Dear Friends and my lovely clients, its ripe time for us to learn about different investing strategies.Most of us have been focusing on quantum leap instead of incremental growth. This has failed many people in life. Many people come to realize that they would have achieved more in life if they invested at least 10%-20% of their monthly incomes in sound investment vehicles.
With help of consultants or shrewd investors someone can amass a lot of wealth through great investment strategies. I get embarrassed to see some people who had great opportunities in life fail to deliver. It will be a great sorrow to our generation if 20 Years to come we will not have crunched the numbers.One of the greatest opportunity we have if we live that longer is time.
Dollar cost averaging is a type of investment strategy whereby an investor sets aside a fixed amount of money that is channeled into investment in capital markets(stock markets)either monthly, quarterly or semi annually for a long period of time. This strategy is more convenient for persons who receives fixed incomes after every certain period of time. For example, an employee receiving a net salary of TZS 500,000/= can spare TZS 50,000/- for investment every month. If this process repeats for a period of 20 years and the portfolio returns average at 20% per year this person will have created a net worth of TZS 155,483,000.00. Making this much wealth without even cracking much of your head! currently fifty thousand can be consume by two persons in an average dinner outing! spare one great dinner every month and make TZS 155 Million in twenty years.
Advantages of DOLLAR COST AVERAGING: First,when the stock price goes down you get more number of shares and when it goes up you get less number of shares therefore your price adjusts to give an average cost over time. Secondly, Installments are reasonable and affordable. Thirdly,building a great habit of saving and investing every month. Forth, Learning about market behaviors over time therefore building a great investment knowledge.
I would advise investment dummies and risk averse interested investors to adopt this strategy. As time goes on i will unveil to you different investment strategies that will fast track our journey to financial freedom.
Imagine when time come and you have no financial constrain whatsoever!
Lets keep on investing daily and always! Investing is a process which starts when you have nothing to the time when you are endowed with abundance.
Thank you for reading this Article! I would love to receive your feedback via message or comment.
Emmanuel Akyoo,
Managing Director,
Epak Capital Ltd, Box 110222 DSM.
+255712459035 or +255784146756
