James is a furniture maker in Benin City. In 1992, he decided to do what many of his friends called ‘wasting of time and money’ by investing in shares. He bought 5,000 units of First Bank shares at the rate of N2 per share which amounted to N10,000 with the help of one of his customers, Mr. Jude Omozusi. Mr. Omozusi had been educating James and his friends about the importance of investing in shares as a means of attaining financial freedom. James friends never saw any thing good in the idea but decided to waste their money in things that have no financial benefits to their lives.
However, James bought the idea and decided to try it with N10,000. Though he was not literate, he had interest in things that will make his life and that of his family better.
At present, James units of the shares had increased from 5,000 to 233,601 units with over N9 million market value. This is as a result of bonus issues declared to him by the Bank over the years, as analysed in the table below. In addition, James had also received over N700,000.00 as dividend over the years.
BONUS HISTORY OF FIRST BANK NIGERIA FROM 1992
| Year |
shares owned |
bonus ratio |
Bonus Shares |
new shares |
| 1992 |
5000 |
|
|
5000 |
| 1993 |
5000 |
1 for 3 |
1666 |
6666 |
| 1994 |
6666 |
1 for 1 |
6666 |
13332 |
| 1995 |
13332 |
1 for 4 |
3333 |
16665 |
| 1996 |
16665 |
1 for 4 |
4166 |
20831 |
| 1997 |
20831 |
|
|
20831 |
| 1998 |
20831 |
1 for 4 |
5207 |
26038 |
| 1999 |
26038 |
1 for 4 |
6509 |
32547 |
| 2000 |
32547 |
1 for 4 |
8136 |
40683 |
| 2001 |
40683 |
1 for 4 |
10170 |
50853 |
| 2002 |
50853 |
1 for 4 |
12713 |
63566 |
| 2003 |
63566 |
1 for 5 |
12713 |
76279 |
| 2004 |
76279 |
1 for 8 |
9534 |
85813 |
| 2005 |
85813 |
1 for 6 |
14302 |
100115 |
| 2006 |
100115 |
1 for 1 |
100115 |
200230 |
| 2007 |
200230 |
1 for 6 |
33371 |
233601 |
In July this year, James decided to sell 100,115 units of his First Bank shares at N41.96k to expand his furniture business. He realized N4.2 million from the sale. Remember, it was just N10,000 he invested in 1992.
Today James still has 166,857 courtesy of the 1 for 4 bonus recently declared by first bank, worth over N5million market value. He will also receive over N160,000 as dividend.
James could have used that N10,000 for something else and by today will not remember it again. But with the investment, his life and that of his business has changed for the better. This is because, the N10,000 he invested in First Bank shares in 1992 has generated over N9 million for him to use for his business and family.
James’ story and of course many others shows that the capital market is a place you can work less and earn more. If you really want to be very rich, you need to develop a thinking pattern that is different with the thinking pattern of those around you, just as James did. He did not allow his friends ways of thinking affect his goal for his life. If you want to have financial power, your thinking pattern must contradict or oppose the thinking pattern of your friends.
The stock market is a place where you can invest and retire rich and happy. It is a place where you can invest and build your capital for that your dream business. And you know what? You do not need millions to start investing. With as little as N2,000 every month, you can be on your way in being a millionaire like James. The market is a market for all comers, it does not discriminate.
Making money grow is the reason the stock market was created. The stock market is a place you can start with little amount of money and retire rich. No matter what is happening in the market now. The market will return bullish. The bear cannot continue forever. Stock market is the best place to start alternative income generations. Good companies will always declare bonuses to reward investors. If you decide to invest for long term, your investment can grow with time.
It is unfortunate that what many people think about today is how to buy expensive cars, rent big apartment, buy costly jewelry etc. the rich always first of all, secure their financial future before thinking of material things. Why not invest that money you want to use to buy a liability now so that your future can be better
Today, James is a multi-millionaire because he has come to realize that investing in the capital market is not a waste of time and money. To make money work for you, you have to understand the basis of investing in the capital market. This is the first lesson to successful investment in the capital market.
Do you have any question concerning investment, how you can join investment club, buying shares, dividend, share certificate, stockbrokers, registrars, you want answers to? Send your questions via text to or call 08058767059. Email: amadasunese@nigerianobservernews.com. All questions will be treated comprehensively on this page.
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