Don’t try to time the market

“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 aContinue reading “Don’t try to time the market”

Invest in things you understand

“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 “Invest in things you understand”

How to Invest in Stocks: 10 Steps to Start Investing

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 lastContinue reading “How to Invest in Stocks: 10 Steps to Start Investing”

Finding valuable shares to invest in

Professional investment managers have a wealth of tools and sometimes a team of analyst to scour the market for bargain stocks. As an average person, who just wants to invest, you don’t need to know how to find a company’s valuation using any of the tools professionals use, like DCF (Discounted Cash Flow Model) orContinue reading “Finding valuable shares to invest in”

Monitor Your Investments

Perhaps the biggest disservice you can do to yourself with regards to achieving your investment goals, is to spend so much time planning your portfolio, so much money building your portfolio and then not monitor it. Investing is not an end unto itself, but rather a means to an end for most people i.e. investingContinue reading “Monitor Your Investments”

Keep an eye on fees and transaction costs

All investments have a cost, as they say, you have to spend money to make money. Those fees and charges can make or mar your investment. For instance, of what benefit is investing in an asset with an expected return of 10% when inflation is 8% and transaction fees are 3%. Your net return afterContinue reading “Keep an eye on fees and transaction costs”

Rebalance Your Portfolio

Assuming you have your portfolio in place, and perhaps regularly adding to it, you will see that your asset allocation will move away from the set ratios and this is because the assets would grow at different rates. Hence, the need to rebalance. Rebalancing is simply your attempt to keep your portfolio in line withContinue reading “Rebalance Your Portfolio”

Build your Portfolio with Regular Investing

Everyone knows that the stock markets can go up and down. Actually, sometime they soar and at other times they dip. It’s those dips that keep many away from investing. And it’s for good reason, as they have either lost money in the past or know someone that has. As, even experts worry about investingContinue reading “Build your Portfolio with Regular Investing”

Asset Allocation – How to mix your investments

This is where the rubber meets the road as far as getting your investment portfolio diversified. Asset allocation refers to the mix of investments you hold between different assets – equities (stocks), fixed income (bonds), real estate and cash – that fit your goals and risk level. A sound asset allocation strategy ensures your investmentContinue reading “Asset Allocation – How to mix your investments”