August 28, 2016      10:57

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Hard Times Bring New Opportunities


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Tunji Awonusi

196

Regular readers of my column will notice that in the last one year this columnist has been making sure that he serves you with wealth creating and building strategies. We have made it a point of reference to make sure that the market place is the place you come to know how to start businesses, grow your business, find a vocation which is profitable and also give you tips on how to prepare yourself for job interviews and placements. Even while on holidays, I have been carrying out research on your behalf on how you can use the hard times currently in the country to your advantage.

It was Warren Buffet who said in his company, Berkshire Hathaway: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

This is the only reason why the richest man in Africa, Aliko Dangote, is opening new cement plants and refineries in Nigeria and across Africa.For the conglomerate this is the best time to plant a tree.

The economic situation of the country, which is due mainly to years of waste, has made it imperative for us to tighten our belts and cut down on unnecessary spending which, hitherto, was the trade mark of Nigerians. So, bye to four summer holidays in Dubai, London, America and South Africa.

As part of our first anniversary celebrations, I will share with you one of the things that I am doing to prepare myself for the next big transfer of wealth in our history. I have codenamed it my four change advantage.

Change Advantage 1

I have completely cut down on waste and have decided to limit the amount I socialize from weekly to monthly, in the process freeing up some money for me to invest. There is a need for us to start the change from ourselves in order to be part of the new transfer I discussed earlier. When your wife or husband sees that you come home early and spend quality time with the children, they will in turn help you save money on minders and private teachers. Nothing beats helping my children do their homeworkat least three times a week.

Change Advantage 2

The money saved from my reduced social outing goes into my investment account and I make sure I transfer it without fail as it has not changed anything about my lifestyle. I have just been a little wiser by reorganizing my spending habits, cutting down on my expenses and increasing my wealth portfolio by investing the savings from my new habit. Try it and you will be amazed at how much you would have invested in six months if you do it consistently.

Change Advantage 3

I have chosen to invest my new savings inan asset class, and that is the stock market. With the historical low prices of our stocks, it is a good time for me to start planning my retirement by building my stocks portfolio. The dream is to accumulate enough shares in a few top quality companies with good track records of capital growth and dividends payout. The good thing about the stock market is that you can start investing with as little as N10,000 a month.

Change Advantage 4

I have selected four stocks that are well capitalized in two sectors with good growth potential in a period recession - which is banking and breweries. What I have done - after doing my research and due diligence - is to choose one low-priced stock in banking this time, First Bank Plc, and a mid-range one, GT Bank Plc, and an international breweries, Nigeria Breweries, in the brewing sector.

I have since started buying according to my savings every month. Some months I buy low-priced stocks and some months, mid-priced ones but I have made sure that I am balancing my portfolio from month to month. Let me quickly add that I am not in it for the short term, as the money I am investing in them used to count as waste, so I do not mind losing it, but certainly, that is not my objective for investing my smartly earned money.

Please consult your financial adviser before you invest, as the publishers of The Interview magazine and the columnist Tunji Awonusi will not be responsible for any loss arising from your investment in the above listed stocks. I am a trained investor of many years and all I am doing is sharing my investment strategies with you.

This is wishing you a profitable investing ride.

Finally I would like to congratulate the team at Banc and All, the publishers of The Interview magazine, for a job well done. Kudos to the editor, Chinyere Fred-Adegbulugbe, and my brother and friend the publisher, Azu Ishiekwene. Thank you for the opportunity to be part of history.