Introducing A. C. EHIMZE Esquire
Now a full fledged member of the Biggest and Best Bar in Africa
Truly conferred with the distinguished title of learned and found worthy to don the regalia of great minds
Attorney for the Billionaires, Trillionaires and CEO's 😊
#CallToBar
Started restructuring my NGX portfolio yesterday. It dawned on me how emotionally attached I've been to some stocks
I'd been making decisions of late by more emotion than logic
Today, I kill the emotions & finish that restructure. I hope you don't fall into this trap like I did
You own 1,000 shares in a company with one million shares outstanding.
Your ownership is 0.1%.
The company issues another one million shares and you do not participate.
You still own 1,000 shares, but your ownership falls to 0.05%.
That is dilution.
When you go into a regular investment, you put in ₦1m and wait to get ₦1.15m back
However, Treasury Bills do it backward.
If a 1-year T-bill yields 15%:
You invest ₦1,000,000
But only ₦850,000 actually leaves your pocket
In 365 days, you get your full ₦1,000,000 back
Leaving ₦1,000,000 in your savings account right now is a scam and your bank is the one running it
If you have ₦1,000,000 sitting in your bank account right now, here’s what’s actually happening to it
It’s losing value. Inflation is quietly eating away at your buying power every single day
But if you move that ₦1m into a Treasury Bill (T-bill) instead, a few things happen immediately:
You lock in a guaranteed return.
T-bills are backed by the Federal Government, making them one of the safest investments in Nigeria. No default risk.
You get your interest upfront.
T-bills are sold at a discount. If the yield is 15% for a 1-year bill, you only pay ₦850k, and you get the full ₦1,000,000 paid back at maturity.
That extra ₦150k is yours on day one.
Zero tax. T-bill returns are tax-exempt in Nigeria, so you keep 100% of what you make
Is it going to turn you into a billionaire overnight? No
But leaving ₦1m idle in a standard savings account earning 1-2% while inflation is double digits is literally losing money. Putting it in T-bills at least puts your money to work securely
BREAKING:
Opay is planning to list on the NGX! They are already preparing for a potential initial public offering in the United States, at a valuation of about $4 billion.
Wow!😳
Emphasis on "when you are genuinely ready!"
The way I put it to my mentees is, "if you aren't ready to watch your money vanish or you are not ready to lose money and be fine, don't enter here."
Stick with Funds - they are safe.
Take this advise very serious if you are new to NGX and stocks
Trading individual stocks on the NGX is great, but it requires patience, research, and a strong mind for market swings
That's why you might start with mutual funds
Mutual funds let you get your skin in the game, earn steady returns, and learn the rules of wealth creation without risking your money on beginner mistakes.
Master the basics, let your money grow in the background, and step into stock picking when you’re genuinely ready
@maziNdu4Real You see number 1 and number 3 😂😂😂
They always give people a harsh reality check
You would have high BP instantly especially after number 3
Before I reward myself, I pay my future self the same amount.
If I want a ₦300,000 phone upgrade, I must invest another ₦300,000 first. That upgrade is now a ₦600,000 decision.
If I cannot comfortably afford both, I cannot afford the lifestyle yet.
@TomolaGroup Wow!
This is a rather impressive way of pushing yourself to stay on your toes.
I personally just set a target, but I may just adopt your approach
@maziNdu4Real Many people are not aware of this even though they are very low risk and really good. Thank you
Although, I think some of these rates are not as high. I think CHD is doing about 17.3% thereabout
I hope people use this info well sha