Deep breaths, people.
Hold, hold – and exhale.
I know that the idea of investing in shares can be terrifying, and you’re not alone on that front. Of the more than 50 million South Africans, only a really small number are actually investing in the stock market for this exact reason.
For most people, the idea is kind of daunting. It’s something that your mate who has their life together does, and you’re just trying to make it through another week until Friday rolls around.
But considering that compared to putting your money in a traditional savings account or buying property, owning shares has been historically proven as the best way to build your wealth over the long term, there should be a lot more of us doing it.
Fancy an easy to follow, no frills and fuss rundown of how you can get involved? Fear not, because we are here to please.
Who can buy shares?
Anyone has the ability to own shares, irrespective of age, experience or income. Warren Buffett, one of most famous and wealthy investors in the world, says the only thing he would do differently in his career is to start investing earlier.
He began when he was 11, so there is no time like the present.
Which companies should I invest in?
Investing is personal, and picking companies to invest in really depends on your personal goals and style. One fundamental philosophy is to start by investing in companies which you know and trust.
You only need to look at the brands in your world to see which companies are the ones you are loyal to, and are prepared to give a portion of your salary to each month.
Where do you do your grocery shopping? Who is your medical aid or mobile services provider? Beginning your investment journey by buying shares in companies whose business model you are familiar with is a good way to start, and begin learning.
How much does it cost?
There are a couple of costs that can be associated with investing. These include monthly fees, brokerage and a minimum amount to start investing with, amongst others.
However, low cost disruptors like EasyEquities, make it possible for investors to invest in even more expensive shares with whatever amount they have available as opposed to the actual share value.
This means anyone can own shares (or a piece of a share) in companies like Naspers or Pick n Pay. Investors are also not required to pay any monthly fees or minimums.
Brokerage costs are 0.25%, which works out to 64 cents per R100 invested – easy, indeed.
What is an exchange traded fund (ETF)?
Exchange traded funds are essentially a collection of shares that track an index or theme but can be bought as one instrument, making them more cost effective. They are also considered lower risk because they contain a collection of companies, so you’re not putting all of your eggs in one basket.
Sounds good to me, but how about the chance to speak directly to an expert? You know we’ve got you covered there, too.
You can fire questions directly at EasyEquities on Facebook, in a live chat, this Friday (May 4) from 12:30PM.
A quick list of topics they will cover:
And voila, you’re on your way to investing in shares.
Make sure to check in with EasyEquities on their Facebook Live Chat, and then you’re ready to rock and roll.
We’ll leave you to peruse a demo of just how easy is it to get yourself in the game, high roller:
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