Compound interest is like a miracle or magic, it has enormous power. When you compound first fruits, second fruits, third fruits so that you get to a point where you will have more money than you can spend. Even civil servants can be surreptitiously rich in 18 years, if they just have the discipline to spend just a fraction of their income on compounded investments.

emmanuelewumi:



The property bought for N12 million in 2004 which is currently worth N18 million in 2020 over a period of 16 years.

Gave a poor returns of about 2.5% per annum compounded over a 16 year period, either the property was overpriced when he bought it

That N12 million invested in a very conservative money market fund at a below average return of 8% would have compounded to N40 million in 16 years..

You can do the maths.


Compound interest, this is what some people don't know. But fixed income Investors understand it so well.

ahiboilandgas:
meaning people with foreign income (exclusively)should not invest in local income generating aspect

Doesn't matter. Investors should understand the risks and have strategies to mitigate against the risks

emmanuelewumi:



The property bought for N12 million in 2004 which is currently worth N18 million in 2020 over a period of 16 years.

Gave a poor returns of about 2.5% per annum compounded over a 16 year period, either the property was overpriced when he bought it

That N12 million invested in a very conservative money market fund at a below average return of 8% would have compounded to N40 million in 16 years..

You can do the maths.


Compound interest, this is what some people don't know. But fixed income Investors understand it so well.

Very true Sir.

Compound interest helps to keep you afloat.

Many people are not discipline enough to compound their earnings.

There is someone here that always reminds us that except you are paying school fees with forex or doing business that involves repatriation of funds back into forex, then devaluation should not be your worse headache, instead worrymore about inflation. I think he is right

NL1960:


Gbam. I always wonder why this comparison and conversion is always done. Anybody investing in a foreign country should always factor in exchange rate risk into it. If the owner of that property was in Nigeria, he would not be bother about exchange rate if all his spendings are in Naira.

ojesymsym:
Compound interest is like a miracle or magic, it has enormous power. When you compound first fruits, second fruits, third fruits so that you get to a point where you will have more money than you can spend. Even civil servants can be surreptitiously rich in 18 years, if they just have the discipline to spend just a fraction of their income on compounded investments.

If you know, you know.

A lady grew her investments to over N200 million in 25 years through fixed income and other portfolio Investments. Which was quite higher than what she had in her retirement savings account

Government can default; how please.

ojesymsym:
I suggest they have two portfolios, one denominated in their forex and the Naira one. The Naira one should/ can be invested in Nigerian investments and instruments, ditto for the forex portfolio.

That was why I was asking the other day if there was a global form of Mutual funds or investment. Eurobonds and co are good, but you are at the mercy of the nation's Forex inflow which means the government can default.

The man had money but didn't plan well, asking a woman living in a developed country to follow you back to Nigeria with your children is like running faster than Usain bolt.

His priority could"ve been to build life for his kids in Naija, as soon as they turn 18 years he take them to naija on holiday and get them to start family life there, the wife will just be in complete loss of control.

ahiboilandgas:
i cant tell he seem lost ....he above 60 and own another house in Manchester but made several attempt to move back to Nigeria but wife no agree follow ,kids done marry to uk .......any time he comes after 2 weeks na to run for next 3 years .....nepa dey show am shege ...last time transformer blow 40 days no light

See a comment made some days ago. Unlike TB where government can just print in Naira, unlike forex that government has no control over. Ahib shared the Lebanon situation some months back.

Tripleaj:
Government can default; how please.

PresidentBuhari:
Euro bond investors take note, the CBN and banks now have a backlog of settling foreign debt obligations, there is currently up to a six months delay or more.

If you have Eurobonds investment or foreign currency denominated debt instrument, attempt to withdraw from it and give us an update.

This is easier said than done.
Many parents in diaspora get to realize in old age. It is difficult enough to get your kids born in Lagos to know their home town not to talk of those who grew up in such development, it is really hard for many of them to see Nigeria as home, so when the old man decides to return, he finds that he returns alone.
It is a big challenge.

