ADEOGUN, FUNMILOLA OLUWATOSIN LECTURES ON FINANCIAL INVESTMENT: THE THREE SERVANTS (Part 10)

Remember the lesson in part 9 is SAVE TO EARN, DON’T SAVE TO HIDE.

With the master-of-the-talents’ goals established and the servants’ investment mandate clear, the talents are allocated and performance systematically reviewed. Following the master’s journey, he meets with the servants who report their investment results and account for the talents. The lead servant reports a 100% return on assets, comprising 71.43% of the master’s total return. The second servant also had a 100% return, comprising 28.57% of the total return. The third servant returned the principal talent with no capital appreciation, income, or interest.
The weighted return for the owner over the long term was 87.50%. The 100% return of the faithful servants could illustrate 12% compound average annual returns during an economic cycle of a 6-year, for example.

To complete the investment process, the master reallocates the talents from the underperforming servant and rewards the best performing lead servant with $56,320,000 or 73% of $76,800,000 total assets under management.
Two servants remain in faithful service to the master while the third is removed from his responsibilities.

The financial system is intact!
The lead servant is motivated and rewarded by his success. The second servant performs well and is also rewarded.

The third servant is removed from management.

Lesson: Don’t hesitate to remove an unproductive servant from your management.

FUNMI ADEOGUN

* has applied SKILLS in
* Corporate and Business Law(LW)
*  Reporting (FR)
* Performance Management (PM)
* Financial Management (FA)
* Audit and Assurance (AA)
* Taxation (TX)

* she has applied KNOWLEDGE IN
* Business and Technology (BT)
* Financial and Accounting (FA)
* Management Accounting (MA)

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