₦airaland Forum

Harddiskng:
I see some post and i am like wow, rookie mistake. Been there, done that.

I came back to stock investing this year (2/3 months ago) and i left those 100 units as a reminder.

So far so good these are some things i have learnt (still learning). They have worked for me really well, you can give it a try or not

2) It is better to be in for the long haul, so buy companies with good financial fundamentals. Then give them time. I don’t plan on selling any of my buys in the next 5 years.

Just to add to this number 2.
Companies like human have Life.
Humans give birth, then we grow and latter die. It is a natural cycle of Life.
To me, it is same with companies.
Companies breath, grow and latter dies ( to some, this is debatable). It doesn't mater how long, maybe a company will last 1 years,5 years or 100 years. On the long run, it either dies or get absorbed by another company.
So whatever is given birth to and grows needs regular Health check-up - check the pulse, BP, sugar level etc.
For a fundamentally sound stock, the quarterly reports stands as the regular medical checks to determine the health status of the company.
Reason i don't totally support the but and hold for long thing without regular checks.
Good companies hit hard times, experience bad managers etc and these companies become non-fundamentally sound as time goes on.

12 Things to Remember in 2026 (One for Each Month)

January – Remember your investment objective
Always be clear about why you are investing. Your goals should guide every decision you make.

February – Remember you are the sole manager of your portfolio
Advice is helpful, but the final responsibility for your investments rests with you.

March – Remember that nobody can perfectly time the market
The market has a mind of its own; consistent strategy beats prediction.

April – Remember the market has two directions
Markets move up or down—bull or bear. Both phases are normal and inevitable.

May – Remember money can be made in both bull and bear markets
Opportunities exist in every market cycle for informed and disciplined investors.

June – Remember not all celebrated stocks have strong fundamentals
Popularity does not always equal value. Always look beyond the hype.

July – Remember to prioritize return of capital over return on capital
Protecting your principal is more important than chasing high returns.

August – Remember you can start investing with what you have
You don’t need to wait for “enough money.” Consistency matters more than size.

September – Remember the stock market is best suited for long-term investing
Patience and time are key ingredients for sustainable wealth creation.

October – Remember the power of compound interest
Small, consistent returns can grow significantly over time when compounded.

November – Remember to enjoy part of your gains
Investment is meant to serve you—reward yourself wisely along the journey.

December – Remember to take responsibility for every investment decision
Own your choices, learn from mistakes, and grow in experience and discipline.

Streetinvestor2:
Next time you can be specific to family or village people. This is a public forum meaning it goes to everyone. How about if I tell you i worth less than what I was 11yrs ago.Which is truly possible as apc has happened to us all.That means I am a financial fool.Oga u have nothing to offer on this thread. You didn’t exhibit the wisdom u talked about. How about someone who aso savings just happened to his finance. Happy new Yr in advance too

I just hope no be this same brain you take dey cross Express.

Mankind2024:
This is why I stay within my circle of competence in the equity market.
You saw a 3.3% dividend yield, while my dividend yield on Vitafoam is 38.46%—having bought at ₦7.8 in Q1 2021.
The real gain is never in the buying and selling, but in the waiting.
[/b]To cultivate this virtue, discipline coupled with patience is essential.[b]
The excitement is seeing the reward.

I really got your point. Buying and waiting patiently holding for compounding. I will have to be more disciplined next year. It was when i started trading myself i develop this itching fingers especially when i have no fresh fund for trading, i start looking for stocks i have gained 30- 40% to exit. Those days of manual trading, i hardly sell my stocks. Just buy, buy and buy.

Lesson learnt: [/b]The long time horizon is far more beneficial than the quick gain made in the buying and selling ( attracting commission for brokers). Compounding is the order of the day [b]

nosa2:
I don't get the excitement on the vitafoam result. Bonus shares is not a return on investment. N3 dividend is about 3.3% dividend yield.

Maybe you guys are seeing something I'm not seeing but there is nothing about that result to get one excited

It takes inner eyes to see it.

I started buying years ago at around N2 and also received bonus shares twice.

The stock was called out here about 4 years ago or thereabout at around N5.

