Nadir Mehadji - 26 Jan

Copyright 2018 by Nadir Mehadji

Illustrations copyright 2018 by Nadir Mehadji
Cover design by Marcel Heijnen

Published by Marshall Cavendish Business
An imprint of Marshall Cavendish International

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National Library Board, Singapore Cataloguing in Publication Data

Name(s): Mehadji, Nadir.
Title: The cat & the banker : how to get started with investing : an illustrated story / Nadir Mehadji. Other title(s): Cat and the banker : how to get started with investing | How to get started with investing : an illustrated story
Description: Singapore : Marshall Cavendish Business, 2017. | The ampersand in the title is outlined to represent a cat.
Identifier(s): OCN 1008623326 | eISBN: 978-981-4794-55-8
Subject(s): LCSH: Investments--Popular works. | Portfolio management--Popular works. | Finance, Personal--Popular works.
Classification: DDC 332.678--dc23

Printed in Singapore by Markono Print Media Pte Ltd.

To Echo

Socrates Cat rolled over onto his belly as the ping of a message notification took him out of his slumber. He opened one eye and saw the message flashing: LAST WARNING. Spending limit exceeded. AGAIN. Get your act together. NOW. He pondered the thought for a second and dozed off again.

A year earlier, Socrates life had changed dramatically when he received inheritance money from his uncle Apollo. Both of them had always been close. A successful technologist, Apollo had invented the Catbot, an artificially intelligent device that spoke Meowsic. The Catbot allowed felines to interact with their phones without having to type; a revolution in Catland and a major upgrade from Bluefang technology. Catland, despite being a small country, had a thriving economy, although its ballooning banking sector was a cause for concern. With his invention, Apollo acquired instant fame. He also made good money, incidentally.

Apollos will stated that he would hand down his possessions to his nephew Socrates, his closest family. Thats how Socrates inherited the small fortune of C$150,000, the catdollar (C$) being the local currency in Catland. Socrates life changed overnight. He had been working as a freelance designer until then and freelancing had been a rough ride. Now, fat fish, mouse mousse and milk nectar were his diet on lean days.

But all wasnt rosy. When Socrates finally got up, he reluctantly looked at his finances. The graph showing his savings looked like a sinking ship. The thing is Socrates did enjoy the good life; he was a cat after all. He thought of former pawgilist champion Cat Tyson, who had squandered a larger fortune and now lived like a stray cat in his old days. Not the way to go. Socrates knew that he had to do things differently if he wanted a comfortable future. He needed to make his money grow.

As Socrates took his wallet, a photo slipped out. It was a picture of him and his uncle that had been placed with the will. As the photo lay face down on the floor, Socrates noticed a small note on the back. Hed missed it before. Dont blow the money, invest it, Apollo had written. And call PiggyBank, he had underscored, the only bank with a half-decent reputation. Make an appointment with a financial catviser.

Is that it?! Socrates thought.

Socrates called the bank and explained that he was considering investing a sum of money. The clerk replied that theyd be delighted to discuss his circumstances.

This was how cat Socrates embarked on his investment odyssey. He was scheduled to meet with PiggyBank the next day.

Socrates received a warm welcome at PiggyBank. He was ushered into a meeting room bathed in natural light. A tall bottle of branded milk stood on the table.

Socrates had stopped by the grocery store to buy a couple of cans of fish on his way to the bank. He placed his groceries on the seat next to him.

It is a pleasure to meet you, Mr Cat, the banker said with poise as he entered the room. How should I address you?

You can call me Socrates.

Im Catsby.

Catsby was an unusual sight in Catland. He was a lion. I understand that you would like to make investments, he said.

Id like to invest C$100,000 or so. But I have limited knowledge. Im not sure how to approach investing. I dont know where to start. I was hoping you could help me.

Im glad you came, Catsby said. You know Socrates, there was a time when I wasnt much of an investor myself. But I became a good investor after I understood the six different types of investments and when to invest in them. We will talk about that as I teach you the ropes.

But first things first. Everyone has their own objectives when it comes to what they want to achieve with money.

My role is to try and understand what your objectives are and to help you make investment decisions that you are comfortable with.

Generally cats who come here seek one of three things, or a combination of them.

The first is to preserve the value of their wealth.

The second is to generate regular income.

The third thing is to grow their wealth.

You will need to think about which of these you want to achieve. So tell me, how does having money make you feel?

It gives me peace of mind, Socrates replied.

Money makes us feel safe, doesnt it? It is tempting to keep it in a stash close to us. You know, hidden in a cardboard box, or in a ball of wool, or in a bank account. But if we dont invest our money, it tends to lose value over time.

How could I lose money by putting it in a safe place? Socrates asked.

Catsby pointed at the grocery bag on the chair. He could see its contents. May I ask how much you paid for the cans of fish?

C$2 a can, Socrates replied.

How much do you think a can cost five years ago?

Around C$1?

Sounds like a fair guess. So the obvious thing would be to say that the price went up, right?