Invest with caution

Invest with caution
Source: Ghana| Kwabena Owusu
Date: 11-01-2019 Time: 01:01:27:pm

I remember somewhere in December 2017, when I went to visit a very good old friend of mine who is a book collector and also a book retailer at Korle Bu, to buy some books. I asked him, "Boss, I want to collect some books for next year. I am looking for books on finance, investments, or marketing. Which books do you recommend I buy?"

He then looked at me, smiled and said, "because you're about to complete school you think you're a big man so you don't read novels any more." I smiled back as he continued to tease me. He went behind hisself, brought two books and told me to hold on to these and he said to me: "Financial books can be very boring to read. I know you and the kind of books you like. I am giving you these books because of their writing style, the diction and their flexibility."

The first book was a book by George S. Clason titled "The Richest Man in Babylon" and the second one was book by John C. Maxwell also titled " The 360° Leader."

He then went on to talk about the two books. "Clason's book is going to teach you about money and how to handle money. It's going to make you understand the relationship between Hard-working ,money, investments, and Riches. Study this book like you're going to write a paper on it." He then continued with the second book, and he said; "This second book is also going to teach you about how to function productively in the workplace in order to become a very effective member in your corporation."

He told me that he is giving me this book because I am soon going to be a fresh graduate who is also going to work and save money some day. So this two books would help me "start my life."

I took his advice, took the two books from him at a subsidised price and started studying as promised.

In the wake of this whole Menzgold saga and how people's investments, including loans and people's project fundings (as purported by some customers) are supposedly on life support, i think it will be only fair for me to bring to highlight some interesting points raised by George S. Clason in his book "The Richest Man in Babylon." Which was first published as far back as 1926.

The book in a very unique way used ancient Babylonian settings and parables to capture in simple terms the relationship between hard-work, the importance of  savings, the basic logic behind every investments, and Riches.

I took the opportunity to really learn every single word in that book and I am glad I did.

One highlight of the book to me was a point raised about investments. and in connection with everything that is happening, I would like to share.


First of all the book tells us about the importance of investments as it raised the issue of securing the future.

 "Insure an income for the future. Look at the aged and forget not that in the days to come thou will be numbered among them."

The book tells us about the need to invest into the future but also came to advise readers strongly about "Bad Investments".

And it said; " Invest thy treasure with great Caution that it be not lost. Usurious rates of returns are deceitful sirens that sings but to lure unwary upon the rocks of loss and remorse."

The first part of the sentence is telling us to be very careful how we invest. He also made it clear that your money can and would be lost to bad investments. The second part of the sentence also explained that exorbitant (Usurious) returns sounds very pleasing to the ears but they are only to attract you to bad investments and destroy you ( in this case your money).

The book went further to advise us that if you want to invest in anything, find yourself an expert on that particular field, have a conversation with the person even if it is at a cost. Let the person advise you on the pros and cons of the industry or the history behind that particular company you are investing in, before  even make any move.

Now the question I want to ask my dear customers of Menzgold that, did they see any expert before investing their monies?

Did they really understand the business Model of Menzgold?

Did they take the time to rethink about how the company was going to give them that much returns every month?

Did they know the Professional and Educational background of the Directors and managers of the company before investing all their life saving into it?

Did they ever bothered to ask the hard questions? Or they were just comfortable with the business certificate hanging at their offices.

To be bold enough to arrange all your eggs into one basket without necessarily checking the strength of the basket is quite careless to me.

I believe that there are basic rules everybody should consider when investing in something.

If you don't take all precautions and you lose, accept your loss and move on.

By: Kwabena Owusu


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