Money does buy happiness, if you earned it.

 

—Naval Ravikant

After hearing Magatte Wade speak twice — first on Reality Check Radio and later on Jordan Peterson — I knew I had to get her book.

She has what it takes to succeed in business. And invest for the future.

Source: Reality Check Radio

Speaking of investing for the future, when I was growing up, the best gift I was given was a love for reading.

At home, Dad read to us. We went to the library weekly. When I started high school, the principal at the time (Tom Ryder, New Plymouth Boys’ High School) would tell us at assembly, in his black academic gown, that the opportunity to learn from others through books could supercharge our own path to success.

The best investors are extreme readers. A consistent diet of reading can increase IQ and expand thought processes.

When you are both widely read and widely travelled, there is little you’re not able to turn your hand to. You are ready to be antifragile — whereby hardship and market crashes only serve to polish your skills.

The best use of any spare time you have is to read and learn something new.

Some years back, I recall an air hostess explaining, by and large, what occupied people in different cabins of the airplane:

• ‘People in economy watch movies.’
• ‘People in business class work on their laptops.’
• ‘People in first class read books.’

So, I tell my kids:

• ‘Readers are leaders.’
• ‘Your best posture is a book with legs.’
• ‘Be a first-class reader.’

The Heart of a Cheetah

Magatte Wade is an entrepreneur who was born in Senegal and raised in France. She has founded businesses in both Silicon Valley and Senegal.

Her book — The Heart of a Cheetah: How We Have Been Lied to About African Poverty, and What That Means for Human Flourishing — proves a startling observation:

Africans are poor because they are not allowed to create companies due to the layers and layers of powerful government bureaucracies that interfere at every point.

I don’t need to tell you how desperately poor much of the African continent is. I do need to tell you that this is due to the false promises of socialism and the cruel injustice of corruption.

As Wade brings to life in her book:

There is no clear concept of a household budget because everyone is always hustling, and everyone owes money, and everyone is owed money. Every day is a matter of getting by as best you can.

The power of enterprise

I found Wade’s message particularly inspiring as an entrepreneur.

I’ve been in business for more than 30 years now. Short of a year or so in the employ of others, I have owned or been a major shareholder in businesses.

Thanks to the sharemarket, I’ve also been investing in businesses since the age of 17.

Reading Wade’s book reinforced some of the key things I have learnt:

• Unless you have a product or service that solves a problem and fills a need, you do not have a business.

• Business is difficult enough, but government regulation and taxes can make it even more difficult.

• Remember: every job is paid for by a business. Even jobs in government and nonprofits are paid from taxes on — you guessed it — business.

• Capital is the key to investment for future prosperity. If you want business and investment to flourish, protect capital, grow capital, and do not tax it.

• In any business or investment strategy, the power of income and cash flow should not be ignored. This is why I like robust dividend-paying shares.

• The chief aim of a business is to generate a return on capital. The more safely and effectively a business can do this, the better a business it is.

Airbnb HQ, San Francisco. Source: Wikimedia Commons

For example, Airbnb [NASDAQ:ABNB] generates a high return on equity because it does not own the homes that generate its revenue. Yet that lack of tangible ownership (ABNB assets are in its software and network) also increases its risk.

Comparatively, Investore Property [NZX:IPL] generates a lower return on equity. But it owns the supermarket buildings it leases to Woolworths. Hence, with moderating interest rates, it may generate return with less risk.

Of course, business and investment strategies take time.

Knowledge and patience are your best weapons.

Magatte Wade’s story reminds us that the key to prosperity is creating business. The key to investing well is deploying capital in good businesses. Stock markets provide an efficient way to do this.

Come join us for our next friendly Coffee & Capital event.

It’s a chance to meet other investors, learn more about how we’re navigating this current market, and bring your questions or comments.

At this critical time, we’ll be unpacking key issues for our readers and investors. We’ll be talking about what is impacting the market right now…

• Trump 2.0. Is the second coming of the orange man (and tariffs) good or bad for investors? What opportunities are we seeing at the trading desk?

• Property deluge. Investing in NZ used to be all about residential property. But with falling property values and reports of a rental crunch, is this old chestnut out of steam? We look at the future for property and some alternatives as falling interest rates shine a light.

• World order disruption! Global markets are excited at the prospect of an AI earnings boom, but are disturbed by intensifying geopolitical tension and conflict. How do you navigate risk and opportunity in these strange days?

COFFEE & CAPITAL

Friday, 18 July, 2025
11:00am to 12:00pm

❌ This Event Is Now Sold Out 

 Goodness Café (Backroom)
228 Jervois Road, Herne Bay, Auckland

$37 per person / limited spaces
Includes any menu item, coffee

[ Special Member Price ]
For Managed Account clients & Quantum Wealth subscribers

❌ This Event Is Now Sold Out 

$27 per person / limited spaces
Includes any menu item, coffee

Come join us!

Our last event sold out quickly.

Please reserve your seat today.

Regards,

Simon Angelo

Editor, Wealth Morning

(This article is the author’s personal opinion and commentary only. It is general in nature and should not be construed as any financial or investment advice. Please contact a licensed Financial Advice Provider to discuss your personal situation. Wealth Morning offers Managed Account Services for Wholesale or Eligible investors as defined in the Financial Markets Conduct Act 2013.)