The Art Of Personal Leverage (The Lecture Series).

This thread was created to help veteran investors, half-baked ones and the prospective investors in exploring opportunities of personal leverage.
I have a book titled with the above title and i even have the book pre-view here on Nairaland Investment section, but i'm surprised that i'm yet to get a comment, maybe the book is too technical or something else, i don't know, anyway just keep up with this thread to learn the basics tenets of investment, you will also be taken through the crucibles of how to master the use of personal lverage to amass huge fortunes like Donald Trump and other greats that have walked through the Investment world.

*** Watch out for Lesson 1 tommorow***

Following
OP, keep it coming,,

LESSON 1: THE POWER OF PERSONAL LEVERAGE

"Neccesity is the mother of Invention even if not : it is the father of Chance" - Olu Showunmi-Bancrofts

In today's globalized world, the opportunities to make money is very enormous; and never in the history of mankind has their been such opportunities to build wealth with other people's money -- it will be stupid of you to go through life towing the line of our forebears -- in poverty, without building wealth; utilizing the numerous profit-laden media available to all -- no matter your creed, race, sex or even your political ideology -- the opportunities exist for all to benefits. These profit- laden media have been used by notable men of finance and capital over ages to amass wealth. A wise-man once said, you don't need to send your child to school, just start teaching him about finance & politics, because finance is the "GUN", while Politics is "KNOWING WHEN TO PULL THE TRIGGER". In our world today, with financial power, you can crash a nation's economy..

LESSON 1 CONTINUES....

You can change unfriendly regime and no country is immuned from this kind of manipulation. I always says "financial power is even more powerful than political power if you know how to use it". Example of the possibility can be gleaned from George Soros and Bank of England saga -- In which Soros massively short against the British Pounds Sterling and in two days , Great Britain lost 20% of its reserves, this was huge for Britain and since then - George soros have been referred to as "The man who broke the Bank of England". This is the kind of power, men of finance wields in our world today and i'm here to offer you the opportunity to become a financial powerhouse too. This book was written specifically to teach you how to invest your resources wisely and also teach you how to "Pull the Trigger" in case you are thinking of becoming the next Soros, Who knows?

LESSON 1 PG. 3....


In 1952, a great financial mind by the name Billy Rose, staked his whole asset & all borrowable money to acquire New York (Central) Corporation Stocks. At that time Billy Rose needed to borrow money as much as you will need to buy a Gulfstream V Jet today, yet he unhesitatingly hocked his asset to buy on credit -- 500,000 shares of New york Central, which was also repeated afterwards with margined purchase of 400,000 units of shares of another utility Company, Why? It must be noted that Billy Rose like so many modern-day money managers understood the awesome power of personal leverage, to build extra profits for themselves -- not only in stocks, but in all other instruments available to them. Yes, Billy Rose really knows how to build his future with (Other People's Money) and to build wealth for himself and others. By now, you must be eagerly looking forward to learn more about The Art of Personal Leverage!

Quite an interesting writeup however i was hoping u'll expatiate more on personal leverage and some few technical terms like "soros massively short" and "margined purchase",these may not be understood by "non-finance guys". I totally understand all that you've said in your write up and I must say its expository *thumbs up* and please carry d laymen along as much as possible.
God be with you

@SIXTEEN08... I WILL TRY AS MUCH TO TONE IT DOWN AND EXPANTIATE MORE ON THOSE CRITICAL POINTS YOU NOTED!!!

It appears to me that its your 'personalized' version of stories once told in other books. Take away the alien examples and illustrations and you will get it right.

BOOKS IS ABOUT LEARNING AND WHEN YOU LEARN, YOU MUST TURN BACK TO WORLD WITH YOUR OWN EXPERIENCE AND KNOWLEDGE!

Olu,send me more info on foreign stocks;my email cieba777@yahoo.com

@Olu,bravo for this incisive and indefatigable analysis......looking forward to your next lesson.........pls how do i get the copy of the book

LESSON 2:

THE LEVERAGE GAME

In continuation of our first lesson, i will tried to talk about the "Leverage Game". As most Business people already knows, leverage is the application of credit -- which is to gain more monetary power from little investment outlay -- in some circles, this is called "Trading on Equity". A leverage-minded business manager must seek sources of short, medium & long term funding to create what is callled "financial mix" , projecting the maturities of each credit advance to fit-in comfortable to the company cashhflow that will meet each outstanding commitment as the need arises. Why will a business with good cash position borrows? Simply put, because they have abilities to make more money on the funds they borrowed. How? Well, examples of this principle lies on the increasing number of companies around the world running to different capital markets to raise money through equity and debt instruments such as Stocks, Bonds and Preference stocks....TBC.

LESSON 2 CONT.:

First Bank of Nigeria comes to mind in this regard, the bank raised $250 million @ 8% in 2010 through Bonds, and 2 years after -- the interest rates zoomed to 12.24%, you can call that "THE BIG ELEPHANT WISDOM".Even if first Bank did nothing with the borrowed funds, but just investing it back into the Money Market and deals in treasury bills & notes - which are quoted in the range of 12.70% and above. The Bank will have gross about $ 30.85 million, while paying $20 million as interests payment on the issued bond and netting about $10.35 million as Net profit . This is just called "Playing the Market" and Bank does it often. How often in academe is a corporation likened to humans -- with the "BLOOD" of Corporation of course, being it's cash-flow. And oddly enough, the tax structure all- over the world favors corporation over individuals....

LESSON 2 PAGE 3:

If a corporation can "pulled this off", it's time you too start thinking like one, you are advised to inculcate an aura of professionalism in your personal risks transactions by emulating certain principles of Corporate Financial operations & management. But in the interim, you are advised to incorporate your holdings under investment trusts or for-profit limited liability company. To benefits from owing a corporation, try further look-up on the subject, on your personal volition and quest. Investors are strongly advised to appraise their present & future earnings -- together they should make provisions for contigencies reserves, in the same manner that corporate's managers assesses a company's future. Moreover you should employ sound financial management principles in your investment operations.

This must be a mean forward-looking inquiry based on sound view of the past and present. He should also do a sound money management & risks analysis...

LESSON 2 PAGE 4:

You must determine your risks apetite and to know what you wants out of every investments. In doing so, you can possibly approximate your cashflow projections..

LESSON 3:

THE CASHFLOW PROJECTION.

Cash-flow Projection looks at the future with retrospect of the present. For example, take an Executive in one of the oil majors here in Nigeria, netting after taxes & expenses -- N2million a year and his future for the next ten years seems secure. Thus it's reasonable to project a cashflow for the next ten years of such sum assuming no increment in his salaries nor decrease in his expenditures. He will wound up with N20 Million in excess cash, for the ten-year period. Therefore, it makes much sense for this Executive to borrow to the brim to the tune of N20 million for that period -- if he can effect a proper long-term arrangements. Assuredly, borrowing N2 million or N5million isn't too risky with this kind of cash flow. In any event, Investor should draw up a personal balance sheets of his affairs for his edification and self- appraisal, indicating what he owns on the left-hand side and what he owes on the right-hand side..

Please continue this discussion here: https://www.nairaland.com/1208600/art-personal-leverage-book-preview