Tony Elumelu expressed his belief in the abundant opportunities present in Africa during an interview, stating that despite the challenges, there is also a substantial return on investment. He actively supports this belief through his sponsorship of various investments on the continent.
Elumelu has consistently advocated for government investment in the private sector and possesses a diverse investment portfolio. From successfully saving a Nigerian bank from collapse to transforming a family office into an African proprietary investment company, Elumelu has established himself as an expert in the field of investment. Let's explore some valuable tips that can protect your investment journey.
Prepare and gain exposure
Speaking about his early days in the banking industry, Elumelu said, “When we, a small group of hungry, determined, young outsiders, took over struggling Crystal Bank, it was as a direct result of the preparedness and exposure that we received early from our superiors and mentors.†This shows the importance of proper preparation and exposure before investment.
Young entrepreneurs must focus on understanding what they want to invest in and seek counsel from experienced persons. Elumelu further added that “Without the intervention and goodwill of these people in my career, I would not have been prepared as I was to take on far greater roles.†Investment should not be something you jump into, it should be a path to explore after you have garnered enough knowledge.
Set measurable goals
Setting measurable goals before investing provides clarity and helps you focus on what you want to achieve. When your goals are clearly stated, you will work with a specific target in mind and stay disciplined till your goal is achieved. Addressing young professionals, Elumelu said, “Have a clear picture of the destination you desire but instead of letting frustration set in, let those desires become the fuel that drives you to attain your goals.â€
Building an investment portfolio in Africa involves a lot. Sometimes you may have to cross paths with friends and respected colleagues in the industry but having a goal will keep you focused on the journey.
Invest in a financial adviser
The Nigerian Investor once said, “The best-spent money is that which is spent on your self-improvement.†According to him, learning is a long-term investment that never stops rewarding. Young entrepreneurs who desire to build a strong investment portfolio must invest in a financial advisor.
This will give them access to tailored advice that aligns with their specific financial goals and circumstances. Financial advisers can also help them create a comprehensive financial plan that considers their short-term and long-term goals, cash flow, tax implications, etc.
Diversify your portfolio
Elumelu’s diversified investments have helped him to minimize risk and maximize returns. The Nigerian business mogul who chairs Heirs Holdings has a controlling interest in Transcorp, a publicly traded Nigerian conglomerate with interests in hospitality, agriculture, oil production and power generation.
Diversifying your portfolio can lead to more stable and consistent returns over time. It also gives you the opportunity to participate in the growth potential of different sectors and industries.
Keep your costs low
Keeping your costs low can significantly impact your investment journey. It helps you maximize the amount of money working for you and potentially increase your overall returns. It also enhances the long-term growth potential of your portfolio. Rather than spend much, sow much.
Counselling young people, Elumelu stated, “As a young professional, this is your season to sow. This is the time to toil to build the right foundation. This is the hour to learn voraciously, work hard and gain all the experience that you can. This is the time to put in the work! Reaping and harvesting will come at a later time.†So cut down the cost and maximise your sowing season!