The Truth Shall Make You Rich

The author, Farrah Gray, refutes the fallacies that serve as the biggest obstacles to success or wealth. Contrary to popular opinion, money is not the only yardstick for measuring success. Money is subject to the Law of Diminishing Returns; it buys happiness only when it moves one out of poverty, but more money does not bring more happiness. According to him, a successful person has financial, emotional and spiritual security.

Farrah offers practicable recommendations on maximising one's potential. Being rich is being happy, knowing who you are and using your talents to the best of your abilities. Regrettably, we continue to hold on to false beliefs out of fears-fear of change, fear of taking risks and fear of failure. And all we do is fantasize about prosperity. Most of us live our fears not our possibilities-to put it succinctly. Developing our skills is an essential condition for success. Failure to make a distinction between skill and desire is a recipe for failure. Skill is what you are capable of doing while desire is a general interest or fascination.We are advised to get out of our comfort zone and show up for success.

In a world plagued by “get-rich-quickly” malady, this book is an indispensable guide for anyone who wishes to realise his dreams.



1.  The Born-Lucky Lie

Lie: I have to be born with connections or special talent to be rich.

Truth: Luck is showing up. You can't win if you don't play.

The born-lucky lie is one of the myths that permeate the society and impede the realisation of people's potentialities. We often attribute success to luck which, in our opinion, is getting something for nothing. But successful people are developed-not born.  These are people who continually learn and acquire skills in readiness for success. Farrah posited that luck is, actually, doing something. You are lucky when you build a fortune from inner integrity and fervent work. You cannot afford to leave your destiny to luck. If you choose to use your talent, you can do great things regardless of where or under what circumstances you were born.

The only road to success is working on enhancing your self-esteem.This helps you discover your real purpose in life. Money and material goods only mask your low-esteem. The solid foundation to prosperity is from the inside-out.

2.  The Work-Hard Lie

Lie: I have to work hard and be willing to make sacrifices to be rich.

Truth: Work less, make more. Find your area of excellence.

Work alone is not, necessarily, a guarantee of success, but a combination of skills, passion, drive and ambition does make a valuable guarantee.  According to the author, “If you are not working in your area of excellence, then you are working aimlessly”. You can only get to your real destination by working to make your talent flourish.You have to make an endeavour to do what comes natural to you and get the training for it.

Age is not a barrier to living your dream; you are advised to reinvent yourself in order to give people who spread the age lie an endless run for their money.

3.  The Celebrity Lie

Lie: I have to hit it big in the entertainment or sports world to be rich.

Truth: A celebrity is someone who is celebrated- someone who shows up to do something well.

Farrah maintained that celebrities are ordinary people who become extraordinary by virtue of their willingness to pursue their talents and show up. You will be noticed if you  devote  time and effort to what you are supposed to be doing.So concentrate on your own talents rather than getting  caught up in wanting to be a celebrity.

4.  The Money Lie

Lie: I have to have money to make money and be rich.

Truth: The path to millions starts with one dollar.

Many people, erroneously, believe that it takes a huge amount of money to succeed. But smart people know that the best things in life are free-requiring nothing more than investment of time and love. People will pay for your talents.

Successful people have some traits and habits that are worth emulating. You should live below your means and save about 10% to 15% of your salary.  Do not accumulate debt to support your lifestyle but to build assets.

5.   The Debt Lie

Lie: I have to have zero debt to be rich.

Truth: You must have debt to get rich. You must use debt to get rich.

Debt is a necessary step toward fortune. You can get on your way to wealth if used wisely. Debts that are largely spent have little to no value and cannot be used to invest in the future; Farrah calls them  “lie-abilities.”

Besides, your financial obligation should not deter you from going for what you are passionate about. Great businesses are not built on cash but on credit. You can turn your crafts into a corporation without reinventing the wheel. Investing in a chance requires great daring; playing it safe always will not provide safety in the long run. Conquer your fears- fear of failure, fear of making mistakes, fear of rejection and fear of debts. They do not exist; they are lies created by the society.

6.  The Google and Gates Lie

Lie: I have to be super-smart and invent something the world relies on to be rich.

Truth: Intelligence, wit, and inventiveness will only get you so far. Big things are born from satisfying small niches.

Success is no longer measured by being #1 or #2 in a field-it's finding a niche and creating something new or improving an existing product or service. Degrees alone do not make the money- you make the money based on your brilliant ideas and how well you can execute them. Dreams alone do not make the money; but the execution of dreams is a prerequisite for wealth. Surely, we all have the potential to be entrepreneurs; it is encoded in our cells as humans struggling to survive on earth.

7.   The Wall Street Lie

Lie: I have to know a lot about the stock market or work on the Street to be rich.

Truth: Returns on investments don’t come directly from Wall Street. They arise from within you based on what you know and love.

Indeed, most of the financial world revolves around Wall Street and the transactions that take place on the exchanges. Apart from stocks and real estate, you can make money collecting vintage like bottles, buying toys and dolls, or buying stock of a company that sells these products. Alternatively, you can set up your own company.

However, you can benefit from the same logic that a Wall Street investor would apply to buying stocks: doing research first.When you invest in what you are familiar with, you stand to gain a healthy return over time as your investment grows in value.

TRANSNATIONAL CORPORATION OF NIGERIA PLC

TRANSCORP buys out companies and subsequently runs them as part of a diversified group. Following the success achieved in the management of Transcorp Hilton Hotel Abuja, TRANSCORP has branched out into power, agriculture, and oil and gas in order to spread its risk. Though incorporated as a private company in November 2004, its shares were not listed for trading on  the floor of the Nigerian Stock Exchange until December 2006. 