TotoNaRubber:
The man had money but didn't plan well, asking a woman living in a developed country to follow you back to Nigeria with your children is like running faster than Usain bolt.

His priority could"ve been to build life for his kids in Naija, as soon as they turn 18 years he take them to naija on holiday and get them to start family life there, the wife will just be in complete loss of control.

emmanuelewumi:



The property bought for N12 million in 2004 which is currently worth N18 million in 2020 over a period of 16 years.

Gave a poor returns of about 2.5% per annum compounded over a 16 year period, either the property was overpriced when he bought it

That N12 million invested in a very conservative money market fund at a below average return of 8% would have compounded to N40 million in 16 years..

You can do the maths.


Compound interest, this is what some people don't know. But fixed income Investors understand it so well.

Oga Emma, this thing inflation, I know has been touched at some point before.
Can you factor it in this 40m compound scenario.

mindtricks:


Oga Emma, this thing inflation, I know has been touched at some point before.
Can you factor it in this 40m compound scenario.

I said invested in a conservative mutual fund that gave a below average returns of 8%.

Before Ema comes with his expert opinion, I will share my own thoughts. Inflation does not compound as the investment would, so at the beginning, inflation may be drowning your investments but after a while, that investment will have acquired its escape velocity and rise above the inflation rate, as long as we do not head in the same direction Zimbabwe and Venezuela got to.

mindtricks:


Oga Emma, this thing inflation, I know has been touched at some point before.
Can you factor it in this 40m compound scenario.

Most great wealth are built slowly. They are based on the principle of compound interest, what Albert Einstein called the greatest power in the universe. He who understands the power of compound interest earns it, he who dosen't... pays it.

deleson:
60%?

What’s the source of this figure? Any research or reference for this or it’s a personal estimation?

By which area is this?

Even 70% people wey dey suffer that believe they are enjoying.it is not easy to live a sane and responsible life in Lagos

emmanuelewumi:



Parallel market and black market are both unofficial markets

Please sir,

I got a bond quote for secondary market this morning. Kindly assist me with implication of the selected item I wish to invest in.

Also what will be the return say with 2.5m. Find attached

michealekene:


Please sir,

I got a bond quote for secondary market this morning. Kindly assist me with implication of the selected item I wish to invest in.

Also what will be the return say with 2.5m. Find attached

It is currently selling at a discount. Can you find out from your account officer the yield from the investment till maturity?

TotoNaRubber:
The man had money but didn't plan well, asking a woman living in a developed country to follow you back to Nigeria with your children is like running faster than Usain bolt.

His priority could"ve been to build life for his kids in Naija, as soon as they turn 18 years he take them to naija on holiday and get them to start family life there, the wife will just be in complete loss of control.

i cant tell if he didnt plan well , he has a total of 42 apartments within Lagos ,ibadan,ilesha

emmanuelewumi:



We invest in the real sector by

1. Starting a business
2. Investing in debts of players in the real sector
3. Becoming a part owner, through equity investment..


Most people talking about investing in the real sector only know about number 1

An investor who invested N1 million in Okomu Oil a company in the Agricultural sector about 15 years ago, has his Investments grown to over N36 million and received dividends of N10 million in the last 5 years. Can we say that person is not investing in the real sector.


Some Investors have realized that there is no point reinventing the wheels

What of an investor who invested 1million 15yrs ago in Firstbank. Nigerian breweries. UAcn. PZ. Wapco flourmill. Guiness. Uac Property. Oando. Cadbury nahco. GSK. African Petroleum to mention but few?

Or you intentionally like picking the very best performing stocks to paint how lucrative the Nigeria Stock market is whereas it has turn millions of people to paupers

drealj:
Even 70% people wey dey suffer that believe they are enjoying.it is not easy to live a sane and responsible life in Lagos

we hardly live well in Lagos ,the only thing in Lagos na business....the traffic has gone haywire i have ran away still after rains

Donbrig:
Most great wealth are built slowly. They are based on the principle of compound interest, what Albert Einstein called the greatest power in the universe. He who understands the power of compound interest earns it, he who dosen't... pays it.

really most people of forbe list of wealthy didnt build up wealth by compound interest i think?

