Investing in JSE shares: what you need to know

INVESTING in shares is one of the best ways to create wealth over time, and the best time to start is now. Many investors find it overwhelming to know when to buy, when to hold and when to sell.

- WENDY MYERS

They also mistakenly believe they should only buy when the market dips, hoping to capitalise on lower prices, which is a short-term investment mindset that can easily lead to missed opportunities.

When it comes to owning shares, adopting a long-term perspective allows you to benefit from the inflation-beating returns that this asset class provides.

How to buy shares

To buy shares, investors will need to open an account with a registered stockbroker. Once this is done, the account is funded before a trade can be made, meaning the investor places either a “market” order or a “limit” order to buy the shares.

Shares are the best-performing asset class over the long term, offering inflation-beating returns.