Founders share their jour­ney

Finweek English Edition - - MONEY -

Power In­vest is a stokvel turned in­vest­ment club formed by a group of black pro­fes­sion­als look­ing to build wealth. Power In­vest MD Tshepo Masango says that in the past two years they have raised R500 000 and pur­chased a res­i­den­tial prop­erty in cash, which they will use to grow their busi­ness fur­ther. They are look­ing to con­tinue buy­ing more prop­erty and build their cap­i­tal. Masango says that he per­son­ally has an ap­petite for risk, but says they have agreed as a club not to risk by in­vest­ing in the stock mar­ket where there is a chance of los­ing money if they make the wrong in­vest­ment de­ci­sion.

But other in­vest­ment clubs like Zero-Up in­vest in the stock mar­ket. Kobus Van Ee­den is a found­ing mem­ber of this in­vest­ment club formed in 1999. This is a by-in­vite-only club whose membership never ex­ceeds 20 peo­ple so it’s easy to ad­min­is­ter.

Van Ee­den says that when they started the club, its mem­bers sat down to­gether and drafted a con­sti­tu­tion. They took it to a lawyer to en­sure that it was legally sound. Club mem­bers con­trib­ute a min­i­mum of R200 a month, although larger sums are per­mit­ted. He says there are a few mem­bers with an ac­count­ing back­ground in the group who are able to de­ter­mine the re­turns ac­cord­ing to the money in­vested in the club. The club also uses a bro­ker­age com­pany to make its in­vest­ment in­stead of tak­ing a DIY ap­proach. He says that this has en­abled him to see how the state of the econ­omy af­fects the stock mar­ket.

“In 2008, with the global re­ces­sion, we left the in­vest­ment un­touched and af­ter 2010 we had re­cov­ered. Peo­ple tend to make emo­tional de­ci­sions, so we have also made a tem­plate on how to de­cide on the stocks we want to in­vest in.”

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