-1736246928.jpg)
John Gachora is best known as the Group CEO and MD of NCBA, which was ranked as Kenya's second fastest-growing brand by the brand valuation consultancy, Brand Finance.
He is also well known for being outspoken on matters affecting the financial services sector in Kenya and the region when he gets a chance both on social media and at other platforms.
But did you know that even the well-regarded Gachora has made some costly mistakes in his investment journey and picked up some valuable lessons that he applies today?
Well, let’s take a ride back to the year 2007, when he lived in the US and had a promising career on Wall Street, the famous financial district of Lower Manhattan in New York City.
VMWare, a cloud computing firm, had just gone public and its stocks offered lucrative prices propelling him to purchase the shares and eventually poured all his savings into the stocks.
Read More
As he held his breath watching his new money grow, however, Gachora suffered a tragic personal loss as his father passed away forcing him to fly back home to Kenya for his burial.
But as Gachora was in Kenya mourning his dad, his VMWare share prices plunged and by the time he flew back to America they were only worth half of what he had originally put in.
His ambition of living the American dream in vast wealth was cut shot as reality hit him that the volatility of the stock markets had swallowed all his savings suffering double tragedy.
Gachora also shared another experience he had earlier in 2004 when he invested in rental property in Newark, New Jersey in the US while the key market was experiencing a boom.
When it was time to relocate, he started selling off his properties and one of his major ones received a lucrative offer and signed the contract with the aim of closing the deal in 90 days.
He obtained an eviction letter against a “tenant from hell” who owed him five months of rent but, in retaliation, the woman filed a complaint against him weeks to the deal closure.
The troublesome American tenant alleged that her child had suffered lead poisoning owing to the type of paint her landlord had used in the apartment she had resided in for a while.
Sadly, he ended up coughing more than USD70,000 on lawyers and other costs to settle the complaint given his house insurance expired and he did not renew it as he intended to sell.
Lesson 1
Reflecting as the chief guest during the 4th Abojani Economic Empowerment Conference on November 23, 2024, Gachora advised small and major investors to always hedge their bets.
“The biggest lesson I have learnt over the years I have invested is to never put my eggs in one basket. Put your money in a variety of wealth baskets and plan for the long-term when making your investments. Be diversified and avoid get-rich-quick schemes,” urged Gachora.
Lesson 2
Whether in personal banking or business, he called on investors in Kenya and the region to also be weary of the risks associated with the investment choices they are making for safety.
Gachora urged Kenyans to seriously consider personal and business protection seriously by setting aside a portion of their money to insurance to avert exposure when disaster strikes.
“Mind the risks associated with your investments, whether personal banking or business ventures; understanding and mitigating risks is crucial for sustainable growth,” he added.
NCBA Resilience
Years later as NCBA MD, he has steered the Tier 1 bank to venture into varied businesses among them acquiring major stakes in AIG Kenya Insurance Company Limited for resilience.
NCBA Group, which is the fourth-largest banking group in Kenya, also offers its customers investment banking, digital banking and bancassurance among other significant solutions.
“There are times something fails, but another thing will work,” Gachora concluded.
