Food for Thought

[Oracle]

Originally Posted by emmanuel ewumi

He had a terminal disease. That why, i try to write on healthy living.

No wonder. I was saying upon how much he had, he couldn't even afford a botox!

[emmanuel ewumi]

Originally Posted by Oracle

I'm not doubting his qualities. I'm only saying that the inheritance was enough to kickstart anything. He was prudent too!

Imagine us starting from scratch!

It is very rare although possible to have Dangote's networth in one generation.
To be a Dangote is not a 40 years journey for a starter in wealth accumulation.

Imagine what a 500,000 Naira loan will do in 1977, I learnt he paid back the loan before the due date and Dantata was nice enough to have written off the loan.

[Oracle]

Originally Posted by emmanuel ewumi

It is very rare although possible to have Dangote's networth in one generation.
To be a Dangote is not a 40 years journey for a starter in wealth accumulation.

Imagine what a 500,000 Naira loan will do in 1977, I learnt he paid back the loan before the due date and Dantata was nice enough to have written off the loan.

500K in 1977 is no a small money. Can you do that analysis you did then over time buying stocks? Use 500K invested in first bank and tell us how much it will be.

[emmanuel ewumi]

Originally Posted by wanaj0

Two things. Firstly, better to use USD to get proper pespective of the amount of money we are talking about.

Secondly, for all the successes of Dangote, seems he ONLY succeeded where there is no competition (government protection/patronage). Everytime he has had to compete (level playing field) he always fail. You can see that with his foray into banking and now food (Flour and Sugar). I foresee same thing happening with regards to Cement.

Depending SOLELY on government protection is not the way to go. This is like killing everyother person for ONE man to survive.

He is always with any government in power, right from Obasanjo, Shagari, Babangida, Abacha, Obasanjo, Jonathan.

Without government patronage and protection he would still have accumulated billions, but not over 10 billion dollars.

[emmanuel ewumi]

Originally Posted by Oracle

500K in 1977 is no a small money. Can you do that analysis you did then over time buying stocks? Use 500K invested in first bank and tell us how much it will be.

Let us do it together, we will start from 1993


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Originally Posted by emmanuel ewumi View Post
First Bank is an investor's delight. I will do the analysis of the capitalisation history and benefits of an investment made on this stock in 1993 tomorrow.

Some retirees are collecting millions of Naira as dividends from this stock on a yearly basis.

N3,500 will buy 1000 units of first bank shares in 1993. let us see what that 1000 units would have grown to in 2012.


Dates Bonus Units
Apr 1994 1 for 1 2000
Apr 1995 1 for 4 2500
Apr 1996 1 for 4 3125
May 1997 1 for 5 3750
Jul 1998 1 for 4 4687
Jul 2000 1 for 4 5858
Jul 2001 1 for 4 7322
Jul 2002 1 for 5 8786
Jul 2003 1 for 6 10249
Nov 2004 1 for 8 11530
Nov 2005 1 for 4 14412
Jan 2006 1 for 25 14988 Shares in FBN merchant bank
Aug 2006 1 for 1 29976
Aug 2007 1 for 6 34970
Aug 2008 1 for 4 43712
Aug 2009 1 for 6 50994
Aug 2010 1 for 8 57368

An investment of N3,500 that is 1000 units of first bank in 1993 , would have grown to 57368 units with a market value of N650,000.
The does not include the total dividend of N150,000 received as dividend in the last 5 years.

Note that when FBN merchant bank merged with first Bank during the consolidation in 2006,a special bonus of 1 for 25 was given to the shares holders of first bank.

If i give the breakdown of what 1000 units of First bank would have turned to, for an investor who invested when the bank was listed in 1972. The 1000 units would have grown to more than 600,000 units.
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[Oracle]

Originally Posted by emmanuel ewumi

Let us do it together, we will start from 1993


emmanuel ewumi's Avatar
[Activity Award] emmanuel ewumi emmanuel ewumi is online now
Rank: Senior Member

Quote:
Originally Posted by emmanuel ewumi View Post
First Bank is an investor's delight. I will do the analysis of the capitalisation history and benefits of an investment made on this stock in 1993 tomorrow.

Some retirees are collecting millions of Naira as dividends from this stock on a yearly basis.

N3,500 will buy 1000 units of first bank shares in 1993. let us see what that 1000 units would have grown to in 2012.


