Resist the urge to sell out too quickly

“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 itContinue reading “Resist the urge to sell out too quickly”

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”

‘100 minus your age’ Asset Allocation Rule

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 andContinue reading “‘100 minus your age’ Asset Allocation Rule”

7 Myths about investing, debunked

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 ofContinue reading “7 Myths about investing, debunked”

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”