Picture this: You hear a friend boasting about how their land in Kamulu has doubled in value. Another talks about how they have just received coupon returns they made from an infrastructure bond last year as they bought the hot -cake Infrastructure that was giving a return of 18.46% Now, everyone around you is suddenly obsessed with stocks, with whispers of the Nairobi Securities Exchange (NSE) being “the next big thing.”
You feel the pressure building. “Maybe I should buy land too? Maybe I should throw money into stocks? I don’t want to miss out.”
And just like that, you become part of the herd.
The Danger of Herd Investing
Herd investing is when people make financial decisions based on trends and social pressure rather than a clear, well-thought-out strategy. In Kenya, we’ve seen this play out time and time again:
- The Land Rush – Many Kenyans believe land is the ultimate investment. The problem? Not all land is valuable. Some buy plots in speculative areas with no infrastructure, legal ownership issues, or unrealistic appreciation timelines. Years later, they struggle to sell or develop the land.
- The Infrastructure Bond Craze – Infrastructure bonds are tax exempt investment vehicles; I have met an investor who bought an Infrastructure bond just because it was exempted from tax. While these are solid investments, many people don’t consider whether they need long-term, locked-up investments in their portfolio. Some later regretted not having liquid funds for emergencies or other priorities.
- The NSE Craze – Now, the excitement is around stocks. The message is clear: “Invest in the NSE; shares are cheap, and it’s time to buy.” But does this investment align with your goals? Are you investing because it makes sense for your financial plan or just because everyone else is doing it?
What’s the Real Cost of Following the Crowd?
Investing blindly can lead to:
- Illiquid Assets – Owning investments you can’t sell when you need cash.
- Overpaying – Buying at a high price only for values to drop.
- Mismatched Investments – having assets that don’t fit your financial goals.
- Emotional Investing – Jumping in when the hype is high and selling when panic strikes.
The question you should be asking yourself isn’t “What is everyone else investing in?” but rather “What investment is right for me?”
Why You Need a Wealth Advisor on Your Personal Advisory Board
Smart investors don’t make decisions based on trends—they build a Personal Advisory Board (PAB). Just like businesses have expert advisors, you need a team of professionals to guide your financial journey.
A wealth advisor should be a key part of your PAB, alongside your lawyer, tax consultant, and business coach. Their role is to:
- Align Investments with Your Goals – Ensure every shilling you invest is working towards your long-term vision.
- Manage Risk – Help you avoid common investment traps.
- Offer Objective Advice – Remove emotion from decision-making.
- Create a Holistic Financial Plan – Guide you beyond investments to wealth protection and legacy planning.
Lastly,
The best investment decision is an informed one. Before you buy that plot, jump on an infrastructure bond, or trade stocks on the NSE, ask yourself: Is this investment right for me, or am I just following the hype?
A wealth advisor will help you make smart, strategic investment choices that align with your financial future. Book a consultation today and take control of your wealth.