Stocks, Bonds, Shares, Treasury bills and all about the stock market and forex trading, what details have you learned that could guide a young investor on the ups and downs of these sectors or which one is the safer one you can say is best to start with?
you can never go wrong with tbills.
on shares: kama wewe si insider tread carefully -most have lost over 50% since 2015/2016. -for a volatile bandit economy like kenya go for short term & stick to banks.
I personally know an insider stock broker-has an investment bank. -can introduce you if you are not a peasant.
Try the money market fund with firms like ICEA Lion and Old mutual save for about 10 years not as volatile as shares and has some guaranteed returns
money market funds are investments and not savings accounts, there’s no guarantee on earnings and there’s even the possibility you might lose money…In a shithole like kenya never delegate when it comes to your money
I’m talking from experience with both at least they spread your investment, and they have been around for awhile , Old mutual really helpd me save and you wont believe how fast 10 years go by
start by building up savings/emegercy funds (equivalent to your 6 months expenses) in money markets and put any etra savings into stocks but in kenya only focus on banks and businesses that have large numbers of international investors i,e safaricom, eabl and probably BAT… the other stocks are a messy game of insider trading and the companies have weak governance, don’t plan to sell any stocks you buy for the next 3 years, that way you can focus on buying and ride any volatilities that arise like a boss, buy some when they are high and buy even more when they are low, you will be guaranteed to make some profits
F
The NSE is a giant ponzi scheme. Beware. If I knew what I know now I would have bought plots Joska, Kamulu, Kitengela etc and waited.
Before June 2020, BAT has been continuously declining.
Most credible SACCOS give an interest of 10% p.a.
Few money markets can match that.
If you’re able to do business hapa pale you’ll outperform all this money markets.
But if you’re an office /professional person then makes sense.
and this is the best time to buy BAT,
Tulihamia bitcoin zamani. Take some risk, vunja mifupa ungali kijana
@unkwownfela Saccos kama gani bro?
Stock market is medium to low risk. So if you invest in banks and companies with significant foreign investors you will be safe on the longterm savings part.
Identify a high risk investment since you are young. I prefer things that have intrinsic value so you can start a business or invest in a friend running a business. Otherwise you can join the speculative gang of bitcoin and forex trade. Just have the risk appetite for it. I would also advice you to hold cash. About 2-3 months spend for a major emergency like a job loss
So:
Long term savings: blue chip stocks (medium to low risk)
FOMO: business or speculative “assets” (high risk)
Liquidity: 2-3 months of your day-to-day expenses
Remember that wealth creation is a long term process and what I have laid out above will serve you from your mid 20s to mid 30s. Stay disciplined in the process. When you hit your mid to late 30s look for me to help you revise your wealth management plan.