Savings day 13
Since the basic Afrikaans class I took this year, I have grown an interest in reading the daily Republikein. One of my favorite pages is the Commodity prices in the “Market watch” section. They list the value that the currencies are trading at as well selected shares on the NSX ( Namibia stock exchange ) and the JSE ( Johannesburg Stock exchange). Every day I look to see if my shares in Letshego have done any better.
For those that do not know about Letshego, they listed on the stock exchange sometimes last year. I took up shares to the value of N$ 2 414 and the share price has not changed since then. This got me thinking. What is the opportunity cost of my N$2 500 being tied up in the shares where the value have not appreciated nor have dividend been declared?
If I had invested that in a low yielding accounts ( I love Nampost) , I would have gained interest of roughly N$60 by now. In addition, with the Nampost double rates of interest during December, that would have been N$ 120. This leads to my next big thing ” My hypothetical share portfolio”.
I looked through the shares listed and I thought to myself, which company would I love exposure to? This were company that either are doing well, or for some other reason I feel like they have more potential for growth. Trying to diversify my portfolio, I looked at investing in different industry an selected the following industries.
The game is to watch the performance of the share prices and any dividend declared over the next 12 months and see of it beats my return on a call account at Nampost. If I win, then I get to pick up more share to add to my portfolio. If I loose, then I will be forced to add more money in my savings so that I can match the value of the share in my hypothetical portfolio.
There are key take away in this:
- It allows me to see how educated my guess are in a simulation environment before taking the actual risk.
- I am simultaneously building an investment that I can actually withdraw some day in order to be able to use on something even bigger.
Current savings balance at day 13: N$ 3 569.54.
If you are wondering where I got the N$ 3 278.54 to play with, please wait for my blog next week .
Just an update on my current statement at Nampost so that you see that I am actually depositing
Until next time