An Introduction to Exchange Traded Funds (ETFs)

O wise, It's time to learn.

In the books of Proverbs, we were told about the intelligence of the ants. One of the most important lessons we learned was the power of consistency. If you do it every day and long enough, your barns will not be empty. Never doubt how much you can accomplish by playing the long-term game. Let me share a story with you (By now, you know I always have a story to tell)

A year ago, one of my mentors launched an ETF investment circle (ETF means Exchange Traded Funds – It affords you the rights to buy different shares and debts of different companies within the same or different industries with the same fund, tradeable on the stock exchange), he outlined three ETFs we should invest in. When we did the review last week, one of the ETFs (VTI) delivered a 33% return in one year. Needless to say, it’s dollar-denominated (so, an extra gain of about 30%+ on currency depreciation)

If you want to know what a good investment looks like,  pay attention to the duration of the asset its source, and its purpose. Why is an agricultural firm offering 15% return monthly on maize and by chance, do you think it is sustainable or a forex company promising 40% in 6 months? LMAO, you know how it will end. The truth is, volatile assets do not have fixed returns and vice-versa

Today’s nuggets are quite simple, the first is to be consistent, and please, be consistent in investing in assets that are consistent with their means and mode of operation. **Read that last sentence again, carefully** Your strategy should NOT be to "hammer" in a year. It’s to stay ‘’hammer’’ even if you "hammer" this year. If you can understand this, you will learn to conduct due diligence before you invest.

Secondly, know the business of your investee – For example, if it were shared, know what the company does and the market they operate, total sales, profit, debt, management, and the prospect of the company and the market. Compare them with the previous report and other competitors etc. You worked hard for your money, don’t lose it cheaply.

I end this sermon in the words of a legend,

” A little sleep, a little slumber, a little folding of the hands to rest— and poverty will come on you like a thief and scarcity like an armed man”. Emphasis on "little"

My bad! How are you doing? Do you want to know more about ETFs?

I cannot wait to receive your feedback.

Cheers to a profitable lifestyle,

TL.