How to accumulate wealth | Mike Fannin | Vusi Thembekwayo | MyGrowthFund Osmosis Ep5

hi friends welcome to another episode of osmosis we've now experienced a whole host of business leaders and characters that we've been interviewed here we've had former F&B CEO Michael Jordan we have a CEO of retail capital Karl vest with we had the doyen of black business of Africa dr. Richard my boa and a series of others today's conversation I'm really excited by one because I'm joined by a dear friend and two because it's a conversation that is not often linked to what we talked about in our lives as entrepreneurs but it's really important today we talk about wealth what is it how do you accumulate it and how do you manage it and to help me with this conversation is a dear friend Mike Fannin obviously me yeah I must admit with the names you've just mentioned there it's quite intimidating that's pretty serious people in this chair yeah everybody everybody's just having a conversation I think you know I think that the point about what we do is it's um so you ever heard the expression knowledge is power yeah yeah yeah it's rubbish application of knowledge is power I like that right so what we try to do with this platform is to not only give people the information but also to try and inspire them to gonna go use it go do something with it right fantastic um and your story is interesting because you know every time I talk to you I feel like we would come at this from so many angles so I could talk to you as the expert it does what you do but also could talk to you as the entrepreneur who is in a business and as part of a team that's building a business that wants to be the largest distributor of high-net-worth products in the continent right yeah yeah first talk to me a bit about your entrepreneurial journey how's that gone okay it's it's a it's how far back to be go from the prom when I was at university I've always wanted to look at doing saying there was different yeah I never wanted to be just the guy who ran out and you know got the job in a bank and went from there and there's those steps so I lost that my entire career as an employee was 14 months in investment banks in London I left he went there 14 months late I decided I didn't want to jockey spreadsheets for a living and what I wanted to do was do something different and I think that's the first thing you ought to do is you've got to find something you're passionate about and my passions always being helping people with their finances and since then I've had a variety of businesses some of which have been spectacularly successful some of which have I mean successful to a point in terms of my own needs being read so much were successful at all okay but it's important thing is that it was a journey of growth and each time I learned something from each and every single one of you do you know even when I was at varsity I had small businesses I don't not care about a clothing business some were pretty exciting some we're exciting for the wrong reasons but each one you learn a little bit in a couple of different things from them you know so yeah in terms of where we are right now is Kerry Carrick is a combination of a whole lot of partners of all of our journeys of all of the things we learnt in our various careers coming up to now and we've kind of put it all together to build something where we're trying to make an optimal offering in terms of a financial services offering that really meets the needs of what people are looking for you know we spoke a little bit earlier about the fact that there's a lot of things out there selling product we don't want to be in the business of selling products in it we actually want to be giving advice sitting down with people really understanding what is they're looking for and then going out and finding it you know I might not have it on the Shelf but I might know where to go look first got you so you do a lot of to you to the point a lot of advisory work particularly to people who are either high net-worth and looking to become high net-worth yeah most differently talk to me bit about if when you're an entrepreneur what are the three most important things you should have top of mind when you're thinking about how to begin to the process of accumulating wealth okay wow that's a broad topic I think the first thing as an entrepreneurs you got to realize is this gonna take some time you know there's a there's a speech that Jack Ma from Ellie barber gave a couple of weeks ago we said you know if you're planning on getting out in three years it's gonna take you five the planning on five it's gonna take you ten there is no faster route out of this a lot of people see entrepreneurs with these guys who I'll be successful you know they got money they've got cause I got all these things but they don't see behind is the pain and the long road it took them to get there so the first thing is entrepreneur that you're going to realize it's gonna take you some time right fine thing that you're passionate about okay it's a first Tiger I think the first tips before you get into the Nitty Gritty it's a three piece passion people and persistence right passion you've got to have something that you are truly truly passionate you want to do this because it's going to be a number of days where you get out of bed and you think conquering today you know your business isn't going growing as faster could you've got cash flow problems you've got all these things against you and with that passion for doing it you're not going to be able to go pull through the second thing you want to be really looking for is an entreprenuer to start creating what you need people you know it's what people are you getting around yourself who you working with and you know there's a saying if you don't get the right people on the bus and then decide what you're gonna do and it's not necessarily about the product if you're surrounded with the right people who are committed to that passion I spoke about earlier and they're completely you're all so single-minded about hitting it then you're gonna find someone you gonna make up but you get you're gonna get towards your goals you know you could have the best people in the world okay but if you're not unified in terms of a passion you're not gonna get this so so get the right people and even try them in different roles here's other thing you may have agar we you know I look at myself in in carica I think I'm on my fifth different role within the company it's only three years old but we say it's been things that I've been good at and needed at the time but we must have been flexible enough to move me and use my skills where they're most where the most needed right the last thing that an entrepreneur is gonna