Topic: Bank shares are no more a great choice today. (Read 217 times)

As I become more familiar with the crypto platforms, I am finding more reasons why the conventional banking system is an inefficient way to save money. I am also seeing the need why decentralized platforms will work more effectively than the centralized systems that are managed by a few people. The few individuals who are opportuned to manage those structures have taken it as an avenue use and misuse savings belonging to other people, into their own private businesses.

I've also heard of cases where bank managers cart away with large sum of money belonging to depositors and go into the hiding like the case of the bank manager of one of the first generation banks in Nigeria, who allegedly misappropiated a staggering sum of 40 billion Nigerian naira belonging to individuals into his wives bank account using his position as a cover to run such scandals. He was said to have channeled those funds into 1,190 commercial bank accounts and was only discovered when a persistent customer refused to let go of an unresolved case of reversal. Immediately, the bank manager vanished and was no where to be found.

Is it the case of security experts who have continously accused commercial bank managers of aiding kidnappings and abductions after investigating several occasions where monies collected from abducted people are sent in to bank accounts belonging to those banks and from there vanished into the thin air.

Or the case of commercial banks pushing huge sums of money into powerful politicians to assist them in during their campaigns, making it difficult for the real owners of those funds to access their funds and giving several excuses to bank up their misappropriations. And the list continues.

When you go to the internet, you can confirm many reports mentioning occasions where such mentioned practices have been discussed and it still happens today. So, if I'm in position of a large sum of money, I will prefer to have my money saved in my non-custodial wallet than keeping it in the bank. With my money in my wallet, I can always access it and take from it what I need to make use of rather than leaving it in the position of some few individuals out there.

E get di time wey be say buying of shares be di reigning thing, everybody de rush to buy am, some people de even borrow money to buy shares. Buying of shares build reputation dat time because people wey buy in the earlier years make plenty profits so everybody wan come cash in too. Today the value of many people share no worth anything again and as you talk am many MD mismanage and embezzle funds wey come make the share hype to die. I no think say people de take share matter seriously again because plenty people money don burn because dem buy shares.

Bitcoin don come change di naretive of investment and people wey sabi wetin de for di potentials of cryptocurrency de enjoy di value. Bitcoin no be like company shares wey people fit to manipulate based on say na centralized system dem be. Bitcoin de decentralized and dat one mean say no single person or entity fit to manipulate di price on the long term. Bitcoin na store of value wey go de continuously give di holders ROI de go

I think it pastor Matthew ashimolowo that was recently saying in an interview about how he lost hundreds of millions of naira after investing in Bank shares and that he regrets doing that. Most of the banks in Nigeria are only good for commercial activities like cash deposit and withdrawals, most of the profit they declare at the end of every year draws back to the revenue they get from deposit and withdrawals majorly from customers and and not basically investment they've divertified into and also not the profit from their shares. So I agree with you OP about investing in Bitcoin and Real estate instead of Banks shares, the toxicity in the Nigerian banking system is to overwhelming for you to waste your time investing in something you are not sure of how positive the results will be.

Bank share no be something wey I go really encourage anybody make dem put money into jare, because you go leave am for years now, last last nothing go still commot again, money wey you go even get no go reach Wetin u put again.

Dey get one WhatsApp crypto group wey I Dey, like 3 days ago I just see d guy Dey complain about the share wey him buy since 2009.

D guy talk say him buy shares from first bank and unity bank since 2009, and d share worth #50k that time, funniest part be say, d guy talk say na ice block him sell to gather money, him go use  am buy shares just to secure his future, the guy Dey talk say share wey him use #50k buy that time say na #5k na him d share worth now. I just shake head, and that time wey him buy shares, money still get value that time ooo, at least #50k no be really small money that time compare to now wey money no get value agin.

D guy just Dey vex say if to say na bitcoin him buy with that amount of money, him go don turn millionaire by now because dollar still Dey around 197 naira that time. Instead of buying all those rubbish shares wey dem Dey sell wey be say na their Oga Dey chop money, e better to just leave money for bitcoin, or other strong altcoins in market.

