Billionaire Watch
Nigerians are freaked out as Femi Otedola donates N5 billion to charity
Nigerians are freaked out as Femi Otedola donates N5 billion to charity
Nigerian billionaire, Femi Otedola, has once again demonstrated his altruism by donating the whopping sum of N5 billion to Save the Children, a nonprofit organisation. The development has surprised Nigerians, many of whom were quick to observe that this is the largest amount of money any individual has ever single-handedly donated for charity purposes in Nigeria.
How it all went down: Florence Otedola, the celebrity daughter of Femi Otedola, who is also popularly known as DJ Cuppy, organised a gala, yesterday, through her Cuppy Foundation. The purpose was to raise funding for Save the Children’s operations in Nigeria. The UK nonprofit, to which DJ Cuppy serves as an ambassador, has been playing a pivotal role in the effort to save the children in Borno, Adamawa, and other parts of North Eastern who have been affected by the activities of the terrorist group, Boko Haram.
The N5 billion donation was announced by Tolani Otedola, another popular daughter of the billionaire businessman and former Chairman of Forte Oil Plc. Following the announcement at the Congress Hall of the Transcorp Hilton, Abuja, the billionaire was appreciated by those in attendance, including Nigeria’s Vice President, Yemi Osinbajo.
“My father, Mr. Femi Otedola, has been at the forefront of supporting worthy causes. It is in this spirit that he will be donating the sum of N5bn to the children of Borno, Adamawa and Katsina through the Save the Children.”
Tolani Otedola announced the donation of their Dad Mr @realFemiOtedola at the #CuppyGoldGala which is the sum of 5billion Naira. pic.twitter.com/iqDjOHsCqf
— Sulai Oduwole (@SulaiOdus) November 10, 2019
Many Nigerians on social media were pleasantly surprised by the donation and have not ceased showering the man with praises for the kind gesture. Others have also pointed out how he is always supporting his daughters.
[READ MORE: Femi Otedola is having a Gelato experience with his billionaire friends]
https://twitter.com/VEJ0ME/status/1193634828312350725
https://twitter.com/UtdChi/status/1193628318224076800
In the meantime, other people are still trying to understand how someone can single-handedly donate that amount of money. Abbah specifically wondered how N5 billion could just be deducted from someone’s account without such a fellow being hospitalised. Well, that’s one of the pecks of being a billionaire.
https://twitter.com/M_Abba_/status/1193640414483492864
Note that Femi Otedola has always been very altruistic. Nairametrics reported that he offered to sponsor a little girl who was seen singing along to DJ Cuppy’s Gelato song in August. Parts of the lyrics to the song asks the question, “who’s your daddy?” to which the little girl screamed, “Otedola!!!” This apparently amused the man, so much that he promised to “provide her scholarship from now through university!”
[READ ALSO: Billionaire Watch: Otedola fulfils $25,000 pledge to Super Eagles]
He had also previously donated so much money and given several other people scholarships, and even facilitated medical aid for popular Nigerian actors – Victor Olaotan and Sadiq Daba, both of whom were separately involved in a ghastly accident and diagnosed with prostate cancer.
Billionaire Watch
Google founders earn $42 billion in 100 days
Impressive growth in the US economy boosted buying pressure on Google shares as its founders saw their wealth valuation surge.
Google founders Larry Page, 48 and Sergey Brin, 47 have earned more money collectively than the total foreign cash reserve holdings of Africa’s biggest economy.
Larry Page, currently worth $104 billion, has earned $21.2 billion in 100 days; while Sergey Brin, with a wealth valuation of $100 billion, earned $20.4 billion in the same period. Collectively, both men have earned $41.6 billion, dwarfing Nigeria’s foreign cash reserve which currently stands at a gross valuation of $35 billion.
The majority of Larry page’s wealth comes from his stake in Alphabet, the parent company of Google. The Standford trained entrepreneur currently holds $12.6 billion in cash.
Sergey Brin’s wealth valuation is also derived from his stake in the world’s most popular search engine and presently, his cash holding is valued at $12.7 billion.
Impressive growth from the world’s most powerful economy boosted buying pressure on Google shares and its founders saw their wealth valuation surge. Global investors are increasingly holding on the tech juggernaut’s shares as amazing economic data from America’s service industries coupled with an advance in the tech sector fueled the hike in Google shares seen in recent months.
Consequently, investors are piling significant amount of funds into Alphabet Inc., the parent company of Google, with reports saying it won its most recent supreme court case against Oracle, a case that has lingered for about 3 years.
Recent price action reveals the stock is presently trading at $2,285.88 nearing its 52-week high of $2,289.04 with a yearly return on investment currently pegged at 89%.
Stock pundits are surprised by such record gains in Google shares despite a swift move seen lately by some institutional investors into utility, energy-based stocks and of late U.S Treasury bonds.
The company currently has a market value of about $1.54 trillion.
Billionaire Watch
Reinvestment: The powerful strategy used by the 2 richest men in the world
Bezos and Musk increased the stock value of their companies by investing back into the company, the proceeds they made from it.
Jeff Bezos and Elon Musk are collectively worth $372bn. They are the two wealthiest individuals on earth. Their wealth has grown significantly over the years and it looks likely to remain so.
To give you a clear picture of the significant increase in the wealth of both men, read the points below.
- According to Business Insider and Bloomberg, Jeff Bezos’ net worth increased by 59.1% in 2020. The tech billionaire added a humongous $67.9bn to his fortunes in 2020 and is currently worth $197bn.
- According to CNBC Elon Musk started 2020 with a net worth of $28bn, he is currently worth $175bn.
Both men have employed some interesting strategies in growing their wealth to the point that it currently is, and this article will harp on one of these strategies.
Reinvestment
Reinvestment as an investment strategy is defined by Investopedia as the practice of using dividends, interest, or any other form of income distribution earned in investment to purchase additional shares or units, rather than receiving the distributions in cash.
In very simple terms, it means ploughing the income you make from an investment back into it, rather than receiving the income as cash. Jeff Bezos and Elon Musk both employed this strategy to grow their wealth in one year.
How the multi-billionaires did it
The Reinvestment strategy has been proven over time to increase the value of a stock or mutual fund. Buying a huge stake in your own company shares encourages more investors to also buy your company shares. Jeff Bezos and Elon Musk increased the stock value of their companies by reinvesting some of their profits and in so doing, they significantly got richer.
Jeff Bezos’ reinvestment strategy
Jeff Bezos retains part of his wealth in his company’s stocks. This means that instead of collecting all of his profits in cash, he retains some in his company by buying its shares. He currently owns about 11% of Amazon’s shares according to a November 2020 SEC filing.
The result
- Jeff Bezos added an extra $67.9bn to his net worth in 1 year.
- Amazon’s stock price rose by a staggering 70% in a calendar year.
- Jeff Bezos is currently the richest man in the world.
Elon Musk’s reinvestment strategy
Like Bezos, Elon Musk also retains part of his wealth in his company’s stocks. He owns over 20% of Tesla stocks. His reinvestment strategy played a major role in driving Tesla shares to a whopping 740% increase in 2020.
The result
- Elon Musk’s Tesla Stock price increased by 740% in just 1 year.
- His net worth increased by over 500% from 2020 to 2021.
- His company got into the S&P 500 index and he became the second richest man in the world.
What you should know
Jeff Bezos is the world’s richest person for the fourth year running, according to Forbes while Elon Musk moved from his 31st position to his current 2nd place on the Forbes billionaire ranking for 2021.
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