Stock Market

You Need to be Elon Cool and Buffet Savvy to Grow Your Wealth: deVere CEO

Published

3 years ago

April 7, 2021

Elon Musk's SpaceX Raised $850 million at $74 billion valuation

Elon Musk has democratised the stock market but to seriously grow your wealth you need both Elon’s cool and Warren Buffet’s old-school savvy, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The warning from Nigel Green, the deVere Group CEO and founder, comes as the surge in day-trading frenzies, triggered by so-called ‘activist investors’ on social media platforms and online forums like Reddit urging others to invest their cash into unloved stocks, appears to be fizzling out.

Many of these so-called ‘meme stocks’ jumped exorbitantly on the back of these small-scale investments. However, platforms that facilitated this are reporting a flatlining of the ‘movement.’

Mr Green says: “The first quarter of 2021 was a crazy ride in stock markets, and this was driven by online investment communities who adore the likes of the billionaire electric vehicle and space travel entrepreneur Elon Musk, amongst others.

“He’s successfully pitched himself as being both a future first, counterculture activist and part of the establishment. Small-scale day-traders can’t get enough of it and hang off his every word.

“In many respects, this is a good thing. His immense global influence has brought into focus the huge benefits of investing to millions, many of whom would have ordinarily baulked at the idea of putting their money into the hands of Wall Street traders.

“In this way, Elon has helped democratise the stock market.”

He continues: “I believe whilst the mass hype and hysteria might be fading, this phenomenon of retail investors acting as a collective and led by social media and celebrity investors, is here to stay.

“Moving forward, they are likely to be as influential as major hedge funds in moving markets.”

Mr Green goes on to say: “However, as we’re now seeing, many of these small-scale investors – typically inexperienced, younger people who might not necessarily have the financial resources to be resilient against usually highly speculative and volatile investments – are playing a potentially hugely costly game.

“I would urge them to adopt the cool of Elon Musk and the savvy of Warren Buffet.

“Elon can spot future trends like very few others, focuses on sustainability, has utter conviction, takes risks, and is a master at harnessing the power of social media for business.

“Meanwhile, Warren’s focus is on time-honoured fundamentals including diversification, cash flow and profitability.

“The instincts and skillsets of both these mega investors combined will be a powerful strategy for any investor.”

Last month, the deVere CEO noted: “If you do want the thrill or novelty of chasing big gains, you really should ensure that you have a sound, diversified, long-term plan beforehand.

“There’s a major difference between investing and gambling.”

Nigel Green concludes: “The stock market is becoming ever-more democratised. This is a good thing.

“But the leaders of this new era must exercise responsibility and investors must exercise caution.

“The future of investment is this fine line between forward-thinking drive and old-fashioned principles – and it underscores that nothing can help you create, grow and safeguard your wealth, like quality advice.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigerian Exchange Limited

Nigeria’s Market Falls 1.09% Amid Decline in Key Sectors

Published

4 days ago

April 15, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

Nigeria’s stock market closed the trading week ended Friday, April 12, with a decline of 1.09% following a downturn influenced by notable drops in the banking, insurance, and consumer goods sectors.

This shift resulted in a loss of about N638 billion for investors during the two-day trading week, which was shortened due to public holidays for Eid Mubarak.

The Nigerian Exchange Limited’s (NGX) All-Share Index (ASI) decreased from an opening high of 103,437.67 points to 102,314.56 points.

Meanwhile, market capitalization also dropped from N58.498 trillion to N57.860 trillion over the review period.

The market’s month-to-date (MtD) performance fell by 2.15%, and the year-to-date (YtD) return is now at 36.83%.

Futureview research analysts had previously forecasted a mixed performance in the equities market as investors adjusted their positions in anticipation of upcoming corporate actions and dividend payouts.

The analysts also predicted a possible shift in focus towards the fixed income market, which could influence short-term investment decisions.

