Guinness

[emmanuel ewumi]

Originally Posted by hispy99

Guinness boss explains brand's long survival - The Punch - Nigeria's Most Widely Read Newspaper

“It is no doubt that for over 253 years a brand like Guinness has transcended all the challenges of a product life circle and now we are still celebrating the vision of its founder. It simply shows that it was a good concept in the first place. Today, we celebrate greatness and vision of a great man Arthur Guinness” Seni said.

[knightofdelta]

Originally Posted by emmanuel ewumi

When will we have a Nigerian brand that will last 100 years?

First bank.

Btw, I expect Guinness to tank seriously. A PE of 54.1x and ROE of 18.3% is a disaster waiting to happen.

[pegheneji]

Originally Posted by emmanuel ewumi

When will we have a Nigerian brand that will last 100 years?

i have hope in GLO (proudly nigerian)

[WOKILUMO]

Originally Posted by emmanuel ewumi

When will we have a Nigerian brand that will last 100 years?

Nigeria needs to be 100 years old first.

[nosa2]

Originally Posted by pegheneji

i have hope in GLO (proudly nigerian)

Not a chance.

[goldsun]

Originally Posted by nosa2

Not a chance.

why

[migiets]

Originally Posted by knightofdelta

First bank.

Btw, I expect Guinness to tank seriously. A PE of 54.1x and ROE of 18.3% is a disaster waiting to happen.

I think this stock is mainly held by pensioners and retirees that depend on the constant annual dividends. To these set of people, PE and ROE are strange terms to them. Stocks like Guinness, NB, Nestle are held by these set of people because of the constant dividend and not for capital appreciation.

[knightofdelta]

Originally Posted by migiets

I think this stock is mainly held by pensioners and retirees that depend on the constant annual dividends. To these set of people, PE and ROE are strange terms to them. Stocks like Guinness, NB, Nestle are held by these set of people because of the constant dividend and not for capital appreciation.

I am not talking about depreciation in value of the stock. I am just talking about the opportunity cost of holding Guinness. Let them hold the stock. Dividend yield is 2.2% against total market average of 4.5%. ROE is 18% against total market average of 21%. PE is 54.0x against total market average of 14x.

If the market rises, Guinness is going to rise at far slower pace and if the market falls, Guinness is going to fall faster than market pace. Foreign investors determine market direction and they are not shipping in their dollars to buy overpriced companies. Stock valuation, return on investment is a different kettle of fish from management quality, though the latter tend to affect the former but not in the short run.

[migiets]

Originally Posted by knightofdelta

I am not talking about depreciation in value of the stock. I am just talking about the opportunity cost of holding Guinness. Let them hold the stock. Dividend yield is 2.2% against total market average of 4.5%. ROE is 18% against total market average of 21%. PE is 54.0x against total market average of 14x.

If the market rises, Guinness is going to rise at far slower pace and if the market falls, Guinness is going to fall faster than market pace. Foreign investors determine market direction and they are not shipping in their dollars to buy overpriced companies. Stock valuation, return on investment is a different kettle of fish from management quality, though the latter tend to affect the former but not in the short run.

When the foreign investors ran away in 2008, it is stocks like this that prevented people from dying. During that turbulent period, it was Guinness and NB with such high PEs and dividend yield that sustain these retirees and pensioners and not the likes of Oceanic and IEI that had good PEs and high dividend yields.

Mind you, for now i do not hold any of them but once i decide to retire to the village, na these type of stocks i go move my funds to. The yearly constant dividend will be enough to eat fresh river fish over a keg of fresh palm wine.

[knightofdelta]

Originally Posted by migiets

When the foreign investors ran away in 2008, it is stocks like this that prevented people from dying. During that turbulent period, it was Guinness and NB with such high PEs and dividend yield that sustain these retirees and pensioners and not the likes of Oceanic and IEI that had good PEs and high dividend yields.

Mind you, for now i do not hold any of them but once i decide to retire to the village, na these type of stocks i go move my funds to. The yearly constant dividend will be enough to eat fresh river fish over a keg of fresh palm wine.

Well, you have a point. The level of risk of the stock is just too low for me. Maybe when I retire? I won't even hold these kind of stocks sef.

[Salida]

Originally Posted by migiets

When the foreign investors ran away in 2008, it is stocks like this that prevented people from dying. During that turbulent period, it was Guinness and NB with such high PEs and dividend yield that sustain these retirees and pensioners and not the likes of Oceanic and IEI that had good PEs and high dividend yields.

Mind you, for now i do not hold any of them but once i decide to retire to the village, na these type of stocks i go move my funds to. The yearly constant dividend will be enough to eat fresh river fish over a keg of fresh palm wine.

When the Foreign Investors ran away in 2008, some people who might still be a long way from retirement took positions in this stock and are banking on it for retirement income.

At least planning for retirement is not done when you are 50 or 60years.

Well different strokes for different folks.

[migiets]

Originally Posted by Salida

When the Foreign Investors ran away in 2008, some people who might still be a long way from retirement took positions in this stock and are banking on it for retirement income.

At least planning for retirement is not done when you are 50 or 60years.

Well different strokes for different folks.

Quite true. That is why iam not holding it now. At a young age, i can afford to play the kalo kalo game with the market makers but once at that age, na to look for a defensive stock and allow the market makers to do what they want to do.

[knightofdelta]

Originally Posted by migiets

Quite true. That is why iam not holding it now. At a young age, i can afford to play the kalo kalo game with the market makers but once at that age, na to look for a defensive stock and allow the market makers to do what they want to do.

You don't retire from the game. Ask Warren Buffet...

[emmanuel ewumi]

Originally Posted by knightofdelta

First bank.

Btw, I expect Guinness to tank seriously. A PE of 54.1x and ROE of 18.3% is a disaster waiting to happen.

First bank became a Nigerian Bank less than 40 years ago.,

[emmanuel ewumi]

Originally Posted by WOKILUMO

Nigeria needs to be 100 years old first.

But we have business families who have an entrepreneurial history of over 100 years.
Nigerian businesses need structure, successional plan, and good brand management.

[emmanuel ewumi]

Originally Posted by knightofdelta

Well, you have a point. The level of risk of the stock is just too low for me. Maybe when I retire? I won't even hold these kind of stocks sef.

Different strokes for different folks.

[emmanuel ewumi]

Originally Posted by migiets

Quite true. That is why iam not holding it now. At a young age, i can afford to play the kalo kalo game with the market makers but once at that age, na to look for a defensive stock and allow the market makers to do what they want to do.

Make you also pack funds in real estate, it is a stable incoming generating asset for retirees.

[emmanuel ewumi]

Originally Posted by knightofdelta

You don't retire from the game. Ask Warren Buffet...

The game can be addictive, true investors hardly retire they only change their investment strategies.

[emmanuel ewumi]

Originally Posted by emmanuel ewumi

The game can be addictive, true investors hardly retire they only change their investment strategies.

According to Asalu, it is a very good addiction. The earlier you get addicted to the game the better.

[nosa2]

Originally Posted by emmanuel ewumi

According to Asalu, it is a very good addiction. The earlier you get addicted to the game the better.

I love making money but I enjoy investing, the one thing about this "game" is that you never stop learning and you're constantly following global economic trends. Personally I'll only retire when I'm dead.