need is persistence right okay persistence goes beyond anything you know somebody said to me I mentioned it's like giving blood and I said how much blood you're gonna give and they say everything I've got an assess not enough because you're probably enough to borrow some as well okay and that's the pot you know when you're going through hell keep going and and really you know there's there's there's no entropy in the world that has had it had an easy ride where it's been plain sailing all the way through each and every person who started a business has stared that war in the face and said you know what what have I done hundred percent you know and it's like persistence to say I was passionate about this I've got the right people with me and to keep on driving driving through and those are those characteristics you absolutely have to need gonna end sorry I actually absolutely gonna have to have loved it absolutely love it so passion persistence people yeah when we come back we continue our conversation with Mike welcome back we continue our conversation with Mike Fannin direct and partner at Carrick wealth we're talking about the sort of the intersection between entrepreneurship and wealth creation how you and I need to look at our own blind spots and how we need to take care to ensure that we don't stand in our own way so Mike welcome back a quick question for you over the years where you've worked with high net worth individuals what have you learnt about their relationship with money towards they stay humble no live below your means you know one of the one of the things that sort of it's a common theme over and over again is people who've managed to acquire wealth as opposed to income hmm okay live within their means okay you don't see them up buying the big cars they playing the long game you know I spoke to you earlier but an entrepreneur that I know he's not interested in the million he's going for the billion he's keeping his money tight he's slowly but surely reinvesting in his business you know live within your means and that it's a mess of common theme the second thing that they do is they educate themselves they educate themselves into an ongoing process they never stop learning okay ninety percent of people with wealth read every single day but the interesting thing is they're a read fiction you know not in the land let us James Patterson they're reading biographies they're reading market news they're educating and upskilling themselves on the ongoing basis and I think it's important you know is that especially when you're moving to an entrepreneurial field if you do come across saying that you've come up with a great idea and it's and it takes there gonna be ten guys are gonna hook onto you onto your coattails and they're gonna start trying to compete with you of course so that development that those people have wealth keep doing it's got to keep you ahead of the game I've got to keep reinvesting your money back into growing the business got to keep reinvesting in yourself to grow your own intellect we often see in the firm in our firm imitation innovation encourages imitation hundred percent anytime you innovate when it kicks people imitate you it's just and for me it's funny it's like ninety nine percent of people out they have no innovative bone in their body they just sit and wait for somebody to do something new yeah and then they're gonna copy what the other person is done right and you know what don't get angry about it it's flattery you've come up with an amazing concept and the fact is is that if you're actually good at what you do and you've researched it properly you can evolve you can evolve if you're going to go ahead you know it's one of the things that I said people necessary the biggest part is that if you've done it properly you know right up front we spoke about getting those right people there in a room yeah okay we've got that passion now the next thing we're going to do is we've got to have that goal and something else that people do is write that goal down you know writing goals down is an onion it's an unusual habit to develop but 70 to 80 percent of highly successful people write their goals down book is you actually committing to it now I'm writing that gold down in when in an entrepreneurial space that's called a business okay you'd be surprised how many people are meet who start businesses and are in their second third or fourth year and still haven't written one but that business plan not only gives you a track of what to do in terms of growing it it'll also tell you what happens when you've got opportunities when you've got threats what is your plan for when competitors come in so you never caught in a moment you know struggling forwards struggling to find a position and you're ready for it you've planned for this you've planned to innovate you've planned what your investments gonna go not am I gonna take my profit and reinvest in my company but this is where I'm gonna be invested that's what my plan says you don't get diverted you've got a singularity of focus you know the age-old the adagio of the too many buffaloes you know a lion hunts it goes for that one Buffalo hits it and take no matter how many run in front of it it just goes for that one yeah okay your business plan shows you that one so that's where my investments gonna go that's how I'm gonna grow my business it's true isn't it about just life generally so you've got to have a singularity to the point yet single view of where you want things to go yeah so so I'm an alternate I'm doing fairly okay my business does okay I can meet my month end expenses and I have a little bit left over yeah what questions should I be asking myself to start in my mind the conversation about really creating and then preserving wealth I think the big thing is also is to diversify you know the friend of mine has a saying it's not only she's not have all your eggs in one basket you shouldn't have only one goose laying the eggs and I think it's important that the second you start to free up that extra capital is to diversify into assets or that are going to grow equity or grow wealth that are not directly corresponding to what you're currently involved in if you're a tech business don't go invested a whole lot more technology companies let's transfer Editor our book with every bubble burst at some stage everything has their cycle so what you want to do is start growing assets and it must be in real assets okay you know if you're a startup don't go invest in a whole lot of other startups you've already got your risk capital okay so start to differentiate in terms of asset classes in terms of geographical diversification you know it could be different currencies or whatever be but make sure you're