Members of the TRANCORP Group include Transcorp Hilton Hotel Abuja, Teragro Commodities Limited, Transcorp Power Limited, Transcorp OPL 281 Nigeria Limited and Transcorp Energy Limited. Transcorp OPL 281 Nigeria Limited which was licensed to prospect for oil in the Western Delta Region of Nigeria has yet to discover commercially viable oil and hence presently contributes nothing to total revenue.  

The company benefits from the goodwill and global distribution network of the Hilton Group to bolster up revenue from its hospitality business. Revenue  from the hospitality division rose from NGN14 billion to NGN15.3 billion between 2015 and 2016.

Transcorp Power Limited produced 65.4% revenue increase as a result of 54% upward revision of electricity tariff by the regulatory agency, the Nigerian Electricity Regulatory Commission. And on top of that the power generation company still lost about NGN8 billion before tax  at 2016 year end.

Debts are rising and liquidity is being hurt as receivables are mounting.

Power generation in Nigeria is inadequate and the company stands to benefit from this going forward.We are of the opinion that TRANSCORP would be a good investment over the long haul. 

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Is UAC OF NIGERIA PLC fairly priced?

UACN is a diversified business whose operation in Nigeria dates back to 1879.  The company is an active player in the food and beverages, real estate, paints and logistics sectors of Nigeria's economy.

UACN is a leading player in the food and beverages industry with its brands of Mr. Bigg's, Gala, Supreme Ice Cream and SWAN Natural Spring Water.

Food remains its core business and revenue from this segment has been increasing over the years. UACN should benefit from the Quick Service Restaurant business owing to the large branch network of its franchised restaurant, Mr.Bigg's.Gala Sausage Roll remains a leading brand in the country. 

Operating profit covers interest obligations and current assets cover short-term debts. In a nutshell, we believe that UACN is liquid and solvent.

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University Press Plc

UPL, one of the foremost publishers in Nigeria, started as Oxford University Press in 1949. A change of nomenclature to University Press Limited was effected following incorporation as a limited liability company in 1978.Thereafter, its shares were listed on the Nigerian Stock Exchange.

UPL has yet to have a foothold outside Nigeria. Offshore sales account for about 2% of sales over the years. Primary education remains the major contributor to revenue. The western and northern parts of Nigeria are responsible for about 78% of both revenue and operating profit. Tertiary and general reference books generated less than half of the revenue of three years ago.  

The company is generating free cash flow. It pays dividend to shareholders consistently and it is not bogged down by debts.

Slack sales that can be attributed to the current economic realities could make stocks build up and capital tied up in stocks. Also, better working capital will help prevent cash flow and liquidity problem. 

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BERGER PAINTS NIGERIA PLC

 BERGER, a paint manufacturer of premier rank, started paints manufacturing in Nigeria in 1959. BERGER prides itself on the production of   decorative finishes, marine coatings, industrial coatings, automative coatings and wood finishes with leading brands such as Texcote, Luxol andSuper Star. 

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BERGERpartnered with KCC Corporation (South Korea), a world-renowned chemical company, in 2012 to offer quality coatings to the marine industry. In addition, the company has embarked on automation of its plant in order to improve productivity and efficiency of its operation. 

Management has not rested on its laurels.Apart from manufacturing, the company also engages in painting for customers. The company made NGN52.5 million from painting contracts in 2016 (2015: NGN327.8 million). At present the company derives all its revenue from Nigeria.In our opinion, the offshore expansion being pursued by the management would help diversify its revenue sources and reduce its business risk.

Beta

Beta is a measure of the volatility of a security in relation to the

market. It helps the investor to understand the impact of market movements on the expected return from a security. The

market has a beta of 1.00.

A stock with a negative beta moves in opposite direction to the stock market while a positive beta indicates movement in the same direction. 

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Real Estate: Another Source of Excitement?

Whether you are contemplating buying your 1st house or your 20th property, you will find this article helpful. The responsibility to uncover areas with potential cannot be delegated. Even when armed with good advisers, you have to rip open the curtain to reveal the truth behind any hype, rumour, misinformation, and sweeping sales statements.

Fundamentals, not emotions!

Although there is a lot of money to be made in property speculation, you need a deep pocket to do this well. But you can achieve the same result with less risk by investing based on the economics of the area the property is situated. Investment decision founded on reality is more profitable than the one centred on someone else’s opinions or perceptions.

Emotional investing only provides a short-term gain followed by frustration and despondency. The property market is like a bus transit system; when one leaves, another arrives. So, take time to ask probing questions and follow through.

You ought to jettison your simplistic approach and embrace a more robust, fundamental analysis.

You are the prime target as an investor!

The numbers and brilliant presentations by vendors should be independently confirmed. After all, that is their job: providing you with strong arguments to buy their properties.

Before a deal is consummated, cut through the hype and complete your investigation. Do not be pressured into taking rash decisions.

You are buying the future, not the past!

To unearth the future potential of an area in which your desired property is situated, pay attention to the following:

1. Population growth rate of the area.

2. In-migration and the drivers.

3. Average income in the area.

4. Political atmosphere

5. Area undergoing redevelopment and surrounding areas.

6. Area witnessing major infrastructural development.

7. Vacancy rate, sales price trend, rental price trend and the yield.