In recent years, investors have applied their talents to third world country stock markets. While these markets are often volatile, they offer a resource that has all but run dry in the developed countries: exponential growth. Investing in third world countries markets can be risky, but with patience and excellent foresight, it can be very rewarding. This article lists the top stock market success stories, from American investors to local billionaires that invested what little capital they possessed in their undeveloped countries.
What Are Stock Market Success Stories?
Stock market success stories often start off humble, with a young investor’s ambitious vision. Some of these traders invest in penny stocks, shares from struggling or new businesses that can be purchased for under $5. The American stock market success stories are numerous, ranging from lucky college students to experienced stock market gurus.
In third world countries, most stocks are considered penny stocks. The difference between American success stories and those of the third world is the potential for further growth. Even though the buy-in is cheap, investing in a third world country can be nerve-wracking. Many stocks lose their value before they gain it. However, the few investors that have the patience and capital to withstand the fluctuating markets have benefited richly.
5 Third World Stock Market Success Stories
Success Story 1: Mark Mobius
This American trader was exposed to global markets at a young age, studying in both the U.S. and Japan. Mark Mobius began working for Sir John Templeton in 1987, who could tell his own legendary success stories. Since his employment, Mark Mobius spearheaded Templeton Emerging Markets Fund with only $100,000; 28 years later his trust has expanded to $3.3 million.
The key to Mark Mobius’ success is diversification and patience. His firm invests in emerging markets where growth is imminent but can be slow. Some of his most notable investments have been with South Africa, Cambodia, and Kenya. In the future, Mark Mobius plans to continue to invest in African third world countries. Rich in natural resources and with a newly emerging consumer market, Mark Mobius believes growth will only continue to swell.
Success Story 2: Chris Kirubi
There is nothing more inspiring than a self-made billionaire rising out of poor conditions. Chris Kirubi gradually worked his way up the energy and transportation career ladder, beginning as a humble salesman for Shell before moving to an administrator at Kenatco. During this time, he saw opportunity in Kenya’s growing housing market. He began by renovating old buildings. Eventually, he built his own buildings, providing the capital for his massive stock investments.
Now the director of Centum Investments, Mr. Kirubi holds major shares in the Nairobi Stock Exchange. Until recently, his most popular investment was with UAP Holdings. In 2015, he sold his personal shares, producing a profit of 3.8 billion shillings, or 37 million USD.
Chris Kuribi still holds major stocks in Kenya’s developing manufacturing market companies, such as Nairobi Bottlers, a subsidy of the American company Coca Cola.
Success Story 3: Dr. James Mwangi
Dr. James Mwangi is another success story that began from the ashes of poverty. Raised by his widowed mother, Dr. Mwangi’s childhood was a fight for survival. However, this experience endowed him with the tools he would use later in life, such as consumer demand, customer service, and how to profit from investments.
Unlike most investors, James Mwangi’s success began by enticing others to invest in him. As the strategy and finance director for Equity Bank, he convinced employees to invest in Equity and focused on creating a white-glove experience for his customers, over time gaining the capital needed to develop the business. Eventually, he enticed major investors, such as the European Union and Africap. Equity Bank is now the nation’s second-largest lender, with a projected annual growth of about 50.4%.
Dr. Mwangi’s commitment to growing the bank paid off. His small share of 6.5% is now worth 12.15 billion shillings. He has also opted to diversify his portfolio by investing in 75 million shares in British American Insurance, a popular insurance holder in Kenya. Dr. Mwangi’s wealth is proof that as the consumer and the small business market expands, so does the opportunity for a lucrative investment.
Success Story 4: Radhakishan Damani
Most recently known for his highly profitable expenditure, D’Mart, Radhakishan actually began the road to success as a humble trader. Maintaining his inherited stock brokerage business, Mr. Damani began to make long term investments in products essential for Indian growth, such as transportation companies, consumer goods, and finances.
Although his major venture is still D’ Mart, he owns major shares in Blue Dart, VST Industries, and Sundaram Finance. Experts believe that Damani’s success is caused by his vision for long-term investments, such as when to keep them and when to let go.
Success Story 5: Rakesh Jhunjhunwala
Mr. Jhunjhunwala’s success story is almost legendary. He began trading with only 5,000 Rs. That initial 5,000Rs has transformed him into a billionaire. Rakesh owns Rare Enterprises, an investment firm with a knack for investing in developing Indian trades. His most notable investments have been with Geometric, an engineering and manufacturing company, Autoline, an exhaust systems manufacturer, and Aptech, an IT training firm, where he has invested a 45% stake.
These men are just a few of the hundreds of stock market success stories in the world. Each of these stories holds a common theme: they began with very little and were not afraid to take risks. Investing in third world country markets requires patience, on-hand knowledge of what your investment market needs, and a financial cushion. If you see the value of investing in emerging markets, share these stock market success stories to encourage others.