Lazyyouth4u:


Oh I’m talking off point when I say people that bought properties 30 years ago are selling them for more than 10x?

Someone that bought a house for way less than a million Naira in Ikeja, Surulere or Yaba in 1990 is not selling that house for anything less than 20m today. I am not guessing this. I know this for a fact.

emmanuelewumi:



In the primary market, you will need N50 million.

In the secondary market, you will need about 100k, if you buy through Stanbic IBTC Bank others will require between N1 million and N20 million

400billionman:


Ok, does the interest come in advance annually like NTB ?

Akin3891:


Is there no treasurybill auction this week? I got to stanbic this morning but was told that there is no auction until next week

decargne:
So I had to quit my ghost mode viewing just to be able to appreciate you openly for the good things you are doing by putting out your knowledge on this thread. Please don't stop sir, no matter whatever anybody may be doing.
I reached out to you sometime in 2019 asking you about purchase of bonds (an idea I got on this thread by the way) and you offered your fatherly advice I really appreciate you. so far I've gotten coupons of over 1.2 from the bonds which was reinvested into a building project ordinarily at the level of my income there's no way I would have thought of building a house (a twin two-bedroom apartment for that matter) but with all the knowledge I am getting from this place have been able to put money to good use instead of buying frivolities that will not last. Thank you sir and thank you alot great people. Please keep contributing, continue the good work, God bless you!

On a lighter note, nobody should use this post against me and call me audio when I finally blow ooo because I'd definitely blow with what I am getting here.

Tobex4realTobex234:
These compound interest calculations are giving me orgasms o but how does one achieve it with stocks? I currently never sell any of my stocks but I would like to know how one can leverage compound returns on equities apart from re-investing dividends which I already do.

This bonds seem like an alternate asset I should consider sha because to be honest na proper Island wey I for like to do real estate in Lagos, but my money no reach to buy lands for there

emmanuelewumi:



You are paid your coupon twice in a year.

A bond Investment of N10 million @ a coupon of 14%, will pay you 700k twice in a year at an interval of 6 months

400billionman:


That's nice. I will like to see the upper part of that your list bearing the shorter term bonds, like the one expiring APR 2029.

neyyoh:


Buy some high risk dividend payers like orc, gain.. at 14% ... Put the monthly dividends in voo..

1666 shares of orc will fetch 100 usd per month.. going actively into voo.

You can scale that up depending on your capital.
It's working for me .

arduino:

You for mention this $ORC since nah. Anyways, I hope to achieve same with $GEO

emmanuelewumi:



There is a reopening this week, got this from Stanbic IBTC this morning.

It is a primary market opening, they will pull resources together for retail investors

freeman67:



At what rates are these reopening going to be issued?

Will the rate be exactly as stipulated here?

@ the bolded, does it mean that small investors with like 100k to 1 mill can subscribe?

decargne:
So I had to quit my ghost mode viewing just to be able to appreciate you openly for the good things you are doing by putting out your knowledge on this thread. Please don't stop sir, no matter whatever anybody may be doing.
I reached out to you sometime in 2019 asking you about purchase of bonds (an idea I got on this thread by the way) and you offered your fatherly advice I really appreciate you. so far I've gotten coupons of over 1.2 from the bonds which was reinvested into a building project ordinarily at the level of my income there's no way I would have thought of building a house (a twin two-bedroom apartment for that matter) but with all the knowledge I am getting from this place have been able to put money to good use instead of buying frivolities that will not last. Thank you sir and thank you alot great people. Please keep contributing, continue the good work, God bless you!

On a lighter note, nobody should use this post against me and call me audio when I finally blow ooo because I'd definitely blow with what I am getting here.

emmanuelewumi:


No, probably at 14% yield

Lazyyouth4u:


Don’t forget to also project inflation and Naira devaluation over thirty years

And you cannot assume that you will continue to reinvest at 15% for 30 years.

maishai:

D way naira is being devalued gives me goose bumps, 5 years ago I had about 1million in my rsa, fast forward today I have about 4 million, 5 years ago , a standard tokumbo jeep like rx300 is about 1.2 million, fast forward today a standard tokumbo jeep like rx330 goes for nearly 4million.........

What can your money buy......... Valuation is very important o

neyyoh:


Hopefully.

Buy high risk stocks at fair value.. requires a lot of patience... For entries and exit.


Put the returns from high risk stocks in high risk dividends stocks.


Put the returns from high risk dividends stocks into voo, qqq etc.


That's d secret of building long term wealth in the stock market.

You don't have to worry about hyper inflation anymore.

emmanuelewumi:


No, probably at 14% yield

ojesymsym:
But it is almost impossible to reinvest your bond interest within the bond itself, or am I missing something?

emmanuelewumi:



The difference between the coupon and rent is N9 million per annum.

Calculate the reinvestment of the N9 million every year for the next 30 years, if you won't have hundreds of millions of Naira which you will add to your N100 million payout.

Core fixed income investors understand all these


The relationship with rule 72, @15% the investor must have gotten back his N100 million in 5 years.

The remaining 25 years is jara

emmanuelewumi:



Core fixed income investors understand the game and the so called inflation risk we are all worried about

emmanuelewumi:
I thought people who buy 30 years bonds were fools, until a guru in the field explained some of these tricks to me ie reinvest, replicate and diversify with the steady coupons

emmanuelewumi:




Very few landlords, they should be about 5%.

They should also be charging 10% below the going rates and must invest in verification and investigation of new tenants, in the cause of doing this the property might not generate income for months or years

emmanuelewumi:



Exactly, what I told my cousin when he wanted to increase his rent to what was obtainable in his area.

Better to have good tenants that are prompt with payments and also manage the property well and earn 10% below the going rate

condomuser:
This is one of the reasons why I find it difficult investing in rental income assets like houses in Nigeria. The way tenants will owe you and make it seem like they are doing you a favour when you remind them of their due rent.

The exposure too is terrible. I have relatives that started building houses and within the first week of starting up the foundation, the whole community started disturbing them for alms meanwhile the bigger boys are doing something different with no eye wey see exposure

Biafran4life:
oga please show the workings, thanks

emmanuelewumi:



It actually took me a very long time, before I could understand the rationale behind some core fixed income investors who buy 30 years bonds.

They are so liquid, that they deploys their cash to buying real estates when are are sure of a minimum rental income yield of 10%

emmanuelewumi:



Secondary market. These are the offers sent to me this morning

ojesymsym:
But it is almost impossible to reinvest your bond interest within the bond itself, or am I missing something?

emmanuelewumi:



You are doing well, thanks for the kind words

Chikebrain:

Would love to add the bond to my portfolio of small investments but the average African man in me is scared of uncertainty over the 10yrs or any duration I pick. Please would love your response on the following questions
1. Using the 10M at 14% as a case study, from above responses, I should get interest twice a year at 700k*2. When does capital come back in

2. If probably before the 10 yrs duration I get a hunch to stop, can I liquidate

3. Can I re-invest interest (I believe that's compounding)