Ronald Karauri, CEO of SportPesa, quit his KQ job as a pilot to focus on business. He talks investing, learning from his mistakes and what one should consider before quitting their job.
Difference between a good investment and a bad investment is…
A good investment has long-term viability and a satisfactory return that offsets your risk.
It’s important to realise that investing is not science. Investments should create the opportunity of generating returns and increase the wealth of the investor, keeping in mind that there is rarely a good investment that creates value overnight. A good investment is based on the quality of information available on the investment, and the sound judgement applied in order to make the decision. So it makes sense then that bad investments are based on following the crowd or simply looking for ‘get rich quick’ schemes, and are therefore not based on any valid information.
Biggest money mistake I have ever made is…
Not starting my investments at a younger age. I could have bought land before the prices in Nairobi sky-rocketed and it would have made a huge difference to my portfolio. It’s never too early to invest, the earlier the better. Work responsibly with your money and take informed decisions about your investments.
Planning on quitting your job for business?
I don’t believe that people should give up and quit their jobs or ventures as many people nowadays get advised to do. It’s not necessary to quit your job because you are looking to start a new, self-driven venture (self-employment). If you plan and work smart it is possible to start building your venture while still employed (whilst being compliant to legal restrictions) until you find your feet and you’re ready to leave employment. Good opportunities are not as common as many people think, and a job financially secures you and your family. However, always keep your eyes open for opportunities and be ready to seize them. Self-employment is not easy.
But if you have to, ensure you aren’t tied up in too many loans but rather prioritise some money to invest in strategic projects.
On building wealth when employed…
Investing is one of the most effective ways to build wealth, and contrary to popular belief, you don’t need a lot of money to get started. Have specific money goals and be financially disciplined, opportunities should arise.
Money and happiness…
As cliché as this sounds, money can’t buy happiness. From own experience, I have learnt that a new watch or expensive item of clothing may bring you fleeting satisfaction, but it won’t bring you lasting joy. Best believe that things like family, community, connections and a sense of purpose are what makes people happy.
Lessons I am passing on to my children while still young?
Integrity, honesty and hard work!