Speaking at the Nairametrics quarterly Digital Investments for Gen Z webinar themed, “How to invest with the world on edge”, Ola Oladele, founder of Money Wit Club responded to questions about the possibility of achieving high yield investments in the current volatile period. She stated that this could be achieved when investments are entered into with a long-term view.
She said, “I think it is very important for the Gen Zs to adopt looking at investments for a long-term period. When we say time is your best friend and you have time on your side, there is something called compounding that we are referring to. If you are thinking short term, you won’t take advantage of the benefit of compounding.”
However, she explained that when it comes to investing, even on the Nigerian stock exchange, there are some stocks that have delivered 40% this year and there are some that have delivered 20% loss.
“You have to recognize that if you are thinking short-term, you are sort of thinking like a trader and when you think like a trader and expect high yield, you should also factor in that return is a reward for risk, and so, if you are looking for high return, you should also be anticipating that there is going to be some high risks there,” she said.
According to her, high return is usually a reward for high risks, although there are times when low-risk investment provides high yields.
Addressing the deterrent factors to real estate investments in the current macroeconomic environment, Dolapo Omidire, Founder, Estate Intel stated that one of the biggest challenges for people that invest in Real Estate is the lack of data and information.
He said, “Whether or not it’s in the tough environment or in a good environment, I think one of the problems we’ve found in Nigeria is that information, data points to understand the direction of the market and quality information to make those decisions is not really available.”
- Another factor he mentioned was the fact that real estate investment is capital intensive and it is not traditionally a gateway asset, unlike shares that you start off with, as before a property can be purchased the individual has probably been saving for many years.
- He stated that there are now startups that make such investments easy by allowing investors to buy divisible portions of a property after which the return is shared amongst the investors. He said, however, that this initiative does not provide the utility of use, like building one’s house or purchasing a property in one’s name.