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Investment Guide

Become An Angel To Avoid Investor Demons



The future is difficult to predict; perhaps the solution for entrepreneurs to stay afloat is to create it.

This is when high-growth asset classes, in the form of stocks, bonds and their cash equivalents, are something that entrepreneurs should enjoy having in their personal portfolios. They make it more comfortable for an entrepreneur to take risks. If an entrepreneur’s business venture fails, an asset class will act as a soft cushion for them to fall upon until they are able to rise again.

Real estate is a safe but overrated investment option. Even celebrities are given this clichéd investment option to safeguard their future. An advantage of real estate is you can choose whether to invest your money in commercial buildings, like office blocks, shopping centres and industrial buildings, or residential buildings, which includes apartments or houses, in the form of holiday houses or rental properties.

But, this is advice anyone can find on Google, or the first thing your financial adviser will tell you. The problem is some of these properties have an annual growth rate that is comparable to leaving your money in a savings account at the bank. Basically, any financial adviser who talks about property as a core investment is an amateur.

Successful African entrepreneurs need to spread their wings and invest in multiple asset classes.

Passive fund management is quickly taking over from active fund management, which charges high management fees, yet rarely outperforms the market. When you claim your money back, the money reflected on paper at the time of payment will be deducted to leave you an amount that will not make you smile.

Larry Fink, Founder of BlackRock, the largest global fund manager with $4.3 trillion in assets under management, noted an emerging trend of massive amounts of money that are flowing from active management to passive management.

Low-cost passive indexation fund managers are not yet popular, but they are the future, with undeniable value proposition. Entrepreneurs who want to secure their family’s future should consider passive asset managers, with guaranteed returns and the option to tailor your indices to those that are performing best in the market.

My advice is to consider becoming an angel investor of about 10 funds in start-ups, and small and medium-sized companies. They can be risky, hence the small percentage, but if you make it, the rewards are huge. This will also be an exciting experience for an entrepreneur to help other entrepreneurs grow, similar to what Peter Thiel did with Mark Zuckerberg and Facebook. It proved to be the best decision he made after co-founding PayPal with Elon Musk and Max Levchin.

Many billionaires become angel investors in start-ups around the world, from China to Germany, Kenya, the United States and India. They claim the experience is more rewarding than just trading on the stock exchange.

Jimmy Wales, Founder of Wikipedia, is a small angel investor in Quora, which has built an online community of intellectuals. Steve Case, Founder of AOL, funded dozens of start-ups through his investment firm Revolution LLC, where he focuses on growing them.

Depending on how big your bank balance is, you may consider investing in art, antiques and vintage cars, like Aston Martin, which is one of the few cars on the planet to appreciate with time.

However, paintings and other vintage items, is a game only the rich can play. If you have really made it as an entrepreneur, it will suit you to have these types of items in your portfolio. China’s millionaire art collector, Li Guochang, is preserving his wealth this way.

If you don’t have piles of cash, you need not worry. As an entrepreneur, you don’t need to be it to start participating in asset classes to secure your financial future.

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Cryptocurrency for Africans




George Gordon is on a quest to revolutionize the financial system. The director of Africa Master Blockchain Company talks digital currencies, blind risks and board games.

What is this new African cryptocurrency you are offering?

Where the majority of current digital currencies are based on speculative models, AfriUnion Coin (AUC) and the AfriNational Tokens (ANT)are designed for a transactional purpose allowing international payments, remittances, foreign direct investment as well as day-to-day transactions at local retail stores and other outlets. While the option for speculative trade is available with AUC, the focus is not around that.

Each African country will have a specially-designed ANT which will allow users to pay for goods and services and bills easily through completely digital means without requiring any bank account. AUC and ANT will be fully interchangeable to one another and there will be no fees for the user.

It’s the natural next step for digital finance from mobile banking which most Africans are accustomed to. The ability to freely have the power to send and receive money locally and internationally will allow the freedom of choice and spending power many Africans don’t have currently.

What is your own investment philosophy?

I am a gambler! I believe in taking risks and putting things on the line. That being said, blind risk or whimsical guesses don’t get you very far. Always acquire enough information to understand to a reasonable level what the thing you are planning on investing is or how it works and then trust your instinct and gut feel.

What advice would you give entrepreneurs wanting to invest in blockchain?

First, do some research in terms of what the blockchain technology is being applied for or created in terms of its application to an industry or project. Thereafter, check the white paper for the design of the platform as well as its functionality and applicability to what it is trying to achieve. If it aligns with your personal investment rules, then go for it,however, remember that blockchain is continuously evolving and thus you need to explore outside the usual and standard.

