23 C
Kenya
Sunday, March 29, 2020

Samuel Gichohi: I once burnt my hands with Kenya Airways shares

Must Read

TSC recruits 8,920 more permanent and pensionable teachers

TSC permanent and pensionable: The Teachers Service Commission has recruited some 8, 920 teachers on permanent and pensionable terms....

Warren Buffett has cash to buy Tesla or Starbucks after coronavirus sell-off

Warren Buffett Berkshire Hathaway: Business Insider: Warren Buffett's Berkshire Hathaway can afford to buy almost any of America's public...

Covid-19: Posta, Jumia partner to make deliveries across the country

Covid-19 in Kenya: Postal Corporation of Kenya has partnered with Jumia to offer a discount on delivery fee for...

Samuel Kimari Gichohi is the Business Development Manager at the NIC Securities Limited

Making money with stocks: There is money in stocks. However, to make it, you must stop gambling with stocks. The best strategy is to fully understand the company whose stocks you are buying, and its growth opportunities. You can also be a speculative trader. This is not gambling, but rather predicting stock price movements based on well-thought out externalities. For example, the interest rate law suppressed prices of banking stocks. If it’s reviewed, as predicted, these stocks would rise. A speculator will buy banking stocks on the cheap based on this prediction. However, he or she must be ready to lose if such the prediction fails to germinate.

Ken Muchina: You won’t create any wealth by saving via Merry Go Round

Making losses from stocks: I once speculatively bought Kenya Airways Shares based on a rumour on top management changes in the company that was in the press. I figured that this would cause a short term fluctuation in the price and I would make a quick buck. It turned out that the rumour had no substance and I lost 10 per cent of my investment in the Kenya Airways Shares. I quickly cut my losses and shifted to a more promising stock at the time and eventually recouped my losses and made profits. Don’t try such moves if you are not ready to be wrong. In fact, the best you should do is stick to more fact-driven and fundamentally based investment decisions. Remember, great investment plans are always associated with good financial adviser and objective decision making strategies.

On saving money: I am not designed to save money. I prefer to diversify where I put my money. I do this in three ways: investing in liquid value securities and fixed income products so that my money is always working for me; insurance products that have good riders on them for safety net; diversifying my disposable income into more risky ventures like farming.

Sex for freedom? Shocking tale of judge Ole Kantai and Sarah Wairimu

Secret to building wealth: Plan, execute and be ready to ride the storm. Before you spend your money on anything, always ask yourself if you really need it, if it will add value to you or whether it will only cost you to own it. In wealth creation, fear and greed are your worst enemies.

If I could start all over again: I wouldn’t trade the mistakes and pitfalls that I have had for a repeat show. I am happy that I learnt from every experience, and today, I am more focused on where I am headed thanks to the lessons from where I have been.

Financial milestone: Surprisingly, it is not monetary, but pursuing knowledge in how money, financial markets and investment works. My education base was initially in IT and at some point, I realized that the people who create software solutions for financial institutions don’t have financial knowledge. I decided to learn more about finance in order to plug that disconnect. I have never looked back.

Riches under employment: I define wealth as being liquid, hence, most employed people can be rich because of the consistent flow of liquidity at the end of every month. Unfortunately, many fall into the illusion that it is safe and instead of investing, they buy things like cars which cost more money to maintain. This in turn pulls them into a vicious cycle of spending since they end up needing the consistent flow of money to maintain their lifestyles.

This feature was first published in the Saturday Magazine.

- Advertisement -
143,742FansLike
10,898FollowersFollow
46FollowersFollow
214SubscribersSubscribe

Latest News

Kenya now has 38 confirmed coronavirus cases

Number of Coronavirus Cases Kenya: The number of confirmed cases of coronavirus in Kenya has risen yet again. Today,...

Warren Buffett has cash to buy Tesla or Starbucks after coronavirus sell-off

Warren Buffett Berkshire Hathaway: Business Insider: Warren Buffett's Berkshire Hathaway can afford to buy almost any of America's public companies after coronavirus fears decimated...

Covid-19: Posta, Jumia partner to make deliveries across the country

Covid-19 in Kenya: Postal Corporation of Kenya has partnered with Jumia to offer a discount on delivery fee for customers. All customers will only...

Revealed: The billions of money and businesses owned by Moi family

Moi Family Wealth: The late Daniel arap Moi, who ruled Kenya for 24 years, and his family rank among the richest Kenyans with an...

Man who conned Kenyans hundreds of millions of money finally arrested

Peter Wangai Goldenscape: Detectives have finally arrested Peter Wangai, the man who conned unsuspecting Kenyans seeking to get rich quickly hundreds of millions of...

More Articles Like This

- Advertisement -
%d bloggers like this: