emmanuelewumi:



I buy regularly, you can't time the market.

Sold 95% of my UBA shares and First Bank shares today, the fund will be invested in money market fund while hunting for bargains.

Zenith Bank, United Capital and APR dividends that will be paid this month will also go to money market funds.

Hopefully we should get a 10% or more pull back in ASI by June 2021 and then come in to buy stocks with juicy dividend yields

I have observed with NSE once dividend is paid, there is usually a decline in share price.

Biafran4life:
You are confusing me.I dislike this government like mad because of other things.Nevetheless,I don't see what they are doing different when it comes to cbn..How many exchange rate do we have.i can't agree that those 41 items on the cbn list should access dollars at government rate . Defending the naira is the same thing as subsidizing it.If you qualify for it they give tyou hrough government windows that I know.Do you remember during abacha ,he placed dollars at #22.and things wr still ok.The problem is the madness to import even water.And the demand for everything abroad from services to products even when we can create local alternative.Personally I don't care about the black market price of dollars if you can afford it.God be your helper

First, things were not ok during Abacha... There was a link I posted above... It explains quite well the history of our currency and what really happened during Abacha's time. Fact is that over the past 40 years, the only time the naira saw sustained appreciation and stability against the dollar coincided with a period when everyone could access same dollar rate (and also high oil prices)

Whether we care about the black market or not doesn't matter. Fact is that it has a huge impact on you. Virtually every item you buy in the market is affected by the black market rate. I can't think of any item not affected.. Even locally produced food. Economies work as an interconnected unit and not as individual parts.

Talking about limiting items that can access forex, for the past 20 years we've been doing that, the very few items such as cement we've sustained self sufficiency in was not because of forex limitation... So why do we keep repeating it? There are sensible ways to stimulate local production without hurting the economy.

In summary, all I'm saying is that everyone should have access to thesame forex rate.

Thank you for the below. I most certainly concur!! A million LIKES!!!

jedisco:


First, things were not ok during Abacha... There was a link I posted above... It explains quite well the history of our currency and what really happened during Abacha's time. Fact is that over the past 40 years, the only time the naira saw sustained appreciation and stability against the dollar coincided with a period when everyone could access same dollar rate (and also high oil prices)

Whether we care about the black market or not doesn't matter. Fact is that it has a huge impact on you. Virtually every item you buy in the market is affected by the black market rate. I can't think of any item not affected.. Even locally produced food. Economies work as an interconnected unit and not as individual parts.

Talking about limiting items that can access forex, for the past 20 years we've been doing that, the very few items such as cement we've sustained self sufficiency in was not because of forex limitation... So why do we keep repeating it? There are sensible ways to stimulate local production without hurting the economy.

In summary, all I'm saying is that everyone should have access to thesame forex rate.

Meanwhile the bond market is beginning to look interesting as shown below with yesterday's closing prices and yields . As expected yields have been rising all year. Even the yields on the 7 year maturity will soon surpass the 11.25% Sukuk. I expect yields to continue to rise over the coming months and consequently expect TBill rates to continue to rise.

emmanuelewumi:


I always tell people to invest in income generating and capital appreciating assets, with inflation and currency devaluation at the end of the day on the long run when assets are repriced you will still come out fine

Make sure you don't over pay for such assets sha

Very true

emmasoft:


Always safer to go with the bank's rate

Thank you sir

ojesymsym:
E non go pass fidelity bank?

Noope...Sterling bank

cmoney22222:
Sorry just getting this now. The bank will bid for you if you don’t meet their monetary value threshold for personal rate. on

Its oowkay....thanks sir

It seem notting beats land (strategically aquired ) especially in Layouts that upper middle class will occupy.....a Land bought for 800k in 2004 sold for 20m naira with i beg in 2021....while 5 plot boughts by an American returnee for 3.5m sold for 75m naira .....all sold out within 6 months of been in the markets .....what other investment asset can grow money as this rate out runing an enterprise ?

