Tuesday 27 September 2011

INVESTMENT 101

How have you been my fellow bloggers and entrepreneurs? Let me first start by offering my condolences to a true heroine, Prof.Wangari Maathai. She was indeed a person we would all want to be because she stood by what she believed in no matter what the consequences. She never compromised her dedication towards safeguarding the environment even if it meant fighting to the last tooth. Rest In Peace Prof.Wangari Maathai, your course will forever live on.

Today was rather an interesting day for me. For a day to qualify as interesting, learning a new thing has to be there, among other things of course. One of my lecturers was kind enough to bring an investment analyst to give a lecture in my afternoon class. Needless to say, its that time of the day when alluring scents of the day's special come from the cafeteria therefore shifting your concentration. Judging by the scent, I'd say matumbo was in the menu today. The talk was however very interesting to let it pass by.

The speaker started by defining what an investment is. The simple version of it was, postponing consumption to a future date. This is particularly hard for a lot of people. He then continued by giving investment options available in the capital market. He however talked more about stocks(shares), bonds and treasury bills. The very interesting part was when he classified investors into two categories, active and passive investors. Active investors are aggressive while passive investors are laid back.

Most of us have come across the phrase, high risk translates to a higher return. This is the time to be aggressive in your investment decisions because you don't have a lot to loose as compared to when you have a mortgage, paying school fees among other obligations that will come up in time. Play around in the stock market and you will get to learn a lot, just like the ones who participated in the NSE Challenge.

Even if after reading this article you won't remember anything else(i hope not), just take this into consideration...Take a risk to get that return you want. I think this is also a life lesson to all other aspects of your life.

Regards.........The Shopper!

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