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A vey long thread about my investment journey
Phase 1
- I don’t remember the year exactly but it all begun in the mid to late 90s in a small town of Chitungwiza in Zimbabwe
- My late father used to bring home a local newspaper that he read through every page except one!
Phase 1
- I don’t remember the year exactly but it all begun in the mid to late 90s in a small town of Chitungwiza in Zimbabwe
- My late father used to bring home a local newspaper that he read through every page except one!
- That one page was a daily publication of share prices of companies listed on the Zimbabwe Stock Exchange
- I had no idea what that meant, neither did my dad when I asked him
- Weary of me repeatedly asking the same question, he asked one of my astute uncles to explain it to me
- I had no idea what that meant, neither did my dad when I asked him
- Weary of me repeatedly asking the same question, he asked one of my astute uncles to explain it to me
- He simplified it best to a high school student and I was immediately sold out
- Since then, I would constantly check the share price performance of a few companies I could related to
- These included local retailers like OK Zim, beverage bottler Delta Corp among others
- Since then, I would constantly check the share price performance of a few companies I could related to
- These included local retailers like OK Zim, beverage bottler Delta Corp among others
- But ofcourse I was way too broke to invest myself
- Fast forward a few years later after school, I finally had a few coins to spare
- I walked into a brokerage company in Harare, opened an account & bought 12 shares in Econet Zimbabwe
- I bought a bit more during my internship
- Fast forward a few years later after school, I finally had a few coins to spare
- I walked into a brokerage company in Harare, opened an account & bought 12 shares in Econet Zimbabwe
- I bought a bit more during my internship
- And beginner’s luck would have it, I had my first ever 4 bagger
- The next time I had money to buy shares was when I started working
- Every month I consistently bought shares on Zimbabwe Stock Exchange & after two years I learnt my first two lessons about the game
- The next time I had money to buy shares was when I started working
- Every month I consistently bought shares on Zimbabwe Stock Exchange & after two years I learnt my first two lessons about the game
- Lesson 1: The stock market is a wealth accumulator available to any person
- Lesson 2: Economic collapse and hyperinflation can wipe out all those gains
When I eventually migrated from Zim to SA, I cashed out my portfolio only to get a few thousand Rands
- Lesson 2: Economic collapse and hyperinflation can wipe out all those gains
When I eventually migrated from Zim to SA, I cashed out my portfolio only to get a few thousand Rands
Phase 2
- After moving to South Africa I started investing again, this time on JSE
- Half of my portfolio was with Allan Gray, Coronation & Old Mutual. The balance was in individual stocks
- I was fairly consistent until December 2015 when I reviewed my portfolio performance
- After moving to South Africa I started investing again, this time on JSE
- Half of my portfolio was with Allan Gray, Coronation & Old Mutual. The balance was in individual stocks
- I was fairly consistent until December 2015 when I reviewed my portfolio performance
- My 5 year annualised portfolio return was ~7%. Inflation had averaged 5%-6% and the Rand had depreciated by close to 40% - 50% in the same period
- So effectively in US$, I had lost money
- I won’t even start on fund mgt fees
- I spend a few weeks thinking through my next steps
- So effectively in US$, I had lost money
- I won’t even start on fund mgt fees
- I spend a few weeks thinking through my next steps
- Lesson 3: Currency depreciation is a silent killer of investment returns
- Lesson 4: The world is changing. The era of intangible assets has begun
- Lesson 5: SA fund managers & media houses are clueless abt what’s going on. They r blind, anchored on the past & largely ignorant
- Lesson 4: The world is changing. The era of intangible assets has begun
- Lesson 5: SA fund managers & media houses are clueless abt what’s going on. They r blind, anchored on the past & largely ignorant
Phase 3
- I woke that morning, sold everything I owned and moved the funds to New York. I was done with JSE
- My first investment on Wall Street was Square Inc
- It took me two years to find my investment style, made a lot of mistakes buying & selling shares almost haphazardly
- I woke that morning, sold everything I owned and moved the funds to New York. I was done with JSE
- My first investment on Wall Street was Square Inc
- It took me two years to find my investment style, made a lot of mistakes buying & selling shares almost haphazardly
- Over the same period, I started following and learning a lot from very smart FinTweeps
- I also invested a lot of time and effort reading as much as humanly possible about investing, new business models, industries and stock analysis
- That has allowed me to develop a style
- I also invested a lot of time and effort reading as much as humanly possible about investing, new business models, industries and stock analysis
- That has allowed me to develop a style
- Lesson 6: Performance is in the past, returns are in the future
- Lesson 7: The color of money is Green
- Lesson 8: Read read & read. Pursue knowledge & understanding
- Lesson 9: Share knowledge & learn from others
- Lesson 9: Be patriotic with your heart, never with your money
- Lesson 7: The color of money is Green
- Lesson 8: Read read & read. Pursue knowledge & understanding
- Lesson 9: Share knowledge & learn from others
- Lesson 9: Be patriotic with your heart, never with your money
What inspired your journey to investing? @Guepard_1
@lawseed @EMukumbo @PinkySithole17 @ManokaMathye
@trevmuchedzi @KhulekaniMj
@lawseed @EMukumbo @PinkySithole17 @ManokaMathye
@trevmuchedzi @KhulekaniMj
