₦airaland Forum

Peterwins: You must be objective (and fairly knowledgeable) in any investment decision you take. Get in touch with any reputable stock-broking firm and seek professional advise.

However, if you must invest in the NSE as a novice, just make sure you only invest in stocks of a few multi-nationals such as: Guinness, Unilever, Cadbury and Nestle. These companies have good/strong corporate governance.

You can start investing in other stocks once you fairly understand how the NSE works.

Fundamentals do not support the current prices of the listed stocks, I have sold all my Nigerian Breweries, PZ, Nestle, Unilver and Nestle.

They are all good companies, but they are not selling at good prices, Price/earning ratio, Price/ earning growth rate, Net asset per share, profit margin do not support their current price. I foresee a stagnation in the price of the listed stocks in no distant future.

horlla: This may or may not be a hype.But I can read between the lines that OP has some interest in UBA,Zenith and FBN shares.Possibly planning a cash out.Trust me NL is enough generate demand that can push the price up.

let's calculate what UBA has given as dividend since he bought the stock if the value will be close to 720k......
I keep my finger crossed like Abayomi Obabolujo would say.........

I do not know how knowledgeable or conversant you are with the stock market, but the top 4 banking stocks in Nigeria are one the cheapest in the world at their current valuations.
They are highly liquid and have been consistent with dividend payments over the years, these are the stocks that foreign investors, institutional investors and Pension fund managers invest in.

horlla: This may or may not be a hype.But I can read between the lines that OP has some interest in UBA,Zenith and FBN shares.Possibly planning a cash out.Trust me NL is enough generate demand that can push the price up.

let's calculate what UBA has given as dividend since he bought the stock if the value will be close to 720k......
I keep my finger crossed like Abayomi Obabolujo would say.........

N4 million will buy 1.625 million units of UBA shares at an average price of N2.40k and deduction of commission,taxes and other charges.

UBA paid a dividend of N0.50k about 4 weeks ago, that is N812,000. If you deduct with-holding tax of 10% you will have a dividend of N731,000 from his investment of N 4 million.

EasternLeopard: 1st) Seperate d money into 5 and put them into 5 diff banks one yr fixed deposit accts. 2nd) Acquire financial wisdom by studying starting with books like Rich Dad Poor Dad, Cashflow Quadrant, etc 3rd) Once steps 1, 2 & prayers are taken u will be able 2 make wise decisions.

The books are good but they are meant for starters in the game of investment.

Books like Intelligent Investor by Benjamin Graham, Security Analysis by Benjamin Graham and David Dodd are more like it.

Peterwins: Insider trading? Plausible. The OP should be discreet next time.

I do not think this is inside trading, if you know how to calculate the intrinsic value of stocks you will know that UBA was undervalued at N2.50k even at the current price of N8.30 it is still undervalued. The stock should not be selling for anything less than N10.00.

Anybody with the requisite knowledge, patience and multiple streams of income will make more money on the long term investing in undervalued stocks than in real estate.

shigidi: Pa manie, if you purchase 75m worth of stocks only to see it lose 20%, you go fit handle am? Isn't it safer to buy small small so u may average down?

Why not? The dividend is enough to live on pending the time normalcy returns to the market. The most important thing is to invest in stocks that meet your specification.

Born 2be Rich: Oceanic Registrars,226 Awolowo Road, Ikoyi, Lagos

Ocean Registrars used to be at Onipanu Palmgrove on Ikorodu Road.


I do not think oceanic registrars still exist, since the company was taken over by Ecobank.

olushowunm: YES, I KNOW... BUT WHAT TYPE OF FINISHING ARE YOU TALKING ABOUT?
I WILL DELIVER IT... IN FACT TO START BUILDING FROM WHERE HE STOPS NOW TO ROOFING STAGE WILL NOT TAKE MORE THAN 2MILLION... THE REST IS FOR FINISHING...

@ 2 million is small. How many blocks will he need to set up to lintel level, how many bags of cement will he need, what about the reinforcement for the lintel and pillars, what about workmanship. Since a plot of land cost an average of 10 million naira in that axis, it will be better to deck the house. Decking should take about 2.5 million Naira.

