The NSE continues to evolve to meet the needs of its valued customers, and to achieve the highest level of competitiveness. With about 200 companies and 258 Securities listed, The Exchange operates fair, orderly and transparent markets that bring together the best of African enterprises and the local and global investor communities. The Nigerian Stock Exchange is poised to champion the acceleration of Africa's economic development and to become “the Gateway to African Markets. This iis proven by the fact that NSE WAS AMONG THE TOP 20 BEST performing stock exchange in the world at 2012. I think is time we look again and begin to re-invest here.

That is true.

Smart investors have already taken position by investing in stocks of their choices.

Invest while the day is young!

jamace: That is true.

Smart investors have already taken position by investing in stocks of their choices.

Invest while the day is young!

You also need to invest when you are young, so that you wont play catch up at old age.

manie:


You also need to invest when you are young, so that you wont play catch up at old age.

My question has always remained, when exactly do you know when the market has bottomed out?? The current bears presents good opportunity, but at what point do you enter? What formulates the basis for such a judgement.

shigidi: My question has always remained, when exactly do you know when the market has bottomed out?? The current bears presents good opportunity, but at what point do you enter? What formulates the basis for such a judgement.

The value investing answer to your question is that you enter when you find a stock that is priced much less than it's worth. Obviously you will find more of such opportunities when the market is depressed, but the general state of the market is not so important. If you buy a stock worth 10 naira at 5 naira, it doesn't matter if the price falls further to 4 naira tomorrow. You will still make your cool profit on the long run, when the rest of the market finally recognizes the value of your stock, and the price rises to from 5 naira to 10 naira - or more.

manie:


You also need to invest when you are young, so that you wont play catch up at old age.

Have already invested. Waiting to harvest.

jamace: Have already invested. Waiting to harvest.

Their is no end to investing, make it your habit.

shigidi:

My question has always remained, when exactly do you know when the market has bottomed out?? The current bears presents good opportunity, but at what point do you enter? What formulates the basis for such a judgement.

I will advice you to try Naira cost averaging, this is a good strategy for starters and long term investors.

manie:


I will advice you to try Naira cost averaging, this is a good strategy for starters and long term investors.

What does this mean? Buying more as the price drops?

shigidi: What does this mean? Buying more as the price drops?

It means spreading your stock purchases over a long period of time and buying shares that cost a certain amount in naira each time. The spreading out of the purchases greatly reduces the risk of loss due to buying at a time when the shares are relatively expensive. But it also greatly reduces the possibility of making more money by buying at a time when the shares are relatively cheap.

Since the amount invested is constant, this means you will tend to buy more shares when they are cheap than when they are expensive. That makes it arguably superior to the similar strategy of buying X shares at regular intervals over a period of time.

Seun:
It means spreading your stock purchases over a long period of time and buying shares that cost a certain amount in naira each time. The spreading out of the purchases greatly reduces the risk of loss due to buying at a time when the shares are relatively expensive. But it also greatly reduces the possibility of making more money by buying at a time when the shares are relatively cheap.

Since the amount invested is constant, this means you will tend to buy more shares when they are cheap than when they are expensive. That makes it arguably superior to the similar strategy of buying X shares at regular intervals over a period of time.

Thanks Seun, for the explanation. With Naira cost averaging, an average investor will rarely go wrong investing in stocks.

Seun:
Since the amount invested is constant, this means you will tend to buy more shares when they are cheap than when they are expensive. That makes it arguably superior to the similar strategy of buying X shares at regular intervals over a period of time.

Thanks for this seun and manie.

@manie, im trying to diversify portfolio as i am heavily biased towards the banks. Amongst the infrastructure sector, would you advise ashaka or dangote cement? Ashaka appears cheaper in terms of p/e ratios. But what do you see as per growth prospects for each of them.

shigidi: @manie, im trying to diversify portfolio as i am heavily biased towards the banks. Amongst the infrastructure sector, would you advise ashaka or dangote cement? Ashaka appears cheaper in terms of p/e ratios. But what do you see as per growth prospects for each of them.

I am currently heavy in bank stocks, about 50% of the value of my portfolio is in banking stock. I will prefer Ashaka and WAPCO over Dangote cement, I still have corporate governance issues with companies that are 100% owned and managed by Nigerians.

manie:


I am currently heavy in bank stocks, about 50% of the value of my portfolio is in banking stock. I will prefer Ashaka and WAPCO over Dangote cement, I still have corporate governance issues with companies that are 100% owned and managed by Nigerians.

Always helpful. Thanks.