Batswana advised to invest in shares
Deputy Chief Executive Officer of the Botswana Stock Exchange (BSE), Thapelo Tsheole has encouraged Batswana to invest in shares for high yields. Tsheole was speaking at a business workshop organized by the Minister of Youth, Sports and Culture held in Tonota recently. The workshop targeted youth entrepreneurs.
“There is a difference between saving and investing. When you save money, you are just protecting it against inflation but when you invest, you earn interest on your money. The truth of the matter is that a person can never get rich from savings but you can get rich from investments. Buying shares is a good thing in the sense that no matter how many shares you bought, whenever the company makes profit, you get dividends and your shares still remain,” explained Tsheole.
Tsheole also indicated that any person can buy shares from the companies trading in the BSE. He advised those interested in buying shares to approach brokerage firms who are responsible for buying and selling shares on behalf of individuals and companies. “Shares do not expire, and the moment you purchase shares from a certain company, automatically you become a shareholder. That means you are part of the people who own the company, and you benefit from the profits the company makes,” he said.
Tsheole mentioned that there are risks involved. “Just like any other form of investment, buying shares also has disadvantages. Like a person who has invested in cows and when a drought comes, some die and he loses, the same applies with companies where one has bought shares. If a company that you’re invested with collapses, shareholders will lose their investments,” said Tsheole.
Tsheole advised the youth entrepreneurs to be vigilant when selecting a bank to save their money with. He warned that some banks charged exorbitant fees and clients end up losing money to expensive fees. He also spoke to his audience against buying luxury cars, and encouraged them to invest in shares. “Consider investing in shares, that’s how you will become rich. Real millionaires are made through investing not saving or running to buy luxurious cars when they get money,” he said.