This Menzgold saga is putting me in a certain setting I am trying as much as possible to avoid but I can’t any longer. I have to impact some knowledge and business acumen in our teeming youth who must understand the right ways of handling their monies into a risk free investments. Yes! True investment is risk free, forget what they taught us in textbooks in school and let’s come home to the kitchen.
Asamoah Gyan’s Baby Jet Airlines will commence operations in February 2019 this year and I applaud him for that bold step and initiative. I was excited when I saw pictures of the aeroplane. Now, that is a great investment by all standards – the air transport sector. I mean transport investment generally is good as every human being commutes by air, sea or land. Any Investment into human’s basic needs is an excellent Investment; food, clothing, shelter, transport, healthcare and education. You cannot go wrong in these areas unless you ventured without adequate knowledge.
Concerning Baby Jet Airlines, now that’s what I am talking about! I advice us the youth, invest in something your eyes can see, putting it in a very simple or casual way. If it is transport, real estates, schools, hospitals, hotels & restaurants, aeroplanes, cars, ships, farming etc.
Let your eyes see your investment and your hands touch it what your money has transformed into, something physically. Don’t put your money in anything which is intangible which your eyes cannot see it or your hands cannot touch it like Menzgold, stocks and shares, fixed deposits etc. I don’t believe in those investments. Now, these are my own “safety” tips and idealogy which I believe will help you if you follow.
Someone will say but Warren Buffets made it through investment in stocks and shares? Well, he is old enough to enjoy his investments now I guess if you understand what I am saying, because that is what stocks and shares does to you. You will have to invest for a long time and before it begins to gain significantly you are quite old. Continue reading you will understand, I touched on stocks and shares briefly somewhere along the line.
Be a doubting Thomas when it comes to investments. Don’t let anybody deceive you that investment is a risk, the higher the risk, the higher the returns, and vice versa, it is a lie. What you are into rather is called gambling. Real Investment is Zero % risk free. There is no risk at all in investment, all those things taught in business schools is a lie. Many business people are practicing gambling not business or investment. You might as well stake lotto or superbet with the money, that is better.
Anyway, if you have idle funds somewhere you don’t need now do not give it to any company to manage it for you that promises investment returns. Don’t buy stock and shares, they will trade with your money and come and tell you board of directors declared no dividend this year. You begin to experience capital gains on your shares when the company expands but that really takes time running into your old age like Warren Buffet is now. I wonder how many golf tournaments and real life pleasure he can enjoy now that he is rich but old?
Besides, I am yet to see a company that pays above 1 of any currency in dividend, like Ghs1 dividend per share in the whole world. Dividends are usually declared less than one of any currency per share, example 50 pesewas or 10 pence per share dividend. So I don’t consider stocks and shares to be profitable and you stand the risk of losing your investment in times of liquidation or bankruptcy especially if you are an equity shareholder.
Don’t be lazy, manage your own investment by yourself. Keeping it in a credible bank alone is enough risk you have taken already but even with that you cannot be too sure of the outcome. Buy fixed assets with your money instead, assets that appreciates in value like lands and buildings or open a direct business investment with it.
If you don’t fully have the expertise in that line of direct business investment, spend some time in school to educate yourself about that line of business before you enter. The difference between you and the company you want to give your investment to, to manage for you is knowledge you don’t have yourself, so acquire the knowledge you need to manage it yourself. Employing professionals to manage your investments for you in a particular area of business without you having the business idea yourself is the same as giving your money to a company like Menzgold to manage it for you.
You must educate yourself in every business you want to enter, not casual education, something that is proper. The first best investment you can make with your fortune is educating yourself in school or at a training grounds you can acquire knowledge about the business you want to enter even if you have to travel outside Ghana to learn it.
You must take investment serious for it to take you serious. Never see an investment as a try and error so you do things casually. There is only one way for investment which is profitability. It’s not a waste of time or money to educate or train yourself before you start investing.
The training you are acquiring is part of your returns on your investment which will produce results eventually. It does not come with any risk at all. After you have spent part of your fortune to acquire the knowledge now you can set up that business you want to enter and manage it yourself.
In the first 5 to 10 years of your business, don’t employ someone to manage it for you but yourself. You can have assistants but manage everything yourself. If you don’t have time to manage your own business or investment, then don’t enter into direct investment because you will make others rich with your money.
Just buy some assets with your money and probably employ some security agents to guard it for you until you are ready than letting the money sit in a bank account somewhere. It is good you buy properties that appreciates in value, the returns of which will superceed anything a bank or investee will give you if you had kept your monies with them.
All business bank accounts, you must be the sole signatory. Learn a little bit of accounting so you can keep your records and populate your figures well. Anything in regards to finance for a business start up must solely be managed by the owner. Never delegate financial issues for a start up.
Be directly involved in every financial issue yourself. Engage tax authorities and learn from them the nitty-gritty about every tax issues. Until you have understood the financial and operational issues of your own start up or company, never hand over your company or business to anyone to manage for you.
Give yourself 5 years minimum and be physically present in your business every time, know your customers and interact with them. Have their contacts and even know their physical locations if you may.
Any business you start that you don’t involve yourself in it, spirit, soul and body will fail even if you put all the monies in IMF and World Bank joined together in it. But even with a little seed capital if you are very involved in your business, the chances of it’s success is 100%. Can’t you see the Lebanese, Syrians, Chinese and Indians etc in Ghana, they manage their own businesses directly and they succeed here in Ghana.
In the news a lady who invested Ghs760,000 @10% returns I guess in Menzgold was demonstrating for her money back. I felt so sorry for her that she fell for this scheme. If Menzgold hadn’t failed we all supported it, especially for me, NAM 1 for being a youth and has been able to set up such mighty business. But deep in our hearts we all knew that the scheme was not sustainable especially when the returns on gold trading on the world market is between 2% to 3%.
This Ghs760,000 could have been used to start a direct business Investment like Asamoah Gyan in Baby Jet Airlines not in quantum though but argument solely based on idealogical principle and inference.
Now let’s take her case as a study to analyse her possible options for this sort of investment but wasted it chasing the wind with Menzgold. It will look as if that money is gone for now except by a miracle.
Ghs760,000 is a little above $168,000 for the understanding of my international readers accross the globe. This money if she had done direct investment properly, her great grand children would have come to enjoy some of it’s proceeds but now it is gone with the Menzgold Ponzi scheme.
Now, a home use strong Toyota Corolla taxi cab, good year model can cost a little around say $10,000 meaning she could have had about 17 cars working for her that can make daily sales of about Ghs200 which is almost $45 a day for her. Meaning in a day she could be making $765 on all the 17 cars. Meaning it will take her 220 days or 18 months approximately to recoup her whole investment, less than 2 years to make back her $168,000 all things being equal.
Every other 2 years she can have same set of 17 cars in addition to her fleet of starting 17 cars. So it means in 10 years she will be having 85 cars which will cost her $850,000 (85 cars x $10,000) plus the first 17 cars she started with which will be 102 cars.
Now, 102 cars making sales of $765 per day for the next 10 years will be $2,792,250. Let’s take out the $92,250 to represent weekends and the days the car did not work and $700,000 to represent general repairs and maintenance. Within the 10 years, she would have made $2,000,000 less cost of $850,000 for 85 cars which will leave her with $1,150,000 and still have her 102 fleet of cars all in good shape and would have already absorbed all their cost but all these possibilities have gone to Menzgold never to return.
I have just analysed using transport business, I could do same for real estate etc. The onus of the whole matter is I am convincing the youth to invest and manage their investments themselves, it is better that way. There is more tips but suffice this for now.