Corona who?

This was the response from a friend when I asked how he was coping with work and everything else going on this season.

I replied, ‘’My sentiments, exactly’’

Not because I am not aware of how serious this pandemic is, or number of deaths worldwide. 

I am aware and I deeply empathize, however, there’s a huge out-pour of information online causing a lot of fear and panic for most people. I had to deliberately tune off some social media channels to protect my mind space

Protecting my mind space is very important to me because I am aware of how easy it is to sink into wrong thoughts based on what my mind takes in from media.

It might be a 1 second view of a headline and it will trigger some thoughts that affect my feelings and eventually my actions.

There’s no doubt, the world is experiencing something different right now

Countries closing borders

Major cities issuing stay-at-home instructions

Companies have staff working remotely

Travel bans leaving people stuck and longing to be home 

Disrupted supply chains due to the shutdown in China’s economy

Volatility in crude oil prices

Fuel subsidy discarded overnight in Nigeria (Something we’ve been trying to achieve for years)

Fuel pump price reduced in Nigeria
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It is an interesting mix of events, some events clearly have had adverse effects. The Nigerian government had to cut it’s budget by N1.1trn and place a new benchmark for crude oil prices this week.

While some events have had what I would call a surprising positive effect, e.g. the drop in crude oil prices leading to a drop in fuel pump price in Nigeria

As an investor, my mantra this season has been the Warren Buffet quote – Be fearful when others are greedy and be greedy when others are fearful

Based on this quote, here are 3 key ways I am investing right now

1. Buying up great companies on the stock market at a discount

There are reports that Berkshire Hathaway, Warren Buffet’s investment company, has been sitting on and not spending a record level of cash estimated at $150bn for a number of years

All through the greatest bull run of the US market for the last 10 years, the company was stockpiling cash and waiting for the stock market to crash.

The bull run in the stock market finally crashed and I am sure the company swept in to buy up great companies at a discount.

This is what intelligent investors do
.
Thankfully, I had cash I could invest in long term investment opportunities (the stock market is a long-term investment in my books), so I could also sweep in to purchase some great companies on the Nigerian stock exchange at an incredible discount.

Some of these companies were trading at really great discounts based on their track record and dividend pay-out history over the last 10 years. It was a no-brainer for me to buy up ownership interests in these companies.

And I’m not done yet. Based on the continued spread of the Corona Virus and the power play on crude oil prices, I am patiently waiting for the stock prices of some additional great companies on the Nigerian stock exchange to bottom out so I can sweep in to buy up more ownership interests.

2. Investing in companies taking advantage of the disrupted global supply chains

China is a major world player in global supply chains. Almost everything is made in China these days. so when China had to go on an economic lock-down due to the spread of the virus recently, the global supply chains took a major hit.

As a result of the China effect, some companies had to look for alternative companies who could meet their inventory needs at an international standard.

This opened up opportunities for some Agro-processing companies in Nigeria who produce or aggregate these commodities and meet the international standards for export.

Some commodities sold at 10 times the previous price on the global market and guess who benefited from this price increase? Strategic Agro-processing companies in Nigeria.

I gladly invested in some of these companies in the past week.

In fact, these companies reached out to us in the Green Investment club to raise funds for them ASAP. We gladly did! We actually raised funds in multiples of 9 figures over 5 days to support these companies and as investors, we look forward to earning good returns on our investment.

3. Building up a portion of my family’s investment portfolio in a stable currency

We all know the Naira is not a safe haven right now. As much as I would love to switch my entire family investment portfolio to a stable currency, the fact is we still have expenses in Naira and we need to meet those expenses. 

So the solution is to keep a good portion of our portfolio in a stable currency for balance.

The safest option for us was to invest in Euro-bonds. An Eurobond is a debt instrument that’s denominated in a currency other than the home currency of the country or market in which it is issued. Most (if not all) Euro-bonds are denominated in dollars.

The minimum requirement to invest in Euro-bonds is $100,000 – $200,000 in a typical financial institution in Nigeria, however we partnered with an institution to allow members of the Green Investment club invest a minimum of $5,000 or $20,000 at different rates. 

Thankfully, most members locked in a 7.5% annual return when they invested late last year. The rates have since dropped.

For us, investing in Euro-bonds is a long term investment (5-10 years) in a stable currency and it works for our goals and our current portfolio plans.

These are just three ways I am taking advantage of opportunities this season.  I also took advantage of opportunities in real estate for our investment portfolio.

I am able to this because I practice what I teach in the Green Investment club.

And also, because we build strategic relationships with our investment partners to ensure the members of the Green Investment club always get priority access to the best investment opportunities.

That said, I hope these 3 ways I’m personally taking action help you take some decisive action in the next few weeks. Like I always say, I don’t teach theory. I practice what I preach literally..

If you’re low on cash to invest right now, there’s no need to beat yourself up. Simply start making the right financial decisions to save more, earn additional streams of income and cut unnecessary spending.

Don’t forget to build up your emergency funds too, so you don’t get caught unawares with unforeseen circumstances this season.

and of course, stay safe, stay calm, take active measures as shared by the World Health Organization (WHO), self isolate, practice social distancing and we will beat this virus!

Ps. Did this email resonate with you? Did you learn a tip or two? If you did please share a screenshot of this email and tag me @tomiebalogun in your Instagram stories or twitter. Let’s connect as the world continues to evolve into a virtual social space this season.

Until next week!

Warm regards
Tomie Balogun

 

 

We are always happy to take on new members in the Green Investment club, so feel free to join us asap if you want to take advantage of great opportunities this season.,

The Green club is now open to new members. Click here to join us!! It is time to make that decision!