I agree, but, do local companies do that? Given the inactive state of our local bond market... 

On Thu, Jul 7, 2011 at 12:26 PM, Okechukwu <okechukwu@gmail.com> wrote:
As a wise investor, you need to invest most of that cash elsewhere
following the principles of diversity (Stocks, bonds, cash or cash
alternatives) for a rainy day since you will not always make that much
in future.

./Ok3ch

On Thu, Jul 7, 2011 at 12:15 PM, Phares Kariuki <pkariuki@gmail.com> wrote:
> Hi,
>
> Apologies, cross posted...
> Question, for those who have run tech startups, how do you deal with
> excessive revenue? Given that tech firms many times operate on high margins,
> let's, for the sake of example, say you have a product that, with an expense
> book of roughly 1M (Rent + Salaries), and your monthly revenue is 8 M KES.
> What do you do with the remaining 7M? Some say invest in product development
> but even then, you will still have quite an amount of change. What happens
> to that change? Invested in a bank? Or in some form of Fixed Income
> Securities (Bonds, T-Bills etc). What's the general practice in .ke?
>
> --
> With Regards,
>
> Phares Kariuki
>
> | T: +254 720 406 093 | E: pkariuki@gmail.com | Twitter: kaboro | Skype:
> kariukiphares | B: http://www.kaboro.com/ |
>
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--
With Regards,

Phares Kariuki

| T: +254 720 406 093 | E: pkariuki@gmail.com | Twitter: kaboro | Skype: kariukiphares | B: http://www.kaboro.com/ |