BY MIRRIAM MBEWE
Whether you are in front of a chess board or in the game of investment once your strategy is in place, the key to success lies in maintaining the discipline to stay committed and allowing your money to work for you over time.
In the last article, we covered how the opening moves in the game of chess can be so much a likened to the start of one’s journey to investments. In today’s series we will discuss further the strategies towards building one’s wealth.
In chess, the real battle begins after the opening moves. The middle game is where players plan, strategize, and position themselves for the win. Investments mirror this stage—building a strong portfolio requires commitment, skill, patience, and strategic thinking.
Consistency is Key A pawn that reaches the other side of the board transforms into a Queen. This remarkable shift happens not by chance but through deliberate, consistent effort. Similarly, consistent, small investments can grow significantly over time thanks to compounding.
Take the example of a woman’s story who attended the last year’s High Tea Part event for ladies hosted by NICO Asset Managers. With so much encouragement she shared how she started investing K250,000 three years ago. She committed to monthly contributions of K50,000 and diversified her portfolio with equities along the way. Today, her portfolio is worth K30 million. The secret? Consistent commitment, discipline, and guidance from financial advisors was her recipe.
Patience Pays Off Chess requires patience, especially when the game slows. Quick, impulsive moves can cost you the match. Investing also demands patience, especially during volatile market conditions. Short-term fluctuations shouldn’t derail your long-term plan. Stay the course and let the strategy work.
Risk and Reward It is essential to stay focused on long-term objectives and not let short-term market fluctuations derail your goals. Consider the case of a client who initially invested in shares as part of her long-term plan to finance her children’s college education in six years. However, after two years, she became discouraged when the share price remained stagnant for a year. Acting on short-term concerns, she insisted on selling the shares and used the funds for immediate expenses.
Unfortunately, by deviating from her initial plan, she missed out on the potential gains those shares could have delivered within her original holding period. Additionally, she ended up diverting funds toward unplanned short-term needs, setting her back on her financial goals.
This example highlights the importance of patience and commitment to an investment strategy. Just as in chess, where impulsive moves can cost you the game, reacting to short-term market changes without a long-term perspective can undermine your financial success. With the right guidance and a disciplined approach, you can navigate market fluctuations and stay on track toward your goals.
Plan, Adapt, succeed Building wealth is a step-by-step process. Position yourself strategically, seize opportunities, and remain vigilant against potential threats. Like a chess player’s middle game, your investments should be dynamic, adapting to changing conditions while staying true to your goals.
As your financial coach, once we have developed and implemented a portfolio tailored to meet your goals, we constantly review the investment performance to track progress to your goals. With share our well researched expert opinions and recommendations on the performance of market instruments to help with decision making. Just like a coach is to a grand master, so is a financial coach to an investor. These will echo into your adaptability and success of your investment game.
As international chess master Jeremy Silman once said, “The idea is to make good moves, not quick ones.” The same principle applies to your financial journey. INVEST TODAY FOR TOMORROW.