ocman: stay away from nigerian stocks. if u have ear hear it now. STAY AWAY FROM THE STOCK MARKET, STAY AWAY FROM ALL THESE INVESTMENT AND ASSETS MANAGEMENT COMPANIES, DON'T SAY I DIDN'T WARN YOU. YOU CAN BUY FGN TREASURE BILLS, BUY LANDS AND SAVE THE REST STAY IN YOUR ACCOUNT AS SAVINGS. IT IS BETTER THAN YOU CRYING AND HAVING SLEEPLESS NIGHTS OVER YOUR HARD-EARNED MONEY IN SOMEONE'S DISPOSAL WITH NO HOPE OF RETURNING

AjanleKoko:

Very good analysis, done for free
A classic case of high risk high returns presented here.
In my view, anyone who's earning a salary has no need of a high-risk investment. If you're earning a salary, and you have enough idle income to invest, why do you need an investment like Keke NAPEP? Your daily needs should be taken care of by your salary.

What you need is a secure investment that doesn't depreciate in value and doesn't require significant maintenance overhead. Your Keke NAPEP is likely to earn good returns, most of which will likely go into maintenance, repairs, settling touts and police, etc, as well as pilfering by your driver. Plus the equipment itself will depreciate very quickly in value.

The bonds or TBs are assets that you could even borrow against if you need to in the future. Try getting a loan from any financial institution with your Keke NAPEP as collateral

manie:


Have you considered the effect of inflation on the the bond. I will not advice a young man to have more than 20% of his asset in bond, his assets and income should be invested in developing himself, buying good stocks and real estate. He should have a long term view when making his investment decisions over a period of 10 years or more investments in stocks or real estate will out perform investment in bond or treasury bill.
Enduring wealth can only be built by having a long term perspective whenever it comes to investment.

AjanleKoko:

'Good stocks', hmm. Everybody has said a lot about 'good stocks'. A young salaried employee certainly would not have the time or ability to watch stock market movement and accurately predict stock performance, unless he or she happens to be an investment professional themselves. Besides, wouldn't you rely mostly on the advice of a broker, who you will pay?

It's safer for someone young and largely ignorant to invest in bonds and commercial papers, or mutual funds to start with. For both investments, you don't need to pay anyone for advice. Many of the mutual funds have consistently outperformed the capital markets over time, they have a significantly low threshold of entry (ARM Discovery has an entry point of something like 10 thousand naira), and you can monitor the performance easily, unlike having to rely on a broker who's going to take a cut of your profits.
More importantly, you can cash out at any time.

The real estate question - real estate is much more complicated than the stock market to manage. The entry point for investment is much higher. There's no real estate index to monitor, and the market is 100% unregulated. People with greater means than the OP have lost significant amounts of money on real estate in Lagos. I know this one first hand.

AjanleKoko:

'Good stocks', hmm. Everybody has said a lot about 'good stocks'. A young salaried employee certainly would not have the time or ability to watch stock market movement and accurately predict stock performance, unless he or she happens to be an investment professional themselves. Besides, wouldn't you rely mostly on the advice of a broker, who you will pay?

It's safer for someone young and largely ignorant to invest in bonds and commercial papers, or mutual funds to start with. For both investments, you don't need to pay anyone for advice. Many of the mutual funds have consistently outperformed the capital markets over time, they have a significantly low threshold of entry (ARM Discovery has an entry point of something like 10 thousand naira), and you can monitor the performance easily, unlike having to rely on a broker who's going to take a cut of your profits.
More importantly, you can cash out at any time.

The real estate question - real estate is much more complicated than the stock market to manage. The entry point for investment is much higher. There's no real estate index to monitor, and the market is 100% unregulated. People with greater means than the OP have lost significant amounts of money on real estate in Lagos. I know this one first hand.

AjanleKoko:

'Good stocks', hmm. Everybody has said a lot about 'good stocks'. A young salaried employee certainly would not have the time or ability to watch stock market movement and accurately predict stock performance, unless he or she happens to be an investment professional themselves. Besides, wouldn't you rely mostly on the advice of a broker, who you will pay?

It's safer for someone young and largely ignorant to invest in bonds and commercial papers, or mutual funds to start with. For both investments, you don't need to pay anyone for advice. Many of the mutual funds have consistently outperformed the capital markets over time, they have a significantly low threshold of entry (ARM Discovery has an entry point of something like 10 thousand naira), and you can monitor the performance easily, unlike having to rely on a broker who's going to take a cut of your profits.
More importantly, you can cash out at any time.

The real estate question - real estate is much more complicated than the stock market to manage. The entry point for investment is much higher. There's no real estate index to monitor, and the market is 100% unregulated. People with greater means than the OP have lost significant amounts of money on real estate in Lagos. I know this one first hand.

fuckluv: Good advice all through. I would recommend land purchase and also invest in transport buses and get it insured.

maskara01: Hello all,
You have all spoken well. Even the bros that recommended the buying of latest Jeans and shirt in town.

