Kgomotso Kalela has been a vocal supporter of ImaliYam blog, and has recently made an investment into Exchange Traded Funds. And looking at the strategy he is following, he is well on his way to becoming a millionaire of the same caliber as Julia. To read about Julia, click here:
Who is your financial super hero that you look up to?
The chairman, CEO and main shareholder of Berkshire Hathaway, Mr. Warren Buffett. I am on a journey to learn more about him, his investment methodology and principles; which fascinates me.
Where did your financial journey start?
My journey started in my formative years, I lived in boarding school and with my allowance, I bought sweets (and cigarettes) and sold them for profit. My little Spaza shop ensured I had excess cash come the end of the year. Thinking about it now, I was the only person selling at the boarding school, without competition – strange, as there were no barriers to entry at the time. In the later years, I transferred the knowledge to my nephew who did the same at his boarding school to supplement his allowance.
How do you measure success for yourself?
I am learning the art of contentment, which is a continuous state of satisfaction with one’s set of circumstances. For a long time I have been in a state of frustration for failing to achieve the course and goals which I believed are my path; but I am learning to be in peace without being inactive or complacence about it.
In summary, I measure success primarily on my state of living which forces me to be satisfied with my circumstances, family, friends, and what I have already achieved; and what I have not achieved, I do my best to learn from and re-strategise.
What is the motivation behind your interest in investing?
Two things amongst many had the most motivation:
I read an ancient Proverb which had a lasting impact on me, “A good man leaves an inheritance to his children’s children”. What the ancient people considered proper inheritance, had to go beyond your children, it had to meet the needs of the next generation.
Secondly is the concept learned from a book by Timothy Ferriss, “datsu-sara suru” – simplifying the explanation, to escape the salary man lifestyle.
When did you make your first financial investment?
My family (like most young families) rented a two bedroom house, our monthly rentals were satisfactory until the annual 10% increase. The increased amount was equivalent to us paying off our own bond, and that is when it became clear that I am paying someone else’s bond – instead of paying for my own, just like that – bought my first property.
Why is direct ownership (JSE) by Black community at only 3%?
At face value this looks like an easy question to answer, but it is quiet complex; it even took the JSE some time to concede to the 3% direct ownership debate.
Allow me to illustrate one of the major challenges also mentioned by Mr. Themba Godi in Parliament when he pointed out that the government had not fundamentally changed the structure of the economy to effect true transformation.
The problem is deeply rooted in the untransformed economy, and this is supported by various data in public domain.
Are there remedies that you may suggest?
The truth of the matter (particularly for people I grew up with, and those before me) is that school does not prepare you for varsity, and varsity does not prepare you for the working life, and the working life does not prepare you for retirement.
I will concentrate only on two main remedy I believe will plant a seed to address the 3% direct ownership on JSE.
Firstly, we need to aggressively educate ourselves, our peers and the coming generation on money matters, the products and platforms available. We need a selfless generation that will champion economic emancipation, the mentality of an individual succeeding at the expense of others need to be eradicated. Through platforms like Imali Yam, personally I have been learning, and now the challenge is to ensure that the knowledge is transferred to others, and others do the same, and this circle continues.
Secondly, we need to drastically increase the level of savings and investments collaboration particularly amongst the previously disadvantaged, and use these collaboration to radically educate and empower ourselves. This is not easy for many of us, but what is so difficult in getting twenty (20) people who will each contribute R5,000.00 (as an example) monthly into a fund for a year, this fund will have R1,200,000.00 (excluding interest) at the end of the year and can contribute into the investment philosophy of the group.
Kgomotso is on Twitter, follow him @kkalela and his blog is https://iammyownceo.wordpress.com
Power to you, Kgomotso!
ImaliYam 