If today I invest my £100 in shares in a company listed on the Zimbabwe Stock Exchange.?

Question

What will be the value of my investment after 10 years in Zimbabwe $'s (in words please).

Exchange rate: 1£=ZW$350 000 000 000 000.00

Inflation: 164 000%

Answer 1

I take it that most of the people who have answered your questions don't work in the field of finance. Equities are considered the best investment when you expect inflation to increase (it's the reason people think that Japan is currently a good buy...).

Your only risk is that the company goes under, ideally you should invest in a company that is in foods (i.e. retail stores, agricultural corp, etc...), a pharmaceutical co (but in Zimbabwe it's far fetched) or alternatively any staple consumable in the country.

A clear example is Uganda where despite several dictators and fluctuating inflation, East African Breweries and BAT are some of the best performing companies...

Over the long term the leading financial also weather out the storm...

Overall if you've looked at the global markets in the last 10-20 years, emerging markets will certainly surprise you to the up-side. If you'd like to play it safer then choose Kenyan companies, you won't be disappointed...

Best of luck.

ps: any one who owned IBM in the 1950s, despite inflation, did not loose money till this year....

Answer 2

you might gain like 5 cents

Answer 3

Will be worth bugger all ;

Answer 4

This is the LAST place to put your money!

Answer 5

If your famous president in Zimbabwe has a company, invest there. But better still, beg Britain to take you back as a colony.

Answer 6

no way to know

Answer 7

Virtually nothing, the inflation rate is so huge that it's value would be wiped out very quickly

Answer 8

You'd end up with (roughly)

$197,200,000,000,000 Zimbabwe dollars — which sounds like a lot, but the currency would be all but worthless.

Answer 9

Well, Frankly it's a pretty daft move in all honesty, but, if you really want to, it would be wise to simultaneously take out a forex position in the opposite direction of your investment so your exposure to the fluctuation in value of the ZW$ is crystallized.

And nobody can predict where Zimbabwe is going to be in 10 years to be honest; there could be a huge revolution resulting in economic collapse for all anyone knows.