The truth of the whole matter be say people eye don open, no body wan go buy shears why potential asset like bitcoin dey. Buying of shares just be like to cage your money for bank to make profit for you, why you fit do that work by yourself. E just be like you buy Keke give person to ride and submit money for you every week, the person fit dey make like #15k dey remit 3k everyday, some days E go come with complain wey go make you no go even see anything atol. So the best way na make person use him money work to make maximum profit dan make you invest or buy shares dey expect maximum return from bank or any company. Though no be every body sabi how to use their money work to make profit, because some prefer make their money work for them. But the aspect I dey talk about na for those wey fit use their money work for themselves and then wan get maximum profit.

Note, the profit you make from shears you buy from a company depends on the success of that company. Before you become a share holder of a company, you must investigate that company to track their history and know what they have achieved in the past few years and probably you will be able to invest securely. To avoid maximum loss and ensure that the company is registered under (CAC) and also insured. Although am not talking only about banks but any company.

On a recent podcast, Matthew Ashimolowo explained that he  bought shares for 36 million Naira from First Bank at 36 Naira per share, it fell to 12 Naira and then he lost that.

He went and borrowed 60 million Naira in 2005 or 2006 from Sterling Bank to buy Skye Bank shares, it fell from 14 Naira to 2.50 Naira; washed away. Sterling Bank showed up in his office with 4 policemen to come and collect their money. He had to look for that money within 2-3 months.

The same Skye Bank who loaned him money when they were building a house, showed up in our church. Their risk manager came with about 10 staff to there service...

He still went on to buy GTB shares for something like 18 Naira, GTB fell to 3.60 Naira..." So in essence, almost all the investment in made in those banks brought only devastating losses and didn't even serve as a single store of value not to talk of increasing the value of his investment.

There is no controversial statement there, been that, it is what it is about banks. As we were taught in economics, that, " it is not from the benevolence of the butcher, the baker or the brewer that we get our dinner but as a result of their self interest", end of quote. In other words, these banks ain't making their share open for sell to us because they want us to invest and make fat profits but they need our money to service their debts and also using it to do businesses and  give out loans and make extre profits, and at the end they tell you the shares didn't appreciate. Nothing as handout for you.

I don't see why someone would go and invest with banks nowdays, because banks are taking more percentage than other investment platform if okay take a look at FCMB bank their share are not that good. And now Banks are folding we don't know if it's lack customer's or the MDs working in there, so I would suggest that the best place for someone to invest it's not the banks find some other platform.

No be plenty persons get this update you get say to buy banks shares now na time wasted, plenty people dey wey still the use that 2-3 decades ago mentality dey look at bank shares.

I get uncle way been the work for All States Trust Bank, till today him dey regret why him use all him hard earned savings go buy the bank shares instead of buying land say by now him for don the sell the lands use hold him side. Na him dey advise me about bank shares say na managers and bank directors dey benefit from those money while the share holders dey bear the risks. Now come imagine how it fo don worse today.

 First of all na Government bank matter be this so I go say person most use him head first before investing in them because if anything go wrong one you no fit fight government that just the truth so I will say buying shares from the banks is not really a bad choice of investment but sah think before acting based on truth life story I will not advise my enemy to buy shares from the banks ohh.
 
 Why will i be buying or investing what am not having full access or 70% control to it can never happen this should be the truth I have see many people buy shares from the banks in the older days and really paid them, but now the way economy is who will want to invest in the Nigeria banks systems I think it must be a joke to the investors well to me I feel Nigerian banks systems really have nothing to offer i will better my hand earn funds into the cryptocurrencies than dumping it in the banks shares which will not happen.

 Just check this out how would you feel if I ask you to come and invest in this bank and after you have the next 5year the bank starts gaining more income till 20year and when it time for the  investors who invested in the banks have his own test of his cake and the  bank management are coming up with a cooked story  I gist this should be war btw the investors and the banking management...

Quick reminder; From the existence of Bank it wasn't designed to help the masses, I know it may sound controversial but that's the truth. Bank are businesses runned for profit making of which any business organisation would surely want to make profit at the end of the day.

