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Billionaire Watch

Consider incorporating Bill Gates’ most reliable investment strategy today 

So far in 2019, Bill Gates (@BillGates) has earned as much as $17 billion. Find out the investment strategy he relies on the most to manage his fortune, #FinancialLiteracy #PersonalFinance #Investing

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Bill Gates, Bill Gates reveals his superpowers and it is not what you think 

So far in 2019, the world’s second-wealthiest billionaire – Bill Gates – has earned as much as $17 billion. This is probably much more than the amount millions of Nigerians will ever be able to make in their lifetime. The Co-founder and former Microsoft Chief Executive Officer is currently worth $106 billion, despite donating a sizable amount of his net worth to charitable course.  

READ: Bill Gates says Trump’s WHO funding suspension is dangerous

What has helped him make so much money this year? 

Well, the answer to this is simple – the billionaire relies on a particular investment strategy which has worked for him over the years. In a recent interview with Bloomberg, Bill Gates said: “the strategy that’s been used on the investments is to be over 60% in equities.” In other words, the world’s richest person trusts equities more as an investment option; more than all the other alternatives. 

READ: Nigeria receives $1.46 billion capital inflows in Q3 2020, grows by 13%

READ: Bill Gates reveals his superpowers and it is not what you think 

Why you should be like Gates 

Simply defined, equities are stocks or any other security representing an ownership interest in a company. Equities also indicate a company’s ownership structure, meaning that a shareholder’s equities represent his/her ownership stakes. Interestingly, having a stake (equities) in a company entitles a shareholder to a lot of benefits as you can see below. 

READ: Bernard Arnault catches up with Bill Gates, ranks second richest man in the world

The benefits of equities 

Capital Appreciation: One of the benefits of equity investment is the possibility of capital appreciation. What this simply means is that if you stake your equities in a profitable venture, the likelihood of your initial investment capital growing overtime abounds. This is because the share price could increase in double digits. 

READ: Investing & Gambling: Differences and Where They Intersect

Dividend payment: As an equity investor, you are entitled to periodic dividends from the company you have invested in. This is one of the surest ways to get return on investment. It is also one good way to have one’s money work for them while they sleep. A large chunk of the $17 billion Bill Gates has made between January and September all came from dividends paid on his equity investments. 

READ: Would you have invested in buying a plot of land in Abuja FCT in 1980?

Ownership gives control: As an equity investor, you are a co-owner of a business venture. What this means, therefore, is that you get to participate in the decision-making process of the company. In business parlance, this is called “voting right”. And the more the number of shares you own, the more your right to vote.  

READ: A business case for Private Equity Investment in Nigeria’s Entertainment Sector

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Claim over Assets and Income: As an equity investor in a company, you co-own the company along with its assets and finances. What this means, therefore, is that not only are you entitled to receive financial benefits, you can lay claim any of the company’s asset anytime. Bill Gates will always claim to be a major owner of Microsoft for as long as he keeps his equity investments in the company intact. 

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READ: 10 Actions That Can Make You a Successful Investor

An equity investor can also receive bonus shares. More so, shares owned by an investor in a company are liquid, meaning that ownership of such shares can easily be transferred to a third party. So, imagine that Bill Gates (who is 63 now) dies at the age of 110 years old, his shares in Microsoft can easily be transferred to his relatives.  

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READ: Africa’s economic growth to drop by 4.1% in 2020, rebound by 5% in 2021 – UN

It is, however, important to mention that much like all the other forms of investment, equities can also be risky. That notwithstanding, the many advantages associated with this form of investment should encourage you to rely on it as a major investment strategy. It is, indeed, reliable. That’s why Bill Gates has 60% of all his $106 billion fortune in equities. 

READ: How To Cut Your Losses in a Bearish Market

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Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

1 Comment

1 Comment

  1. Oluwafemi B. Onojobi

    October 13, 2019 at 6:34 pm

    Thanks NAIRAMETRICS for bringing this information to our attention. Mr Gates’ strategy is worth emulating for financial growth.

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