So you met with your friends and receive a really cool deal, which by just put put 1,000,000 Tsh, you will triple that amount of money in 3 months, you feel yourself lucky and dive in. What are you waiting for? you just call yo mom, uncle, sister etc. then you borrow some cash.
Guess what next…!!!!
THE IRRATIONAL MOVE …
Your adrenaline and dopamine kicks in, you get super excited , dump cash in, you feel lucky and blessed, then you get F#$&ED UP . You loose all the money and demolish all trust from your dearest individuals you borrowed money.
TIME MYOPIA SYNDROME …
Then next time, you hear about really slow, boring and kind of mechanical 🛠⚙🔩 and time consuming deal , but can bring about just 150,000 Tsh per year if you invest with a similar amount of cash as the previous deal. You look at it, and see how boring it can be. As the matter of fact most of time you will just have to just do nothing New with this deal. You leave the deal on table coz you really feel you gonna die before you get anything out of it.
THE REGRET …
Then couple of years letter you pass and you hear some Companies or Institutions have invested in similar deal and earn a lot . So you try again, because this round stories are just more cool, hell no, you get F#$*ED UP again.
Before this start boring let’s us go back in time to secondary school 🕰📚🖊 where we were introduced with this concept of Compounding Interest. God forbid I hated the formula and literally confused it with the simple interest.
So how is Compounding & Investments really correlated ?
COMPOUNDING Step by Step … 📌
It’s kind of weird how wealth is accumulated but the fact is crystal clear, almost all Wealth people have figured out the compounding aspect of their business and being able to sustain it via risk management .
The more you set yourself for the higher the returns , the more you expose yourself to risk and probably burn all your equity before your Business Compounds Enough so you end up no where.
The more you eliminate or minimize the risk the longer time it will take for significant compounding effect to be applicable in your returns, plus you will have to stay idle and observe for most of time .
The Genius Point Is somewhere between option 1 and 2 and guess who are there? All Wealth People You Hear Around. This is a unique zone where returns are sufficient to compound profitably and risks are highly minimized to protect the equity. We all wanna be there. As the matter of fact Warren Buffet as one of Iconic investor only earn around 20% return, “it sound really little kwa mbongo anayecheza biko” the difference is for more than 40 years risk was properly managed and returns were consistent and compounded.
It sound as a small amount but don’t try that at home …!!!
So Kweli, Hii mambo ni applicable Bongo? YAP!!!
But why It’s not kind of famous? Coz it’s not a hype and it does not involve Insta. followers, This is a Mechanical Process So We can play the game, But we will have to do our homework!!! which is . . .
“TO FIND AND ANALYZE INVESTMENTS AS MANY AS POSSIBLE AS POSSIBLE, THEN PICK WHICH SUITABLE THE COMPOUNDING MECHANICS.”
There are thing(s) you can start follow-up if you are more interested, coz they have most of phenomena discussed in article … ( Just 2 Will be Sufficient, the early the better )
- Governments bond [BOT, Commercial Banks and Goverment]
- Credited based Real Estate Investment [Madalali na Mabenk]
- Stocks [Makampuni]
- Forex [Sarafu na Uchumi ngazi ya Taifa]
If you pass all over the article, congratulations, Welcome to Mechanical Process, but don’t just end here, DO YOUR HOMEWORK Otherwise, all these can turn into your ferry tales or nightmare.
Remember I’m not your Guru, take it , live it, or just delete it