Compound interest must have certainly played some roles in their build up to massive wealth.

ahiboilandgas:
really most people of forbe list of wealthy didnt build up wealth by compound interest i think?

Lagos is one of the most unhygienic cities in the world, the stress and traffics in Lagos could shorten your life span drastically.

ahiboilandgas:
we hardly live well in Lagos ,the only thing in Lagos na business....the traffic has gone haywire i have ran away still after rains

Rest in peace to the Naira
Thank you silly buhari for doing a great job
Na the fools wey elect u 2 times na them I blame.

megamart247:


What of an investor who invested 1million 15yrs ago in Firstbank. Nigerian breweries. UAcn. PZ. Wapco flourmill. Guiness. Uac Property. Oando. Cadbury nahco. GSK. African Petroleum to mention but few?

Or you intentionally like picking the very best performing stocks to paint how lucrative the Nigeria Stock market is whereas it has turn millions of people to paupers

What you should know is that you don't invest in NSE and go to sleep.

There are quarterly results the various companies release

If you see dangers in them, you sell your stocks and look for a profit companies to invest your cash.

I invested in FBNH, NB, Guinness, UACN and Wapco.

When their quarterly financial reports were showing poor performance, I sold them before the great crash in their current prices.

I have invested back in Wapco recently, because their financials have improved from my own analysis.

FBNH financials seem to be improving, but I will not buy it again until I see serious improvement in their books

Nobody holds you not to sell poor performing equities, especially now the power to buy and sell is in your hands.

Investors will pay school fees severely if they refuse to study the quarterly financial books of their portfolios or become too attached to a particular company.

I am calmly waiting to see okomoil plc at bargain prices to enter....still regretting not buying it at N15-N20 7years ago....was busy with other equities which am happy to have invested heavily in them.

Please let's be guided always.

Donbrig:
Lagos is one of the most unhygienic cities in the world, the stress and traffics in Lagos could shorten your life span drastically.

very true .....a very messy city ,virtually unlivable and at point of total breakdown

megamart247:


What of an investor who invested 1million 15yrs ago in Firstbank. Nigerian breweries. UAcn. PZ. Wapco flourmill. Guiness. Uac Property. Oando. Cadbury nahco. GSK. African Petroleum to mention but few?

Or you intentionally like picking the very best performing stocks to paint how lucrative the Nigeria Stock market is whereas it has turn millions of people to paupers

That is one of the problems of investing in the real sector and importance of diversifying your investments, you don't invest and sleep, you monitor your Investments every quarter.

Looking at the dividends , bonuses, capital appreciation earned over the years the following business have beaten inflation and currency devaluation in the last 17 years, Nestle, First bank, Access Bank, Nigeria brewery, Flour Mills, GSK, Zenith bank, GTB, Okomu Oil, Presco, UBA, Custodian and Allied,Vita foam, and many more.

An investor should be able to identify a bubble, we have them in real estate, stock market and in business.

A stock of N30 that earned less than N1 is a bubble, 2006 and 2007 was a year of bubbles when people threw cautions to the wind

. Intelligent Investors switched to fixed income Investments during this period and switched back to equities to cherry pick when normalcy returned.


Few days ago, I talked about the bubble that is building up in Tesla

The panacea for this problem, is any one staying abroad is whilst ur kids are growing up once in a while have them come see Nigeria. Let them enjoy when they come back to Nigeria. Do not start telling them Nigeria is a shit hole else them no go wan enter. To me it's an investment.

ojesymsym:
This is easier said than done.
Many parents in diaspora get to realize in old age. It is difficult enough to get your kids born in Lagos to know their home town not to talk of those who grew up in such development, it is really hard for many of them to see Nigeria as home, so when the old man decides to return, he finds that he returns alone.
It is a big challenge.

ukay2:


What you should know is that you don't invest in NSE and go to sleep.

There are quarterly results the various companies release

If you see dangers in them, you sell your stocks and look for a profit companies to invest your cash.

