 2008
14 November 2008