If I invest 1000000 Naira, what is my profits after a year
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Nne, if you buy Dangote shares with 1 million naira and hold them for a year, the profit you make depends on the performance of the company and the stock price movement. Imagine you go to the market, and you decide to buy tomatoes from Mama Ngozi at a particular price. Now, after some time, maybe aRead more
Nne, if you buy Dangote shares with 1 million naira and hold them for a year, the profit you make depends on the performance of the company and the stock price movement. Imagine you go to the market, and you decide to buy tomatoes from Mama Ngozi at a particular price. Now, after some time, maybe a week or a month, the price of tomatoes goes up. If you decide to sell the tomatoes at the new higher price, you make a profit, right?
It’s the same with buying shares. If Dangote’s business does well and the price of Dangote shares goes up, when you sell the shares after a year, you make a profit. But if the price goes down, you may make a loss when you sell. This is because when you buy shares, you become a part-owner of the company, so your profit depends on how well the company does.
So, in simple terms, if Dangote shares go up in price, you sell the shares at the higher price, and the difference between what you bought them for and what you sold them for is your profit. But if the price goes down, you may sell the shares at a lower price than you bought them for, and that would be a loss. Remember, the stock market can be unpredictable, so there are risks involved in buying shares. Always do your research and understand the company before investing.
Now, let’s say you bought the shares at 1,000 naira each, and after a year, the price increases to 1,500 naira. If you sell your shares at that price, and you initially invested 1 million naira, your profit would be calculated as follows:
Profit = (Selling Price – Buying Price) * Number of Shares
= (1,500 – 1,000) * (1,000,000 / 1,000)
= 500 * 1,000
= 500,000 naira
So, in this scenario, your profit after a year would be 500,000 naira. Just like you would want the best tomatoes to sell in the market, it’s essential to make informed decisions when investing in shares. Always stay updated on the company’s performance and the stock market trends.
See lessHolly Springs, First, making profit or loss in buying dangote IPO depends on a lot of factors Now, let me help you understand what you are buying. Study the business. Because once the shares are trading publicly, the market determines the price. Demand determines price. Supply determines price. EarnRead more
Holly Springs,
First, making profit or loss in buying dangote IPO depends on a lot of factors
Now, let me help you understand what you are buying.
Study the business.
Because once the shares are trading publicly, the market determines the price.
Demand determines price.
Supply determines price.
Earnings matter.
Expectations matter.
Interest rates matter.
Investor sentiment matters.
Global oil prices matter.
Refining margins matter.
The Nigerian economy matters.
And sometimes…
psychology matters.
So don’t buy the stock because Dangote owns it or because you will make profit. Have an ownership mindset
Buy it because you have studied the business and you are comfortable with the risk.
One thing you expect is that,
this stock will attract enormous attention when it enters the secondary with strong demand, serious speculation.
And because of all these factors, investors analayse the stock can trade significantly above ₦525 after listing.
Iking Ferry view is that ₦3,000 and above is achievable.
But please listen carefully:
Achievable does not mean guaranteed
BUT HERE IS THE BIGGEST MISTAKE YOU CAN MAKE
Don’t look at ₦525 and say:
“It’s only ₦525.”
That is not how you value a stock.
Because….
A ₦500 stock can be expensive.
A ₦5,000 stock can be cheap.
The price of one share is not the value of the company.
You have to look at the number of shares.
You have to look at market capitalisation.
You have to look at earnings.
You have to look at cash flow.
You have to look at growth.
You have to look at debt.
You have to look at the future.
That is what investing means.
U see Dangote Refinery is currently operating at around 650,000 to 700,000 barrels per day, and the company has announced plans to expand capacity to about 1.4 million barrels per day by 2029, with the expansion programme estimated at roughly $14.3 billion.
The refinery also reported $1.82 billion profit in the first half of 2026, after recording a loss in 2025.
Those are serious numbers.
But they also tell us something:
The future expectations are already part of the conversation.
So the question isn’t simply:
“what profit will you make after a year? ”
It may be.
The better question is:
“At ₦525, am I buying this company at a price that gives me enough room for the future risks I am taking?”
That is the investor’s question.
Yes….If you want to invest, invest.
But please:
Don’t invest money you need soon.
If you need the money for your children’s school fees next month…
Don’t put it in the stock market.
If you need the money for rent…
Don’t put it there.
If you borrowed the money…
Please don’t use it.
If you are investing with money you can afford to leave for years, then you can start thinking properly.
If you are a long-term investor, your question should be different:
“Do I want to own part of this business for years?”
“Can I tolerate the price falling?”
“Do I understand the company’s future?”
“Do I believe management can execute?”
Please oooh…
Don’t mix the two.
You cannot enter as a trader and suddenly become a long-term investor 😂 because the price started falling.
And you cannot enter as a long-term investor and start panicking every time the price moves.
My brother do self profiling before you buy o
See lessKnow your risk appetite Ooooh.
Know how much of your portfolio you want to put into the stock.
Know when you will reassess your position.
Know whether you want to diversify.
Know whether you are looking for capital appreciation, dividends, or both.
And most importantly:
The profit you can make from stock is not stable because the market is not about Aliko dangotE owns the company.
It is a sensitive matter and in case you want to learn more about stock. So, that you understand the fundamental analysis better. Check this platform for affordable course
Yes you can make a profit, but my simple advice for you is to do more research and read the terms and conditions applied to the Dangote refinery so u get better understanding of what you are going into and investing in.
Yes you can make a profit, but my simple advice for you is to do more research and read the terms and conditions applied to the Dangote refinery so u get better understanding of what you are going into and investing in.
See less