MUCH HAS BEEN SAID ABOUT THIS TOPIC IN ALL FORMS OF MEDIA, BUT LET’S TAKE ANOTHER LOOK.

Starting from the beginning. What is investing? – Entrusting your money on a journey to grow.

What vehicle of investing do I take? – Not the quatrain, but something likes that.  It comes down to businesses, property, countries (gov bonds) and precious metals. Obviously there are other forms like art and cash; however cash is not much of an investment when you bring inflation in the equation.

So, to make the most money, I have to start or invest in a successful business. Even before you make any money, there will be expenses in the form of TIME, SALARIES, ADMIN, COMMUNICATION, TRANSPORT..and the list of costs continue.

Warren Buffet do not work in any of the companies he invest his money, but he does spend allot on making sure he invest in the correct companies. The vehicle you choose have fees, because there are people and expenses to those people, from physical to compliance and regulatory expenses.

Bank:

Invest R50 000, fees R5,50 + R1,20/R100 

Potential investment return: 5.5%

Investment house:

Invest R50 000, fees 3.5% + 1.1% + R25pm. ( Intermediary / Advisor, Fund Manager,the people working for you,)

Potential investment return: 15%

Finally, when comparing these cost with selling a property (3.5% - 10%) or a business ( 7% - 15%) which is the fundamentals of investing, it makes sense why millions of people invest through investment houses.

 There are risks in all journeys and in some more than others. I've been reminded that investing with your ego can be very costly.

At the end of the day, the choice is yours.