Topson88:
please what do you think about this investment strategy for a Nigerian in diaspora


I want to put some amount in S&P 500 and apple shares to allow for capital appreciation for about a year then about a month before zenith bank pays its final divided, i will sell off my apple and s&p 500 to buy zenith shares. After dividend payment, whenever price rises above entry price, i sell off and repatriate the money back into apple and sp500 and this cycle continues.
The aim is to benefit from capital appreciation, avoid devaluation and enjoy NSE dividend yield. What do you think may be the demerit of this investiment strategy. Thanks.

Ades1:



Remember the saying, NEVER TIME THE MARKET. It applies to NSE too! Why not invest in both? I invest in both and funny enough I am doing better with NSE. I personally don't care about exchange rate, when I change my $ to Naira, I have no plan whatsoever to convert it back to $. The plan is to generate crazy cashflow through dividends which I intend to use to pay bills in Nigeria in the future.

ositadima1:
There are 2 major people on this thread - "Buy and hold crew" and the "10 by 10 crew" .

Ok, there are minorities like the ones that don't have funds in the market and they only come here to cause ruckus.

To the "10 to 10 crew", alias traders of NSEMPA, be familiar with these terms for your own good:

Value at Risk (VaR)
Volatility
Sharpe ratio
Calmer ratio

What they have in common? Well, for a start, they are all risk measures.

This is me signing off, over to the mudslingers, make una carry go.

uzoexcel:

Can you breakdown the meaning of the 4 aforementioned terms?

yinka2011:
So OANDO that is trading for 3 Naira has paid dividend of over 23 Naira over the years and no dividend since 2014.

Biafran4life:
Oga ositadima ,I like the level you are operatingn the stock market as an engineer.In my old forum I was made to know in stock market all one needs is basic maths.I hope that has not changed as I no Sabi complex maths oh.
Then I was equally made to know that Isaac Newton failed in stock business as he claimed he could not calculate the madness or behaviors of human beings

Biafran4life:
Oga ositadima ,I like the level you are operatingn the stock market as an engineer.In my old forum I was made to know in stock market all one needs is basic maths.I hope that has not changed as I no Sabi complex maths oh.
Then I was equally made to know that Isaac Newton failed in stock business as he claimed he could not calculate the madness or behaviors of human beings

emmanuelewumi:



Na legendary fund manager Peter Lynch talk am, he said all the maths you need to succeed in the stockmarket you should have learnt it in the 9th grade or our own JS 3

ositadima1:


Lol, and yet valuation is a topic taught at undergrad level in finance.

Most of these guys oversimplify what they really do so they can sell their books. Or maybe you are one of those guys that consider advanced education useless.

What is d point, we can all stop our education at js3, that's it!

emmanuelewumi:



Multiplication, addition, division, subtractions, percentage, ratio, simple interest, compound interest etc are learnt from primary 4 to JS 3

ositadima1:


Ok, I suggest u hand over ur portfolio to ur 12 year old.

emmanuelewumi:



Investment is as simple as ABC if you can control your emotions, have basic functional knowledge of mathematics and business.

Read " Ordinary people, extraordinary wealth" by Eric Delman.

School bus drivers, policemen, janitors, soldiers, civil servants, teachers, professors building multi million dollars portfolio by keeping it so simple

emmanuelewumi:

Multiplication, addition, division, subtractions, percentage, ratio, simple interest, compound interest etc are learnt from primary 4 to JS 3

ositadima1:


What most of these guys do is investing in indexes, it is practically buy & hold of selected stocks and dividends. Nothing fancy. Traders on the other hand are a different type of people. If u do indept research u will come to understand that to be a successful trader requires that u beat these indexes. A good trader is one that has alpha, returns more than d index.

ositadima1:
Let me show u what is alpha in practical terms.

Again, let's take zenith as case study.

1. I buy 1 share of zenith in 2012 for #12.47(on first of February 2012, dat is how far back my data goes)

2. The total dividend paid within the period to date is #18.17(please correct me if am wrong)

3. I have no ideas if Zenith had had splits from 2012 to date so I assume none.

4. As at friday Zenith closed at #23.7

5. Total gain is (23.7-12.47)+18.17 =29.4

6. I made 29.4/12.47= 2.35 my initial investment from buy&hold.

7. Ok, my mean reversion strategy tested on the same data input did more than 5 times initial investment.

8. You can argue that I may not get into the market at adviced prices by my strategy due to slippage so I knock off 1 times. So, I get 4 times my initial investment. Mind u that I was not even compounding my returns.

I am not bragging or something as I have nothing to gain from that, but my strategy holds alpha.

Is buy&hold a bad way to go? Definitely not, I also have funds that yield dividends. Just that where d money is made handsomely is in deploying trading strategies.

Now, I want to rest my case abeg, believe what ever u like.

emmanuelewumi:



Peter Lynch said all the maths you need to succeed investing in the stockmarket you learn in the 9th grade. He didn't say trade.


Price earning ratio na ratio

Profit margin na percentage.

Profit na addition and subtraction.

Earning growth rate na percentage.

Debt equity ratio na ratio

Dividend yield na percentage.


Application and adaptation of our basic knowledge of mathematics to making money and identifying opportunities is the koko

DrAwo:

I like the fact that you back up your arguments with data and practical examples...

Now let's assume you have the discipline to follow your strategy meticulously....

Have you factored in the cost of the time you'll be putting in to closely monitor your strategy and the opportunity cost of that time?

The person that does this buy and hold strategy will only need a fraction of the time you have put in and may have used that extra time for other profitable ventures....

The conclusion of the matter is that, there is more than one way to skin a cat. Different routes lead to the market. Whether you belong to team investing or team trading, stay true to what works for you...

emmanuelewumi:



The registrar of UBN is GTL Registrars

Mascotlawman:
What is even the main purpose of this thread? There are some certain individuals that I don't expect to come out here and be flexing muscles.
I noticed this days, that people don't give stock recommendations any. But bashing and challenging each other in terms of the thing that does not benefit the majority in this thread. As an individual, if u win an argument here, where will u take it to? I feel so much pained because I have benefited from some of this investment forum. So when I see people that their aim is to destroy and get away, I don't feel happy.
Please let's maintain a decorum here and help each other for greater achievement.
God bless all.

samguru:


We need to form shareholders association and dislodge all these old papa and mama from the boards of quoted companies as well as the audit committees.

jideflash:
are there people here that are interested? post result season, will create a dip, perfect time to initiate this strategy. if 20 of us can commit 5m, we should be able hold a significant stake in one of the undervalued company

samguru:


I am interested

Myhelper1:
Am in...

jideflash:
Samguru , Myhelper1, and any other person interested in this alliance. Its about time we get talking privately on this. what platform should we use to communicate? Telegram?

Telegram is better