A friend of mine thinks he is not doing bad managing his investment portfolio but I advised he gets a professional to help manage it better (That's my personal view though); as I also have mine.

To make a better decision, he asked I help him take it (the issue) to nairaland to read people's opinions and to pick which is best for him and for us in general.(he's a nairalander too).

Now I ask, which is the wisest thing to do? Get a professional or continue managing his 'thing' in his own little understanding?

val_dubem: A friend of mine thinks he is not doing bad managing his investment portfolio but I advised he gets a professional to help manage it better (That's my personal view though); as I also have mine.

To make a better decision, he asked I help him take it (the issue) to nairaland to read people's opinions and to pick which is best for him and for us in general.(he's a nairalander too).

Now I ask, which is the wisest thing to do? Get a professional or continue managing his 'thing' in his own little understanding?

I think I will do well managing my investment than giving it to the so called professionals.

manie:


I think I will do well managing my investment than giving it to the so called professionals.

Experience is the best teacher, I will advice to one to invest little amount of money regularly and one should read about investment, economy and network with fellow investors.

Real investment professionals can expand his investment portfolio while quacks will/may diminish his returns. Just use the analogy of the medical profession where quacks also abound. It will not be prudent to continue to self-medicate because of quack doctors.

Let him do this: Split his investments into two (2) parts/portfolios. He handles one part while the professional freely handles the other part. He can then reach an objective conclusion on the matter based on the performance of each portfolio at specific intervals(periods) i.e quarterly, yearly, etc.

However, some people feel very comfortable with their own decisions (irrespective of the outcome) when it comes to money (investment) matters. Different strokes for different folks.

There is a reason (disclaimer) for insisting that investors seek sound professional advise before investing in some financial instruments.

Peterwins: Real investment professionals can expand his investment portfolio while quacks will/may diminish his returns. Just use the analogy of the medical profession where quacks also abound. It will not be prudent to continue to self-medicate because of quack doctors.

Let him do this: Split his investments into two (2) parts/portfolios. He handles one part while the professional freely handles the other part. He can then reach an objective conclusion on the matter based on the performance of each portfolio at specific intervals(periods) i.e quarterly, yearly, etc.

However, some people feel very comfortable with their own decisions (irrespective of the outcome) when it comes to money (investment) matters. Different strokes for different folks.

Some of us like taking our destiny in our hands, I don't believe in blaming anybody for what ever happens to me. I do not own any mutual fund stocks nor invest in REIT and I have always gotten a better result in stock market and real estate investment compared to investors who allowed the Professionals to invest for them courtesy of mutual funds and REIT.

The best way to understand investment is to start small and invest regularly, but to those who are too busy or lazy to learn about investment, I will advice such people to give their funds to the so called investment professionals.

manie:


Some of us like taking our destiny in our hands, I don't believe in blaming anybody for what ever happens to me. I do not own any mutual fund stocks nor invest in REIT and I have always gotten a better result in stock market and real estate investment compared to investors who allowed the Professionals to invest for them courtesy of mutual funds and REIT.

The best way to understand investment is to start small and invest regularly, but to those who are too busy or lazy to learn about investment, I will advice such people to give their funds to the so called investment professionals.

It also depends on other factors such as the size of the portfolio, investment goals, time, etc. Real professionals are good at what they do despite some cases of professional negligence. Timely information is power.

PS: I cannot advise individuals to invest in REIT in Nigeria because of its slow growth and low yield. These investments (REIT) are typically for institutional investors such as pension funds, mutual funds, etc.

I think it will be best for him to Handle his Investment personally...there is nothing like giving your business to professionals, how about a professional who only clarifies his professionalism by result and not by experience, What happens when this so called professional doesn't have the basic experience needed...and how will you ever learn how to handle your business in time to come when he doesn't even know the ups and down of his business just because it has been handled by these so called professionals...experience they say is the best teacher, just like you will never see an Igbo man give his business to anyone to handle no matter what kind of business, #EVEN IF NA DRUG DEAL.

