OakPearl:


Welcome.
You came at a good time when the market is low.
Good to know you are reading because you are the CEO of your portfolio.
Knowledge before application pays.
However, mentorship is the legal short cut to success.
So listen while you study, but don't take every advise hook, line, and sinker.
You may wish to register with an online broker.
Happy investing.

Vibra:
Recommend an online broker please
Can you be my mentor ?
From what I've read, the trick is to buy low and sell high
Is it compulsory I sell?
Do I have to pay the broker
Can't I get interest from the shares?
Or should I just keep my money in fixed deposit?

Agbalowomeri:


Since you are new, go register with either meristem, united securities or morgan or any other one
Use half of your money to buy zenith bank
Wait till Sept or November end or anytime you see it at 15, use the other half to buy the same zenith bank
Process your e-dividend mandate and be collecting what we call dividend (the one you are calling interest)
Continue to follow this thread
After 2 years, you can try some other things

Agbalowomeri:


Since you are new, go register with either meristem, united securities or morgan or any other one
Use half of your money to buy zenith bank
Wait till Sept or November end or anytime you see it at 15, use the other half to buy the same zenith bank
Process your e-dividend mandate and be collecting what we call dividend (the one you are calling interest)
Continue to follow this thread
After 2 years, you can try some other things

Jejebabaa:


Its even good for me if the market remains down for long provided we dont have devaluation of Naira.

Jejebabaa:


Oga RabbiDoracle is right. Its 56% depreciation. For example, $2293 into the country in 2013 and exchanged it for 157/$, that will give you 360,001 naira and if you want to repatriate same money today at 360/$, you will get just $1000 which means your $2293 in 2013 is now worth $1000 today. In essence, you lost (2293-1000)/2293 which gives 56% devaluation.

tritritri:



I have 25% of my asset in Dollar .trying to place it in dollar bond..whoever has not been hit by dis will never understand.

Godlylifeoneart:
WHY PROS CAN'T BEAT THE MARKET, BUT YOU CAN


https://chrisreining.com/pros/


Why Pros Can’t Beat the Market, but You Can

“Fund managers are under pressure to be predictable by showing low tracking error, which essentially means funds have to try to beat their benchmarks while tracking their benchmarks closely. Does that remotely make sense?”

To say that another way, fund managers become “closet indexers.”

For instance, if they say their benchmark is the S&P 500 they need to assemble a portfolio of stocks that closely resembles the S&P 500 because if their fund underperforms its benchmark investors pull their money out.

And that’s the game fund managers are playing, to attract and keep the most money, because fees are percentage based. The fund with $10 billion under management rakes in more than the $3 billion one.

But here’s what took me years to realize: saying that professional money managers can’t beat the market has absolutely nothing to do with what you can or can’t do.

Please, read that again.

Here’s why small-time investors like you and me have an enormous advantage over any professional.

1. You’re a speedboat, they’re a battleship. You’re investing small amounts of money, not many hundreds of millions or billions. What do you think happens when a fund manager finds an underpriced stock and starts buying millions worth? It causes the price to go up, and there goes the advantage.

2. No one’s looking over your shoulder. Fund managers have bosses breathing down their neck, making sure they’re tracking their benchmark, to prevent withdrawals. It’s the old, “Nobody ever got fired for investing in IBM Apple” syndrome. It’s very hard to get market-beating results when you’re forced to invest conventionally.

3. You didn’t study investing. The smart people with MBAs who study modern portfolio theory and understand those squiggly lines on technical charts have been conditioned to believe investing can be broken down into some science like engineering or physics, so neat and tidy. Nope, it can’t. Markets involve messy people.

While anyone can pick stocks, trying to beat the market, that doesn’t mean everyone should. Stocks take a certain skill set I’ve outlined before, and it helps to have help, which is why I use Motley Fool Stock Advisor.

Speaking of them, there’s no question their stock picking method beats the market, because they’re picking better than average stocks. From their website, as of today:

5 year return: up 60%, S&P 500 up 37%
17 year return: up 382%, S&P 500 up 91%

Over the past five years they’ve beaten the market by 23%, and so if you’re interested in picking stocks it might be as simple as buying and holding their latest recommendations for years to come.

Sure, you’ll get some picks wrong, and that’s okay. The idea is your winners will more than make up for the losers, and I know because I’ve picked some duds but my returns still beat the market. This is similar to how Jeff Bezos thinks:

“We’ve made doozies like the Fire phone and many other things that just didn’t work out. We don’t have enough time to list all of our failed experiments, but the big winners pay for thousands of failed experiments.”

Anyways, one of the most phenomenal small-time investors I know is Saul Rosenthal. He’s been compounding money at 30% or so for 30-some years, but also works harder at it than anyone. He currently owns nine stocks, only his very best ideas, and always thinks deeply about them, trying to find his blind spots.

You might think having your life savings in nine stocks is nuts, but I’ve learned it’s better to have a small portfolio where you know a lot about a few companies than some gigantic portfolio where you know little about lots. I’ve trimmed my portfolio to 15 stocks and that index fund. It feels good.

Of course, running a concentrated portfolio like that takes more work. (When all your eggs are in one basket you watch that basket.) But if you find the work enjoyable, like it’s a game for you, the results can be life changing.

