Nigerian Stock Exchange as a Laggard

On the day the market capitalisation of Apple reached a record $2 trillion (19 August 2020), the market capitalization of all the shares listed on the Nigerian Stock Exchange was a mere $34.65 billion (at N379 to 1$). Technology companies listed on US stock exchanges have had an incredible run on the back of increasedContinue reading “Nigerian Stock Exchange as a Laggard”

Investing in Turbulent Times

The Central bank of Nigeria (CBN) Monetary Policy Committee (MPC) met on 25th and 26th January 2016 and kept everything unchanged. The decision to keep the Naira exchange rate against the dollar at the same level for over a year despite the collapse of crude oil price the main foreign exchange earner for Nigeria isContinue reading “Investing in Turbulent Times”

Making Money from Shares – Part 10: Income Statement

Profit and Loss Account or Income Statement or Statement of Comprehensive Income reports the financial performance of a firm over a period of time, for example one year. The components of the income statement as explained in Part 8 are: 1. Revenues: These are inflows received or due for goods sold, services rendered or otherContinue reading “Making Money from Shares – Part 10: Income Statement”

Making Money from Shares – Part 9: Balance Sheet

As explained in part 8, the Balance Sheet reports the firm’s financial position, its economic resources and obligations at a point in time, for example 31st December 2013. The Balance Sheet consists of Assets, Liabilities and Equity. The Balance Sheet of a typical manufacturing company is shown below: The Balance Sheet of Manufacturing Companies areContinue reading “Making Money from Shares – Part 9: Balance Sheet”

Making Money from Shares – Part 8: Financial Statement

The next 5 parts will provide an introduction to financial statement another key component of the investment tool kit. Firms report their financials in order to show their financial performance over a period to enable investors, lenders, and creditors etc. to make economic decisions. Analysts, investors, lenders etc. use the financial statement data and otherContinue reading “Making Money from Shares – Part 8: Financial Statement”

Making Money from Shares – Part 7: Understanding Risk

In order to manage your investments well, you need to have an understanding of risk and an appreciation of your risk tolerance. That is do you tolerate risk well or do you stay up at night worrying about the movement in the value of your stock market investments? What is risk? Generally, it is definedContinue reading “Making Money from Shares – Part 7: Understanding Risk”

Making Money from Shares – Part 6: Investing Tools

In Part 5 we discussed various investing strategies. Once you have decided which investment strategy to follow based on your risk appetite, return expectations and horizon, you need to acquire the tools required to implement the strategy. It is at this stage of the process that most investors fail to follow through. Without these toolsContinue reading “Making Money from Shares – Part 6: Investing Tools”

Making Money from Shares – Part 5: Investing Strategies

We have in Part 4 identified 86 potential companies for investing. How do we select 8 to 15 out of these to invest? The returns we make will ultimately to be determined by the companies we select. A poor selection could lead to huge loses while a good one could be the beginning of aContinue reading “Making Money from Shares – Part 5: Investing Strategies”