31.6000 | 0.0000
This week we look at some popular investing myths and try to dispel them, because following them blindly can be dangerous and lead to people making incorrect investment decisions.
Investing in securities is just like gambling
Gambling takes money from a loser and gives it to a winner, and no value is ever created. Whereas investing, increases the overall wealth of an economy. Don’t confuse investing and creating wealth with gambling’s zero-sum game.
Only the wealthy and brokers should invest in the securities market
The internet has made the market much more accessible to the public than ever before. The data and research tools previously available only to brokerages are now available for individuals to use. Moreover, C-Trade allows investors to access the market with minimal investment.
Securities that go up always go down and vice versa
Many people believe that just because a security goes up, it will eventually fall and that a security that was once up but dropped has nowhere to go but up. Securities rise and fall, but they do so according to the performance of the company.
Having a little knowledge is enough for one to do well in the securities market
It is crucial in the securities market that individual investors have a clear understanding of what they are doing with their money. Investors who are proactive and do their research are the ones that succeed.
Therefore, investors who lack the time to do extensive research should consider employing the services of an advisor. A list of licensed investment advisors can be found on the Securities and Exchange Commission of Zimbabwe’s (SECZ) website using the following link: <http://www.seczim.co.zw/regulated-entities/investment-advisors>. The cost of investing in something that is not fully understood outweighs the cost of using an investment advisor.
Upcoming AGMs & EGMs
Zimplow Holdings Limited, Head Office, 36 Birmingham Road, Southerton Harare, on Thursday June 13, 2019, at 1000 hours.
Mon Jun 2019