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Kalu Aja

@FinPlanKaluAja1

7 Feb

1. The price and the value of a stock are different

Price = how much you pay
Value = what stock is worth

Buy when Price < Value
Sell when Price > Value

The question in investing is determining the value

What is the value of a tree?

Fruits?
Cost of seed?
Value as firewood?

The price of a stock is forward looking.

It reflects the "vote" of investors. If investors believe the company will make more revenue and profit IN FUTURE, the price today will go up even if the company has no profits TODAY.

The stock market is a voting machine.

Over the long-term, the value of the company will reflect the earnings of the company.

Value and earning will correlate unless the company grows future revenues by

Acquisition
Internal reorganization to cut cost
External laws that favor company

Read 9 tweets

Kalu Aja

@FinPlanKaluAja1

21 Jan

Wealth is many thing

It's location.
It's relationships
It's luck
Its hard work

Off all, the easiest is relationships I.e you marry or are born into wealth

Next? It's location

A 26 year old in America can buy a car and small house earning minimum wage with a high credit score

When he is 35, he can get married and either sell his small flat or rent it out, then buy a larger house using his small house as "equity"

He can buy a bigger car on a car note, if in an emergency or another opportunity opens, he can use his current home as cash collateral

Thus he builds buildstion-indexed wealth. As home value rises with inflation.

He can pay unexpected medical bills with his credit card. He finds a great house in Florida, buys with new loan.

When he retires at 65, he sells first home, moves to Florida.

With $500,000 no debt.

Read 6 tweets

Kalu Aja

@FinPlanKaluAja1

16 Jan

Some 2021goals

1. educate yourself on how money works.....read about money, investing, budgets, etc.

.

2. calculate how much cash you have to pay bills if you lose your job, get a figure in days/months. Have a plan to save/extend that figure as much as possible. for example, if you have just 1 week of "emergency funds" have a target to extend it to three months.

3. cut down on unnecessary spending, get a budget, stick to it.

4. Look for multiple sources of income, if you have 2 cars, start a private Uber, if you have a free boys quarters, rent it out, monetize your assets.

5.have zero debt

6. Earn foreign exchange, export something

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Kalu Aja

@FinPlanKaluAja1

4 Jan

If I borrow, I'm accountable to pay it back. Thus I am very careful when I take debt

If I am a CEO, and I borrow, it affects my Company profitability, thus I am responsible

If I borrow as an elected official, I am only responsible for a maximum of 8 years. important to note

Few nations do not borrow

Debt is simply upfront consumption. When you borrow, you are essentially saying you want to use future revenues today

Hence you create a vacuum of revenue in the future. The rationale is to borrow, create wealth today, cover future vacuum

Thus If you borrow today and invest in a non-income-generating activity, you leave that future income vacuum intact.

Hence the term ROI seeks to measure how much return any investment will accrue to cover future obligations

Read 11 tweets

Kalu Aja

@FinPlanKaluAja1

17 Dec 20

Chile is Capitalist ie free markets; target is equal opportunities

Venezuela is Socialist ie government controlled markets; target is equal outcomes

Chile is now richer than Venezuela who has probably the largest deposits of crude oil globally. Riches not based on crude oil.

NO government can create a job...ONLY the private sector can...all the government can do is redistribute .

Socialism has never made any nation rich, please note a capitalist nation can have an extensive social welfare programs eg Denmark, that does not make them Socialist.

"Socialist" government are governments that set prices eg for petrol, that own economic assets eg NNPC & even influence economic decisions like setting exchange rates for the economy.

The worst mixture is a Socialist government that is pursuing a welfare agenda like Venezuela

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Kalu Aja

@FinPlanKaluAja1

12 Dec 20

Farming is no longer by prayer; grace or hardwork. Today it's science and genetics; brains not brawn

Isreal grows more than 40 types of fruit, exporting up to $2.4b in agricultural exports from a "desert."

Farming is not "patriotism...its a business.

The Duijvestijn brother's in the city of Delft have a 36 acre greenhouse comex producing 15 types of tomatos..with its own energy and fertilizer.

Many Family farms in Netherlands have a higher yield than entire States in Nigeria.

I am not discouraging you, just saying go and learn. Shonghai has farms in Benin Republic and Nigeria.

Go learn.....

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