Building Wealth While You Sleep: My Experience of Low- and Medium-Risk Investing

 By: Dr. Salihu Lukman

Preamble  

For anyone in their 40s like me, striving for financial independence, investing is one of the most effective ways to make money while you sleep. You don’t need to be a stock market guru or have millions in savings to begin. With the right strategy, even small investments can grow into substantial wealth over time. Here’s a beginner-friendly guide based on my own short experience of buying shares over the past six months.

Understanding Medium-Risk Stocks: My Personal Experience

Medium-risk stocks, such as company shares, offer the potential for significant returns, but they also come with fluctuations. Here’s how some of my investments have performed:

• BUA Foods PLC: 17% Gain (from N347 to N415 per share)

• SEPLAT Energy PLC: 64% Gain (from N3,415.7 to N4,700 per share)

• BUA Cement PLC: 30% Loss (from N130.99 to N93 per share)

• JAIZ Bank PLC: 44% Gain (from N2.14 to N3.15 per share)

• FIDELITY Bank PLC: 84% Gain (from N10.55 to N19.50 per share)

Imagine if you had invested N100,000 in JAIZ Bank shares six months ago—you would have earned N44,000 without lifting a finger. If you had invested in FIDELITY Bank, you would be N84,000 richer today. The key takeaway? You don’t need a fortune to start. Investing just N1,000–N5,000 in different sectors like food, real estate, energy, banking, and communication allows you to monitor stock performances over time. The best-performing stocks can then receive more investment while you hold onto underperforming ones for potential recovery—unless the company is clearly failing.

The Power of Long-Term Investing

While short-term gains can be exciting, the real magic happens when you hold onto stocks for the long haul—10 to 20 years or more. Over time, your money continues working for you, compounding your wealth as companies grow and distribute dividends. Think of investing as planting trees: the longer they grow, the more shade (financial security) they provide.

Safer Alternatives: Low-Risk Investments

If you prefer an investment path with little to no risk, consider mutual funds and government-issued bonds. These offer steady, reliable annual gains of around 15%–30%. While the returns might not be as high as medium-risk stocks, they provide financial security without the fear of any losses.

High-Risk, High-Reward: Cryptocurrencies and Forex

For those with a higher risk threshold, cryptocurrencies like Bitcoin and Forex (foreign exchange) trading can offer massive returns. However, these markets are volatile, and the chances of losing money are equally high. If you decide to explore these options, invest only what you can afford to lose and understand the market dynamics clearly.

My Journey into Investing

I’m not a financial expert—I’m a civil engineer who started investing six months ago. My interest was sparked by watching finance videos on TikTok, a platform often dismissed for its entertainment value. From there, I deepened my knowledge by reading investment articles on the CowryWise app.

You Don’t Need to Be Rich to Start

A common misconception is that investing is only for the wealthy. In reality, if you can save a small amount monthly, you can start buying shares and setting up a future passive income stream. The earlier you begin, the better positioned you’ll be for financial freedom in your later years.

Final Thoughts

Investing isn’t just about making money—it’s about making smart financial decisions that secure your future. Whether you opt for low-risk bonds, medium-risk stocks, or high-risk crypto, the most important step is getting started. Learn, experiment, and build your wealth steadily so that in the years to come, your money will be working for you while you sleep.