The right investments for a retired mechanic may not be the right investments for a 35 year old medical doctor. The right investment for a University student may not be the right investments for a housewife who has a shop in front of her house. The right investment for someone who earns five million naira annually may not be the right investment for an individual whose income is two hundred thousand naira per annum.
Because everybody has different expenses, risk tolerance, training, available investment capital, family situations, obligations and temperaments, what constitutes an appropriate investment plan will be very different from one individual to the other.
Wednesday, 27 August 2008
NEVER BUY UNDER PRESSURE
Never allow yourself to be pressurized into buying or selling stocks or any other form of investment. The chances are you will be making the wrong decisions. You should only buy stocks after due diligence checks; act slowly, diligently, with focus and with purpose. If you feel a significant urgency to buy any stock, then you are likely being pushed or influenced by some one else, either a friend or a stock broker, or by something you have read in a news paper or poster, seen on the television, heard or radio etc.
There are millions of stocks all waiting to be bought and none of them is running away. If you don’t take the time to study the stocks, analyze it and act accordingly, you are headed for disaster. Decisions to invest should not be made in a hurry except you have the experience and understanding.
This advice is most important now, especially after this meeting with the VP and the subsequent bull run.
There are millions of stocks all waiting to be bought and none of them is running away. If you don’t take the time to study the stocks, analyze it and act accordingly, you are headed for disaster. Decisions to invest should not be made in a hurry except you have the experience and understanding.
This advice is most important now, especially after this meeting with the VP and the subsequent bull run.
THE BULLS RETURN.
The bulls are back! Take a look at the trading floor and see the ravaging bulls in action. There are lots of bids and high value transactions. The indicators are inching higher and discerning traders that want to ride this Bull Run are advised to bid at maximum price tomorrow; raise your bid if you want to have the chance to buy.
Stocks will soon become out of stock! Only make sure those that bought last week/this week will not start dumping on you as soon as they see some slim profit, caveat emptor!!!
Stocks will soon become out of stock! Only make sure those that bought last week/this week will not start dumping on you as soon as they see some slim profit, caveat emptor!!!
Tuesday, 26 August 2008
TODAY AT THE NIGERIAN STOCK EXCHANGE.
Today, stocks seemed to show a little resilience from the free fall we had been witnessing consistently for the past month. Stock prices had been falling here since March this year. Lots of reasons have been attributed to this falls, but none seems plausible enough to warrant the scale of this slide.
Today things seemed to cool a bit as some stocks started a slight accent. Eight banking stocks appreciated in value at the end of trading this afternoon while nine still went down, though marginally. In Nigeria, it’s the banking stocks that drive the all share index and as such it will not be out of place to witness a halt to the descent of the index.
I will advice my readers to start picking good, fundamentally sound stocks in preparation of a mini Bull Run which I think will give me 10% profit after fees before the trend will weaken.
Today things seemed to cool a bit as some stocks started a slight accent. Eight banking stocks appreciated in value at the end of trading this afternoon while nine still went down, though marginally. In Nigeria, it’s the banking stocks that drive the all share index and as such it will not be out of place to witness a halt to the descent of the index.
I will advice my readers to start picking good, fundamentally sound stocks in preparation of a mini Bull Run which I think will give me 10% profit after fees before the trend will weaken.
NIGERIAN BREWERIES BONUS HISTORY.
Below is the total of his holding as at the end of June 2004. This example is real and verifiable.
Year Units Bought Bonus Earned Units Received Total Shares
1976 6,597 1 for 2 3,297 9,892
1977 1 for 1 9,892 19,784
1978 1 for 5 3,956 23,740
1979 1 for 3 7,913 31,653
1980 1 for 4 7,913 39,566
1981 1 for 4 9,981 49,457
1982 1 for 4 12,364 61,821
1986 1 for 2 30,910 92,731
1990 1 for 3 30,910 123,641
1993 1 for 1 123,641 247,282
1995 1 for 1 247,282 494,564
1999 2 for 3 329,709 824,273
2002 1 for 1 824,273 1,648,546
2004 1 for 1 1,648,546 3,297,092
Year Units Bought Bonus Earned Units Received Total Shares
1976 6,597 1 for 2 3,297 9,892
1977 1 for 1 9,892 19,784
1978 1 for 5 3,956 23,740
1979 1 for 3 7,913 31,653
1980 1 for 4 7,913 39,566
1981 1 for 4 9,981 49,457
1982 1 for 4 12,364 61,821
1986 1 for 2 30,910 92,731
1990 1 for 3 30,910 123,641
1993 1 for 1 123,641 247,282
1995 1 for 1 247,282 494,564
1999 2 for 3 329,709 824,273
2002 1 for 1 824,273 1,648,546
2004 1 for 1 1,648,546 3,297,092
RESIDUAL INCOME FROM STOCKS AND OTHER INVESTMENT CLASSES IN NIGERIA.
