Thursday, March 20, 2008

Making money through a faster plan

When it comes to making money, the only skill most people know is to work hard. People think that mastering their skills would make their income jump exponentially. In our places of work, the popular view is the idea of specialization.
Most people think that specialization can make them get promoted and through promotion, their income would increase. This is why people who are paid through employment acquire degrees upon degrees.
When they acquire those degrees and get their income raised by their employers, they now discover that getting a degree and increment in salary neither translate nor guarantee financial freedom. Getting rich through your skill, promotion and increment of wages are always slow.
If getting rich had to do with education and skill, all educated people would have been rich. For you to be rich, irrespective of your status and background, you must discover a legitimate formula of making money through a quicker and innovative way. If you have not found the formula, getting rich always seems hard and staying poor seems natural.
One of the ways to fast track your plans of making is to expand your reality in the stock market. Doing that increases your leverage, then getting rich becomes easier.
The richest people in the world are those who continually explore the stock market. Examples are people like Bill Gates who always invests heavily in the stock market and through that multiply his money.
So also is Warren Buffet, the stock market Guru who always puts his eggs in one basket and watches them grow. He has made billions of dollars from the stock market and is also known for building companies from the scratch and taking the shares to the public for sales.
Through these, he became the second richest man in the world. Alhaji Aliko Dangote, who I always refer to as the Warren Buffet of Nigeria started Dangote Sugar in march, 2000 with N50 million. He took the company to the stock exchange last year and sold 30 per cent of its shares to the public by way of offer for sale of 54 billion naira(N54,000,000,000). He bought national salt at (N5) per share and sold 400 million units of his shares in the company at the stock exchange for 22 naira(N22) per share, thereby pocketing N8.8 billion (N8,000,000,000).
What a way of making money through a faster plan. You may not have a billion or even a million naira to play in the market, but you can use the little you have to create wealth by joining the club of people that are making money through the faster plan.
The way to do it is to buy stocks when they are low and sell when the prices have gone up. The language is “Buy low and sell high”. Apart from the secondary market, you can take advantage of the primary market to make money in shares.
Companies coming to raise money through the primary market for the first time otherwise known as the Initial Public Offer (IPO) always give investors high returns on their investment. The reason is because their shares are not always available at the market when they are listed.
The unavailability of the shares makes it to move upwards and investors who know how to quickly verify his/her certificate can easily take advantage of that to make money. Readers should watch out for offers coming to the market.
Nigeria is an emerging market. The shares of companies in an emerging economy give incredible returns. Don’t be surprised if in the next few years you discover that a unit of some company’s shares are sold for between N500 to N 1000 per share. You can position yourself for the incoming surge in the market.
Don’t tell us that you were not told. I keep saying it that the prices of our shares are low and the best time to take position is now before it goes beyond the reach of low income earners. See you next Week