Those who bought around that time should be talking of a yield on cost of 60% and earning growth of 20% and above

Mankind2024:
This is why I stay within my circle of competence in the equity market.
You saw a 3.3% dividend yield, while my dividend yield on Vitafoam is 38.46%—having bought at ₦7.8 in Q1 2021.
The real gain is never in the buying and selling, but in the waiting.
To cultivate this virtue, discipline coupled with patience is essential.
The excitement is seeing the reward.

I totally agree with you.


What you have is a yield on cost of 38.46%.

My brother, this is the winning secret on the path to financial freedom and lasting prosperity.
Ignore the crowd's opinion—they are almost always wrong.
Protect and fortify your investments by keeping 5–10% of your net worth in liquid cash. This serves as a defensive shield on red days, when quality companies trade at deep discounts and wealth transfers from the impatient to the patient.
Stay humble; we cannot dictate the market's direction.
Volatility is the inevitable price we pay for the magic of long-term compounding in great stocks.

jonnysessy:
I really got your point. Buying and waiting patiently holding for compounding. I will have to be more disciplined next year. It was when i started trading myself i develop this itching fingers especially when i have no fresh fund for trading, i start looking for stocks i have gained 30- 40% to exit. Those days of manual trading, i hardly sell my stocks. Just buy, buy and buy.

Lesson learnt: [/b]The long time horizon is far more beneficial than the quick gain made in the buying and selling ( attracting commission for brokers). Compounding is the order of the day [b]

essentialone:
I just hope no be this same brain you take dey cross Express.

LWKD. I thankGod you know I have brain inside my head.i had my doubt you have one all this time.Then bang,your recent post proved me right

Mankind2024:
This is why I stay within my circle of competence in the equity market.
You saw a 3.3% dividend yield, while my dividend yield on Vitafoam is 38.46%—having bought at ₦7.8 in Q1 2021.
The real gain is never in the buying and selling, but in the waiting.
To cultivate this virtue, discipline coupled with patience is essential.
The excitement is seeing the reward.

I wasn't in the market in 2021 nor was I looking at it so I really cant speak to prices of other stocks, but I am sure this performance that you have witnessed is not unique.

PuristForest:
Vitafoam showing short term bearish divergence…only a matter of time before it breaks

I actually expect the price to fall or at least hover around this level for quite a while

Harddiskng:
I see some post and i am like wow, rookie mistake. Been there, done that.

I remember trying stocks like 10 years ago, I put in 1m and lost 40% of my portfolio value lol, then just sold them off. Guess what each of thhose stocks are doing over 500% from that time. I still have one (like 100 units) i forget to sell and i kick myself every time i see it.

I came back to stock investing this year (2/3 months ago) and i left those 100 units as a reminder.

So far so good these are some things i have learnt (still learning). They have worked for me really well, you can give it a try or not

1) Never make a particular stock more than 25% of your portfolio. It’s a good stop loss.
2) It is better to be in for the long haul, so buy companies with good financial fundamentals. Then give them time. I don’t plan on selling any of my buys in the next 5 years.
3) Make investing a habit. Come rain, come sun shine.
4) Don’t follow the crowd blindly, do your research!


Please add yours

Aside from 3 and 4 I disagree with everything you have said. Convert the money you invested 10 years ago to dollars and see that you have not made much with your 500% gain.

emmanuelewumi:
I totally agree with you.


What you have is a yield on cost of 38.46%.

But the price today is N94.
For someone who wants to deploy his funds today, does the company offer a margin of safety for discounted price or is the company appropriately priced?

emmanuelewumi:
It takes inner eyes to see it.

I started buying years ago at around N2 and also received bonus shares twice.

The stock was called out here about 4 years ago or thereabout at around N5.

Those who bought around that time should be talking of a yield on cost of 60% and earning growth of 20% and above

This can be said for most dividend paying stocks on the NGX. You don't need inner eyes for this.

pluto09:
But the price today is N94.
For someone who wants to deploy his funds today, does the company offer a margin of safety for discounted price or is the company appropriately priced?

Exactly. The stock is rightly priced/slightly expensive. For me it is SUPER EXPENSIVE

nosa2:
This can be said for most dividend paying stocks on the NGX. You don't need inner eyes for this.

How many of the dividend paying stocks have a Return on Invested Capital of over 40%, Return on Equity of almost 40%.

Grew profit by 200%in the last 5 years.