I am gonna advice from my own litle experience or call it shalow experience. Yes the making of a business man involves him taking risks. I will want us to be objective in our advice. Let's take for example someone with an annual salary of N2m? What tangible investment can one make? Yes some will say start small or little, yes u can but what about other commitments? Thank your star if u are not "omo jaiye jaiye" because u gotta factor "owo faaaji" into it...lol.
My advice then, any investment that's out of ur reach abeg don't dabble into it. I meant investments u can see with ur eyes don't dabble into it. Not after the madness that happened in the NSE. Investment in shares yes but try to study the market.. I got a PZ shaares sometime last year sept-oct 2012 at the rate of N25.00k and as at march its N40.00k
What am I waiting for? Sell it off. Get a landed property. Invest in ur self

You did the smartest thing by selling PZ, the earnings of PZ does not support the current selling price of the stock ie N40.00k. You can also use the proceed to invest in some under valued stocks or growth stocks like FBN,
GTB, Okomu Oil, WAPCO, UACN etc.
I don't subscribe to Msc or MBA or what ever. They should be a thing of option I think certifications are better. I'll say that u should try that path and see how it goes. But govt bonds?....I nor dey.

manie: People are talking about the stock market meltdown, forgetting that majority of the players in the high end property market are also big time investors in the stock market.

The stock market melt down affected prices of houses in the high end market. We observed up to 40% fall in the prices of land and house at Ikoyi, Lekki, Banana Island, Ikeja GRA etc, a number of the luxury apartment are also vacant for close to 4 years. Property Investors in the listed locations are also settling for lower rent.

But rents and prices of houses in the mid end market are enjoying a steady rise.

Adetola: @soldierAnt
Different investment windows offer varying degrees of benefit and exposure to risks as well.
However, a balance portfolio is such that you have interest in almost every viable investment opportunities. Having a balance investment portfolio has the merits of
(1) Maintaining your financial balance if any of the windows experience turbulence
(2) A loss in one investment can be easily covered and buffered by appreciable growth in the other investments.

AjanleKoko: I think young people with disposable income should look at passive investment to start with.
Put some money in fixed securities such as bonds or T-Bills, like Seun suggested. If you have more, you can try out some of the mutual funds around, like ARM Discovery or IBTC Equity. They are more expensive though, but can also give good returns. I would start with that rather than actively trading on the exchange.

You can start with that for the first year or two. You probably still need to invest in yourself, to strengthen your future career prospects. So you probably can't be very aggressive at the onset. Start with those options I mentioned, and try to spend time reading a little bit about investing in general, particularly as it relates to our market here in Nigeria. Read publications like Castles or BusinessDay rather than City People or Complete Sports



Agreed. He should also visit the Investment section on Nairaland, and visit sites like stockmarketnigeria.com and Proshare.

AjanleKoko: I think young people with disposable income should look at passive investment to start with.
Put some money in fixed securities such as bonds or T-Bills, like Seun suggested. If you have more, you can try out some of the mutual funds around, like ARM Discovery or IBTC Equity. They are more expensive though, but can also give good returns. I would start with that rather than actively trading on the exchange.

You can start with that for the first year or two. You probably still need to invest in yourself, to strengthen your future career prospects. So you probably can't be very aggressive at the onset. Start with those options I mentioned, and try to spend time reading a little bit about investing in general, particularly as it relates to our market here in Nigeria. Read publications like Castles or BusinessDay rather than City People or Complete Sports

manie:


Have you considered the effect of inflation on the the bond. I will not advice a young man to have more than 20% of his asset in bond, his assets and income should be invested in developing himself, buying good stocks and real estate. He should have a long term view when making his investment decisions over a period of 10 years or more investments in stocks or real estate will out perform investment in bond or treasury bill.
Enduring wealth can only be built by having a long term perspective whenever it comes to investment.

manie:


What is the current value and rental income from the luxurious apartments sold by IBTC for 1 million dollars per flat in 2007?

manie:


What is the current value and rental income from the luxurious apartments sold by IBTC for 1 million dollars per flat in 2007?

manie:

I am not sure if this investment gives more than 50k dollars as rental income.

manie:

Investment lesson number 1, do not over pay for any investment. Be it real estate, stock or business.
There are houses selling for 60 million Naira in lagos, that can bearly generate a rental income of N2 million.


That 1 million dollars would have bought 3 million units of Nigerian Breweries in 2007. The investment would have given a dividend of over 30 million Naira over the last 4 years. And the 3 million units of Nigerian Breweries shares will be worth almost 500 million Naira on March 25th 2013.

Peterwins:

Information is power. Please let us know how you would have acquired or purchased 3 million unit shares of Nigeria Breweries in 2007 as an individual investor when the average available trade-able quantities per day on the stock exchange was less than 300,000 units in several deals hotly sought after by so many stock brokers on a daily basis.

