A high-risk investment is like the roller-coaster ride in an amusement park, it’s an overdose of adrenaline – its momentum moves from zero to 100, you don’t know what twists are coming next, you’ve barely caught your breath before you’re shrieking again… argh!
A high-risk investment will leave you feeling an addictive rush, almost orgasmic. You are also not certain whether you’ll make your money back in the ten folds or if you’ll lose it all. It’s this risk that you’re willing to take, a risk that isn’t suitable for every investor’s palate.
Here are three high-risk investment ideas to consider pursuing with a starting capital of Sh200,000. Aim to make back at least Sh50,000 in profit.
1. Supply goat and chicken meat
We are a few weeks to Easter holidays and Kenyans will gather at home hosting barbecues in their balconies and backyards, birthday parties and potlucks.
Get-togethers in Kenya is synonymous with roasted goat meat and grilled chicken.
The investment idea is to partner with a supplier of goat and chicken meat. Partner with Kenyans of repute who are already established in such businesses, Kenyans who want to maintain a steady supply during the holiday season but don’t have the capital for it.
Goats take about five to six months to mature for slaughter, chicken takes about six weeks.
Work backwards from April then select a few farmers to invest your money with. Just go to butcheries and bars, and ask them to connect you to their suppliers. Keep following the chain until you get the contacts of farmers on the ground.
Some of these farmers may be hostile to your idea, don’t take it personal. To those who are willing, work out a win-win partnership with them.
Use your learning experience to pick it up again in October 2023, Inshallah in readiness for Christmas festivities.
2. Invest in Ethereum
Unless you have been living in a submarine the last five years, you must have heard of Bitcoin and other crypto-currencies. Bitcoin and its ilk are fintech products dominating the digital financial markets right now. (‘Finance’ plus ‘technology’ is ‘fintech’.)
Fintech products are traded online in the same speculative way shares in the stock market are traded: buy at a low price, hold onto them while your eyes monitor the market, and sell later at a higher price.
Bitcoin and other crypto-currencies are bought using digital money – you buy shares using Kenya shillings (KES), you will buy Bitcoin using a digital currency called Ethereum (ETH).
The investment idea is to buy a substantial amount of Ethereum now then sell it in five to six years, when the price is higher. As long as Bitcoin and other crypto-currency is trading, then be assured that local and global investors will need Etheruem to keep buying them.
Invest through a registered and regulated broker, licensed to trade in the global financial markets.
3. Lend money as a shylock
The investment idea is to lend money to Kenyans in this position. Lend it at a reasonable interest rate of between 10 and 15 per cent per month. The collateral is simply their word.
Spread your risk by limiting your loan ceiling to, say, Sh25,000, and only lending money to people you already have a relationship with.
Florence Bett-Kinyatti is a certified accountant and former financial auditor.