2015 was a year crammed with bearish sentiments and the Nigerian Stock Markets annual return of -17.36% was a loud testament of this fact.
The Nigerian baking sector as a whole was hardest hit by the economic uncertainty in the country, with banking and financial sector shares all taking a plunge.
However what goes down must come up and vice versa, at least that is the very fundamental nature of economics.
Undoubtedly the stock market is undervalued with many shares selling well below their intrinsic value, meaning this is the time to begin to take positions even as certain Nigerian banks are still poised to announce respectable earnings despite the economic downturn.
Let’s close the year with these two quotes from Warren Buffet on investing in the market.
Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.
The best thing that happens to us is when a great company gets into temporary trouble… We want to buy them when they’re on the operating table.
Leave a Reply