When it comes to where and how to invest your money, it is wise to listen to people who have made the right investments right?
Bill Gates and Aliko Dangote
Aliko Dangote is the richest man in Africa with $15.7 billion to his name, while Bill Gates is the richest man in the world with $87.4 billion as his worth.
Let us take a look at the investing tips offered by this wealthy men:
1. Invest only in what you understand
In 2012, Aliko Dangote spoke in an interview with MTV Base about investing, and one key thing he said was that he did not invest in anything he does not understand completely.
This he said was one way he made sure his organization was focused. A thorough understanding of each venture helped him avoid making stupid investment decisions.
2. Invest in your education
In 2014, Reddit organized an “Ask Me Anything” session with Bill Gates and when someone asked: “What is your best personal financial advice for people who make under $100,000 a year?”
His answer was:
“Invest in your education.”
That might be startling considering Bill Gates dropped out, yet educated people earn better than uneducated people, that is a fact.
3. Diversify your investments
The Dangote group has investments in many sectors ranging from cement to sugar, textiles, real estate, steel, telecommunications, poly products, port operations, and even now, an eight billion dollar oil refinery is reportedly the works.
Like every brilliant entrepreneur, Aliko Dangote has multiple sources of income. Investing in diverse sectors helps a business stay afloat even in difficult economies.
4. Love criticism
“Business @ the Speed of Thought,” is a book Bill Gates published in 1999, he wrote extensively on the importance of negative feedback. He said that complaints and dissatisfaction from your customer should be studied in order to do better.
“Your most unhappy customers are your greatest sources of learning,” he wrote. “Embrace bad news to learn where you need the most improvement.”
5. Be a producer
Being a producer is vital to be a wealth creator. Initially, Aliko Dangote, started in importing and trading in commodities for many years.
However he one day moved into production, setting up eleven factories at a go, to kick-start his manufacturing career.
Though expensive, manufacturing is one great way to really control your pricing, and bring products down to the consumer level at really affordable rates.
6. Learn to say NO
No one knows that better than Bill Gates the importance of being able to say no. He once repeated the words his friend
Warren Buffet said to him, during an interview:-
“You have to be good at saying no.”
Gates said that was among the best advice he had ever received. He explained that saying no allows you to concentrate on the things that really make a difference.
7. Sell a Brand not a product
The Dangote brand is one of the most valuable brands in Africa. Selling a brand is far better than selling a product. In Nigeria especially, almost anything branded as “Dangote” almost always wins the market’s trust.
As you grow your business, making sure people can identify your brand image, is one great way to grow and succeed in the long term.
While giving a commencement speech to Stanford University students in 2013 with his wife Melinda, Bill Gates spoke at length about optimism and its importance to success.
Using his philanthropic work in Africa as a good example, he explained to the students that they needed to be optimistic in order to achieve their goals.
“Optimism is often dismissed as false hope. But there is also false hopelessness,”
Dangote’s networking skills and ability is also when way he was able to make and grow his wealth. This connections came through for him when he needed them for the prosperity of his business. This connections enabled him get the license to import cement, before he started producing.
10. Measure your progress regularly
Bill Gates, in his 2013 annual letter for the Bill and Melinda Gates Foundation, wrote about a book he was reading, “The Most Powerful Idea in the World.” It was about the invention of the steam engine, but Gates drew an important lesson from it.
“You can achieve amazing progress if you set a clear goal and find a measure that will drive progress toward that goal,”
So keep a clear target and check your progress regularly.