Warren Buffett is noted for saying: “be fearful when others are greedy, and greedy when others are fearful.”
Right now, most investors are afraid of Nigeria. Uncertainty, risk and economic challenges are keeping them away.
If the Sage of Omaha is right, now is the time to get excited about Nigeria. This interesting article says it best, and I recommend you read it too.
The Chief Investment Officer at Allan Gray thinks the risk aversion to opportunities in Nigeria are quite extreme.
Of particular interest is Nigeria’s financial services sector. Nigeria’s top 10 banks currently valued at $6.5bn, were worth $35bn in 2008 when they were much smaller, inferior businesses.
Beta Glass, a Nigerian glass bottle business. In May 2015, a bid by GZI, a private equity company, valued the company at US$265m. Today it is valued on the Nigerian stock exchange at $33m.
Nestlé Nigeria, a very well-run business and the blue chip of the Nigerian stock market. In December 2013, investors valued Nestlé at 40X historic earnings on expectations of growth for years to come. At that time Nestlé’s market capitalisation was $6.2bn. Yet three years later, investors think Nestlé is worth just $1.6bn, despite the investments the business has made in additional plant and machinery.
Read the full article at: How We Made It In Africa
The post Nigeria: How to find investment opportunities where investors fear to tread appeared first on Smallstarter Africa.