Making sense of investing.
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch If you are investing in the stock market, one thing you must know is that there’s always going to be a decline at some point. The exact time it …
Continue reading "Rules of Investing: Resist the urge to sell out too quickly"
Investing is a game of discipline: you have to be disciplined enough to not let your emotions get the best of you and you have to be disciplined enough to start early and continue regularly. – Warren Buffett If you knew exactly when a stock is at its low and its high, you would undoubtedly …
“Let's say it clearly: No one knows where the market is going-experts or novices, soothsayers or astrologers. That's the simple truth.” – Fortune With all the education we have today and real-time access to financial news, trying to time the market would seem like a brilliant thing to do and you’d expect to make a …
Continue reading "Rules of Investing: Don’t try to time the market"
“Never invest in a business you cannot understand” – Warren Buffett You would imagine that the common sense to do is to invest in things you understand and can probably explain clearly to a fifth grader, unfortunately, it so happens that every day, many people are putting their money into things they do not understand. …
Continue reading "Rules of Investing: Invest in things you understand"
The 50/20/30 budget, is a proportional guideline for allocating your paycheque. It’s in essence, a system of personal budgeting for keeping your spending in alignment with your savings goals. Typically, the budgeting process requires you to keep receipts and track every single expenditure. Now, that can be a real drag. And I don’t even think, …
Continue reading "Managing your money with the 50/20/30 budget"
Whenever I get the chance to speak with a lot of young people about investing, I always find out they are holding too much cash either in their savings account or in treasury bills. A 2014 UBS survey, reports that millennials held only 28% of their portfolio in stocks and the rest in cash and …
Continue reading "‘100 minus your age’ Asset Allocation Rule"
There's a lot of information about investing floating around on the internet and even on social media, offering to help first-time investors. Many of them are useful, however, some are out-and-out lies and misconceptions that can be very costly and significantly hurt your investment portfolio. We’d like to help you examine and debunk some of …
If you look at the data, over the past 20-years, if you have invested in the broad market portfolio on the last trading day of every month, you would have realized an annual percentage yield of 10%. In simple English, an investment of N100 thousand on the last day of every month in the last …
Continue reading "How to Invest in Stocks: 10 Steps to Start Investing"
How much is okay to start with? A very common question investment advisors get asked, and I think it’s a kind off an odd question to ask. I guess if it’s a question on people’s minds, then it’s an issue to them. I guess, they are expecting a hard number but there isn’t any. Just …
This is where it starts getting hard and even tricky. Not even the professionals know for sure what stocks will do well in the future. If it was easy we'd all be millionaire stock pickers. Sometimes, choosing which shares to buy just requires basic common sense. A few years ago, I walked into a supermarket …