The initial 2 flats is to secure the property, get a cash flow that that can be used to build the other 2 flats on the first floor. This is the strategy used by me, and I recommend this to real estate investors with modest source of income.

olushowunm: @OP... I'M FROM ABEOKUTA AND I ALWAYS WONDERS WHY PEOPLE IN LEKKI/AJAH AXIS USE SO MUCH MONEY TO DO CONSTRUCTION...

WELL, I CAN DELIVER HIM 2UNITS OF 3-BEDROOM FLATS AT 7-8MILLION WITH QUALITY CRATFSMEN THAT HAVE WORKED FOR ME ON SEVERAL BUILDING PROJECTS.

THE ONLY THING THAT WILL COST HIM MORE MONEY THAN NECESSARY IS WANTING MARBLE OR OTHER EXQUISITE FINISHING...

WELL, THE COST ALSO INCLUDES USING STEP-TILES ROOFING, POP FINISIHING AND OTHERS.

YOU CAN CONTACT ME FOR MORE INFORMATION IN THAT REGARD.

THEN CONCERNING BUILDING A COUNTRY-HOME, ITS TOTAL WASTE OF TIME AND MONEY... I HAVE A LOT OF THEM HERE IN ABEOKUTA, WHY WILL YOU BUILD HOUSE FOR LIZARDS AND RATS

IF YOU ARE BUILDING AT ALL, IT SHOULD PUT MONEY BACK IN YOUR POCKET AND NOT THE OTHER WAY ROUND!!!

SO MY ADVICE IN THAT REGARD SHOULD BE...

1. FINISH AJAH HOUSE (WHICH I CAN HELP HIM WITH)
2. BUILD A RENTAL PROPERTY (TENEMENT HOUSE) IN AGO-IWOYE FOR RENT TO STUDENTS OR BUY HIS STOCKS... THANKS.

The finishing affects the cost of building the house, the finishing also affects the type of rental income the investor will get. The rental income stated above are very conservative.

oluface: How will you survive if your boss fire you today.

That is why is good for every salary earner to create multiple streams of income, and become a habitual saver and investor. There is nothing like job security in any part of the world. No worker is indispensable.

Everybody should pray for the best and plan for the worst.

Ilasan: I am in Lagos, with a wife and 2kids, i also have a 4*4jeep. i survive on a 100k monthly. so, it is possible

I am sure you have other sources of income, if not using a 4*4 jeep with that income is not a smart move. Hope you are savvy enough to save and invest a minimum of 20% of your income every month.

Rocktation: It seems to be a common fallacy to conclude that Lagos is expensive, just because the life's fast or whatidon'tknow. Lagos isn't New york. Prices of foods, rent and a whole lot more, are nothing compared to what they go for in many eastern and south-western states. The only thing that might drain the cash in a way that a lot of other states woulnd't, is the t-fare.

Lagos is not the most expensive city in Nigeria, but it is the most expensive in the South West Region.

Royal Roy: Well, I felt somehow too, if he made 100m from selling some properties, then why can't he go back & invest more in properties?

I believe the best form of investing ur money is to put it back into where u got it from!!

You can not blame him, maybe he inherited the property and he decided to sell it. The guy needs to invest heavily on his financial education.

tempex88: Go to Universities around the west, Land are always very cheap cos they are located in bushy areas. buy half a plot and buils like a 10 rooms hostel. with 12m am sure you can do two schools. build are you will earn an average of 60k per room if you can do self contain.

I will not ask anybody to invest in what they do not understand, or areas they are not conversant with. Among the 3 options available to Supo, which one should he go for and why?

Royal Roy: I just want to go into it!!!
I have some good funds, but am an impulsive investor!!
I see something trending & I look left & right & I invest!!
So am wondering if I tie my money into stock, do I sell off as at when I need the money or I have to pass through a process & time frame?

Why do you want to invest in stocks. Hope you know that stock-market investment is not for everybody? This is an intellectual form of investment. You need relevant knowledge in order to succeed in stock investment.

jamace: First, congrats to your friend for the great profit from his investment.