Does all this make sense?

I bet you’ll always hear things like, “If professional money managers can’t beat the market, with their huge budgets and computing resources, then neither can you.”

Again, just because they can’t beat the market has absolutely nothing to do with what you can or can’t do. Value investor Mohnish Pabrai said it best:

“Investing is a peculiar business. The larger one gets, the worse one is likely to do. So this is a field where the individual investor has a huge legup on the professionals and large investors.”

It’s a mathematical fact some people picking stocks, trading in and out based on headlines or feelings, will do worse than the market. This is because investing is a zero sum game. In order to earn more than the market you need to take money from someone else, and many small-time investors do just that.

RabbiDoracle:


You are making a mistake.

You can always beat devaluation when you stay invested in the stock market if you consider dividends + capital appreciation.

The last USD/NGN devaluation was from 157 to 360. This is just 56% depreciation. Stocks have returned higher than this percentage between 2013 and now.

So no dey fear anything. The main thing is to buy low, stick with banks because na Dem go enjoy the devaluation via revaluation gains or petroleum marketing stocks because they must have imported at the current rate before devaluation (and subsequent increase in fuel price).

pluto09:



Devaluation will affect everyone holding naira assets negatively.

With devaluation, stocks will definitely get cheaper and one can easily get double units of shares one would have gotten pre devaluation.

And for those with dollar assets,it is a doube gain, as they will have more money in naira to now pick stocks at a very low price.

Bottom line, we should all endeavor to diversify our assets base to take advantage of emerging scenarios.

Agbalowomeri:


Since you are new, go register with either meristem, united securities or morgan or any other one
Use half of your money to buy zenith bank
Wait till Sept or November end or anytime you see it at 15, use the other half to buy the same zenith bank
Process your e-dividend mandate and be collecting what we call dividend (the one you are calling interest)
Continue to follow this thread
After 2 years, you can try some other things

Mpeace:
I just remember fxuser today. I just hope he is OK.

RabbiDoracle:


So if you are holding N1b of stock and on announcement of devaluation, you sell off your N1b stock and buy USD? How do you want to change N1b into USD? Via black market? And you will get alert of USD credit in a Nigerian bank?

Devaluation will make stock cheaper in USD terms. It means that those with USD will can buy more units and this will even cause a strong price rally because more money is chasing the stocks. But I doubt if people will just offload because of news of devaluation. Some may due to small fund they use on trading but those with tens of billions will stay put and when they have more money, they buy if prices have not started skyrocketing.

pluto09:


No sir, you don't sell when devaluation has set in.
The best is not to be heavily invested in stocks at the point of devaluation and that is why people will continue to run away from stocks when they suspect devaluation might happen.

Vibra:
Recommend an online broker please [font[b]=Lucida Sans Unicode]= Morgan Capital Group[/b].[/font]
Can you be my mentor ? = Pleased to be of service and be rest assured, there are loads of them competent mentors here.
From what I've read, the trick is to buy low and sell high. = Yes indeed. That's what makes you money just like in every buying and selling business, reason it's called stock "market".
Is it compulsory I sell? = It's entirely your decision as you remain the CEO of your portfolio so not compulsory. A lot depends on your strategy wether short, medium or long term. (You are always going to be operating either as a trader or an investor in technical terms)
Do I have to pay the broker = Yes. You will be debited brokerage fees on every trade. Not something to worry too much about as long as your trading account is funded.[/font]
Can't I get interest from the shares? [font=Lucida Sans Unicode[b]]= You can. It's called dividend. You may have to ensure you invest in dividend paying stocks as part of your strategy then.[/b]
Or should I just keep my money in fixed deposit? = Your decision. That is amongst the slowest means of wealth creation though.

RabbiDoracle:


And the devaluation isn't coming.

There are pointers one will need to look at to see that devaluation is imminent. The black market isn't even depreciating so fast unlike what we saw in 2015 - 2016 and oil price is still steady at 60+.

So what pointer are you looking at to say devaluation is coming?

Bomboclad:
Whats happening to Access, any results out; 5% is a lot for 1 morning!?

BMZK:


What about First bank ?

Bomboclad:


Almost all Bank stock though different magnitudes. Well, we await 2Q result anyways.

seyisanya:
This looks simple but it is such a comprehensive response, thanks for sharing. Please, I have an account with Morgan for over a year now but I am finally ready to start investing in stocks as I just met my target of mutual funds investment. Now I am the type that would love to go long-term with stocks investment so I'm looking at stocks that pay regular dividend.

Aside Zenith bank, any other organization(s) you can recommend?
How do I go about my first investment using morgan's platform?
How do I process my e-dividend mandate?

Many thanks as I look forward to your response.

needful:


If I were you, I will wait and observe the market a little bit. Things aren't moving fine. Wait till november and see how the market will be doing. Some stocks like uba, zenith, gtb, fidelity etc are expected to fall more. So wait my dear to avoid story that touches the heart.

Yayira:
@ Jejebaba you don’t know the IBTC dollar fund interest rate or you just choose to ignore my question ?

Yayira:
@ Jejebaba you don’t know the IBTC dollar fund interest rate or you just choose to ignore my question ?