Monday, September 08, 2008

Investment clubs: Some do's

  1. Recruit members intelligently and professionalism so that they fill all gaps in your club’s skill set rather than numbers. Otherwise you’ll be carrying the numbers.
  2. For commitment and quality purposes, its better to go for a high-one off investment amount e.g. Ksh1m than regular contributions. But you will get fewer potential members.
  3. Think of 10 worst things that can happen. And cover them in your constitution.
  4. Set up intelligent and professional governance that involves assigned responsibilities to as many members as possible.
  5. Have a vision for where you want to end up and bring it back to the present.
  6. Research, research, research before you invest. It'll put you in the 2nd lane after the brokers.
  7. Take risks when you can. Otherwise it'll be like waiting till its getting dusky before rushing out to get some food.
  8. Remember, the early bird catches the fat worm. Don't wait until a stock or market is flavor of the month.
  9. Avoid ostrich-behaviour. Kenya is now part of East Africa. It’s much easier to invest in Ghana, Botswana, SA or even real estate. There is no point in chasing the NSE downwards when you could be investing elsewhere until the NSE finds its feet.
  10. Last but not least, watch Tony Wainaina's video series as he gives all the basics in a very straightforward manner.

1 comment:

John Maina said...

Tony's presentation is quite good and to the point.