Anyone got idea of the treasury bill rate today?

richforever123:


Is I-invest registered with SEC, are they not backed by Sterling Bank. ALL Fintech are in partnership with an Asset Management company including your I-invest, A simple email to AIICO Capital with clear your doubts, However, if you don't want to invest you can look somewhere else. Thank you

I downloaded I-invest app on the website of Sterling Bank and this was more credible to me. Apart from that, Parthian Partners, the company which Sterling collaborated with are inter-dealer broker on the Securities and Exchange Commission http://sec.gov.ng/cmos/. This was part of my findings before investing.

It might also be imperative to state that yield on Piggyvest platform attracts 12.5% pa while I-invest platform attracts a meagre 3.89% pa. This calls for concern bro, as both companies were operating within the same industry.

So, Can you shed more lights on the outcome of your due diligence findings on Piggyvest? I would be delighted to hear more.

ahiboilandgas:
It seem notting beats land (strategically aquired ) especially in Layouts that upper middle class will occupy.....a Land bought for 800k in 2004 sold for 20m naira with i beg in 2021....while 5 plot boughts by an American returnee for 3.5m sold for 75m naira .....all sold out within 6 months of been in the markets .....what other investment asset can grow money as this rate out runing an enterprise ?

While waiting for the capital appreciation which is not certain, you need cash flow for survival.

Land bought for N1 billion at Banana Island 8 years ago are now sold for N600 million.

Lagos is not a place you will leave your land for 20 years for it to appreciate. Those who wanted to speculate on land at Magodo, had their land taken over when Fashola was the governor. He gave them 4 weeks to build the property, those who couldn't forfeited their Investments to the state

The most important thing, don't over pay for an investment. Invest in capital appreciation and cash generating assets or Investments.

All the same, real estate is a good investment vehicle on the long run.

ahiboilandgas:
It seem notting beats land (strategically aquired ) especially in Layouts that upper middle class will occupy.....a Land bought for 800k in 2004 sold for 20m naira with i beg in 2021....while 5 plot boughts by an American returnee for 3.5m sold for 75m naira .....all sold out within 6 months of been in the markets .....what other investment asset can grow money as this rate out runing an enterprise ?

I disagree except the person has other businesses to keep having cash for expenses. With the pandemic there are many distress sales ongoing.

emmanuelewumi:



While waiting for the capital appreciation which is not certain, you need cash flow for survival.

Land bought for N1 billion at Banana Island 8 years ago are now sold for N600 million.

Lagos is not a place you will leave your land for 20 years for it to appreciate. Those who wanted to speculate on land at Magodo, had their land taken over when Fashola was the governor. He gave them 4 weeks to build the property, those who couldn't forfeited their Investments to the state

The most important thing, don't over pay for an investment. Invest in capital appreciation and cash generating assets or Investments.

All the same, real estate is a good investment vehicle on the long run.

This is dependent on location

emmanuelewumi:



While waiting for the capital appreciation which is not certain, you need cash flow for survival.

Land bought for N1 billion at Banana Island 8 years ago are now sold for N600 million.

Lagos is not a place you will leave your land for 20 years for it to appreciate. Those who wanted to speculate on land at Magodo, had their land taken over when Fashola was the governor. He gave them 4 weeks to build the property, those who couldn't forfeited their Investments to the state

The most important thing, don't over pay for an investment. Invest in capital appreciation and cash generating assets or Investments.

All the same, real estate is a good investment vehicle on the long run.

a sharp investor will not buy a single land for 1 billion cos who are is target future customers? At what rate would Nigeria produce new multi billionaires...instead i will buy a thousand plot at 10m each if they move to 17m I will sell all ......there are 35 states out side Lagos

LauraClasikVibe:
I disagree except the person has other businesses to keep having cash for expenses. With the pandemic there are many distress sales ongoing.

who uses all his capital to buy land and starve ... that's not the way...u need several class of assets to swim against the ranging tide..

Investor A bought an asset for N1 million in the year 2001 and sold it in 2021 for N20 million, but the asset did not generate any cash flow.


Investor B bought an investment for N1 million in the year 2001 and sold the investment for N10 million in 2021, the investment generated a cash flow of N6 million over a period of 20 years at an average of 300k per annum.


Which of them got a good deal on the long run?

emmanuelewumi:
Investor A bought an asset for N1 million in the year 2001 and sold it in 2021 for N20 million, but the asset did not generate any cash flow.


