If you have five to seven years or longer; then you can start to invest in shares…— Warren Ingram, Personal Financial Advisor - Galileo Capital
It's been stated on numerous occasions on The Money Show that investing in shares earns one compound interest. You even had an example of a young lady, I think it's Julia, who's saved millions and earns compound interest through shares. I've had an online share trading account for many years and have never seen any interest. I've been wondering if this is a fact. I called my online share services provider and I was told they are not allowed to discuss compound interest with me as they are non-advisory. When I asked why I do not see such credits in my account, I was told it’s because they don't offer such interest. Is it perhaps about a type of broker I'm using?— The Money Show listener
Arabile Gumede (in for Whitfield) asked Galileo Capital personal finance expert Warren Ingram for an answer.
Compound interest vs compound growth
Money in the bank earns you interest.
Over time; the interest compounds (i.e. you earn interest on interest).
When you invest in shares; you reap the growth in value of those assets.
They may sound like the same thing, but they’re not.
Which one is better; money in the bank earning compound interest, or investing in shares?
It depends whether you’re playing a long or a short game, said Ingram.
For more detail, listen to the interview in the audio below (and scroll down for more quotes from it).
Don’t start thinking about investing if you have bad debt. Credit card debt, personal loans, overdrafts, microloans, store card debt…— Warren Ingram, Personal Financial Advisor - Galileo Capital
You always need an emergency fund… About three to six months’ expenses… that you can keep in a money market account at a bank…— Warren Ingram, Personal Financial Advisor - Galileo Capital
Investors are starting to think the stock market will never ever go up again… a common mistake investors make all around the world…— Warren Ingram, Personal Financial Advisor - Galileo Capital
Our stock market consists of many companies that operate right around the world… It’s not a reflection only of our economy…— Warren Ingram, Personal Financial Advisor - Galileo Capital
It’s not that I’ve been smoking some heavy stuff or drinking too much… what I do know is that patient investors… get the reward…— Warren Ingram, Personal Financial Advisor - Galileo Capital
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
Cell C is facing severe financial difficulties and suspicions of “irregular business practices”, says its CEO Douglas Stevenson.
Naspers – a single company – is more important to South Africa than gold, says Allan Gray portfolio manager Duncan Artus.
Consumer journalist Wendy Knowler warns prudent credit card holders to keep tabs on their banks. In this case, it’s FNB.
There’s been a sharp recovery in foreign direct investments into South Africa. Arabile Gumede interviews EY’s Sandile Hlophe.
Arabile Gumede asks Nesan Nair (stockbroker and portfolio manager at Sasfin Securities) for his stock picks of the week.
There are no shortcuts. Beware of "White Knights and Silver Bullets", warns Aurik Business Accelerator founder Pavlo Phitidis.
Residents were out on the streets to watch the troops arriving in Manenberg and Hanover Park on Thursday afternoon.
Cycling journalist Mikkel Conde tweeted the clip warning spectators to stop leaning over the barriers with their phones.
Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.
Seattle Coffee Company has the worst takeaway hot chocolate in the country, according to, uhm, "research" by Chaos Theory.
The Roger Federer Foundation says no ticket platforms are yet in possession of, nor have guaranteed allocation of tickets.
The Money Show’s Bruce Whitfield interviews TJ Strydom, author of “Christo Wiese - Risk And Riches”.
Residents living on the crime-ridden Cape Flats share their first-hand experiences of life in 'apartheid's dumping ground'.