Making money is easier when you already have money
When you already have money:
1. Increases the universe of investable opportunities
2. Allows for reinvestment & compounding
3. Gives you the ability to scale up
4. Allows for option to leverage up
5. Buys you time
6. It's easier to secure more money!
1. Increases the universe of investable opportunities
2. Allows for reinvestment & compounding
3. Gives you the ability to scale up
4. Allows for option to leverage up
5. Buys you time
6. It's easier to secure more money!
1. People with money get access to special opportunities
That sexy IPO or amazing tech start-up you would love to invest in gets their retail subscriptions from high net worth individuals & dedicated funds
Basically you get a chance to invest before anyone else. It's a network
That sexy IPO or amazing tech start-up you would love to invest in gets their retail subscriptions from high net worth individuals & dedicated funds
Basically you get a chance to invest before anyone else. It's a network
2. Compounding
Reinvestment is one reason why some of the world's longest running asset managers are able to show incredible returns over the longer run despite tracking the market year on year
Invest R100
Year 1: 4%
Year 2: 5%
Year 3: 6%
R115?
No. It's R115.75
It adds up
Reinvestment is one reason why some of the world's longest running asset managers are able to show incredible returns over the longer run despite tracking the market year on year
Invest R100
Year 1: 4%
Year 2: 5%
Year 3: 6%
R115?
No. It's R115.75
It adds up
3. Scaling up!!
You have a portfolio of R10k. You make a 80% return. Congrats you have R8k
Someone else owns a snake & has a portfolio of R100k. They make only a 9% return. They have R9k
Your capital had to work harder for the same returns quantum
You have a portfolio of R10k. You make a 80% return. Congrats you have R8k
Someone else owns a snake & has a portfolio of R100k. They make only a 9% return. They have R9k
Your capital had to work harder for the same returns quantum
4. Ability to leverage
When you have money it's easier to secure loans against your assets.
Private equity funds, for example, deploy a small fraction of limited partner (investor) money and buy out assets using tiered leverage to maximize equity returns.
When you have money it's easier to secure loans against your assets.
Private equity funds, for example, deploy a small fraction of limited partner (investor) money and buy out assets using tiered leverage to maximize equity returns.
5. Money buys you time
If you're living month to month it doesn't give you the time or energy to focus on long term wealth creation.
Rich folks can take that gap year or study a useless degree "for fun". Most people don't have the luxury of time.
If you're living month to month it doesn't give you the time or energy to focus on long term wealth creation.
Rich folks can take that gap year or study a useless degree "for fun". Most people don't have the luxury of time.
6. Money attracts money
If you're able to raise R100m for your company, it's easier to raise an extra R5m.
If you have to raise R5m right now starting from zero? It's a mountain to climb.
People invest when they see other people investing. It gives them a sense of comfort.
If you're able to raise R100m for your company, it's easier to raise an extra R5m.
If you have to raise R5m right now starting from zero? It's a mountain to climb.
People invest when they see other people investing. It gives them a sense of comfort.
Most people sell the story of "you need to work harder" or "anyone can do it"
Truth is, there are people with weaker business plans, underperforming companies & dismal leadership who survive off multiple injections of capital
Your ideas are great, you just don't have the money!
Truth is, there are people with weaker business plans, underperforming companies & dismal leadership who survive off multiple injections of capital
Your ideas are great, you just don't have the money!
Forget the thick books on entrepreneurship & brain-dead motivational speakers.
A massive hurdle preventing businesses from taking off is access to capital & a cash reserve safety net.
Having money to start is a luxury, having money as backup if you fail is a bigger luxury.
A massive hurdle preventing businesses from taking off is access to capital & a cash reserve safety net.
Having money to start is a luxury, having money as backup if you fail is a bigger luxury.
Everyone can make a business look sexy on paper. I see it every day in investment banking. It's always "the next best thing".
Glossy pitch books, detailed financial models, slick talking management teams...
People buy into ideas instead of buying into execution
Glossy pitch books, detailed financial models, slick talking management teams...
People buy into ideas instead of buying into execution
How we ensure better access to capital:
- Get rid of the fucking red tape
- Incentivise investment companies to participate in smaller company upside through longer term equity stakes
- Reduce the minimum thresholds for public market capital raising on the listed exchanges
- Get rid of the fucking red tape
- Incentivise investment companies to participate in smaller company upside through longer term equity stakes
- Reduce the minimum thresholds for public market capital raising on the listed exchanges
Hi @LeilaFourie, @JSE_Group
There's a massive gap for capital raising opportunities & launching of investable securities covering small business which fall below listed company thresholds.
With my IPO experience, @Banker__X & your tech we can do something disruptive
Hit me up!
There's a massive gap for capital raising opportunities & launching of investable securities covering small business which fall below listed company thresholds.
With my IPO experience, @Banker__X & your tech we can do something disruptive
Hit me up!
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