Investor B bought an investment for N1 million in the year 2001 and sold the investment for N10 million in 2021, the investment generated a cash flow of N6 million over a period of 20 years at an average of 300k per annum.


Which of them got a good deal on the long run?

Investors B

LauraClasikVibe:
Investors B

Please explain

LauraClasikVibe:
Investors B

Bros 20M and 16M

Was auction successful today?

cutedharmee:
Anyone got idea of the treasury bill rate today?

6.5% for 364-day

Biafran4life:
Bros 20M and 16M

Investor B

The 300k per annum, if it was invested and compounded at a conservative return of 10% for the 20 years will grow to N17 million.

If only 250k was invested per annum for the 20 years at 10% per annum, the Investor will still get over N10 million.

Average return on fixed income in the last 20 years is over 10%

emmanuelewumi:



Investor B

The 300k per annum, if it was invested and compounded at a conservative return of 10% for the 20 years will grow to N17 million.

If only 250k was invested per annum for the 20 years at 10% per annum, the Investor will still get over N10 million.

Average return on fixed income in the last 20 years is over 10%

My maths dey rusty oo but is that N17m figure really correct sir cos it's too much?

emmanuelewumi:



Please explain

300k per annum while Investor B is not getting this. Investor B can decide to invest the 300k in stocks and other businesses that will give good returns while Investor A has nothing for those years. When you add what Investor B has made cumulatively he made more money that Investor A.

LauraClasikVibe:
300k per annum while Investor B is not getting this. Investor B can decide to invest the 300k in stocks and other businesses that will give good returns while Investor A has nothing for those years. When you add what Investor B has made cumulatively he made more money that Investor A.

Correct

emmanuelewumi:



Investor B

The 300k per annum, if it was invested and compounded at a conservative return of 10% for the 20 years will grow to N17 million.

If only 250k was invested per annum for the 20 years at 10% per annum, the Investor will still get over N10 million.

Average return on fixed income in the last 20 years is over 10%

Oga i don't get how 10% of 300k at compounded interest will give 17 million in 20 yrs..If I am not wrong the first yr will be just 30k,then 33k,36300,42930k etc.Pls can you show the calculation

While one gets/accepts the message of the comparison, the N17m (10+7) is achieved at a compounded interest rate of 17.5% as shown below. But as Laura and Ukay2 have already mentioned, the rent invested over the 20 yr period can probably achieve more than 17.5%.

Biafran4life:
Oga i don't get how 10% of 300k at compounded interest will give 17 million in 20 yrs..If I am not wrong the first yr will be just 30k,then 33k,36300,42930k etc.Pls can you show the calculation

afroxyz:

6.5% for 364-day

Please do you know the rate for other tenures?

Biafran4life:
Oga i don't get how 10% of 300k at compounded interest will give 17 million in 20 yrs..If I am not wrong the first yr will be just 30k,then 33k,36300,42930k etc.Pls can you show the calculation

That is the magic of compound interest and regular Investment.

You Invest 300k every year, your reinvest the interest and intial capital, you add 300k the next year, reinvest the interest and cummulative sum.

By the 15 years, the fund would have grown to N10 million giving an interest of N1 million, which you can also reinvest the N10 million and the N1 million interest by the 20th year you will have N17 million.

That is how workers are able to build substantial fund in their retirement savings account, due to compound interest and regular monthly Investment of the savings.


@ Seyi Sanya, you are a Mathematician kindly break down this mathematics of finance for them

skydiver01:
While one gets/accepts the message of the comparison, the N17m (10+7) is achieved at a compounded interest rate of 17.5% as shown below. But as Laura and Ukay2 have already mentioned, the rent invested over the 20 yr period can probably achieve more than 17.5%.

He is adding 300k from the annual rent every year to the initial investment.

skydiver01:
While one gets/accepts the message of the comparison, the N17m (10+7) is achieved at a compounded interest rate of 17.5% as shown below. But as Laura and Ukay2 have already mentioned, the rent invested over the 20 yr period can probably achieve more than 17.5%.

Help your self with this