Dates Bonus Units
Apr 1994 1 for 1 2000
Apr 1995 1 for 4 2500
Apr 1996 1 for 4 3125
May 1997 1 for 5 3750
Jul 1998 1 for 4 4687
Jul 2000 1 for 4 5858
Jul 2001 1 for 4 7322
Jul 2002 1 for 5 8786
Jul 2003 1 for 6 10249
Nov 2004 1 for 8 11530
Nov 2005 1 for 4 14412
Jan 2006 1 for 25 14988 Shares in FBN merchant bank
Aug 2006 1 for 1 29976
Aug 2007 1 for 6 34970
Aug 2008 1 for 4 43712
Aug 2009 1 for 6 50994
Aug 2010 1 for 8 57368

An investment of N3,500 that is 1000 units of first bank in 1993 , would have grown to 57368 units with a market value of N650,000.
The does not include the total dividend of N150,000 received as dividend in the last 5 years.

Note that when FBN merchant bank merged with first Bank during the consolidation in 2006,a special bonus of 1 for 25 was given to the shares holders of first bank.

If i give the breakdown of what 1000 units of First bank would have turned to, for an investor who invested when the bank was listed in 1972. The 1000 units would have grown to more than 600,000 units.
Edit/Delete Message

It will be in hundreds of billions of naira.

[nosa2]

Originally Posted by wanaj0

Two things. Firstly, better to use USD to get proper pespective of the amount of money we are talking about.

Secondly, for all the successes of Dangote, seems he ONLY succeeded where there is no competition (government protection/patronage). Everytime he has had to compete (level playing field) he always fail. You can see that with his foray into banking and now food (Flour and Sugar). I foresee same thing happening with regards to Cement.

Depending SOLELY on government protection is not the way to go. This is like killing everyother person for ONE man to survive.

Really? So selling off a company is equivalent to failure. And as any business man would tell you, failure is guaranteed so saying that Dangote failed in banking doesn't say anything about his business sense.

[nosa2]

Originally Posted by emmanuel ewumi

He is always with any government in power, right from Obasanjo, Shagari, Babangida, Abacha, Obasanjo, Jonathan.

Without government patronage and protection he would still have accumulated billions, but not over 10 billion dollars.

Government creates policies to steer the economy in a certain direction and in order to do this it makes certain sectors of the economy more profitable than others so a smart business man would capitalize on these policies and always make a killing. Dangote did this and today he's reaping the rewards other millonaires chose to stay put in their various industries and they're local champs but Dangote took the definition of a "Nigerian businessman" to another level same way some members here are taking the definition of a "Nigerian investor" to another level.

[wanaj0]

Originally Posted by nosa2

Really? So selling off a company is equivalent to failure. And as any business man would tell you, failure is guaranteed so saying that Dangote failed in banking doesn't say anything about his business sense.

Tell me one business that he is involved in that the government did not create a 'monopoly' that he is succesful in.

You dont need any business sense to run a rent seeking economy. What business sense is required to get import license and monopolise importation of commodities?

Yes he sold Dangote Flour. However, check the performance of Dangote Flour and compare with flour Mills and even Honeywell. Watch the performance of Dangote Sugar since BUA started. Be on the lookout for what will happen to his cement business once a level playing field is created.

When you can only succeed when there is no competition THEN there is a problem! Government protecting you and only you alone is not a sign of having business sense.

[wanaj0]

Originally Posted by nosa2

Government creates policies to steer the economy in a certain direction and in order to do this it makes certain sectors of the economy more profitable than others so a smart business man would capitalize on these policies and always make a killing. Dangote did this and today he's reaping the rewards other millonaires chose to stay put in their various industries and they're local champs but Dangote took the definition of a "Nigerian businessman" to another level same way some members here are taking the definition of a "Nigerian investor" to another level.

There us nothing 'smart' in a rent seeking economy when all you need to do is join government to run an import license racket system and prevent others from having access to same because of your family background! Making importation of commodities a monopoly is not in anyway SMART.

If you are GOOD then you should be ready to compete with others.

[emmanuel ewumi]

Originally Posted by wanaj0

There us nothing 'smart' in a rent seeking economy when all you need to do is join government to run an import license racket system and prevent others from having access to same because of your family background! Making importation of commodities a monopoly is not in anyway SMART.

If you are GOOD then you should be ready to compete with others.

Aliko Dangote is an AGIP, any government in power. But he still has some qualities that is worth of emulating.

Soludo did not give a First bank a level playing ground during his consolidation programme in 2004, FBN was not allowed to raise fund because they had more than 25 billion naira in 2004. He believed if FBN should raise fund when the other banks were raising funds, during the initial fund raising FBN would crowd out the other banks. This singular policy of Soludo, really affected the market share of FBN.