To purchase even 100,000 units of NB shares on the floor back then in 2007 was a feat. What do you think drove up the prices?

manie: NB fluctuated between N35 and N40 in 2007, 1 million dollars was 120 million Naira in 2007. NB is one of the liquid stocks on the exchange having NB shares is as good as having cash. Over 2 million units of NB shares were sold yesterday.

I used to be a margin trader when the market was good, when you want to buy units of shares running into million of units you buy the shares over a period of days taking into consideration the bid and offer for the stock.

Peterwins:

"Over 2 million units of NB shares were sold yesterday" is an incomplete information in the context of my comment/query. I would have sincerely appreciated it if you had completed the statement by stating the number of deals that transpired in order to properly inform naive investors . It may surprise you to know that those that bought 100,000 units and above in a single deal in yesterday's transaction where institutional investors. Most individual investors don't get a chance to purchase these stocks in large quantities even with available cash. You may be lucky to get even 10,000 units.

I was a bit miffed when you said you could have purchased 3,000,000 units of NB shares in 2007 as if the quantity of the stock was readily available to individual investors. If you had mentioned bank/insurance stocks I would have agreed with you because they were in abundant supply in 2007.

The daily average quantities of tradeable stocks like Nestle, Cadbury, Guinness,Unilever, etc are quite limited compared to financial industry stocks. This can easily and readily confirmed. The financial sub-sector have the highest quantity of tradeable stocks in the NSE.

It would have taken you several months (if not over a year) to have purchased 3,000,000 units of NB shares as an individual investor in 2007. You would have needed to purchase an average of 250,000 units of NB shares a month for 12 consecutive months in 2007 to acquire 3 million units. A rare stunt for an individual investor back then.

There is a need for proper information.

plural: @Manie:

Thanks for your valuable insights.

Which stockbroker do you use?

I have a practical question for posters:
Assuming I am able to save 20,000 monthly from my salary, how can I invest this?

plural: @Manie:

Thanks for your valuable insights.

Which stockbroker do you use?

I have a practical question for posters:
Assuming I am able to save 20,000 monthly from my salary, how can I invest this?

I use BGL securities, FBN securities, UBA stock brokers and Union capital market.

plural: @Manie:

Thanks for your valuable insights.

Which stockbroker do you use?

I have a practical question for posters:
Assuming I am able to save 20,000 monthly from my salary, how can I invest this?



I use BGL Securities, FBN Securities, UBA Stock brokers and Union capital market.

Peterwins:

"Over 2 million units of NB shares were sold yesterday" is an incomplete information in the context of my comment/query. I would have sincerely appreciated it if you had completed the statement by stating the number of deals that transpired in order to properly inform naive investors . It may surprise you to know that those that bought 100,000 units and above in a single deal in yesterday's transaction where institutional investors. Most individual investors don't get a chance to purchase these stocks in large quantities even with available cash. You may be lucky to get even 10,000 units.

I was a bit miffed when you said you could have purchased 3,000,000 units of NB shares in 2007 as if the quantity of the stock was readily available to individual investors. If you had mentioned bank/insurance stocks I would have agreed with you because they were in abundant supply in 2007.

The daily average quantities of tradeable stocks like Nestle, Cadbury, Guinness,Unilever, etc are quite limited compared to financial industry stocks. This can easily and readily confirmed. The financial sub-sector have the highest quantity of tradeable stocks in the NSE.

It would have taken you several months (if not over a year) to have purchased 3,000,000 units of NB shares as an individual investor in 2007. You would have needed to purchase an average of 250,000 units of NB shares a month for 12 consecutive months in 2007 to acquire 3 million units. A rare stunt for an individual investor back then.

There is a need for proper information.

Peterwins:

"Over 2 million units of NB shares were sold yesterday" is an incomplete information in the context of my comment/query. I would have sincerely appreciated it if you had completed the statement by stating the number of deals that transpired in order to properly inform naive investors . It may surprise you to know that those that bought 100,000 units and above in a single deal in yesterday's transaction where institutional investors. Most individual investors don't get a chance to purchase these stocks in large quantities even with available cash. You may be lucky to get even 10,000 units.

I was a bit miffed when you said you could have purchased 3,000,000 units of NB shares in 2007 as if the quantity of the stock was readily available to individual investors. If you had mentioned bank/insurance stocks I would have agreed with you because they were in abundant supply in 2007.

The daily average quantities of tradeable stocks like Nestle, Cadbury, Guinness,Unilever, etc are quite limited compared to financial industry stocks. This can easily and readily confirmed. The financial sub-sector have the highest quantity of tradeable stocks in the NSE.

It would have taken you several months (if not over a year) to have purchased 3,000,000 units of NB shares as an individual investor in 2007. You would have needed to purchase an average of 250,000 units of NB shares a month for 12 consecutive months in 2007 to acquire 3 million units. A rare stunt for an individual investor back then.

There is a need for proper information.