Is Investing in Stocks the Quickest Way to Get Rich? Otachi Weighs In
Is Investing in Stocks the Quickest Way to Get Rich? Otachi Weighs In
If you’re a regular on Fintok, FinTwit,
`aweee or other personal finance corners of the internet, chances are you’ve come across claims like,
“If you had invested in stocks, you’d have doubled your money by now” — or something along those lines. You’ve probably seen a comment or two calling BS on such claims, too.
Confusing, right?
That’s why we enlisted the Otachi’s help. He weighs in on the madness to give us a balanced perspective on stocks as an investment and provides an alternative for those who’d rather play it safe.
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Can Stocks Really Make You Rich Quickly?
Let’s tackle the million-dollar (pun intended) question right off the gate: Is it true unaeza omoka na stocks in a short time?
Otachi says yes….
“Imagine ungeinvest kwa Safaricom shares in January this year, sai ingekua ime-grow to 98%, which means that in numbers, ungekua umeinvest 100,000, by now ingekua 198,000.”
But nothing’s ever this straightforward ikikam kwa investment, especially when stocks are involved. Stocks are some of the most volatile investments.
Otachi reckons unaeza win big or lose just as spectacularly, and the companies you choose to invest in can make or break your portfolio:
“Ungechoose pia a company like Nation Media Group, by April, already ungekua usha-lose value ya 37%. Yaani, if you invested 100,000 in January, by April, your investment value ingekua 63,000—so usha-lose 37,000 already. Shares can really make you very good money, but on the other side, they can also lose you money. This is what we call a high-risk investment.”
Should You Really Be Putting Your Savings Into Stocks?
Otachi’s words of caution raise a very important question: Unafaa ku-invest portion gani ya your personal budget kwa stocks?
Because if kuna chance ya ku-lose, we can’t ignore the upside potential. Like you could just throw in your rainy-day fund and watch it multiply, right?
Otachi was quick to draw the line:
“This is not where you invest ile pesa yako ya biz ama savings zako with the aim of you’re going to get rich quickly ama earn very big returns in a short while. Shares do not preserve capital.”
In plain English: the value can swing wildly, sometimes in ways you don’t see coming.
And it’s not always about picking the “right” company either, ju ni ngumu ku-predict how shares will behave tomorrow.
Otachi gave a perfect example using Safaricom:
“And by the way, it is not about a specific company coz no one can really tell how your shares will be looking like tomorrow. For example, you could be excited by Safaricom — very good returns as of now. But then, did you know that ilianza at 5 bob per share, then ika-grow over time to 40 bob, then later, dropped all the way to 11 bob. And now ime-grow back to around 29 bob.”
That’s the thing with shares— ziko unpredictable, and even a reputable company like Safaricom isn’t necessarily a safe bet. Izi si investments unaeka pesa uta-need in a few months.
What Really Influences Share Prices?
Ka uko na curious mind, you’re probably wondering “nini ufanya izi vitu zikue unpredictable?” Because it all can’t just be random.
After all, kuna watu wana-invest kwa stocks na wanakulia, so they must know something we don’t, right?
The key is often knowing what moves the prices, and Otachi’s got a firm grip on that:
“Shares huwa zinakuanga influenced na so many things. Economy ikikua hard, shares zinadrop in value. Company ikikua na bad leadership ama bad reputation, value pia ya shares ina-drop. Kukikua na pandemic ama some sort of unrest, pia ina-affect the shares’ value.”
In short, share prices move with the winds of the economy, leadership, and even global drama. It’s not random—it’s ripple effects.
The smarter you are at spotting those waves, the better your chances of riding them instead of being swept under.
How Should One Go About Investing in Stocks?
Though stocks ukua unpredictable, they’re still a viable investment option for those who can handle that level of risk.
And as Otachi puts it, the key is understanding what you’re putting your money in:
“Investments huwa ziko tricky and therefore before uingie, you need to understand it very very well. Na pia, uweze ku-evaluate the risks that are involved. Sio kuambiwa tu “eeh kujeni! Apa kuna pesa!” Then wewe ndo huyo, una-follow blindly.”
Is There a Safer Option Than Stocks?
Absolutely! Every investor has a different risk appetite, and the good news is, you don’t have to stomach the rollercoaster of stocks to grow your money.
For every high-risk play, kunakuanga na safer, steadier option waiting on the other side—it’s the Ying and Yang of investment.
Here’s what Otachi recommends kwa wale wanataka kucheza safe:
“The money market funds and the long-term savings that count are still the most secure way for you to grow your capital. And please, do not be quick to invest what you can’t afford to lose.”
Curious how money market funds (MMFs) actually work and whether they could be a good fit for you?
Discover Kenya’s most popular MMF, Safaricom Ziidi, and get the full lowdown on how these funds work in general right here: Money Market Funds 101: Everything You Need to Know About Safaricom Ziidi