Now, I'm happy your friend has VAST KNOWLEDGE in stock investment. In my opinion, I will advise that he buy the lands and secure them while he reinvest the remaining back into shares. My conviction is that the shares on the NSE still have a lot more to offer right now than real estate. In the next 2 years, most of the stocks on the NSE will deliver at least 100% on investment based on my observation of the behavioural pattern of stocks on the NSE. In a BULL ERA, stocks outperforms real estate.

Above is my personal submission. You should look at it critically but let YOUR conviction be your guide.

Happy investing and best of luck.

We have been together in the stock business together for 20 years.

I share your optimism about the market, if I have 100 million Naira cash, be sure that 75% of the sum will be invested in shares based on the current valuation of some stocks.

Royal Roy: I need ur advice on shares & stock please!!
How easy is it to sell it off when u already made gains?
Will it take time or you can get buyers instantly?

Who are your stockbrokers? Which stock do you want to sell? What is the volume of the shares you want to sell?

manie: That is a good idea. But I do not think that 8 million will complete the project. I think completing the 2 units of 3 bedroom flats and letting it out is a better idea.

By completing the house, he can let each flat out for 550k to 600k per annum. I just got a new tenant that paid 2 years rent advance. If he can get 2 years rent advance from each flat that will be 1.1 million to 1.2 million Naira per flat, the two flats will give a combined income of about 2.2 million to 2.4 million Naira that can later be invested in stocks.

I think it makes economic sense to first of all build an income generating property in the city, and then use the income derived from the income generating property to build a house in the village if need be.

janykute: Advise him to put 8m in the Ajah project,while the project is ongoing he should reinvest the 3m in those mentioned stocks and see if he can make another kill on the stocks.

There are kills to be made on the stock exchange, provided you can identify undervalued stocks and having a year to 2 years investment horizon.

manie: That is a good idea. But I do not think that 8 million will complete the project. I think completing the 2 units of 3 bedroom flats and letting it out is a better idea.

By completing the house, he can let each flat out for 550k to 600k per annum. I just got a new tenant that paid 2 years rent advance. If he can get 2 years rent advance from each flat that will be 1.1 million to 1.2 million Naira per flat, the two flats will give a combined income of about 2.2 million to 2.4 million Naira that can later be invested in stocks.

The guy is currently a tenant at Surulere, where he pays 650k per annum for his apartment but he prefers Surulere to Ajah. Surulere is less than 20 minutes drive to his office at Marina Lagos.

janykute: Advise him to put 8m in the Ajah project,while the project is ongoing he should reinvest the 3m in those mentioned stocks and see if he can make another kill on the stocks.

That is a good idea. But I do not think that 8 million will complete the project. I think completing the 2 units of 3 bedroom flats and letting it out is a better idea.

By completing the house, he can let each flat out for 550k to 600k per annum. I just got a new tenant that paid 2 years rent advance. If he can get 2 years rent advance from each flat that will be 1.1 million to 1.2 million Naira per flat, the two flats will give a combined income of about 2.2 million to 2.4 million Naira that can later be invested in stocks.

spyder880: I love building houses, and the attendant challenges that will inevitably come with it. I love making things happen, and working with skilled men to use materials in creating beautiful designs that will make a superb home. I have just been contracted by a Nairalander to build his house in Port Harcourt. The details are as follows;

Project: A 5 bedroom executive duplex
Client : A Nairalander
Duration: 60 days
Project cost: N8.8m (Foundation-roofing, materials and labour)
Contractor: Ckenneths Homes Nig.

This project will start this week as we arrange to travel down to the city and start work. This house comes with all the latest designs in modern building, granite, decent room arrangement with bigger bedrooms, internal plumbing and electricals, special parapet cornice, stone coated roofing tiles, everything.......

Does the cost include plastering and finishing of the house?

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

Index fund mirrors the performance of the All Share Index, some index funds invests along certain industries or sectors. Talk to your broker, they will be of help.

NB, I don't do mutual fund or index funds.

Ozonna: Please what's REIT ?

Where is Jarus? I need to see his opinion too

REIT means Real Estate Investment Trust. We have the following REIT on Nigerian Stock Exchange, Skye Shelter fund, Union Saving and loans REIT.

