Latest / Masterminds Podcast / Everyone Says ‘Invest’. But Here’s How to Do It in Africa - Masterminds Podcast EP14

Transcript

Everyone Says ‘Invest’. But Here’s How to Do It in Africa - Masterminds Podcast EP14 · Masterminds Podcast

• 0:00
  SPEAKER_00: Everywhere on the internet these days, everyone is telling you invest, invest, invest.
• 0:05
  SPEAKER_00: But how do you invest, especially as an African?
• 0:08
  SPEAKER_00: Today I'm going to show you the five ways to invest in Africa.
• 0:12
  SPEAKER_00: The first and greatest investment you can ever do is invest in yourself.
• 0:17
  SPEAKER_00: The greatest ROI you can get is an ROI on your knowledge.
• 0:23
  SPEAKER_00: There's no amount that is too big to be invested in your skill set, in what you know, from buying books to taking online courses to doing an internship to getting a mentor.
• 0:36
  SPEAKER_00: Any investment that goes into growing your mind builds your value and will help you along, will help you along your path tremendously.
• 0:45
  SPEAKER_00: So before you start looking at, I want to buy stocks, I want to do this, I want to do that, first of all, invest in your mind.
• 0:52
  SPEAKER_00: Now let's talk about the safest and most available investment in Ghana and in Africa, which happens to be treasury bills.
• 1:00
  SPEAKER_00: So treasury bills may not bring you the highest interest rate, but what treasury bills does is that it's always mostly slightly above the inflation rate.
• 1:10
  SPEAKER_00: So treasury bills protect and grow your money.
• 1:14
  SPEAKER_00: The interest rate for treasury bills changes over time, the same way that inflation rate does.
• 1:19
  SPEAKER_00: So treasury bills happen to be safe because they are backed by the government and the regulatory financial body, which in our country happens to be Bank of Ghana.
• 1:28
  SPEAKER_00: So it's safe, it keeps your money and it grows your money in accordance with the inflation rate.
• 1:34
  SPEAKER_00: The third type of investment is stocks.
• 1:37
  SPEAKER_00: Now, I always advise people that when you are getting into stocks, make sure you are buying index funds because you do not have the knowledge to beat the system.
• 1:48
  SPEAKER_00: Even the stock traders, even the people who have mastered the stock exchange business, can still be beaten by the system.
• 1:56
  SPEAKER_00: So don't go for those quick things of I want to buy stock and sell stock and oh, all that flashy lifestyle.
• 2:02
  SPEAKER_00: It's just like gambling, it's just another way of looking for a dopamine hit every time you hit some big money, but you can equally lose some big money.
• 2:12
  SPEAKER_00: So buy safe index stocks, which you can know that are going to grow over time.
• 2:17
  SPEAKER_00: For instance, if you decide to invest in the SP 500, this is basically the top 500 companies globally.
• 2:23
  SPEAKER_00: So what the stocks are split amongst these 500 companies, which means even if one of them falls drastically, you still have 499 that are doing good to make sure you are consistently earning.
• 2:35
  SPEAKER_00: I believe that over the past 10 years, these top 500 companies have amassed about 10% of annual interest.
• 2:42
  SPEAKER_00: So it becomes safe and it earns you more than the regular treasury bills and safer investments.
• 2:49
  SPEAKER_00: So please, when you're doing stocks, first of all, go for index funds.
• 2:54
  SPEAKER_00: Now, when you move from stocks, the next investment is businesses.
• 2:59
  SPEAKER_00: So for businesses, I like to break it down into two types of businesses.
• 3:02
  SPEAKER_00: We have the tap and go business, which is a business anybody can do.
• 3:07
  SPEAKER_00: So basically, you are only investing in this because it's a good business idea that can make you money.
• 3:12
  SPEAKER_00: So from anything like a delivery service to farming to something that you may not be passionate about, you it may not be your purpose, but you know based on this track record, it can make you the money.
• 3:25
  SPEAKER_00: So you invest in the business and you may not even be a part of the operations, but you know it's going to make you money.
• 3:33
  SPEAKER_00: So that's that is a safer bet when it comes to business investment.
• 3:37
  SPEAKER_00: Then the second part are the skilled businesses.
• 3:40
  SPEAKER_00: So this is based on something that you know about, you are passionate about, you have interest in.
• 3:46
  SPEAKER_00: So let's say you are a painter or you are a singer or you know you you make beads, you have a skill that you can use to start a business.
• 3:56
  SPEAKER_00: Now, these businesses tend to suffer in the beginning because it takes you a long time to build the business, develop your skills, understand what you're doing right versus what you're doing wrong, and grow the business.
• 4:09
  SPEAKER_00: But when these businesses succeed, they end up making you more money because they are scalable.
• 4:16
  SPEAKER_00: So these are the two types of businesses.
• 4:18
  SPEAKER_00: So if you are getting in the business game early, I would say start with the top and go to make sure that these assets that you are investing in will consistently make you money from real estate to Airbnb, anything that will be bringing in revenue consistently, versus the skilled ones where you know this is your purpose.
• 4:38
  SPEAKER_00: You are going to grow this, make it scalable, and you will actually build wealth based on what you are passionate about.
• 4:45
  SPEAKER_00: Now, the fifth type of investment in Africa are speculative investments.
• 4:49
  SPEAKER_00: Now, these are the riskier things.
• 4:52
  SPEAKER_00: So from cryptocurrency, Bitcoin to gambling, you know, I know people who bet on spots and able to make a lot.
• 5:00
  SPEAKER_00: Now, these are speculative investments.
• 5:02
  SPEAKER_00: So I'm not saying it is wrong or right to do them, but there's a right time and a wrong time to do it.
• 5:09
  SPEAKER_00: Because any money that you put in speculative investments, you should be ready to lose 100%.
• 5:16
  SPEAKER_00: Because speculative investment can build you massive wealth if it goes right.
• 5:21
  SPEAKER_00: But there's a larger possibility that it will go wrong.
• 5:26
  SPEAKER_00: So you need to invest your loose cash, the money after you've done all your investments, put that into speculative investments.
• 5:35
  SPEAKER_00: So if you lose it, you are fine.
• 5:37
  SPEAKER_00: But if you make it, payday.
• 5:40
  SPEAKER_00: So just bear in mind that the path to wealth in Africa is not about following the systems, but it's about charting your own path to create that world for you.
• 5:49
  SPEAKER_00: Follow these steps of investing, and you will become rich, wealthy, and via mastermind.