[emmanuel ewumi]

Alice Walton, 62

Net worth: $23.3 billion - As of March 2012
Source of Wealth: Wal-Mart, United States

The daughter of Wal-Mart co-founder, her father, Sam Walton (d. 1922), a former clerk, founded original Bentonville store with his brother James. Today Wal-Mart has sales of $405 billion, employs more than 2.1 million people.

[emmanuel ewumi]

Originally Posted by emmanuel ewumi

Alice Walton, 62

Net worth: $23.3 billion - As of March 2012
Source of Wealth: Wal-Mart, United States

The daughter of Wal-Mart co-founder, her father, Sam Walton (d. 1922), a former clerk, founded original Bentonville store with his brother James. Today Wal-Mart has sales of $405 billion, employs more than 2.1 million people.

That is what I am saying, real billionaires create jobs and produce millionaires. A billionaire that has not legitimately created millionaires is not worthy to be be called a billionaire in the true sense of the word.

[Oracle]

Originally Posted by emmanuel ewumi

That is what I am saying, real billionaires create jobs and produce millionaires. A billionaire that has not legitimately created millionaires is not worthy to be be called a billionaire in the true sense of the word.

Hope you can see that one can be a Dangote without really creating 20,000 jobs(like Dangote did). It could be lesser than this, it could be higher than this.

[wanaj0]

Originally Posted by emmanuel ewumi

Aliko Dangote is an AGIP, any government in power. But he still has some qualities that is worth of emulating.

Soludo did not give a First bank a level playing ground during his consolidation programme in 2004, FBN was not allowed to raise fund because they had more than 25 billion naira in 2004. He believed if FBN should raise fund when the other banks were raising funds, during the initial fund raising FBN would crowd out the other banks. This singular policy of Soludo, really affected the market share of FBN.

You dont have to be antagonistic to government. However a situation where you seek for a monopoly is not sustainable. Anytime he has to compete with others he is always having problems. Bank, Sugar, Flour are good examples.

As per FBN, consolidation was about getting 25bn shareholders fund. Those with that amount already dont have to be pressured into raising new funds. FBN like others still got the opportunity to raise funds. This is not like the import license racket where Dangote and co got license to import rice, sugar etc without any competition.

[emmanuel ewumi]

Originally Posted by Oracle

Hope you can see that one can be a Dangote without really creating 20,000 jobs(like Dangote did). It could be lesser than this, it could be higher than this.

But you can not deny the fact that we can not have 20,000 Dangotes, or 20,000 people with a networth of over 10 billion dollars in Nigeria.

[emmanuel ewumi]

Originally Posted by wanaj0

You dont have to be antagonistic to government. However a situation where you seek for a monopoly is not sustainable. Anytime he has to compete with others he is always having problems. Bank, Sugar, Flour are good examples.

As per FBN, consolidation was about getting 25bn shareholders fund. Those with that amount already dont have to be pressured into raising new funds. FBN like others still got the opportunity to raise funds. This is not like the import license racket where Dangote and co got license to import rice, sugar etc without any competition.

FBN fund raising was not approved by CBN, because if they had allowed their offer, public offering of the other banks would not have been successful. Some bank CEO who were close to Soludo equally had an idea of the consolidation plan before it was made public.

FBN got the opportunity after Zenith and GTB had come for their second fund raising, then Zenith and GTB had gotten over 100 billion in shareholders fund.

[Oracle]

Originally Posted by emmanuel ewumi

But you can not deny the fact that we can not have 20,000 Dangotes, or 20,000 people with a networth of over 10 billion dollars in Nigeria.

Bros, what you wrote yesterday was that Nigerian economy cannot handle 20,000 Dangotes!

[waaan5]

Originally Posted by knightofdelta

That must be your wife. Introduce her to Waaaan$$$... our own in-house billionaire, she go tap knowledge tire. Don't be fooled by the Mama Ejiro Canteen story.

Originally Posted by emmanuel ewumi

Is he a billionaire in dollars?

What else can I say to such good wishes? Amen, and Lots of love. If at all you find yourself in the AJ city, branch into we Bukka, for a good bolle and 3 sachets of 'pure' water to wash it in. All expenses on me

[emmanuel ewumi]

Originally Posted by Oracle

Bros, what you wrote yesterday was that Nigerian economy cannot handle 20,000 Dangotes!

Yes it can not handle it.