COMMON MISTAKES INVESTORS MAKE 1

I would like to apologize to my esteem readers for not posting stuffs for a while now. It was due to some circumstances beyond my control.I am now back to feed you with more stuffs on how to make money from shares.
Today's post is dedicated to exposing my dear readers to some of the mistakes investors make.I will be talking about four this week and I will conclude later.
The four common mistakes are:
1.They do not read Prospectus:A prospectus is a document produced by a company that wants to sell shares to the public.I have observed with huge disappointment over the last five years as an active observer of the Nigerian capital market that most investors do not read prospectus of companies they invest in.They just fill out the forms at the back of the prospectus and then drop it with their monies either to their broker or at a bank.While it is true that that the projections in the prospectus is just an estimate and may not come true,we must understand that we would be doing ourselves a lot of good by perusing prospectus.I know the non reading of prospectus is a reflection of the poor reading culture of most Africans.We must however make up our minds to read so that we can be better informed.

2.They do not attend annual general meetings.:It is at the annual general meeetings that directors present the annual reports of the company and all other reports to investors and the general public.They also tell shareholders and the general public their plans for the future.Investors who know their onions do not joke with annual general meeetings because they know that it is always revealing.As a corollary to this mistake is the fact that most shareholders do not read annual reports of their company.Annual report contains the financials of a company ,the Chairman's speech and some other vital information.The future performance of the company can be predicted from the annual reports.So,the next time you get your annual report make sure you read it

3.They do not set investment objectives:There are so many shares you ought not to have bought if you had set an investment objective for yourself.Investment objectives has to do with why you are investing in a company.Each time you want to purchase a stock ask yourself this question:Why am I buying this company's shares,is it for regular income,bonus issues or capital appreciation?I will discuss how to set investment objectives in greater detail on this blog later.
Less I forget, make sure you buy the Dangote Flour offer for sale that is currently in the market. I consider the offer price of N15 a good discount.It is one of the surest ways of making over 100% capital appreciation in less than 6 months.I can predict with the precision of a watchmaker that the price at the end of the public offer cannot be less than N32 .It is one of the ways of sharing in the wealth of Nigeria and a privilege to share ownership of the company with one of Africa"s greatest entrepreneur-Alhaji Aliko Dangote
Be wise.