Have a net cash position as in their cash is more than their debt.

Increased dividends by over 150% in the last 5 years.

How many have a free cash flow that is more than their total debt

nosa2:
Aside from 3 and 4 I disagree with everything you have said. Convert the money you invested 10 years ago to dollars and see that you have not made much with your 500% gain.

Naa. Dollar was about N200 - N300 then. I remember correctly cuz i used to buy my stuffs from ASOS.

Mind you I said “over 500%”. Some of these stocks did over 1000%

When i calculated the portfolio to present value. I would have had over N10 million (from N1 million) if i left everything as it was without selling.

pluto09:
But the price today is N94.
For someone who wants to deploy his funds today, does the company offer a margin of safety for discounted price or is the company appropriately priced?

Dividend is N3 from an Earning Per Share of about N10.

The stock currently has a sustainable earning growth of about 20%

NB

I don't have Vitafoam shares again, I sold last year.

But it is a stock with potential for growth and wealth creation

Another Competitive Moat for Vitafoam Nigeria PLC:
Vitafoam demonstrates pricing power by gradually passing on increased production costs through price adjustments aligned with inflation, while maintaining strong consumer demand and avoiding significant buy-cutting (reduced purchasing) of its essential bedding and foam products.
This ability stems from its dominant market position as Nigeria's leading foam manufacturer, extensive distribution network, and strong brand loyalty for quality mattresses and comfort products—allowing the company to protect margins and achieve robust revenue growth even in high-inflation environments (e.g., revenue up 35% to N111 billion in FY 2025 despite rising costs).

emmanuelewumi:
How many of the dividend paying stocks have a Return on Invested Capital of over 40%, Return on Equity of almost 40%.

Grew profit by 200%in the last 5 years.

Have a net cash position as in their cash is more than their debt.

Increased dividends by over 150% in the last 5 years.

How many have a free cash flow that is more than their total debt

emmanuelewumi:
NB

I don't have Vitafoam shares again, I sold last year.

But it is a stock with potential for growth and wealth creation

Mankind2024:
Another Competitive Moat for Vitafoam Nigeria PLC:
Vitafoam demonstrates pricing power by gradually passing on increased production costs through price adjustments aligned with inflation, while maintaining strong consumer demand and avoiding significant buy-cutting (reduced purchasing) of its essential bedding and foam products.
This ability stems from its dominant market position as Nigeria's leading foam manufacturer, extensive distribution network, and strong brand loyalty for quality mattresses and comfort products—allowing the company to protect margins and achieve robust revenue growth even in high-inflation environments (e.g., revenue up 35% to N111 billion in FY 2025 despite rising costs).

I am not saying the company is bad but the stock price reflects all that has been said. Buying at these levels is unwise

https://www.youtube.com/watch?v=JwC8Ox_Udkg?si=LNYOnqgN1ztiKOul

Valuable Investing Lessons from Pastor Matthew Ashimolowo's Experience in the Nigerian Stock Market

Pastor Matthew Ashimolowo, founder of Kingsway International Christian Centre (KICC), shared a candid and cautionary tale in a 2024 interview about losing approximately ₦200 million through investments in shares of Nigerian banks, including First Bank, Skye Bank (later Polaris), and Guaranty Trust Bank (GTB). This story, analyzed in detail in the linked YouTube video, offers profound lessons for investors, particularly in volatile markets like Nigeria's.

The Perils of Leverage: Why Borrowing to Invest Can Amplify Losses
One of the most striking aspects of Pastor Ashimolowo's experience was his decision to borrow ₦60 million from Sterling Bank around 2005–2006 to purchase Skye Bank shares. The shares, bought at prices around ₦14–₦18, plummeted to as low as ₦2–₦2.50. This sharp decline not only wiped out the investment's value but triggered margin calls and repayment demands. Sterling Bank reportedly sent representatives—with policemen—to his office and church to recover the loan within 2–3 months, forcing him to liquidate assets under duress.

This episode vividly illustrates why one should avoid borrowing (leverage) to invest in the stock market. Leverage magnifies gains in bull markets but devastates in downturns, turning paper losses into real financial crises. Without debt, investors can weather volatility; with it, forced selling locks in losses.

