Page 25 - Waterfall City Issue 5 May 2025

INVESTING

IN JSE

SHARES

By Wendy Myers, Head of Securities at PSG Wealth

I nvesting in shares is one of the best the percentage allocation in the context

of the full portfolio. Investors can also
ways to create wealth over time,
decide when to purchase the share,
and the best time to start is now.
Many investors find it overwhelming
to know when to buy, when to hold should they want to capitalise on short-
term market fluctuations.
and when to sell. They also mistakenly
believe they should only buy when Holding period for shares and
the market dips, hoping to capitalise managing market fluctuations
on lower prices, which is a short- as an investor
term investment mindset that can If you invest in a solid company, a buy-
easily lead to missed opportunities. and-hold strategy is recommended
to benefit from long-term growth.
When it comes to owning shares, Generally, financial experts advise
adopting a long-term perspective holding shares for a minimum of five
allows you to benefit from the inflation- years to ride out market volatility and
beating returns that this asset class Wendy Myers, Head of Securities at PSG Wealth maximise returns. It’s also wise to
provides. review your portfolio annually to ensure
must conduct thorough research before that no single share exceeds a 5%
How to buy shares buying shares. A reputable stockbroking allocation. This strategy helps maintain
To buy shares, investors will need to platform will provide reliable research diversification and reduces exposure
open an account with a registered that investors can reference before to excessive risk. If any stock grows
stockbroker. Once this is done, the trading. This research guides the disproportionately in value, it may be
account is funded before a trade can investor to identify the best buying necessary to rebalance your portfolio by
be made, meaning the investor places points and highlights the potential selling a portion.
either a “market” order or a “limit” order upside.
to buy the shares. In conclusion, investing in shares
Purchasing shares directly requires emotional resilience. It is quite
Shares are the best-performing asset instead of through collective normal for share prices to fluctuate by
class over the long term, offering investments 1% to 2% every day. For new investors,
inflation-beating returns. However, Unit trusts and exchange-traded the market’s occasional 3–5% swing
they come with risks, including market funds (ETFs) offer investors access can be unsettling. So, it’s important to
fluctuations in response to macro- to a diversified basket of shares at exercise patience and focus on your
economic events such as interest predefined percentage allocations. The investments’ potential for long-term
rate hikes and inflation, as well as benefits of buying shares directly are growth. Speak to a certified financial
company-specific downturns such as that investors can choose (based on adviser to assist you in paving the
CEO resignations or, in the worst-case their risk profile) which shares they wish best route for your journey to financial
scenario, fraud allegations. Investors to be invested in, in which sector and wealth.

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