Welcome to another Monday newsletter.
Last month, many members of the club who had invested in certain Agrictech platforms had cause to express their frustrations with regards to delayed returns of interest, principal amounts or even both in some cases.
Today, I will like to share some insights as relates to delayed expectations specifically as relates to investments.
- On the march again! – When I first saw comments from some of the subscribers, I was immediately taken down memory lane to remember some of the lyrics of the jingle from the Late Chief MKO Abiola’s presidential campaign.
Without prejudice to the companies involved, this case reinforces to me the fact that no company is immune from its own troubles; especially when a competitor operating in the same environment has had a similar experience.
Therefore, it becomes imperative to always remember this whenever one is investing his or her hard-earned funds because anything can happen.
I am sure many if not all of us can remember how the issues MTN Nigeria had with the Federal Government meant its shareholders at the time did not receive dividends for 2 or so years until the matter was resolved.
However, one can say that some companies seem to know how to navigate turbulent times better than others. ThriveAgric readily comes to mind on the local scene.
- For better for worse: Practically all astute investors have stories of the bad investment decisions that they have made. In some cases, it was a case of a good investment turned bad or an outrightly bad idea packaged as a good business idea.
The unpredictability of outcomes is an inherent risk in investing (no matter the amounts involved) and like that marriage vow; it comes with the terrain.
As such, patience remains a key virtue to have when investing as in the long run, things tend to become better. I have mentioned several times how Apple (of the $3 trillion market capitalization fame) was bailed out of near bankruptcy by a $150 million equity injection by Bill Gate’s Microsoft.
Please note that I am not advocating that one should not exit unprofitable investments; all I am saying is that be prepared to sometimes weather the storm. Tesla shareholders who held on to their shares can attest to this.
- Shine your eye: Sometimes, we all need to remind ourselves that not all investments are meant for us, especially transactions that have moderate to high-risk profiles.
This is necessary to ensure that we are able to analyse the opportunities objectively and not necessarily based on returns only. This is will ensure we stay true to ourselves and can avoid “stories that touch” if the unexpected happens.
For those yet to take the risk philosophy test on the club dashboard; this will be a good time to determine your risk appetite.
We will all do well to remember that the Omicron variant of COVID 19 is very contagious though mild. Please maintain social distancing, wear your face masks in public, and if qualified to do so; take your booster shot.
See you next week.
Toyin Oguntuyi