FUNMI ADEOGUN FINANCIAL NUGGETS: THREE SERVANTS (Part 9)
ADEOGUN, FUNMILOLA OLUWATOSIN LECTURES ON FINANCIAL INVESTMENT: THE THREE SERVANTS (Part 9)
Remember the lesson in part 8 is that ‘A servant must understand the time value of money.’ For example, the dollar had an average inflation rate of 5.6% per year between 2020 and today, producing a cumulative price increase of 11.71%.
Given the master’s investment goals and description of the servant’s investment actions, we may deduce their respective investment styles.
1. to make gains by trading;
2. to bear or cause rightly to perform with the designation of time;
3. to profit or gain and avoid loss;
4. to hide or save.
the lead servant is best understood as a trader and long-term investor.
the second servant is also a long-term investor, but has limited capital and is therefore presumed less active and likely sought a fixed rate of return.
the third servant hides the money in savings, commonly done in a field, rather than seek some type of yield from the bankers. It is clear that there is no reward or return without assuming some level of risk.
Lesson: SAVE TO EARN; DON’T SAVE TO HIDE.
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