diversifying as you grow but the biggest thing is just to roll back is your time of what to invest in win is determined by that business plan again because within that you've got to be saying this is the point when we will take money art not okay we've got a couple of hundred thousand Rand left over what do we do with it okay let's pay it out you've really made a bed that your system should tell you when to invest and when to pay it out and what point that's not capital for the Taylors what when it's back for the business and you have to stick to those rules one of the challenges about living in South Africa's it's incredible and to make it a local conversation now is this in my view is one of the hardest countries in the world to create and preserve wealth purely because and this is just my view yeah there's so many there are so many systems processes and laws to part you with your money that it's really hard to go to go yeah you know I'm willing to a can eight work an 18-hour day for ten years on end because at the end of it the trajectory of my what mine mine it worth looks like it's different to the guy who just gets an 8 to 5 job yeah so so here's the question of us here so here's the question one is my assertion right right and I suppose the question specifically I'm asking leads to the second question which is what is the benefit of looking at going offshore yeah in terms of getting exposure to different markets so that you can diversify your risk yeah ok so first one yeah unfortunately I do disagree you want a place that's hard to grow money yeah got Australia they've got a million ways to take care of you go come across the u.s. Internal Revenue Service the taxation there makes us we're amateurs ok we're a country that is still growing and has the opportunity to grow at a rate of knots we've got a couple issues we were to sort out but a lot of its virgin markets a lot of things that are mature in other countries are brand-new here we haven't even started them yet so there's a lot of ideas you know we spoke about people who just sitting there waiting to take an idea that only you don't actually need your own idea there's 50 ideas that have worked well in other countries that haven't even started here yet about you that you could look at potentially is there a regulation regulations of good thing we run towards regulation because regulation keeps the Cowboys off the gas you're gonna follow you it gets rid of them if you're running a compliance a legally a legally compliant business within the law can you doing it properly yeah it'll take a little bit longer to get up there but that regulation actually protects you from the day-trip who's gonna try and take your money off you I understand the second question in terms of going offshore offshore is there is an investment question you know I've always likened it a you've heard me use the analogy before if you imagine a field a cricket field or 400 square meters yeah and you got you got your children you gonna take them out you're gonna go play cricket and what you do is you stand there on one square meter space on their field there's tiny little blocker that's the only place you play and all that other graph sets out there and that other grass is offshore okay South Africa is 1% of the global financial market if we only invest you and only play here we're back to our only one goose it's it's a standard practice in terms of investment to diversify by geography by asset by asset class by currency this is normal this isn't it's not hiding money it's not doing anything no it's a normal part of investing and it's extremely prudent especially when we live in a country which is extremely volatile Iran you can wake up tomorrow and you could be worth 30 percent less you know when you see these exchange rates go up and down Oh said people say what does that mean now said what if you imagine you know but I got a worries okay I do my shopping and I do and I put my meeting lost that's the last when I go and I get my meat and what what a 30% drop in exchange rate means somebody comes along to my trolley and takes all my meter and says you can't have that anymore because your ads are only gonna buy what's left and that's what those movements in exchange rate can do to you so you want to be investing your retirement wealth in hard currencies that offer a lot more stability I've got you so finally to close it to the entrepreneur watching this conversation who is again at the point in their lives where they having to make decisions about what does their future look like to make sure that I understood it so you said fashion people persistence got that you said look to diversify got that yeah you said make sure that you act for your circumstance in your situation got that - what is top of mind that you'd like that entrepreneur to always have consistently at the back of his mind about creating a legacy particularly a financial legacy remember what you got into it for in the first place okay this whole thing is supposed to be fun yeah okay we all get into this for a reason that passion that we spoke about remember why you did it in the first place there would have been a moment you were kept and thought this is what I want to do okay you were a speaker yeah there was a moment you were Capital I want to talk and if we sometimes get disconnected from there with all the stuff that gets in the middle we forget why we started don't forget why you started because that's your cord it'll when you give you keep coming back to that it'll be your base that you both through unstable times and will feel you completely completely so you know that to me that is that is the big one if there's no there's no magic bullet to this thing there's no right way there's guys who went into Dragon's Den and got told to get rid of you know to run away and they will made money there's so many different stories so there's no writer on but the big things are connect your visit is a great book Jim Collins good to great headshot principal says fine saying that you love fine saying that you can be the best in the world at and then make sure that it makes you money and that my friends is will be good where we leave it find something that you love sign some you the best of the world at and make sure that it makes you money this is of Oct Baba who's presented another episode of was Moses joined by my good friend Mike Fannin from Kara quaff Cheers

Channel: Carrick Wealth

Views: 251,253

Rating: 4.9170027 out of 5

Keywords: wealth, entrepreneur, carrick wealth, carrick, vusi thembekwayo, MyGrowthFund, business plan, wealth management, diversify, inspire, success, market volatility, thought leadership

Id: NE3wJHd28ZA

Length: 16min 27sec (987 seconds)

Published: Wed May 30 2018