Staying Within Your Circle of Competence
Pastor Ashimolowo's core strengths lie in ministry (the pulpit) and real estate development, where he has built substantial wealth through strategic property investments in Lagos and beyond. Venturing into bank stocks—outside his deep expertise—led to significant setbacks during the 2008–2009 Nigerian banking crisis and global financial meltdown.

As Warren Buffett famously advises, investors should stick to their circle of competence: industries and assets they understand thoroughly. The pulpit and real estate are clearly Pastor Ashimolowo's areas of maximum competence, where he has consistently generated returns far outperforming his stock ventures.

The Importance of Continuous Investment in Knowledge
While Pastor Ashimolowo did not explicitly dwell on this in the interview, his regret underscores the need for ongoing education. Bank stocks in Nigeria during that era were influenced by regulatory changes, consolidation, and economic shocks—factors that require deep research. Investors must continuously invest in knowledge about markets, sectors, and risks to avoid costly mistakes.

Humility in the Face of Market Dictates
The pastor's story reflects a humbling encounter with market forces. Despite his success elsewhere, the stock market dictated terms he couldn't control. He now advises caution, stating he has "suffered" in the Nigerian shares space and "won't touch it" again. True investing wisdom involves remaining humble, accepting that no one can outsmart the market consistently, and bowing to its realities rather than ego-driven decisions.

The Cost of Panic Selling: What If He Had Held On?
A poignant "what if" emerges from the analysis: had Pastor Ashimolowo held through the crash without leverage pressure, outcomes might differ today (as of late 2025 prices):
- GTB shares (bought ~₦18, fell to ~₦3) have recovered strongly, trading around ₦₦88 in recent weeks—potentially turning a deep loss into profit, excluding dividends.
- First Bank shares showed partial recovery but still lagged.

However, the borrowed portion forced early exits, crystallizing losses. More strikingly, he noted that the ₦60 million used for Skye Bank shares could have bought a plot in Banana Island, now worth over ₦1 billion. If he had remained invested long-term without debt, the lost money could indeed have grown substantially—or been far better allocated to real estate, potentially turning into billions through appreciation.

In summary, Pastor Ashimolowo's experience is a masterclass in prudent investing: avoid leverage, know your strengths, learn relentlessly, stay humble, and consider the long-term horizon. His preference for real estate over stocks serves as a reminder that not all assets suit every investor. This story encourages us all to invest wisely, within our competence, and with patience.

Greetings. What are the stocks to watch out for next year?

Sunrisepebble:
Compliments of the season

pluto09:
But the price today is N94.
For someone who wants to deploy his funds today, does the company offer a margin of safety for discounted price or is the company appropriately priced?

Current Price/ Earning ratio is just 8.

Current Enterprise Value/EBIT of 4.3

Not bad for a quality stock that is making Economic Profit and not just Accounting Profit with a Return on Invested Capital of over 40% which is higher than inflation .

Mankind2024:

https://www.youtube.com/watch?v=JwC8Ox_Udkg?si=LNYOnqgN1ztiKOul

Valuable Investing Lessons from Pastor Matthew Ashimolowo's Experience in the Nigerian Stock Market

Pastor Matthew Ashimolowo, founder of Kingsway International Christian Centre (KICC), shared a candid and cautionary tale in a 2024 interview about losing approximately ₦200 million through investments in shares of Nigerian banks, including First Bank, Skye Bank (later Polaris), and Guaranty Trust Bank (GTB). This story, analyzed in detail in the linked YouTube video, offers profound lessons for investors, particularly in volatile markets like Nigeria's.

The Perils of Leverage: Why Borrowing to Invest Can Amplify Losses
One of the most striking aspects of Pastor Ashimolowo's experience was his decision to borrow ₦60 million from Sterling Bank around 2005–2006 to purchase Skye Bank shares. The shares, bought at prices around ₦14–₦18, plummeted to as low as ₦2–₦2.50. This sharp decline not only wiped out the investment's value but triggered margin calls and repayment demands. Sterling Bank reportedly sent representatives—with policemen—to his office and church to recover the loan within 2–3 months, forcing him to liquidate assets under duress.

This episode vividly illustrates why one should avoid borrowing (leverage) to invest in the stock market. Leverage magnifies gains in bull markets but devastates in downturns, turning paper losses into real financial crises. Without debt, investors can weather volatility; with it, forced selling locks in losses.

