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10 Actions That Can Make You a Succesful Investor

Find out ten trusted pecks that can jump you up on becoming a successful #investor. #Learn #Grow #mondaymotivation

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successful investor, Invest According to Your Risk Tolerance and Appetite (1)

There is no one route to becoming a successful investor. In fact most investors will tell you different stories containing contrasting investment strategies, multiple inspiration and different risk appetites. If this makes you wonder why. Find out ten trusted pecks that can jump you up on becoming a successful investor.

Start Investing Early

investors guide 1

Sometimes I wish I had started investing as early I was 18. I knew about stocks at the time but just thought it was for those who had money. If at the age of 25 I had invested N8,000 every month at an interest rate of 10% without withdrawals by the time I get to age 65 I will be worth N50million.

In fact if you save N5million today at an interest rate of 10% per annum without withdrawals you will be worth about N226million in 40 years. Such is the effect time and compounding interest have on investing. Warren is said to have made his billions when he turned 60.

Diversify Your Portfolio

INVESTORS GUIDE

Portfolio diversification is a model a lot of investors use in building their world. This simply means avoiding putting all your eggs in one basket. You should invest in a portfolio of investments including bonds, treasury bills, stocks and other Fixed Income securities. That way you create a balance and a hedge against risk.

Seek A Cash Cow

INVESTORS GUIDE 3I have observed one of the most important factors that determine wealth creation and sustenance is having a steady source of cash flow. It is no coincidence many successful investors utilize investment vehicles such as Insurance Companies, Mutual Funds, Pension Funds to create wealth. The good news is that you do not need to start with such a large vehicle. A constant source of income such as your salary or rental income can be your cash cow.

Stick To A Principle

INVESTORS GUIDE 4

Its hard to remain focused as an investor, however that is one of the key pillars of a successful investor. Whether you decide to be a growth investor or a value investor or a hybrid of both just stick to that and remain consistent. I particularly like being a value investor because I hate to speculate and will rather invest after analyzing fundamentals of the investment.

[Find Out:How to select the right stockbrokers for your shares]

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Choose The Right Bird(s)

INVESTORS GUIDE

Birds of the same feather they say flock together. This applies strongly in investing and it is important you select the right partners that can help you invest your investment goal. If you are starting out as a young investor, it is advisable that you surround yourself with friends that share similar interest with you. This helps improve your investing knowledge and broadens your mindset.

Make Information Your Number One Asset

Investors guide

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Information is one of the most important tools you need to be a successful investor. With good information decision making becomes easier. You should try as much a possible to research, read and obtain every available information you can possibly lay your hands on before making that tough decision.

Don’t Be Afraid To Accept Failure

INVESTORS GUIDE 7People say when you fail you should try, try and try again but that doesn’t apply at all scenarios. Investing off course is one of such. When you make a mistake that leads you to a bad investment decision do not be afraid to accept your faith and move on. During the stock market crash of 2009 most people lost money when they actually knew the market was tanking. They held on thinking things will turn out better when they should have sold off and count their losses.

[SEE: 4 Secrets of people who have made it in life]

Save Cost And Live Modest

investors guide 8

You can’t be a successful investor and be running up cost without any form of control. No matter how much you make containing cost is key to a successful investment life. It takes a lot be conservative but it is worth all the efforts.

Be Analytical

investors guide

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Successful businessmen undertake thorough feasibility studies before taking business decisions. They do this to avoid failure due that could result from lack of basic understanding of the business they are to go into. Investors should also approach the same model. If you have decided to invest in stocks then you must analyses the financial statements of the company, its trends as well as any information you can get regarding the stock.

Always Seek A Bargain

investors guide

Warren Buffet is well known for buying quality stocks at a fair price. He goes in when others are afraid to go because he has analyzed the company very well and identified possible entry points for acquisition of shares. By seeking a bargain your potential upside is nearly assured as the market will eventually see what you have seen ages go and reward you with capital appreciation.

[Before You Go:How to select the right stockbrokers for your shares]

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BEWARE: This story was earlier published in 2017 and has just been revamped for public education –on July 22, 2019.

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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      Debt Securities

      DMO to auction N150 billion bonds for April on behalf of FG

      It also states that the interest is payable semi-annually with the redemption expected to be in bullet payment on the maturity date.

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      The Debt Management Office (DMO) has announced the offer of N150 billion bonds for subscription by auction in the month of April on behalf of the Federal Government.

      A breakdown of the bonds shows that a 10-year reopening bond is to be offered at the rate of 16.2884% with a maturity date in March 2027; a 15- year reopening bond will be offered at 12.5% with a maturity date in March 2035; and the third and longest bond which is a 25-year reopening bond will be offered at 9.8% and mature in July 2045.

      This disclosure is contained in a circular issued by the DMO on April 14, 2021, and can be seen on its website.

      The circular states that the bonds which would be auctioned on April 21, 2021, have a settlement date of April 23, 2021, adding that the unit of sale is N1,000 per unit subject to a minimum subscription of N50,000 and in multiples of N1,000 thereafter.

      It also states that the interest is payable semi-annually with the redemption expected to be in bullet payment on the maturity date.

      READ: OPEC, NSE, MTN, other developments and how they affect your pocket

      In case you missed it

      • The DMO had earlier disclosed that the Federal Government’s bonds for March worth N150bn which were auctioned were oversubscribed by N183.48bn.
      • The total subscription received from investors for the bonds was N333.48bn comprising N65.25bn for 16.2884% FGN March 2027 bonds; N110.19bn for 12.5% FGN March 2035 bonds; and N158.04bn for 9.8% FGN July 2045 bonds.
      • The auction result added that out of 82, 125 and 215 total bids for the tenures, 48, 88 and 176 were successful.
      • It stated that a total of N262.1bn was allotted, comprising of N44.01bn, N86.29bn and N131.80bn respectively.

      Continue Reading

      Debt Securities

      The Nigerian treasury bills hits 9%

      This increase is supposed to have a substantial impact on the Nigerian Stock exchange market.

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      Nigerian Treasury Bills falls to 3.05% per annum, Implications of the new CBN stance on treasury bill sale to individuals

      According to the primary market auction result, Nigerian Treasury Bills Yield held the 91-day and 182-day constant at 2.00% and 3.50% respectively.

      The 364-days Bill increased by 100 base point to 9.00% from its previous 8.00% interest. This increase is supposed to have a substantial impact on the Nigerian Stock exchange market.

      READ: Why interest rates on treasury bills, bonds crashed

      The 91-day and 182-day bills have remained relatively constant for the 4th consecutive auction. This increase in the 364-days Treasury Bill Yield may be seen to have a negative correlation in the stock exchange market as investors sell off their volatile positions and buy risk-free assets like treasury bills.

      Some analysts believe that the increase is in direct response to inflationary concerns as the CBN attempts to curb inflation without detouring growth.

      READ: CBN introduces “Special Bills” as part of efforts to control money supply in the economy

      What this means

      • An increase in Treasury Bill Yield may cause a drop in the Stock exchange market as analysts expect selloffs to continue towards the end of the week.
      • Persistent inflation concerns may lead the CBN to take more aggressive steps and increase the treasury bills rates even higher.
      • The banking sector is expected to benefit from the increase as they shift their focus from stock to fixed income.
      • Analysts expect that a higher yield trend will boost foreign direct investment, which is aligned with the CBN policy of increasing foreign inflows.
      • Some market participators see the increase as a good sign. However, the consensus was held for a steady slow increase rather than an eccentric rate change.

      Continue Reading

        





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