meshpips:


Sir,

money has a time value.

Let's say you invested 1 million Naira 20 years ago, you certainly should not be talking about the same amount 20 years after.

If nothing else has happened, INFLATION has devalued your original invest.

So I recommend that you find the FUTURE SUM of 1 million Naira compounded yearly by the AVERAGE inflation rate over the past 20 years and kindly tell us what that amounts to.

1 million Naira twenty years ago CERTAINLY has far more purchasing power than 1 million naira twenty years after.

Please let's stop playing by old rules!

meshpips:


Sir,

money has a time value.

Let's say you invested 1 million Naira 20 years ago, you certainly should not be talking about the same amount 20 years after.

If nothing else has happened, INFLATION has devalued your original invest.

So I recommend that you find the FUTURE SUM of 1 million Naira compounded yearly by the AVERAGE inflation rate over the past 20 years and kindly tell us what that amounts to.

1 million Naira twenty years ago CERTAINLY has far more purchasing power than 1 million naira twenty years after.

Please let's stop playing by old rules!

MrMcJay:


Oga, he said the dividends on the stock are more than the funds committed to investment.

emmanuelewumi:

Thank you very much.

emmanuelewumi:



N2 million invested in Nestle in 1999 is worth over N270 million now, the dividend received this year is far more than the N2 million invested in 1999.
This beats inflation and currency devaluation, the dividends received over the years is in tens of millions.

That doesn't mean one should not sell if the fundamentals of the company can't support the price. For now the earning growth rate the company is a double digit.

I am a value investor and I invest based on the fundamentals, cash flow, income growth of the investment.

meshpips:


Sir, whilst it might be challenging for me to obtain historical data for the NSE to verify what you have just said but I will still like for you to let us know how much nestle shares we worth per unit in 1999.

Nestle is actually the queen of the pack, quite possibly the most "expensive" stock per unit on the exchange but let's get actual values.

I kindly request.

emmanuelewumi:



I bought in the year 2000 at N20 per share.

The company gave bonus of
1 for 4 in 2003

1 for 4 in 2007

1 for 5 in 2011.

N2 million will buy 100,000 units

In 2003 it will grow to 125,000 units

In 2007 it will grow to 156,250 units

In 2011 it will grow to 187,500 units

Multiply by N1400 per share you will get N262.5 million.

Go to AGM and you will see average retirees who invested well when they are young who are earning millions from their investments.

A range rover sold for N20,000 in 1980. A flat at Iponri low cost estate was sold at N4000.

N20,000 will buy 5 of such apartments in 1980. The rental income from a flat at Iponri is between 800k and N1 million. 5 flats will now give the investor a total rental income of between N4 million and N5 million.

Some investors who bought the low cost housing unit for N4000 must have sold 10 years after for N20,000, not knowing that the party is just starting and the property can still generate rental income of over N800,000 in the future

ositadima1:


The problem with investments is that we can be certain of their profitability after the fact, in hindsight. Not saying that you don't have a point though, but I assume that at the time 1980 or 2000 their were other promising investments that failed years after.

How can investors manage risks? Can diversifying help?

emmanuelewumi:



I hope we are not digressing from the purpose of this thread?

Successful investors are diversified and have investments in different businesses and asset classes.

I usually invested my dividends in Treasury Bills, money market funds and to also expand my business. I use a certain percentage from the profit of my business to buy shares, Treasury Bills, Money market funds. When I make profit selling some of my overvalued shares, I usually invest the lump sum on real estate investments.

Started diversifying into Eurobond funds about 3 months ago

missjekyll:
[color=#990000][/color] Merry Christmas and God bless us Everyone!

please post pictures of xmas chicken as some of us are at work. Tankio

IamR:

I started 3 months ago too.

Elder, can I do MMF with FSDH or can you recommend another investment house?
Merry Christmas, sir!

emmanuelewumi:


The rates are now crashing, but FSDH Asset Management will still offer you about 10.5 %

emmanuelewumi:



I bought in the year 2000 at N20 per share.

The company gave bonus of
1 for 4 in 2003

1 for 4 in 2007

1 for 5 in 2011.

N2 million will buy 100,000 units

In 2003 it will grow to 125,000 units

In 2007 it will grow to 156,250 units

In 2011 it will grow to 187,500 units

Multiply by N1400 per share you will get N262.5 million.

Go to AGM and you will see average retirees who invested well when they are young who are earning millions from their investments.

A range rover sold for N20,000 in 1980. A flat at Iponri low cost estate was sold at N4000.

N20,000 will buy 5 of such apartments in 1980. The rental income from a flat at Iponri is between 800k and N1 million. 5 flats will now give the investor a total rental income of between N4 million and N5 million.

