By Tapiwa Bepe
A retail investor, also known as an individual investor, is a non-professional investor who buys and sells securities or funds. In this week’s section of profiling the Zimbabwe Stock Exchange (ZSE) retail investors, we feature Emmanuel Nemaungwe.
ZSE Retail Investor
Name: Emmanuel Kuda Lameck Nemaungwe
Hobbies: Playing chess, reading company reports published in newspapers and rearing roadrunners
Aspiration: To be fully self- sufficient on income from investments
Emmanuel Nemaungwe is an active retail investor on the ZSE who began his investment journey in 2020 after he had lost his job and was left with no source of income.
How the Investment journey started?
After losing his job in 2020, Emmanuel did not have any source of income or pension, therefore he decided to experiment with investing on the ZSE. The results were exciting for him and he has never looked back since. Emmanuel now lives on his investments.
The Investment Journey
Prior to 2020, Emmanuel would buy and sell shares on an irregular basis, however since 2020 he now takes investing seriously. Being unemployed, investing on the ZSE has become his source of income. Emmanuel’s portfolio has grown and part of his portfolio now comprises counters in the Consumer Staples and ICT Sector.
The Investment Strategy
Ever since the decision to start investing seriously on the ZSE in 2020, Emmanuel’s investment strategy includes;
- Reinvesting a significant portion of the money earned in the stock market
- His portfolio is divided into two categories
- 40% which he buys and holds for a very long time (no selling these securities)
- 60% which is his active securities that he buys and holds for short periods of time and sells them when he has achieved a targeted return of at least 100%, or when he needs to finance his personal needs.
- Emmanuel always tries to keep the ratio of 40:60 and reviews it monthly. The excess is normally sufficient to cater for his bills.
Highlights and lows of the Investment Journey
- Achieving more than targeted capital gains from his investments within six months of investing.
- The suspension of certain counters has restricted him access to his investments
In a bid to capitalize his investments, Emmanuel sold his motorcycle to invest on the ZSE, when the share prices were low. The market then went up phenomenally in 2021 and provided him with an opportunity to realize capital gains in excess of 1000% which were able to assist in meeting his daily expenses. The current portfolio valuation of his investment can now buy him more than 10 motorcycles but he is choosing to leave the money in his investments.
Advice to Prospective Investors
Emmanuel is passionate about educating people who are not yet in the investment game through a “hands on experience.” His advice to prospective investors is;
- Start Investing NOW!
- Start small with 10% to 20% of your monthly income
- Be patient for at least one year
- If you can be patient for a longer period the better, the returns will be beyond your imagination
- Buy securities of companies that you understand
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