Residual income is the type of income you make a result of earlier investments you made; this can come in the form of rents, royalties and dividends from shares of stock you bought earlier. Residual income has a lot of advantages. Imagine a landlord that built his house 40 years ago can still come around and demand that you pay your rent to him, and he has been collecting all the rent for the past forty years and will still continue to collect until he is too weak to do so, and his descendants will still demand and continue to collect the same rent.
The same happens to a musician who played good music; he will continue to enjoy the royalties of his music since his music is still selling to new buyers many years after he played the music. The same thing is applicable to writers, Chinua Achebe and Oliver de coque are good examples of people earning royalties many years after they invested in music and books.
But share holders are the most benefactors of residual income. I can hold this argument because I have seen a investment of only a hundred thousand naira blossom into half a billion naira (five hundred million naira in under eighteen years), while the investor never ever soiled his hands working on his investments, after buying the shares. In fact he has been resting in his house either in the country or on holiday overseas! This is a little example about the power of stock investments.
The same happens to a musician who played good music; he will continue to enjoy the royalties of his music since his music is still selling to new buyers many years after he played the music. The same thing is applicable to writers, Chinua Achebe and Oliver de coque are good examples of people earning royalties many years after they invested in music and books.
But share holders are the most benefactors of residual income. I can hold this argument because I have seen a investment of only a hundred thousand naira blossom into half a billion naira (five hundred million naira in under eighteen years), while the investor never ever soiled his hands working on his investments, after buying the shares. In fact he has been resting in his house either in the country or on holiday overseas! This is a little example about the power of stock investments.
THE NEED FOR INVESTING IN NIGERIA
A lot of people have found out that working and earning a salary or trading and making profits is very lucrative, but demanding. It will demand your time, most of it, your energy, your intellect and a lot of other inputs on a daily basis. Working for others on a salary is worse than most other means of making money; this is because you will be required to work for the owner of the business, irrespective of how you feel, mentally, emotionally and physically. It has been argued that you may never be truly rich working for somebody else.
You will stay work in your office irrespective of where else you have to go, you will be tied down in work most days, most weeks and years. A lot of people continue to live this type of live for all their productive years! And in the end they will end up with a pension that is so small that it may not last them another two years. Many people have died on a queue to collect their measure pension. I strongly believe this is not the way we want to end our lives, so why not start saving money to invest from today.
For the business men and women, there is always a boom when they can still move about and hustle for business, travel from here to there, meet people and do fast business. Most times young people find it easy to survive in the harsh business environment that is Nigeria, no good road, no light, no water, too much sunshine and other infrastructure to make life better, until we start to get old, this is when we can no longer afford to move as fast as we want, this is when we expect our labors in life to start to yield some fruit, and if you made wise decisions while young, you will enjoy your old age.
Old age can be a time of laughter, when all or most of your problems are solved, no stress, and no debts. No landlord to knock on your doors for his hose rents. Old age is supposed to be golden. You could easily afford good medical check up and visit your doctors for routine medical tests to see if any disease is planning to affect you in future, and drugs will be prescribed to fight infections even before it starts. They said prevention is better than cure.
All I was trying to discuss above is the reasons I think all young people should invest. There are many benefits from STOCK investments in NIGERIA.
You will stay work in your office irrespective of where else you have to go, you will be tied down in work most days, most weeks and years. A lot of people continue to live this type of live for all their productive years! And in the end they will end up with a pension that is so small that it may not last them another two years. Many people have died on a queue to collect their measure pension. I strongly believe this is not the way we want to end our lives, so why not start saving money to invest from today.
For the business men and women, there is always a boom when they can still move about and hustle for business, travel from here to there, meet people and do fast business. Most times young people find it easy to survive in the harsh business environment that is Nigeria, no good road, no light, no water, too much sunshine and other infrastructure to make life better, until we start to get old, this is when we can no longer afford to move as fast as we want, this is when we expect our labors in life to start to yield some fruit, and if you made wise decisions while young, you will enjoy your old age.
Old age can be a time of laughter, when all or most of your problems are solved, no stress, and no debts. No landlord to knock on your doors for his hose rents. Old age is supposed to be golden. You could easily afford good medical check up and visit your doctors for routine medical tests to see if any disease is planning to affect you in future, and drugs will be prescribed to fight infections even before it starts. They said prevention is better than cure.
All I was trying to discuss above is the reasons I think all young people should invest. There are many benefits from STOCK investments in NIGERIA.
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