Relating to the current Public Share offer from Banks like GTbank, Zenith,FCMB, and the likes it simply for Recapitalisation of the Banks, building a stored up funds to prevent them from external or domestic financial shock as issued by Central Bank of Nigeria (CBN).
I believe anyone buying those shares should at least by now understand that the risk involved because its for proper foundation of there business.

With the current Economic crisis in the country, I don't buy the idea of anyone investing in Bank shares.

To buy bank share normally nowadays nah big waste of time no be because them no they make enough profit for the bank yo carry settle people way hold share their own earnings but the system is corrupt and eh no they transparent the bank owners and some high officials Nia they benefit mainly from am while common people way buy shares go just they lose money instead of to make money inside.

Even if I no get Watin to buy base on say I they fear I go rather convert my money to USD hold am strong than to use any of my penny buy bank shares, were bank investment annoy me first nah there little interest for savings way person fit try do with them but if you request for loan from there hand dem go wan use interest destroy ur carrier.

Of all the investment in the world that could easily generate them a huge income or profits why choose to invest on buying shares from the bank, well the whole thing is that some people has money but do not know how to make good use of that money in other to multiply it, perhaps I believe one of the reasons why most of the people choose to invest on buying shares from the Bank is because of there poor psychology they feel that they could easily make a lot of money within a short period of time, though sometimes most people make a lot of money from there shares but in terms of investment I will never consider buying of share from any Bank.

However just like you explained imagine that after spending 200 million naira for buying a shares and holding it for long and at the end instead of making profits the money has depreciated up to 70%, is a very bad investment, however if the person had putting all the money on Bitcoin we can imagine how much profit he would have made by now, however I'm not against those who prefers buying shares because is there money and they have every right to choose the kind of investment that's best for them but buying shares should be better when a company is on there starting or during there early stage so that they can be able to track there progress, but for me I prefer investing my money on Bitcoin knowing fully well that profits await me in the future than buying any shares.

I can't even use my money to invest in government property in this country; they will use our hard earned money to make more money and later tell you story that they did not make any profit, which is too bad. And that is what happened to this person. Imagine someone using 200 million Naira and at the end of the day can not even get up to half of what he invested in. I believe it is impossible.

Moreover, even if it happens to be like that, they are supposed to compensate him with some amount of money for the partnership, but they will keep on telling the story.

This people will continue using people, and that is why especially we youths should know where we are putting our money into as an investment, but seriously, I can't tell this government anything positive will come out of it if it's this country that I know. I would rather invest in bitcoin, which is the best option after hodling for a long time. We see our money with profit. 

Based on how the country be now sef every body eyes don open as no body wan dull again except person wey still get archaic mentality naim go buy shares from bank in this modern day wey things wey we go invest on get rest of mind, no body dey tax you for am, no body will regulate you on how much you need to acquire it and all that so buying and accumulating Bitcoin now is the best form of investment anyone can think of, make we remove all this poor man mentality of taking peanuts and go for what will be huge in the future.

I was going through a news this morning when I learnt that by the year 2030 that Artificial intelligence may take over every thing wey human being go fit do then I come dey wonder say if that kind thing happens then wetin go be the fate of humans because literally, work no go dey again so na the investment wey you do now naim go speak for you if dat kind thing happens. Make we endure the pain now to cherish and enjoy in the future because the future holds more potentials that haven't been unleashed so make we no settle for anything less than wetin go be say on how e drop e go loud lol, think big dream big as Bitcoin don come to liberate the sufferings of the common man so make we take decisions wey go secure our future now, anything less than gold, Bitcoin or real estate investment make we no enter at all.

The reason wey I like investments in Bitcoin be say e no go give you stress at all because na wetin you get you go dey invest from time to time till you grow your portfolio than to go involved in things wey go put you under pressure of debts and possible losses because when some people hear about owning a share from a limited liability company dem dey feel say na very good investment, yes na good investment but it depends on the productivity of such establishment that will guarantee your level of profits and success in such investment so make we think wise and apply wisdom in whatever we are doing.

Apart from popular opinion when some people hold concerning an investment option, e make sense make every intending investor know how to do simple investments arithmetics before choosing what to invest in. If you calculate the potential profit when you fit get from buying shares from a certain company that's worth 200 million naira and if we assume say after 10 years when you don buy the share you get 20% ROI, normally the money fit look big to the normal person when know understand the potential in other investment option but when you compaired that profit to wetin you fit get if you invest that same 200 million into something else, you go discover say that profit when you go fit get from those shares na loss self.