Staying Within Your Circle of Competence
Pastor Ashimolowo's core strengths lie in ministry (the pulpit) and real estate development, where he has built substantial wealth through strategic property investments in Lagos and beyond. Venturing into bank stocks—outside his deep expertise—led to significant setbacks during the 2008–2009 Nigerian banking crisis and global financial meltdown.

As Warren Buffett famously advises, investors should stick to their circle of competence: industries and assets they understand thoroughly. The pulpit and real estate are clearly Pastor Ashimolowo's areas of maximum competence, where he has consistently generated returns far outperforming his stock ventures.

The Importance of Continuous Investment in Knowledge
While Pastor Ashimolowo did not explicitly dwell on this in the interview, his regret underscores the need for ongoing education. Bank stocks in Nigeria during that era were influenced by regulatory changes, consolidation, and economic shocks—factors that require deep research. Investors must continuously invest in knowledge about markets, sectors, and risks to avoid costly mistakes.

Humility in the Face of Market Dictates
The pastor's story reflects a humbling encounter with market forces. Despite his success elsewhere, the stock market dictated terms he couldn't control. He now advises caution, stating he has "suffered" in the Nigerian shares space and "won't touch it" again. True investing wisdom involves remaining humble, accepting that no one can outsmart the market consistently, and bowing to its realities rather than ego-driven decisions.

The Cost of Panic Selling: What If He Had Held On?
A poignant "what if" emerges from the analysis: had Pastor Ashimolowo held through the crash without leverage pressure, outcomes might differ today (as of late 2025 prices):
- GTB shares (bought ~₦18, fell to ~₦3) have recovered strongly, trading around ₦₦88 in recent weeks—potentially turning a deep loss into profit, excluding dividends.
- First Bank shares showed partial recovery but still lagged.

However, the borrowed portion forced early exits, crystallizing losses. More strikingly, he noted that the ₦60 million used for Skye Bank shares could have bought a plot in Banana Island, now worth over ₦1 billion. If he had remained invested long-term without debt, the lost money could indeed have grown substantially—or been far better allocated to real estate, potentially turning into billions through appreciation.

In summary, Pastor Ashimolowo's experience is a masterclass in prudent investing: avoid leverage, know your strengths, learn relentlessly, stay humble, and consider the long-term horizon. His preference for real estate over stocks serves as a reminder that not all assets suit every investor. This story encourages us all to invest wisely, within our competence, and with patience.

That is what happens to all gamblers. What was he planning to use in servicing the debt?


Can the expected dividend plus dividend growth in 8 years liquidate the debt?

Capital appreciation is not guaranteed but cash flow from the investment can be guaranteed to a large extent

Decided to share this.

All the best in our investment journey in 2026 and beyond

pluto09:
But the price today is N94.
For someone who wants to deploy his funds today, does the company offer a margin of safety for discounted price or is the company appropriately priced?

Current dividend yield =3.1%
Bonus yield =20%(1 for 5)
Bonus yield might just be the attraction for a temporary price appreciation.

We see how it goes next week.

emmanuelewumi:
Decided to share this.

All the best in our investment journey in 2026 and beyond

Yeah, consistency is the keyword. Before 2019 i buy shares in different companies and i go to sleep. But after 2019 i made sure i buy regularly from salary, gift and dividends. I top up shares in my portfolio ( this helps to average price) and increase my networth and based on this strategy my yearly dividends improves. It is actually a difficult task but very possible.

Lesson learnt: Always top up as little drops of water makes a mighty ocean. We move

chimex38:
Interesting. Looking for Tin discover Gold and Lithium.

Aim for Moon, get to the Sun

they always discover resources,you won't hear of it ever again.

emmanuelewumi:
Decided to share this.

All the best in our investment journey in 2026 and beyond

One of my mentors said investing should be boring not fun.

Bizibi:
they always discover resources,you won't hear of it ever again.

Lol...

Since they hope to list the state enterprise on Ngx.
Let's give them here, benefit of doubt on accountability.

essentialone:
I just hope no be this same brain you take dey cross Express.

Haaa 😁😁😁😁

Itzlinda:
One of my mentors said investing should be boring not fun.

Money spinning stocks are also into boring businesses