Some investors who bought the low cost housing unit for N4000 must have sold 10 years after for N20,000, not knowing that the party is just starting and the property can still generate rental income of over N800,000 in the future

ahiboilandgas:
The hunters and opportunist are here banking on the drop in rate to hunt for prey....worst come to worst buy an apartment (rentable and sellable) buy dollars or euros and keep , buy gold .......that my local advice for imvestors .....me self just expanded to 11 plc with only two trucks...cos i dont know the long time effect of dangote refinery but am sure oil and gas down stream will never be same

meshpips:


Thanks so much sir.

Your point is very well understood.

The 1 for 4 done twice were 25% increase on the quantity of shares and then another 20% increase. These years, the appreciation on the stock clearly beat inflation.

I tried to affirm for myself how much the stock was in 2000 but the farthest historic data I got online was for 2003 and the lowest price is saw is around 90.

In anyway, your point is clearly understood sir.

Thanks for your time sir.

Adinije:
Guys, do bank credit customers on Tbill that mature today? Or does it have to be business day?

emmanuelewumi:



You will be credited tommorow, I have a Treasury Bill which matures today

emmanuelewumi:



I bought in the year 2000 at N20 per share.

The company gave bonus of
1 for 4 in 2003

1 for 4 in 2007

1 for 5 in 2011.

N2 million will buy 100,000 units

In 2003 it will grow to 125,000 units

In 2007 it will grow to 156,250 units

In 2011 it will grow to 187,500 units

Multiply by N1400 per share you will get N262.5 million.

Go to AGM and you will see average retirees who invested well when they are young who are earning millions from their investments.

A range rover sold for N20,000 in 1980. A flat at Iponri low cost estate was sold at N4000.

N20,000 will buy 5 of such apartments in 1980. The rental income from a flat at Iponri is between 800k and N1 million. 5 flats will now give the investor a total rental income of between N4 million and N5 million.

Some investors who bought the low cost housing unit for N4000 must have sold 10 years after for N20,000, not knowing that the party is just starting and the property can still generate rental income of over N800,000 in the future

emmanuelewumi:
If you bought a property for N20 million in 2017. The property gave a rental income of N1 million in 2017, fast forward to 2019 similar property in your neighbourhood gave a rental income of N1.2 million. But the owner is relocating abroad and will love to dispose his house that gives a rental income of N1.2 million for N15 million.

As a High Networth Investor who has more than that in your bank, what will you do?


The best thing to do is to withdraw the cash from the bank and buy the property. Because rental income from such investment increased from N1 million to N1.2 million between 2017 and 2019. It certain that by 10 years time rental income from such investment will increase to between N1.8 million and N2 million. The value of the property must have also increased in 10 years

Adiwana:


Investment is a real tricky stuff and you may find out that at the end of the day,it wasn't even worth it.Chances of making it on the long run maybe high but it can easily sway in the other directon

The problem with property is the supply and demand. Am currently selling a property of 8 3bedroom flats with each @20k/m except 1 which is 2bedroom going for 15k/m and has a shop attached of real worth N45 million for N25 million for a client.That's how many percentage decrease?? Had to bring down the price from N29 million cause there's no demand for it.If its bought at its current price,hes making a loss of N20 million.Thats 10yrs of rent @2m/annum - maintenance gone just like that.Thats real devaluation right here. You might find out considering the amount of maintenance put into the house and inflation,he didn't even make that much profit considering the timefeame of the investment

I have first bank shares which was bought in 2007.Bought at N66,000. But as at 3-4yrs ago,I was receiving N2k dividend.Price of first bank shares atm is N6 as of last week I checked.That's real loss considering the amount invested and time.

emmanuelewumi:



I bought in the year 2000 at N20 per share.

The company gave bonus of
1 for 4 in 2003

1 for 4 in 2007

1 for 5 in 2011.

N2 million will buy 100,000 units

In 2003 it will grow to 125,000 units

In 2007 it will grow to 156,250 units

In 2011 it will grow to 187,500 units

Multiply by N1400 per share you will get N262.5 million.

Go to AGM and you will see average retirees who invested well when they are young who are earning millions from their investments.

A range rover sold for N20,000 in 1980. A flat at Iponri low cost estate was sold at N4000.

N20,000 will buy 5 of such apartments in 1980. The rental income from a flat at Iponri is between 800k and N1 million. 5 flats will now give the investor a total rental income of between N4 million and N5 million.

Some investors who bought the low cost housing unit for N4000 must have sold 10 years after for N20,000, not knowing that the party is just starting and the property can still generate rental income of over N800,000 in the future

aremso:




while i agreed with you as regards the analysis you displayed, i will also say that the huge profits come as a result of capital appreciation , sound mgt and smaller amount of shares float of the company which made the price to be at that level. However, can you talk of that in the case of FBN, UBN, UBA, UACN, AP now FO, and some other old companies that have been around just like nestle. They are still struggling to meet up, Nestle is a unique stock on its own which when u are doing investment analysis generally concerning companies in Nigeria you analyse it on its own. I stand to be corrected i dont think there is any other companies on NSE that has price appreciation like nestle. The company has very few shares in the hand of the individual and that is why the price is still being maintained at that level. Please i like to be factual and more so , i also invest in stocks too.