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

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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.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Nigerian Stock Exchange

Stock Investors Lose Another N11 Billion on Wednesday

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Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) extended decline on Wednesday as sentiment remained weak across the Exchange.

Investors exchanged 155,773,059 shares valued at N1.510 billion in 3,256 transactions during the trading hours of Wednesday, in contrast to 184,442,908 shares worth N2.343 billion that exchanged hands in 3,809 transactions on Tuesday.

Market value depreciated by N11 billion to N20.243 trillion on Wednesday, further down from N20.254 trillion it closed on Tuesday. While NGX All-Share Index dipped by 0.05 percent to 38,852.69 index points.

Transcorp Hotel Plc led gainers with N0.45 or 10 percent. Followed by Pharm-Deko Plc’s N0.16 or 9.88 percent gain. See the details below.

Top Gainers

Symbols Last Close Current Change %Change
TRANSCOHOT N 4.50 N 4.95 0.45 10.00 %
PHARMDEKO N 1.62 N 1.78 0.16 9.88 %
CONOIL N 22.35 N 24.55 2.20 9.84 %
CORNERST N 0.49 N 0.53 0.04 8.16 %
NEM N 1.90 N 2.00 0.10 5.26 %

Top Losers 

Symbols Last Close Current Change %Change
VERITASKAP N 0.23 N 0.21 -0.02 -8.70 %
UCAP N 9.00 N 8.55 -0.45 -5.00 %
CHAMS N 0.22 N 0.21 -0.01 -4.55 %
ACCESS N 8.90 N 8.60 -0.30 -3.37 %
JAPAULGOLD N 0.47 N 0.46 -0.01 -2.13 %

Top Trades

Symbols Volume Value
UNIVINSURE 19040500.00 3808100.00
UBA 18778552.00 143097682.80
ZENITHBANK 11757422.00 268830997.45
GTCO 10015581.00 271262745.25
UCAP 8519588.00 74569386.55

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Bonds

Investors Renewed Confidence In Nigeria’s Economy Leads to Oversubscribed Eurobond

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Bonds- Investors King

The Debt Management Office (DMO) revealed that the $3 billion Eurobond offer was heavily oversubscribed, noting that investors were ready to invest $12.2 billion.

Consequently, the government decided to increase its initial offer value from $3billion to $4billion.

According to a statement on Tuesday night by the Debt Management Office (DMO), investors from, Nigeria, Europe, Asia and America demanded $12.2 billion for the notes.

“This exceptional performance has been described as ‘one of the biggest financial trades to come out of Africa in 2021 and an excellent outcome”, said the DMO in a statement.

“The size of the Order Book and the quality of investors demonstrate confidence in Nigeria”, the DMO said.

Nigeria opened its order book for the bond offering on Tuesday, aiming to issue the bond next week, according to a notice to investors.

The country issued the debt in tranches of three tenors.

It raised $1.25 billion for seven years at a yield of 6.125 percent and sold a 12-year bond at 7.375 percent to fetch $1.5 billion. A 30-year tranche of $1.25 billion was sold at 8.25 percent

The government had arranged a two-day call with investors last week and on Monday, with the DMO saying that the bond would be priced following the meetings.

The notice was set for Sept. 28 for the bond settlement, which will be listed on the London and Nigerian Stock Exchanges.

The Eurobonds are part of a government plan to raise 2.343 trillion naira ($5.71 billion) in external financing to help fund spending in 2021 and to partly finance the 5.6 trillion naira deficit.

“The long tenors of the Eurobonds and the spread across different maturities are well aligned with Nigeria’s Debt Management Strategy, 2020 – 2023”, the DMO said.

“Since the Eurobonds were issued as part of the New External Borrowing in the 2021 Appropriation Act, the raising of USD4 billion through Eurobonds provides a significant amount of funds to finance projects in the Act, thus contributing to the implementation of the 2021 Appropriation Act”, it added.

Nigeria picked JPMorgan, Citigroup, Standard Chartered and Goldman Sachs as international bookrunners, and local firm Chapel Hill Denham on the forthcoming Eurobond issue

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Bonds

Nigeria Opens Order Book For $3B Eurobond

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Eurobonds - Investorsking

Nigeria opened the order book for a $3 billion Eurobond offering on Tuesday, aiming to issue the bond next week, according to a notice to investors seen by Reuters.

The country is aiming to issue the debt in tranches of three tenors – a seven-year at a yield of 6.5 percent, a 12-year bond at 7.75 percent and a 30-year at up to 8.625 percent.

The government arranged calls last week and on Monday with global and local investors ahead of the planned issue.

The debt office has said the meetings will precede pricing for the bond to raise up to $3 billion but not more than $6.2 billion.

The notice was set for Sept. 28 for the bond settlement, which will be listed on the London and Nigerian Stock Exchanges.

The Eurobonds are part of a government plan to raise N2.343 trillion ($5.71 billion) in external financing to help fund spending in 2021 and to part finance the N5.6 trillion deficit.

Nigeria picked JPMorgan, Citigroup, Standard Chartered and Goldman Sachs as international bookrunners and local firm Chapel Hill Denham on the forthcoming Eurobond issue.

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