Beyond the Real Estate Myth: Why the Stock Market is a Safer Bet for the Informed Investor

 Comment

“Stock market is good only for those who are patient and those who can absorb pressure in case of sudden depreciation and losses. If you know you are hypertensive or impatient, you better avoid investing in stocks and invest in landed properties in good location!”

My Response

While it is true that the stock market requires patience and emotional discipline, it is not accurate to say that only a certain “type” of person should invest in it. The real issue is not hypertension or impatience, but strategy and risk management. A well-structured, diversified portfolio across strong, fundamentally sound stocks, sectors, and asset classes can significantly reduce the impact of sudden market shocks. When one spreads investments wisely, temporary losses in one stock are often balanced by gains in others.

Moreover, the stock market is naturally cyclical—it rises and falls over time. Short-term dips are normal and do not automatically mean real loss unless one sells at that moment. For people who are emotionally sensitive to price movements, a simple solution is to avoid checking their portfolio value too frequently. Constant monitoring magnifies anxiety, even when nothing fundamentally has changed.

 

The liquidity and entry barrier in another major issue. The above comment suggests "investing in landed properties" as an alternative. However, real estate in prime locations requires massive upfront capital (often ₦10M – ₦50M+) and is illiquid compared to stocks. If you have a medical or financial emergency, you cannot sell a "bedroom" of your house to get cash. Stocks allow you to start with virtually any amount, say ₦1,000, and provide the liquidity to exit whenever you choose within just T+2 (trading day plus 2 additional working days) settlement period.

Bricks and mortar have become the silent vault for Nigeria’s stolen billions. By utilizing proxies to shroud their tracks, the architects of corruption have transformed the landscape of cities like Lagos and Abuja into a graveyard for public funds. According to former EFCC Chairman Abdulrasheed Bawa, a staggering 97% of looted assets find their final resting place in real estate. The extensive forfeitures linked to former power players - like Petroleum Minister Diezani Alison-Madueke, CBN Governor Godwin Emefiele, and Attorney General & Justice Minister Abubakar Malami - serve as a sobering reminder that while these assets may be fixed in stone, the shadows of their acquisition are increasingly coming to light.

Real estate, like stocks, also carries risks — maintenance costs, legal issues, and market downturns. No investment is completely stress-free. What matters is choosing investments that match one’s financial goals, time horizon, and risk tolerance. You don't have to choose between your health and the 51% returns the Nigerian market is currently offering—you just need a balanced asset allocation. Even Dangote acknowledged that he would have been way richer had he invested in stocks rather than building an oil refinery.

In summary, the stock market is not for the “fearless,” but for the informed, disciplined, and diversified. With the right approach, even conservative investors can benefit from long-term wealth creation without unnecessary emotional pressure.

Real estate is a great asset, but it is not a replacement for the compounding power of the stock market. Don't let the fear of 2008 or daily price "noise" rob you of the wealth-building opportunities of 2026. Invest logically, not emotionally.