Posted on Jan 12, 2021 by Staff Writer
As we trudge through our daily lives and executing our businesses, investment is key in almost every decision we make.
A bad investment can ruin not only your life and business but generations that may come way after you.
It is crucial to know what distinguishes the majority of rich South Africans. They simply know which assets to invest in.
This article will help you understand which assets the rich South Africans are investing in now and post-COVID 19 pandemic, which you could invest in.
1. Real Estate
One of the most important pillars of any successful African economy is owning property.
Along with owning land, investing in immovable property is an added advantage as the value seldom depreciates.
Investing in land is central too not only preserving your wealth but also growing it exponentially.
One of the greatest advantages of the benefits of investing in property is that you are assured of income every month end as tenants pay up their rentals.
You can never go wrong with Real Estate especially post COVID 19 as people start to look for new opportunities.
If you intend to grow your business and get your return on investment, you have to acquire equipment that can make your product or business to grow.
A case in point is when you are in farming, purchasing state of the art farming equipment will only help in raising profitability in your business.
If you are in printing, buy the latest 3D printers on offer and ensure that you maximize in providing the latest printing services.
By the time the world catches up on the latest gadgetry, you would have made enough money from the equipment and can dispose of it to move into other latest innovations.
Always be a step ahead by investing in the latest equipment available.
Investing in stocks is one of the oldest and frequently misunderstood forms of investment.
While most people think that investing in the Johannesburg Stock Exchange (JSE) is a very difficult process, it is pretty much easy to buy shares as an investment. Due diligence is important though.
Through engaging a stockbroker, you can invest directly by buying shares in listed companies.
If you are not sure of which shares to buy, you can engage reputable fund managers who will make the investment decision for you by investing in shares that will highly likely give you back your investment.
There are quite a number of South Africans who are making money through investing money and time into growing their brands. People identify with certain brands in their daily purchase.
A product of the same quality will sell differently on the market simply because of the brand it is representing. It is thus important to set aside funds for the growth of a brand and maintaining its brand visibility.
Taking a cue from international trends, South Africans are now drifting towards buying products associated with a reputable brand. Thus it is important to grow your brand.
5. Raw Materials
South Africa’s economy has proved to be volatile over the last 5 years. Prices of raw materials have tended to fluctuate rapidly. It is against this backdrop that one can invest in the raw material.
Instead of holding on to money which may lose value, protecting your money through purchasing raw materials can preserve and grow your finances.
Depending on market behaviour, investing in Gold, Silver, and Platinum can yield high returns. The price of gold has been steadily going up over the years, hence investing in such raw materials might be a good investment especially if the rand continues to depreciate.
Most governments all over the world have been issuing out bonds to investors and South Africa is no exception.
Bonds essentially mean that you are borrowing government or local authority money which is paid back to you with interest over a specific period.
With the recession starring south Africa, most governments and local authorities are highly likely to top up their purchase of bonds.
This is a a very safe investment considering that is backed by government.
7. Mutual Funds
Pooling together of resources as a clique of investors to buy shares may be another route one can make in order to get huge returns.
Due to the prevailing volatile economic climate, one may not be able to buy bonds, stocks, or any other securities hence mutual funds may be the best way to go in order to purchase any securities.
It is important to sit down as a team, pool your money, and engage with an honest and reputable fund manager to manage your investment.
In this highly digitized world, it is always important to think into the future as you strive to unlock financial value from any investment.
As an inventor of any product, patents will give you exclusive rights to hinder anyone from commercially exploiting your invention for 20 years from the date of filing the application.
As you innovate, make sure you protect your product. Once your product is protected through patents, no one will be able to use your product in any way. If anyone does so, you can take legal action.
Take your time in developing your product and make sure you protect it through patents.
Investing in cash can yield high returns.
During this COVID 19 induced crisis, cash is a commodity that is highly sought after.
Corporates and individuals are in need of cash so as to stay afloat.
Lending out the cash to be paid back with interest can turn out to be a good investment especially when the industry begins to open post-COVID 19.
Despite the fact that cash investments generally offer a low return compared to other investments, cash still has a higher value than plastic money.
With people disposing of certain products due to ongoing crises, having ready cash can help you purchase some of these products at giveaway prices.
Invest in people.
After all has been said and done, you can’t successfully achieve the above tips if you fail to invest in people.
The world is mutating towards investing in people. It’s no longer about the idea, but who is behind the idea.
Engage a crack team of reputable business people to run your businesses. people of note, people of worth.
Engage the best legal brains to represent you in your dealings, this will increase your value proposition.
Companies are what they are because of people. As such people may turn out to be the greatest assets South Africa is investing in.
Employ Chief Executive Officers of repute to lead your companies.
Their reputation can turn around the fortunes of your company due to the respect they command.
Never make a mistake of disregarding People as an asset.
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