I invested in FBNH, NB, Guinness, UACN and Wapco.

When their quarterly financial reports were showing poor performance, I sold them before the great crash in their current prices.

I have invested back in Wapco recently, because their financials have improved from my own analysis.

FBNH financials seem to be improving, but I will not buy it again until I see serious improvement in their books

Nobody holds you not to sell poor performing equities, especially now the power to buy and sell is in your hands.

Investors will pay school fees severely if they refuse to study the quarterly financial books of their portfolios or become too attached to a particular company.

I am calmly waiting to see okomoil plc at bargain prices to enter....still regretting not buying it at N15-N20 7years ago....was busy with other equities which am happy to have invested heavily in them.

Please let's be guided always.

Thanks Doc.

Didn't know you have answered him.

The best way to avoid losses is to consider if the investment will give a good dividend. The earning yield should also be higher than inflation.

Exactly, they get to realize at old age, that is why the age of 18 is the point of no return, any individual of color will always feel at home in Nigeria with the basic resources in place.

The Indians do these things all time on the basis of "arranged marriage" for their children when the children are ripe and it works 8 out 10. The problem in diaspora is the woman takes advantage of the man at the last minute and claims all he has ever worked for, that is why we advise our brothers living with their wives in diaspora not to own any house overthere rather to build houses in choice locations in naija and rent it out. The whole feminist thing is a thing of pride in diaspora, so men are advised to build a life for their kids outside that environment as a safe haven.

The kids born in Lagos are already home, Lagos is a centre for excellence with money, in diaspora a woman can ask you to leave the house at the age of 70, in the city of NewYork so many Africans are sleeping in the streets due to these, when they tell you the good life they had prior you will be amazed, you can't really blame some of those ones cos some don't have direct Ancestrtal parents and then the loop goes on and on. Time to start preaching these things.

ojesymsym:
This is easier said than done.
Many parents in diaspora get to realize in old age. It is difficult enough to get your kids born in Lagos to know their home town not to talk of those who grew up in such development, it is really hard for many of them to see Nigeria as home, so when the old man decides to return, he finds that he returns alone.
It is a big challenge.

emmanuelewumi:



It is currently selling at a discount. Can you find out from your account officer the yield from the investment till maturity?

I have mailed him, yet to get a reply. By "selling at a discount", in lay man's language is it a good buy? Is it worth it? Am I getting the full 14.2% rate or less ?

Well said you spoke my mind. That's why I av adopted the 30-30-40 rule. My expenses after collecting my pay package for Canada 30 percent, investment for Nigeria 30 percent , then 40 percent on investment in Canada. Incase any thing my life is secured by Gods grace .

TotoNaRubber:
Exactly, they get to realize at old age, that is why the age of 18 is the point of no return, any individual of color will always feel at home in Nigeria with the basic resources in place.

The Indians do these things all time on the basis of "arranged marriage" for their children when the children are ripe and it works 8 out 10. The problem in diaspora is the woman takes advantage of the man at the last minute and claims all he has ever worked for, that is why we advise our brothers living with their wives in diaspora not to own any house overthere rather to build houses in choice locations in naija and rent it out. The whole feminist thing is a thing of pride in diaspora, so men are advised to build a life for their kids outside that environment as a safe haven.

The kids born in Lagos are already home, Lagos is a centre for excellence with money, in diaspora a woman can ask you to leave the house at the age of 70, in the city of NewYork so many Africans are sleeping in the streets due to these, when they tell you the good life they had prior you will be amazed, you can't really blame some of those ones cos some don't have direct Ancestrtal parents and then the loop goes on and on. Time to start preaching these things.

42 apartments is more than enough, obviously he let the woman take advantage of him over his children. We can't tell where he lost total control but engaging the children in what you do before they start settling is the last chance to get things right.

Now he will start looking for a new wife at 60 years and changing baby diapers at 61.

ahiboilandgas:
i cant tell if he didnt plan well , he has a total of 42 apartments within Lagos ,ibadan,ilesha