First cash-less, now card-less. What is the future of online banking?

If we are looking into what is currently science fiction, I would say the future is digital contact lenses that will be able to connect you to all your social media accounts, internet, news as well as make payments by just looking at QR codes or specialized barcodes to approve and accept payments.

Now, realistically we are not far off from such innovation and technology, but for the time being, I think the next step is scanning of QR codes at retailers and having the transaction automated from your wallet to the retailers digitally.

What is your most prized investment and why?

My mind. I believe that the work I have put into developing my mind, and continue to do so every day, is the number one investment that I have ever done. It allows me to look at things in a unique perspective as well as provides me with the tools to push boundaries and create new opportunities.

Money, success, fame? Which is most important to you?

I would have to say success… because it is most likely going to bring the other two as well, right? But success in the form of starting something and letting it grow and succeed and knowing that something new exists because of your efforts.

What do you spend your money on mostly?

Board games. I love board games and believe it’s a fantastic way to expand your mind as well as have fun with friends.

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Investment Guide

King Price CEO On Why He Invested On Insurance



King Price Insurance’s CEO Gideon Galloway, who built an insurance company in South Africa worth over $226 million in six years, talks investments, industry trends and how self-driving cars will change the entire car insurance landscape.


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Offering The American Dream



Gar Lippincott and Daniel Ryan of Atlantic American Partners were in South Africa recently looking for high-net-worth individuals wanting to invest in the US.

It’s a warm spring day in September, and Gar Lippincott and Daniel Ryan have just arrived in South Africa. It is Lippincott’s first time in the country, and he is jet-lagged.

A little over two months ago, he was booked to fly here from the United States (US) but was turned back at immigration.

“At Atlanta airport, the lady looked at Daniel’s visa and let him through and she looked at my visa and she said ‘I am afraid you can’t get on the plane because you have to have a blank page on your passport’. I said ‘I have three blank pages’ and she said ‘no, it’s supposed to be the one that says visa on it’. She said it’s the rules in South Africa so I had to sadly go back home… now when I was coming, I was told that’s not an issue anymore so I am happy they have made traveling into the country easier,” says Lippincott.

With a brand-new passport, he’s here with Ryan looking for people who want to invest in the US in exchange for a green card.

Lippincott, the Managing Partner of Atlantic American Partners, says he has always been keen on South Africa for its growth opportunities and prospects.

“From what I understand, the things that are causing short-term decline in the economy in South Africa are set up to provide long-term growth and hopefully people will understand this,” he says. Ryan, the company’s Managing Director of Emerging Markets – Africa, agrees: “I lived in Malawi for 12 years and South Africa is still considered the shining one throughout the continent. Even with all the problems, everyone still wants to come here because of the opportunities.”

According to an AfrAsia Bank report, South Africa comes second to Mauritius in boasting the highest number of high-net-worth individuals.

These are the kind of people Ryan and Lippincott target through their work at Atlantic American Partners. The company has real estate investors and professional private equity fund managers that manage money for banks, insurance companies, and pension funds. In addition, they help people get US green cards and ultimately US citizenship through the US government’s EB-5 Immigrant Investor Visa Program.

“Basically we look for people who want to move to the United States and we help them do so legally by investing and the nice thing is, with our program, they are also able to get a nice return on investment,” he says.

According to Lippincott, for a $500,000 investment that creates 10 jobs for American workers, you could get a green card in about two years and be a US citizen in about six or seven years. “Twenty seven countries have an investor visa program but with most of them, it’s essentially a fee you pay, or you need to be actively engaged in the day-to-day operation of a business. For example, you invest $1.5 million in Australia, but you need to hire employees and generate a certain amount of revenue. One of the biggest advantages with our program is you actually invest the $500,000 into a fund. We act as a trustee of that money and within five to seven years, they get that money back with a bit of return on investment and you are a permanent citizen in the US.”

Atlantic American Partners invests the money in real estate developments like hotels, apartments and student accommodation.

“What’s nice about the program is it doesn’t only cover the investor; it covers the spouse and children under 21. Our biggest family was a Hungarian family with seven children so they got nine green cards for $500,000,” says Lippincott.

The company says it has had positive response in South Africa. “Two months ago, we were here and we had scheduled six presentations for 100 people and we ended up speaking to 450 people. Most were business people, people worried about the economy, people worried about the political future of South Africa and people concerned about the education future of their children,” says Ryan.

According to Lippincott, despite the news of the clampdown on immigration, the US economy is booming and will perish without immigration. In the era of Donald Trump and his anti-immigrant views, that’s heartening news indeed.

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