Wednesday, January 23, 2013

Bullish Thoughts: Money in Zimbabwe Education Sector?


Bullish Thoughts is seriously thinking of investing in a primary and high school. Yes, he is considering going to Chegutu Lands Committee and getting a 20ha plot where he will farm tobacco and leave enough space to build the schools.

He is going to employ a few local dudes to mold farm bricks and then buy a few face bricks from Willdale or Beta Bricks and construct a school deep in the woods there.

The fees will be $2,000 per term for Grade 0 to 3, $2,500 for Grade 4 to 7. For the high school, because the children will be writing Cambridge exams, the fees will be $4,000 for Form 1 to 4 and $5,000 per term for A Levels!

Extra-curricular activities will include court tennis, table tennis, soccer (after ramming down some former maize field), netball, basketball, baseball, Yoga, Karate, swimming, show jumping, etc.

If the school enrolls two classes each for Grade 0-3 with 20 students in each class that’s a nice revenue account.

Bullish Group of Schools Revenue Account for the Year Ended XYZ….

Class
Total Students
Fees Per term
Revenue (Fees) Per Year


$
$
Grade 0
40
2,000
240,000
Grade 1
40
2,000
240,000
Grade 2
40
2,000
240,000
Grade 3
40
2,000
240,000
Grade 4
40
4,000
480,000
Grade 5
40
4,000
480,000
Grade 6
40
4,000
480,000
Grade 7
40
4,000
480,000
Form 1
40
4,000
480,000
Form 2
40
4,000
480,000
Form 3
40
4,000
480,000
Form 4
40
4,000
480,000
Lower Six
40
5,000
600,000
Upper Six
40
5,000
600,000
6,000,000

Now isn’t that a nice revenue account? Some listed entities would actually envy that. As for expenses, the investors will charge a bus levy to buy buses for students, books levy to buy books and sports fees to equip the sporting facilities. Incentives & donations will be used to pay for staff salaries, etc.

This venture will not have to increase fees to boost revenue, just the number of students and capped at 30 per class for quality!

Sounds familiar, doesn’t it?

With Lomagundi charging around $4,000 per term, Hellenic Preparatory $2,000, Watershed $4,000 and Falcon circa $3,500 per term you get the drift!

After paying an arm and a leg for Grade 2 First Term fees for little Miss Bullish Thoughts, Bullish Thoughts Snr was left convinced they might be a business case for investing in a school.

Any potential partners out there so that we get the ball rolling?

 Bullish Thoughts is offering his idea, connections at the Mash West Lands Committee and being Treasurer/Bursar for the school as capital.

Don’t worry about demand, a crusade encouraging procreation will be underway once potential backers are on board.

What is the Return on Education (ROEd)?

The investment aside: Are you getting your worth from the numerous schools after spending the whole term scurrying to raise school fees?

Will your child even see the doors of a university in future if education costs continue spiraling out of control?

Is it not time that you started seriously saving and investing to prepare and secure the future of your loved ones?

Not all will be able to continue walking on the financial minefield that education costs have become once they leave the C-Suite!

Just thinking aloud…

Blue chips shaft investors on the ZSE…

Delta Beverages hits 115.5c, Innscor 81c, Econet 520c… Except Econet Wireless, these are all time high prices.

If you are a retail investor, you probably were ALWAYS advised that you cannot invest in blue chips because they are not volatile…i.e.,  they do not move up significantly to generate sufficient returns for investors.

So you are probably holding some Truworths, Starafrica and other third tier stocks which are following financial market gravity while the blue chips accelerate in the opposite direction.

Is it too late to get into the blue chips? Bullish Thoughts thinks it is given that Delta has surpassed almost all the real and thump sucked target prices given by stockbrokers and various and equally experienced thumb sucking analysts.

But the whole development should indeed change your view of equities markets. Never mind the foreign investor angle!

Chitungwiza melee…Kun’anga hakuendwe masikati

Bullish Thoughts hopes that those that had visited Sekuru Shumba were not seeking “muti” against Bullish Thoughts whose Delta holdings keep appreciating in value.

Bullish Thoughts urges all prospective and current business owners to hone their business skills. Every Jack & Jill college/university is now offering basic business training and there are also a lot of free business courses being offered.

Also if you are in transport, you should know that a vehicle should be road worthy, have a VID fintness certificate, route permit, rank disc, etc. That way, you won’t lose money through fines and bribes. You won’t make persistent losses and you won’t need to visit a sangoma to plug ypur financial hell hole!

Last Bullish Thoughts says Kun’anga hakuendwe masikati (You don’t visit a witchdoctor during daytime)!

Invest Wisely!

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