By Tapiwa Bepe
In this week’s section of profiling the Zimbabwe Stock Exchange (ZSE) retail investors, we feature Andrew Muzondiwa Marisa.
ZSE Retail Investor
Name: Andrew Muzondiwa Marisa
Age: 58 years
Qualifications: A holder of two masters’ degrees and will soon complete a doctorate in business leadership degree
Profession: Consultant in Human and Institutional Capacity Development, specializing in Leadership and Management Development.
Hobbies: An avid reader, who likes sharing knowledge in self-help projects
Aspiration: To transform communities through empowerment in projects and environmental conservation.
Having realized that ordinary Zimbabweans as well as many well-meaning professionals have little or no knowledge about investing on the stock market, Andrew takes time to deliberately empower professionals through structured training programmes.
The Investment Journey
In 2003, after having been an avid investor in Unit Trusts for years, Andrew decided to go a step further. Through his previous studies, he had a clear conviction that money is made at the stock market but he thought it was for institutions only. The cases studied in books usually referred to only large corporations investing, and it wasn’t apparent that individuals like Andrew could also buy shares on the stock market.
He was surprised to learn from his stockbroker that it was possible for him to trade on the stock market. Andrew then immediately started trading on the ZSE using money from his salary, travel and subsistence allowances and profit from his chicken venture. Since 2003, Andrew has never looked back. Very few business ventures match the returns that come from the stock market.
The Investment Strategy
Investing on the stock market requires adoption of a proper context, which is underpinned by appreciating the long-termism perspective. Andrew sets his mind to operate beyond fear of intense short term volatility, by adopting the following key strategies;
- Studying the various companies listed on the stock exchange
- Following the trends of the market mood/social mood (aggregate mood of all market participants which have a strong influence on the stock market)
- Analyzing the nature of business of each company as it relates to the economic fundamentals in Zimbabwe, focusing on where there is prospective growth.
- Guidance by the share price. Where he considers the share price to be too low at a time potential for growth is high, he buys the stock for long term purposes.
- Where he has substantial capital, he focuses on high value shares, that is, the blue chip companies.
- Spreading his risk by maintaining a wider range of stocks in his portfolio. While some opinions may say it’s thinning yourself too much to have as many as 40 counters in one’s portfolio, for him, it is a good strategy in spreading risk.
- Trading on ZSE Direct as well as through a stockbroker. Direct trading benefits him from speed in decision making and actioning. His stockbroker, being a trained professional, takes their time in picking a counter and benefits from the skills, knowledge and experience of the stockbroker in timing.
Andrew’’s portfolio is diversified across the Materials, Consumer Staples, Financials, ICT, Consumer Discretionary, Industrials and Real Estate sectors on the ZSE.
Highlights and lows of the investment journey
- The unforgettable inflationary period of 2006 to 2008 brought about both positive and negative experiences
- As a positive, Andrew made a profit which he used to acquire other assets, and expanded his portfolio and increased his holdings
- On the negative side, some of his stocks lost value when normality returned.
- However his holdings in strong counters remained intact and that was a huge learning point, teaching him to focus on reputation, sustainable, resilient, tried and tested companies.
Advice to Prospective Investors
- Read about the different listed companies. There is a lot of material on the ZSE website as well as on the websites of the companies themselves
- Read commentaries from financial experts like stockbrokers and other finance houses
- Whatever little money you have, it can take you far. With ZWL$500, one can buy shares through ZSE Direct
- Don’t procrastinate, get registered on the ZSE either through ZSE Direct or through a stockbroker.
- Where you are not sure, seek guidance, Start investing NOW, there is no better time like the present
Information provided in this article is for educational purposes and does not constitute financial advice. You should obtain independent advice from a Registered Stockbroker or Financial Advisor before making any financial decisions.
For more information about how to invest on the ZSE, visit the ZSE training portal www.zsetraining.co.zw, email [email protected], Tel: +263 24 2886830-5