I dont believe in giving a third party,glorified professional money to invest for you. Professionals are good at handling other people's fund but does poorly in managing his own fund. Warren buffet says wallstreet is a place where a man in rolce royce comes to invest with a man who treks home. After few experience,i have learnt to build up myself by reading books written by successful investors and doing it myself. However people who are too lazy or busy or scared of taking risks can pay a third party to do that for them and pray he gives a damn about your money.

Managing your business/investment is something you can never regret.even if you want to employe anybody,make sure you know how the system runs,this is to enable you employe and motivate your employee anytime any day.a professional is not one who speaks big grammer or with masters degress but one who is very good in a particular thing,in that case you can as well be a proffesional yourself by attending seminars,asking questions etc.I rest my case here.

It makes sense to have investment advisers, if you can afford that luxury, but the final decision of what to invest in and how much to invest in should be yours and yours alone. When your investment advisers come to you with ideas, you must not invest based on your faith in them. You must ask them lots of questions and challenge them to produce more hard facts about the proposed investment until you are personally convinced that investing the money in what they suggested is a good idea for you. You must have a complete understanding of the rationale behind each and every investment that is made on your behalf. You must say no to any investing idea that you are not 100% sure about personally.

Why?

1) Because it is well known that the average investment manager cannot beat the performance of the stock market index. That means that if you pick stocks randomly for your portfolio, you are likely to perform as well as an average investment manager who is investing based on his supposed expert knowledge of the market.

2) Because people don't invest other people's money as well as they invest their own money. Your investment manager will take too many risks with your money because he/she has nothing to lose if the investment does not work out, but a lot to gain if it does. He will gamble with your money and he will not do better than a monkey.

Financial intelligence is key. If u don't have it, please use professionals.
B4 u make any investment, be sure u know what you are doing. Do not gamble with your hard earnest resources. If you don't know how it works, I repeat- use a professional.

@ op,

Is your friend a professional?
Does he add value to his clients (or those of the company or organisation he works for) based on his professional service to them?
If answer to above questions is YES, why will he not want the value added services of a professional for his investments

Well , it solely depends on what your concept of who a professional is ... If you are the type that shares in the school of thought that a professional in any discipline is someone who has an in-depth knowledge of his act, with or without higher formal paper certificate(s) , then you will have no reason to worry when entrusted your investment portfolio in such person's hand . However, if your concept of a professional is someone who glosses his/her ignorance with many higher formal paper certificates and polished English , but without in-depth knowledge in its act , then you are better off managing your investment portfolio yourself . Meanwhile, non of the options above can equal when you manage your investment portfolio yourself- all you need to become a pro in investment management is by continuously educating yourself in this area and embracing the guts to take calculative risks .

master minded

mercylicious: Financial intelligence is key. If u don't have it, please use professionals.

I think investing is like bleeping your spouse: you can ask people to give you new ideas and teach you how to do it better, but you cannot ask them to do it for you and expect a good outcome. If you don't have financial intelligence, you should stick with tbills and index funds until you have acquired financial intelligence. If you don't have financial intelligence, how will you even know which professional to use?

Invest in your financial intelligence (Business school), and you can do it all alone.

Seun:
I think investing is like bleeping your spouse: you can ask people to give you new ideas and teach you how to do it better, but you cannot ask them to do it for you and expect a good outcome. If you don't have financial intelligence, you should stick with tbills and index funds until you have acquired financial intelligence. If you don't have financial intelligence, how will you even know which professional to use?

Seuuun!!!

Ishilove:


Seuuun!!!

wetin .. you never hear the word before .. abi na kindergarten dey nairaland ... rubbish

Let him get Investing for dummies by Eric Tyson. At least, he should be able to find his way from there, The book contains very helpful tips on how to steer your investment.

When you call someone a Professional, that settles the case..

