Young people should invest like Buffett: Expert

by Trust Matsilele 0

One of the world’s richest men, Warren Buffet, who has made a fortune through investments, bought his first three shares at the age of 11.

(WATCH VIDEO: Understanding Buffet’s investment style)

Analysts say if a similar culture of starting to invest when one is young is promoted in the continent, Africa could rid poverty in the long term.

The world’s wealthiest always advocate for investing while one is young.

“Johannesburg Stock Exchange (JSE) has a lot of programmes, we have the JSE investment challenge which is earmarked for high school learners and the university challenge where we have a million rand virtual portfolio that they can play,” Ralph Speirs, retail development officer at the JSE told CNBC Africa.  

“The game is played between March and September it teaches young people on the operations of the investment sector,” he added.

Speirs says early investment was ideal as young people had lesser expenses.

“I think it’s important to start saving when you are young as young people do not have a lot of expenses,” he noted.

(WATCH VIDEO: Warren Buffet documentary)

“Parents can open accounts for their children until their children are able to manage those portfolios by themselves.”

Speirs says there were myths that he often encountered when dealing with young people such as that the JSE was a market for the rich.

“Young people can start investing from as little as 300 rand or a lump sum of one thousand rand,” Speirs said.