UAC Property Plc just raised funds for their own REIT some few weeks ago.

robonski15: I will advice you invest in catfish farming.. Its ROI is absolutely 100%.. You can read through my thread..

https://www.nairaland.com/1240657/hidden-truths-catfish-business/21

You must be a joker, the guy needs serious business idea you are talking of cat fish business. What is the turnover of your catfish business? Even if he want to invest in catfish, he should not invest more than 5% of his money that is N5 million on it.

A friend who works with UBA Capital invested 4 million Naira on the shares of UBA in January 2012. He planned to hold the stock for 36 months that is till January 2015. The average purchase price of the stock was between N2.35k and N2.50k.

The guy got a dividend of 702k from his stock in June 2013, after which he sold 90% 0f his shareholding for about 10.5 million Naira. With the sale of 90% of his UBA shares and the dividend received he has over 11 million Naira. He is now contemplating what to do with the money considering the various alternatives that are available.

Firstly he does not have a country home in his home town, that is Odogbolu in Ogun State. His younger brothers all have a country home at Odogbolu and he is the only one left out among the 3 of them. He is therefore thinking of using the money to build a house at Odogbolu.



Secondly he has a fenced plot of land at Ajah, he stopped in 2009 at the foundation stage. He is considering using the 11 million Naira to build a moderately finished 2 units of three bedroom flats that will give a minimum rental income of 1.1 Million Naira.I currently charge my tenants 550k per annum, he may decide to charge same or higher rate.


Thirdly, he believes stocks like Zenith Bank, FBN, UBA, UBA Capital, Access Bank and ETI are currently undervalued, investing in this stocks should give an average dividend yield of 6.5% is over 700k and an upside potential of 30% to 40% that is 3.3 million Naira to 4.4 million Naira in the next 12 months.


What will do you if you are in Supo's shoes.

Jarus: On the cards insha Allah.

I have a property on Ajah axis, the area is opposite Fara Park Estate. Fara Park is before Abijo, and the rental income from property on that axis is not bad.

kalokalo: Oga Jarus, I think you've been fleeced big time!! From the pictures I'm looking, you should not have spent more than 6 million on that house. We've almost completed a 5 bedroom duplex in Akesan area in Lagos and we spent 3.4 from lintel level where it was originally to roofing inclusive of plastering, decking, plumbing, electric wiring, fencing, gate etc. However we bought cement and made our own blocks. What we did was we bought the materials ourselves, hired the labor ourselves and paid a foreman to oversee them. The foreman would tell us what we need, we would go to the market to buy them and store it in a locked shed and release materials as needed. If we include the cost of land, foundation, omo onile fees and building up to lintel level, our expenses to date is just over 9 million.

A caveat though, we did not use aluminium roofing. I forgot the name its called.

The builder too must eat now,and Jarus does not have the luxury of time to research the cost of building materials. I personally buy my building materials, the only one I do not buy is the electrical materials and appliances. Getting skilled builders from Togo, Ghana and Benin republic can also reduce cost of building.

All the same congrats to Jarus, when will you start building your Lagos house?

Jarus: Atiada, ore. K'olohun ma se wa ni baba eko l'aasan. K'olohun je ka ko ere oko dele o.

O ma ko ere oko dele, oti nko dele faa.

mercylicious: Oga Manie, u r very knowledgeable in real estate investment in lag/ west. I already have 2 here in the east,d next will be in west.I'll be needing ur help/assistance when am ready and able to do that, hopefully in 2 years time (if christ doesn't come).

Never knew you are based in the East, I thought you are based in Lagos.

Toluway: Iam very greatful gentlemen. I now know what to do.

Please nereiskc, you dont have to leave your broker. Meristem was buying for me at the highest price of the day. It would buy for me from a bullish market on a bearish day. When I had to cry out, I was told the market was bullish in the morning when they bought and later in the day, prises suddenly dropped. And that was always the case. I now had a new lease of life when I started putting buy-limit and the firm has since kept faith with my buy limit. I learnt my leason. Never will I buy at the market price again!.

I will advice you to set price limit for your transaction.

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.