By Tapiwa Bepe
In this week’s section of profiling the Zimbabwe Stock Exchange (ZSE) retail investors, we feature Kudzai Nolan Mafuta.
ZSE Retail Investor
Age : 38 years
Profession : Business Consultant and Entrepreneur
Hobbies : Cricket, English soccer and outdoor activities
Aspirations : To enjoy God’s gift of life
The Investment Journey
Around 2003-2004 there were some educational programmes called make money, make sense done by Kingdom Bank. The programme constituted topics on unit trusts and trading on the ZSE, and that sparked Kudzai’s interest to start investing on the stock market. Kudzai began investing on the stock market through asset managers in 2005. Kudzai began to follow financial literacy advocates and during the lockdown period, the podcasts on investing on the Zimbabwe Stock Exchange helped him in his investment journey.
The Investment Strategy
Kudzai is a long term investor and the main strategy he uses when investing on the ZSE is to set a monthly investment target and set aside a certain amount of money which he uses to buy shares. He follows the news by reading newspapers and listening to business shows on the radio that helps him to map his ways of investing on the ZSE. Kudzai also checks on the market statistics and prices of the counters after each trading session.
Kudzai’s portfolio is diversified across the Exchange Traded Funds, but has future prospects of holding financial and real estate counters.
Highlights and low
- One of the low highlights for Kudzai was realizing that the market operates in cycles, a counter that might have gained in the previous year is not guaranteed that it will gain the following year. One of the terrible experiences encountered by Kudzai was the late realization of his sell proceeds.
- One of the highlights for Kudzai is when he learnt that he can earn passive income and also raise money for his business through the stock market.
- Kudzai has raised money to support his side hustle from the proceeds realized on the ZSE.
Advice to Prospective Investors
- The ZSE is for long term investments and not a quick rich scheme
- Know your investment goals and how long you want to be in the market for.
- Know the company you are investing in, ensure that you read the financial statements and know the business model of the companies you have invested in.
- If the share price is decreasing, do not rush to sell rather buy and hold it, if the market is on a bull run, you can sell and enjoy the profits later.
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