While the market faced challenges this week, analysts expect a resurgence of buying interest driven by upcoming corporate actions and earnings reports, attracting investors looking to benefit from dividend payments.

Their recommendation to investors is to consider investing in high-quality stocks with strong fundamentals for potential returns.

Dividends

Zenith Bank to Pay N109.88bn Dividends to Shareholders for 2023

Published

1 week ago

April 9, 2024

Samed Olukoya

Zenith Bank, one of Nigeria’s leading financial institutions, is set to distribute dividends totaling N109.88 billion to its shareholders for the 2023 financial year.

The announcement was made as part of the bank’s annual report filed with the Nigerian Exchange Limited on Monday.

The dividends amount to N4.00 per share. This includes a final dividend of N3.50 per share and an interim dividend of N0.50 per share paid earlier in the year.

The proposed dividends are subject to approval by shareholders at the next Annual General Meeting (AGM) and are payable from the retained earnings accounts as of December 31, 2023.

Throughout the fiscal year, Zenith Bank’s gross earnings surged by 125.50 percent to N2.13 trillion compared to N945 billion in the previous year.

The increase in gross earnings contributed to the bank’s impressive profit after tax, which increased to N676.91 billion, an increase from N223.91 billion recorded in 2022.

This positive performance was driven by the increase in interest and similar income, which rose to N1.14 trillion from N540 billion.

However, the bank experienced a decline in net income on fees and commission, dropping to N109.31 billion from N132.79 billion in 2022, indicating a 17.68 percent decrease.

This decline was attributed to an increase in fees and commission expenses, which grew to N68.21 billion from N24.42 billion in the previous year.

Also, Zenith Bank disclosed various operational expenses incurred during the year, including insurance premiums paid to Zenith General Insurance Limited and Prudential Zenith, as well as payments for information technology services rendered by Cyberspace Network.

Nigerian Exchange Limited

VFD Group Plc’s Rights Issue Listed on NGX’s Daily Official List

Published

2 weeks ago

April 6, 2024

Samed Olukoya

The Nigerian Exchange Limited (NGX) has listed VFD Group Plc’s Rights Issue on its Daily Official List.

The move follows the approval by the Securities and Exchange Commission (SEC) and represents a crucial step in the company’s growth trajectory.

The Rights Issue comprises 63,342,455 ordinary shares of 50 kobo each priced at N197.33 per share, bringing the total value of the issue to N12.499 billion. With this listing, VFD Group Plc’s total issued and fully paid-up shares have surged from 190,027,365 to 253,369,820 ordinary shares.

According to a report by NGX, the additional shares listed arose from VFD’s Rights Issue on the basis of one ordinary share for every three ordinary shares held as of October 12, 2023.

This move underscores VFD Group Plc’s commitment to expanding its shareholder base and enhancing liquidity in the market.

The approval by SEC for the Rights Issue further solidifies VFD Group Plc’s position in the market. Gbeminiyi Shoda, the Group Company Secretary of VFD Group Plc, confirmed that the Qualification Date for the Rights Issue was October 12, 2023, with the application list opening on December 20, 2023, for a maximum period of 31 days.

VFD Group Plc’s Rights Issue comes on the heels of its recent listing on the Main Board of the Nigerian Exchange Limited (NGX). The listing of 190 million units of shares at N244.88 per share added N46.527 billion to NGX’s market capitalization, reflecting the company’s growing influence in the Nigerian capital market.

VFD Group Plc, known for its sector-agnostic proprietary investment approach, aims to create positive and socially conscious ecosystems by aggregating potentially viable businesses. The Rights Issue listing underscores the company’s strategic move to increase visibility, access capital, and enhance liquidity, ultimately benefiting its investors and stakeholders.

Investors and market analysts are closely watching the developments surrounding VFD Group Plc as it continues to expand its footprint in the Nigerian financial landscape. With the successful listing of its Rights Issue on NGX, the company is poised for further growth and value creation in the market.