Ending Poverty in Africa by Saving and Investing in the Stock Market

By Soko Directory Team / Published February 2, 2022 | 9:11 am




KEY POINTS

The stock market has the ability to grow wealth more quickly than many forms of investments like Bank Fixed Deposit Accounts, SACCOs, Money Market, Treasury Bills and Bonds, Pension Schemes, and Insurance Companies.


poverty and stock

KEY TAKEAWAYS


15.9 million out of 44.2 million Kenyans are poor. Put into perspective, it means reflects a scenario where an adult earns less than Sh3,252 in rural areas and Sh5,995 monthly in urban areas.


Since 1963, the government of Kenya has been fighting some three enemies without winning the battle successfully, the three enemies are ; ignorance, disease and poverty.

The government has made significant improvements in fighting ignorance in the country via increased access to education. Since 1963, when Kenya had one Technical University which was later chartered to the University of Nairobi, Kenya has since added many universities.

Together with the efforts of private universities, we have over 70 Universities, all these are geared towards empowering people and fighting ignorance. A good step forward, I must say.

On fighting the diseases, Kenya has made great gains in the development of healthcare and the construction of hospitals. The country has made great gains in the training of doctors and nurses to take care of 55 Million Kenyans. Even though the doctors to patients ratio is low compared to the world standards, we have made a great move in the right direction.

Our biggest enemy is poverty. This is the enemy that has been a goliath to the government. 60 years later, many Kenyans are still poor and still fall below the poverty line. The goliath is still standing strong and our David, the government seems blind to the top-notch tactics to slay the giant.

According to the 2020 Comprehensive Poverty Report by the Kenya National Bureau of Statistics (KNBS) launched recently indicates that 15.9 million out of 44.2 million Kenyans are poor, describing this scenario as an adult earning less than Sh3,252 in rural areas and Sh5,995 monthly in urban areas.

How then do we end poverty? According to the 8th wonder of the World, the Law of Compounding, Albert Einstein observes that compounding is the best way to accumulate wealth. I have been in the business of studying this law and how it can make up all rich and kick poverty out of Africa.

Take for example a farmer who owns one hen. The hen produces 10 eggs which hatch and he ends up with 10 chicks. One year later, they are all grown and they are now 11 hens. Each of these 11 hens, produces 10 eggs each, which hatch into chicks. One year later, they are 110 Hens. Now 110 Hens, each produces 10 eggs, which later hatch into chicks. The chicks grow and turn into hens. One year later, they are 1100 Hens. Now if you keep compounding that, you will end up with very many hens after some five to 10 years. Now if you sell all the 1100 hens, you end up a millionaire.

The same compounding effect happens in the stock market.  Assume for example like hens, you have to buy Safaricom shares at say 30/- and it later increases in price to say 43/- and you sell and you make your profits, say 30% after some sixty days.

Now with increased capital, you buy another stock say Equity Bank, at say 40/- it increases in price and you sell at 55/- making some 25% profits in sixty days time. Again you have increased capital due to profits. If you keep repeating that and get say 10% returns per month x 6 months in a year, then you have 60% returns. Now, if you repeat that for 10 years, then you are able to turn a savings of say 1,000/- per month into 1 MILLION SHILLINGS.

ALSO READ: Climate Change: Who Shoulders the Responsibility For our Environment?

That is how to turn 1,000/- savings after 10 years into 1 Million Shillings. That is possible in the Stock Market and I am ready to guide Kenyans into doing this over and over and over. In fact, I have been doing this, guiding Kenyans on Savings and Investing and Growing Money in the Stock Market. So far, 9,700 Kenyans are benefiting from my guidance in our telegram group.

Compounding money and using the 8th Wonder of the World, is the only way to get us out of poverty.

WHERE DO YOU BEGIN?

The First step is opening a stock market account popularly known as a CDS Account. This can be done with any commercial bank or any stockbroker. There are about 30 stock brokers in Kenya listed on the Nairobi Securities Exchange Website, https://www.nse.co.ke/list-of-trading-participants/

Once you open a CDS account with any commercial bank or stockbroker, the second step is to deposit money into the CDS Account. The third step is to buy GOOD STOCKS or shares or companies and wait.

Waiting is a virtue in the stock market. Waiting has a way of making money, a secret that is known to very few. If you take a google search on the 52-week high low of Equity Bank, you will find that within 12 months, the stock moved from 36 to 55, that is 50% returns within 52 weeks. Nation Media Group moved from 12 to 26, which is 100% within 52 weeks, Car and General has moved from 30 to 76 that is 120% within 52 weeks. Your work is to buy GOOD stocks and wait.

My research into the stock market reveals one thing; the stock market has the ability to grow wealth quickly that many forms of investments like Bank Fixed Deposit Accounts which gives 6%, SACCOs which gives 10%, Money Market which gives 9%, Treasury Bills and Bonds which gives 12%, Pension Schemes which gives 11% and Insurance Companies which gives 3%. These other investments cannot match the returns in the stock market especially if you pick winning stocks. I can guide you in picking winning stocks.


EDITOR’S NOTE:

Article contributed by Peter Oluoch, a Stock Market Researcher and Investor working with Doxa Interactive Studio, www.doxa.co.ke.




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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