If you do it urself, u must learn on the job and pay for some rub-sliding here and there.

A professional has experience..

You don't pick experience from the gutter.

Doing it urself depends on your level of exposure to investment portfolios..

Don't try to save #1 naira being the professionals commission and end up loosing #10 naira.

My opinion tho!

DIY.

Seun:
I think investing is like bleeping your spouse: you can ask people to give you new ideas and teach you how to do it better, but you cannot ask them to do it for you and expect a good outcome. If you don't have financial intelligence, you should stick with tbills and index funds until you have acquired financial intelligence. If you don't have financial intelligence, how will you even know which professional to use?

This analogy is so so funny. I've been laughing since I saw it.
Well, how many ppl know abt tbils? Even some banker friends don't know abt it. Knowing it amounts to some level of financial inteligence. Some people don't even know the investment options they have. Most dont know how stock market, tbils,fgn bonds, estate mgt, etc work.
After my youth service, I knew abt shares but didn't know how what to invest in. I went to my stock broker then and he advised bluechips- gtb and fbn then. He did that knowing they have a steady growth rate and it was a good one. I also advise that when choosing professionals, get info from ppl dt they have worked for.

If you have a good sense of judgement and 80% of your business decisions always pan out, then you don't need a professional. At least that's what I think. But if you lack those, let a professional handle your investment but never let him make the decisions alone...

Peterwins:

It also depends on other factors such as the size of the portfolio, investment goals, time, etc. Real professionals are good at what they do despite some cases of professional negligence. Timely information is power.

PS: I cannot advise individuals to invest in REIT in Nigeria because of its slow growth and low yield. These investments (REIT) are typically for institutional investors such as pension funds, mutual funds, etc.

Please what's REIT ?

Where is Jarus? I need to see his opinion too

My short reply to this: Professional service providers are always the best route to qualitative delivery because of knowledge, skill and form, which no other person or organisation CAN have.

However the almighty 'NIGERIAN FACTOR' more than often makes a mess of the best competencies. So what I advice in all investments whether financial, R.E. agric, transport, corporate, personal, etc.

If you can and by all means just take out the rods, reels and BAIT and go fishing. Never the boat and fishing net. Be patient and build relationships. Know their strengths and weaknesses before evolving strategies to exploit them for your good. NEVER bet your house. ALWAYS read the small print.

NB. The most despicable lying, cheating, snake-eyed b.ast.ard may also be the best for you at that time and in your circumstance. It just depends on how you handle him, her, them or it.

Jus noticed that a lot of comments flow along the lines of financial investments. But Nigerians invest or mis-invest in a number of other money pits on a daily basis under the watch of 'professional consultants'.

Its a jungle out there so my 'portfolio' contains more than just papers. As a matter of fact it resembles what the early explorers to new continents carried: map, compass, anti-malaria potions and spare rhino bullets.

Believe me, they have kept me alive in this country as paper investments have answered their name - paper.

You should be fine if you arm yourself reasonably well enough with relevant info and do the managing yourself.

can some one pls. suggest a book that deals with how the capital market/ investment works in Nigeria in practical term
please not the ones with plenty theories and calculations. thanks

Reference: Jus noticed that a lot of comments flow along the lines of financial investments. But Nigerians invest or mis-invest in a number of other money pits on a daily basis under the watch of 'professional consultants'.

Its a jungle out there so my 'portfolio' contains more than just papers. As a matter of fact it resembles what the early explorers to new continents carried: map, compass, anti-malaria potions and spare rhino bullets.

Believe me, they have kept me alive in this country as paper investments have answered their name - paper.

Ur words are pregnant bro!! I know u re speaking in parables, but i'd be grateful if u enlighten us further....

...only this time, in simple and demystified English.

thanks

Seun:
...you should stick with tbills and index funds until you have acquired financial intelligence. If you don't have financial intelligence...

Pls what is index funds and how is it invested in?