Speaking at Nairametrics’ quarterly webinar on digital investments for Gen Z, “How to invest with the world on edge”, Ola Oladele, Founder of Money Coach answered questions about making high yield investments possible in today’s volatile times. She said this could be achieved when investments are made with a long-term view.
She says, “I think it’s very important for Gen Z to take a long-term view of investing. When we say time is your best friend and you have time on your side, we’re referring to something called compounding If you think short term, you won’t get the benefits of compounding.
However, she explained that when it comes to investing, even on the Nigerian Stock Exchange, some stocks have yielded 40% this year and others have generated a loss of 20%.
“You have to recognize that if you’re thinking short-term you’re kind of thinking like a trader and when you’re thinking like a trader and expecting high return, you also have to consider that return is a reward for risk, and so, if you are looking for high return, you should also anticipate that there will be high risks there,” she says.
According to her, a high return is usually a reward for high risk, although there are times when a low risk investment offers high returns.
Addressing the disincentives to real estate investments in the current macroeconomic environment, Dolapo Omidire, Founder of Estate Intel, said one of the biggest challenges for people investing in real estate is a lack of data and information.
He said, “Whether it’s in a difficult environment or in a good environment, I think one of the problems we’ve had in Nigeria is that the information, the data points to understand the direction of the market and the quality information to take those decisions are not really available. .”
- Another factor he mentioned is the fact that real estate investing is capital-intensive and not traditionally a gateway asset like the stocks you start with because before that property can be purchased, the individual has probably saved for many years.
- He said there are now startups that facilitate such investments by allowing investors to buy divisible portions of a property, after which the return is split between investors. He said, however, that this initiative does not provide utility for use, such as building his house or buying property in his name.