E get time when e de make sense make you buy shares from company and na mostly when the company just de come into the market and you fit buy up to like 2 to 5% of the companies share which makes you a major share holder of the company. But if na all this ones when be say the company don de die small small and you just wan buy am without doing some basic research, wetin you go succeed in doing na to help them share in Thier loss and reduce the burden of the loss off thier shoulder. Banking business no de sharp again and most of them no de even get profit as before and na part of the reason when make buying shares from banks now no de advisable at all.

In this part of the world buying a share is no longer a good investment, earlier before we got to where we are today in this country, share use to be a good investment and it is not that open unless you have a banker a relative before you can get such information from them ordinarily before the public would have known, the banks has purchased more of the  shares before it been made public, we are only hiring this things just because of the economic situation of the country that has made many to think of a better way of investing their money.

I believe that there are still people investing in sharea in the developed nations but be it as it may despite how those investing in shares see it, Bitcoin has come to outshine shares, life have stages, we are in the digital era and I think Bitcoin is the way forward.
To me with your narration, I think the  Md,directors and the stake holders in this particular should be questioned because there no way such amount of money would have not generated a lot of interest over the years that the investor bought his shares, thats an open for me, although wil questioned them when the system is in jeopardy what do we expect, silly excuses from incompetent folks.

The banks has failed and i believe by now most of us know this already, what we should be doing as individuals as it stands is to keep investing in Bitcoin as much as we can, it is better to have your investment in asset that add value in the longer-term than investing in asset that only benefit the institutions that you are investing with, in Bitcoin nothing is hidden, the only thing that's is expected of you as an investor is for you to adopt safe means of storing your assets, make sure that your pass key or seed phrase is not accessible by anyone, having done this, just get rid of distractions and keep doung the needful to get to your desired acumultion point.

Practically, a lot of Nigerians, I mean (us) are just diving into an investment not because we know anything about it but because we heard stories of how people made it through that same step forgetting the fact that an update that is hot today can be out dated in after some years which exactly what has happened here, back the investing banks was the bitcoin of the old generations its becoming old fashioned so people don't longer look into it, perhaps someone who knows how to take risk can still look into and make something out of it.

Knowing where you're investing your money is one step you should take first before investing itself because it giving you the ground to know where to take profit and when not to this where most celebrities and other folks misconstrued hence blame the MD's and the industry for their failure, a company can fold yet you have your profit it doesn't really concern you whatever happens but if you don't have good information you will become victim of their circumstances.
For instance in the documents or contract deals, you must read them thoroughly before signing because some says even if the companies folds you will still be entitled your profit which is usually gotten from the owners wealth to compensate the investors while others says when the companies folds s, your investment also goes with the company and this are all legal terms if well examined one can beat the odds and escape the foundations of problems.

Additionally, it's as important as investment to know where you put your money and for the record bitcoin is the most profitable investment that you can hold on to at this moment, it will be best we consider bitcoin as a major investment area and focus on it, untill we find better reasons to diversify.

As I write this now some of the Nigerian banks like zenith and FCMB banks are currently selling their shares and are calling on the interested public to come and invest . For FCMB I think they are selling from as low as #74 per share which I am certain a good number of us would have seen.

Just yesterday, I was watching a podcast on Istablog9ja where the guest explained how he used  #200million to buy some shares and after many years of holding, he couldn't sell the shares for up to #30million  because the bank explained they made losses all the years which means there was no profit to appreciate the shares value.  (Have you wondered on this: that everytime the banks go down the MD's and Founders go up/fat. How come?) A statement the guest speaker made in the middle

I just had to share this information, to inform us here that it's better to continue accumulating your bitcoin portfolio in a non-custodial wallet than conceiving the idea of diversifying a part of that funds into buying bank shares. If you must diversify outside bitcoin or cryptocurrency then chose real estate investment or gold. Bank shares should never be in your list in this epoch where a lot of banks are folding. Don't fall for their sugarcoated offers of ROI.