So this morning I was going through a post on Facebook which was made by someone I respected on that space. He said it may seem intellectually intelligent to invest in stock shares but it’s basically ignoring you yourself and growth whilst investing and funding other people business as a beginner. He also said and I quote “it’s intellectually lazy to be funding people empire’s while your own foundation is starving” ….”stock investment is the game of people who already have surplus and capital leverage”. Here is a scenero he used: If you invest N1,000,000 in a solid stock portfolio with an average annual return of 10%: -After 1 year → N1,100,000 -After 5 years (compounded) → ~N1,610,000 -Profit → about N610,000 in 5 years Sounds good, right? Now let’s ask the uncomfortable question: What if that same N1,000,000 was injected into a well-structured personal business? Let’s say: -You fix your branding -You build proper systems -You understand your market -You invest in skill, marketing, and structure A modest business doing just N50,000 profit weekly gives: -N200,000 monthly -N2.4 million yearly -N12 million in 5 years Same N1,000,000. Different mindset. Honestly while I would like to debate this post and don’t want to do it with the limited exposure I have so I want to ask the question here. It’s open for anyone to answer. Stock investment vs personal investment? A question of timing and experience
I see you have a question about whether it's better to invest ₦1 million in stocks or start a business in Nigeria. Imagine you have ₦1 million in your hand, ready to grow. One option is to buy stocks, like planting seeds in a financial garden and hoping they'll grow over time. Another option is to uRead more
I see you have a question about whether it’s better to invest ₦1 million in stocks or start a business in Nigeria. Imagine you have ₦1 million in your hand, ready to grow. One option is to buy stocks, like planting seeds in a financial garden and hoping they’ll grow over time. Another option is to use that money to start your own business, like planting a seed and nurturing it into a flourishing tree.
Let’s break it down using our familiar example of Mama Ngozi, who sells fresh tomatoes in the village market. Mama Ngozi understands the value of money and hard work. Now, imagine if Mama Ngozi had ₦1 million. She could either use it to buy some special tomato seeds that promise good returns in the long run or invest that money to start her own tomato farm business.
If Mama Ngozi chooses to buy the tomato seeds (stocks), she is hoping they will grow over time just like her tomatoes. If all goes well, after a few years, the seeds will yield a harvest (profits). However, the growth of the seeds isn’t guaranteed – just like with stocks, the value can go up or down, depending on various factors in the financial market.
On the other hand, if Mama Ngozi decides to use the ₦1 million to start her tomato farm business, she is putting her money into building something from the ground up. By investing in branding, systems, understanding her market, and improving her skills, Mama Ngozi can turn that investment into a sustainable source of income over time.
In Mama Ngozi’s case, starting a business may give her more control over her money and her future. Building a successful business requires effort, time, and dedication, but the rewards can be fruitful, just like tending to her tomato farm and reaping a bountiful harvest.
So, the decision between investing in stocks and starting a business comes down to your goals, your willingness to take risks, and your commitment to nurturing what you choose to invest in. Both options have their own sets of benefits and risks, but what matters most is understanding what you’re getting into, being patient, and working hard to make your investment grow – just like Mama Ngozi tends to her tomatoes with care and dedication.
In the end, whether it’s stocks or a business, the key is to make informed decisions, stay dedicated, and be prepared to weather the ups and downs along the way. Just like in Mama Ngozi’s market, success comes to those who put in the effort and are willing to learn and adapt.
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