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Dangote Flour closes officially on the 27th and I have been contemplating if I should invest a huge sum or a minimal amount. Whenever it comes to stock especially public offers, I always wait till the last day before making a firm decision whether to place my dough in or not. The public offer cycle is always the same; buy the public offer; wait for 1 year or two; then convert it to CSCS (Now, you have to have more than 2 Million Naira worth before the brokers can convert your certificate). This simply means you tie your hard earned money down for two good years or more before taking advantage of it. What a system? What a country?

Okay, how do we resolve this issue? Some prefer to buy “non-public offers” but if it is an initial one like Dangote Sugar where all the cards are glowing aces and you just have to get it, what do you do? So much questions, so much heart-ache. When Transcorp came out with all its hyper ads and promises, the joy of acquiring a conglomerate stock comprising Hotels and Telecommunication was too tempting for guys to avoid; when someone tells me he/she acquired Transcorp shares, I wonder if the person lives in Nigeria or just grossly misinformed but I cant really blame them when certified brokers are also vying for the same share and telling tales to meet their targets. The shares and stock world have challenges but they are perceived to be the investor’s paradise.

When all other investments have failed to yield the required fruits, peeps gravitate to a perceived haven. I do not take shares as a good ROI but a very long term savings. Well, this is my own perception to the whole deal that’s why I have difficulty placing my money in it. These are my submissions to it;

1. Exodus mentality towards investment is not actually a sure way to go; let’s take a que from Jesus Christ– the greatest investor that ever lives who by sowing himself have more than 50% of the worlds population following his tenet whether religiously or haphazardly, has the best selling book in the world and has created a widely acclaimed brand. When he was on earth, he was providing effective solution for the physically and spiritually sick and when a supposed high priest came to meet him at night and asked how he can do the same thing. Jesus told him that a transformation must occur in his life first; he further told him the experiences of the re-birth which was not for him to follow what he was doing but to make internal adjustment in his life so he can prepare for his own calling. Not everybody can make money through shares so just dumping your money in shares that seem to be doing well can not make it (well, can not give you the kind of money most peeps talk about when they call shares). You need to make internal expansion and adjustment in your life. You must be prepared to go through schooling; making mistakes, understanding the registers and finally acquiring right information. This process must be attained before you can beat your chest and say “I want to make money through shares”.

2. You need to place a substantial amount of money in shares before making it in the short term. I won’t want to specify a certain amount but it must be substantial or else the margin appreciated would definitely make no sense when you resell not with the broker’s commission hitting into your margin. I have a colleague who had about a million naira in stocks for 2 years and he was forced to draw the money due to an emergency. After selling all bonuses and shares accrued, he could only get back 800K. He vowed never to place his money in shares again so I sat him down and taught him about seasons.

3. Every investment has seasons of fruitfulness that’s why I fringe whenever I hear firms say they would give me a fixed amount every month if I invest a certain amount. The craziest one was a firm telling me they deal in shares only and would give me a 100K naira per month if I place a million naira and my capital remains intact. I did not have to wonder how he was going to get this done because I know it is not feasible. Investing in shares is seasonal; there is a time to invest and a time to divest; you just need to grow the internal capacity to perceive the right timing and a company that pressures himself to produce out of season may still crash (it’s just a matter of time).

4. Shares are great if you want to curb inflation especially if you have a long term savings in mind. This is the only reason that makes sense to me when it comes to shares but if it comes to making money then you have to look inward and carve your nitch for yourself. If I place a million in shares ten years ago; the purchasing power of 1 million is the same power derived from the value accrued after a year. This is great when you place it side by side with the Term Deposits of Banks which does not have the power to curb inflation.

5. Making money through shares-investment involve hard work; it’s not just placing your money at the request of brokers though brokers’ advises are quite valuable; it’s about seriously investigating, fact finding and information gathering. When I hear peeps say I am placing my money in shares to make more money; I always wonder why they say so. My curiosity gets the better of me and I ask them how they plan to make money through shares. The same story of placing my money in Nigerian Breweries, Okomu Oil, GT Bank and selling off when the value rises or getting bonuses and selling off. Then I know these ones fall in the 70% share investment population; those that never make real money but keep putting up a front on the amount they have in shares. If you really want to make money in shares, you have to strategize; have a network of investors at your disposal; take risk by buying stocks that are not popular but have a potential product demand like WAPCO 2 years ago; understand the political and economic climate trend; plan a corporate takeover by mopping private placements; always put your ears to the ground by checking on blogs like this almost everyday (someone always drop something- an information from someone on this blog has made me more than 3 million naira and it is still making me money).

That’s it my brethren, shares are cool but you need to launch to the deep at the instructions of your inner capacity to get the maximum yield……