₦airaland Forum

onegentleguy:
...No bro.
But Champion breweries is cool @ the current mkt price.

Valueinvestor:
That's why you cut your losses short once the stock no longer aligns with your expectation as regards fundamentals

veecovee:
Heeee what kind of talk is this this? ... finger

Mcy56:
It's alright sir. Well noted.
Like Chibuking81 said, we're not here to mislead any.
We are all here for a common goal, to assist each other and to learn too.
Let's see as events unfolds and pick some learning points there too.

Justcul:
When we tell people here to buy DangCement.. they wont listen.. Alhaji stocks no dey carry last

ositadima1:
I no too blame my self sha, I bought it for long term back then. Plus, Afriprudential registrars refused to process my e-mandate and dividends on time. Imagine, I was just receiving my dividends a few days ago.

Mcy56:
Thought you sold already?
You mentioned that you set a limit at 145 sometimes ago, that we even said you should be careful of using "good till fill"......and dangcem touched 147/150 thereafter........or is this another trip?

thesilentone:
5 weeks late

onegentleguy:
Great but before we can draw a conclusion on whether the said investment was worthwhile, we need to benchmark it against similar natural investment plays adjusting for risk.
…a brief;

Assuming u were to put that money(N100,000) in a different investment platform in 2010, and held on until 2020, would u have faired better?
…put differently, could u have derived a higher Real Return than N238,354(future value-invested capital) in another investment play than Zenith bank in 10 yrs?
To query this, we need to compute the FUTURE VALUE of that N100,000 initial invested capital playing in the fixed income space(say T-bills) and continuously compounded, to see how it compares to the N238,354 real return from playing the asset- Zenith bank.
Mathematically, the future value with continuous compounding FVw/cc= PV(e)^rt
Given the data u provided;
Present value PV= N100,000
We use a discount rate relative to the interest rate in the last 10 yrs. …and if we do that, we should have an average that computes to just above 10%. So we peg r= 10% or 0.1
t =10(10 yrs), while e is the Euler’s constant
Therefore FVw/cc= 100,000(e)^0.1x10
So FVw/cc will be approx 271,828.2. Hence Real return going by this will be N171,282.2… which is a N67,071.8 shortfall when compared to playing the Zenith bank asset.

My further checks also reveals that if one had invested that initial N100,000 capital in other instruments(bonds, mutual funds etc), FVw/cc would’ve still been less, so Real return would also peg at a shortfall from that of investing in Zenith bank. …in fact the latter(mutual fund) would’ve been lower than that cited above.

VERDICT: While the Real return from playing the Zenith Bank asset may not have been that juicy, it is still BETTER OFF than playing other assets for the most part.
There is a reason why the equity mkt space is about the best investment platform in delivering value !!
The real problem here is with the larger economy. …Top-down view to equity investments often deviates away from the bottom-up view, leaving a wide disconnect/margin between the market price and FVE of most most assets.
Nigeria is the problem… not Zenith bank !!

Selah

emmanuelewumi:
Zenith bank is not one of the best in the last 10 years. In fact none in the banking sector. If you are looking for one of best stocks that beat inflation and devaluation in the last 10 years. You consider APR and United Capital.

N9 million invested in the right offer IPO of United Capital in 2013 has received a total dividend of N22 million and currently worth N27 million

N12 million invested in the right offer IPO of APR in 2013 has received a total dividend of N32 million and worth N40 million.


For Zenith bank N10.9 million invested in 1 million units during the IPO in 2004 grew to 2.34 million units due to bonuses. The shares are currently worth N36.5 million in the market, a total dividend of over N45 million received over the years. Total return of N81.5 million.

A quiet company like Okomu Oil gave a better returns in the last 15 years than all the companies in the banking sector

RabbiDoracle:
There is time for everything.

Until we understand this, we will keep losing money.

As market trades, you try to understand what it is doing. But many of us don't do this.

I bought Zenith Public offer in 2004 at 10.90. 16 years later, I bought Zenith at 10.70 on the open market

I have bought and sold Zenith many times within that 16 years and I am on board again.

There is time for harvest. When it is time for harvest, don't leave your crop unattended.

Monitor the cycles in the market. Market has cycles. Market talks to us, but we hardly listen.

Chonchin:
What new invention has Russia contributed to the world? Nothing! You can’t even name one. Only stealing stealing and copy copy!

sexylassie2:
So Nigeria hackers can not hack any coronavirus vaccines for the nation and make us proud.

Sefiuu:
Thank you for this update.

eziokwunwoko:
NSE website not displaying today trading price. What is happening

Tochex101:
Name of the reader pls....

RabbiDoracle:
Egg-head

DrAwo:
Excellent bro...
One way to improve in the art of investing is to read voraciously...
Thumbs up...
I still prefer physical books though...

Wiseoldman:
Makes no difference to the common man really. Except few like government workers that will be owed salaries.

Mcy56:
Boss I no gree o.
Was expecting the bros to ask which charity home to take the donations to, so I can tell him my name is Charity Mcy, then tell him to bring the shares in return for marathon six.

dominique:
Sorry about that. Pls insist on trusted escrow always