Smart Pinoy Investor Academy

how to be stress-free to your investments

Lost At How You can Start Investing and Really Prepare for your Financial Future?

Start YOUR journey to financial freedom the STRESS-FREE way!

Feel lost? Confused in your finances?

Gusto magstart mag-invest pero ZERO knowledge about investments?

Do you want to get the most out of your savings (being eaten by a monster called INFLATION) but don’t know where to start?

Do you want to grow your wealth more than what your banks can do but afraid of losing it in bad investments?

Do you want to stop working hard for money soon and let your money work harder for you?

Are you an ordinary employee who has been working so many years yet until now has no savings yet and just want to spend more time with your family?

Are you a businessman who wants to be his own boss and has his own time everyday?

Are you a new and young employee and want to have a great start in managing your future income?

Are you a housewife who wants to help your earning husband in paying for your family expenses?

Are you sick and tired of being sick and tired?

Well, you’re not alone.

And there’s an easy way so you avoid losing your hard-earned money in the world of personal finance and investing.

FINALLY, a series of practical lessons, tips and tricks for NEWBIE investors designed to make investing in Philippine stock market stress-free for you!


You see I was like like you in many ways many years ago.
I had to find all the info I could get, attended live (and expensive!) seminars, talked to experts & read a lot to make sure I’m making right thing.

But nah, it was very overwhelming.
Too technical not fit for a normal day employee like me.
I wanted my money to work for me but it seemed the opposite is happening!
I was spending so much time yet seeing little improvement!

So through the years, I have learned key investing lessons (before, during & after!) and later on witnessed the common blunders many newbies usually do which made them lose so much money!

What have they done wrong?
Why are these people so stressed-out seeing their portfolio losing while others seem so confident with their strategies?
What should be the controls that need to be used by any wise investor?

It was a long, long learning curve.
And quite expensive too!
And now, I’d like to share it with you.
Find out how you can actually BEGIN RIGHT, avoid the costly mistakes newbies often commit out of their ignorance and make your investing easy, practical, and more manageable for you to do!

Saan po ba maganda mag-invest?

Have you asked that question too?

Asking which stock or company to buy?
Asking when is the best time to buy them?
The best time to sell them?
The best time to hold them?

And you simply wait for answers from people who don’t know anything about you?

That’s one of the biggest mistakes newbies do!
They tend to ask the wrong questions to the wrong people!
And because of that, they get incomplete, or worse, inaccurate answers!



The key to an effective investing is to start it right!

Anyone can start investing, but the key is you to start it right!
And as with any undertaking, you prepare for it before actually doing it!

Many are too excited to finally begin but fail to take care of other related things that need to be settled.


Start changing your financial life!

Get access to recorded online seminars where you will learn practical tips about investing and personal finance that will SAVE you from a LOT of STRESS before you actually begin or if you’re just a new investor!



You don’t have to do the same investing blunders many newbies do!



Other practical lessons also available!

It’s not enough (and never wise!) to just do investing alone! You need to integrate it with a more holistic and proper personal finance planning! And you will also get the lessons how!



You can shortcut your way to stress free investing with all the simple lessons you will find out through the videos tutorials!

What should be the focus of your money strategy?


You see, your ultimate goal is not to really invest in the stock market! Your final goal is to be financially free, one that does not have to worry about money every day.

One that allows you to be free to do what you wanna do and to go where you wanna go.

You need not just to learn how to invest, but see the bigger picture, get out of the rat race, and learn creating your streams of passive income. Passive income is the income you receive even without putting in so much time and effort. Examples of this are income from property rental, dividends and book royalty. You receive this kind of money even if you sleep all day! (In contrast, your income from your salary is called active income).

To get of the rat race, your goal then is to accumulate enough passive income to an amount greater than your expenses. When you’re done with this, that’s the time you enter and see a totally different world of opportunities are presented to you. Imagine this as a place where all the giant tycoons we have in the Philippines are operating. This kind of world have bigger opportunities which are not readily available to ordinary Pinoy employees.

Whatever dream you may have, whether time freedom, or not having to deal with your boss again, this training reinforces the necessary basic knowledge you will need how to get out of the Rat Race and start living your life where your money starts to really work hard for you.

Your #1 investment is your education

These lessons will also change your wrong ingrained thoughts, the common misconceptions and mistakes people have on the concepts of asset, debts and liability.

You will also discover and appreciate more the power of understanding your personal financial statement.

You will also get to have practical real world investing lessons and realize what has been stopping you in your financial growth!

And best of all, you will be with people who can support you in the rest of your financial journey even after you’re done with the training.

Personally I started investing in my financial education right after graduation.
That was also the time when I was just a new employee earning my first income.
And since that time, a lot has been changed in my financial life and my life as a whole.

I learned to become a better investor.
I learned what things I should be focusing on.
I learned what is lacking in my life.
And i learned what is wrong in my beliefs!

It’s a total crazy roller-coaster ride!
Throughout that continuous learning and acting phase,
I made my first million, then my second, and so on and so forth.

But more than the money, it’s the improvement and growth I saw in myself that I’m very thankful of!


In fact, big part of of all my financial plans now revolve around the lessons I learned from my mistakes, which I shared in the training lessons.

I don’t want to just talk about myself, and I wish you will also experience the same awakening I had at the least, especially if you’ve been an employee like me. More importantly, find yourself a venue of support that will remind you constantly of your dreams, pushing you to make a little step forward each day.

We only have very few slots for discounts left so make sure you get your slot as soon as possible. Get P1000 discount if you sign-up now until Oct 31. Use coupon code QUICKREWARD to get your discount. Hurry as this applies only to first 10 sign-ups. CLick here.

Hope to see you inside!

Have fun investing (with consistent learning)!

– oMeng Tawid

PS: Sign-up now and get huge discount.
Click here to sign-up.

Use coupon code QUICKREWARD to get the discount (applies only to first 10 sign-ups. )

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!

How much can you earn investing in Philippine Stock Market?

Investing in the stock market primarily offers its investors two ways to earn money.

These two are called (1) Capital Appreciation and (2) Dividends.

Thus asking how much you’re gonna earn will depend on how good you are in maximizing these two means of making your money work hard for you.

Let’s tackle the first one.

Capital appreciation, as the term suggest, means that your investment capital has appreciated or gone up due to the increase in price per share of your stocks.

There are two things to remember when it comes to capital appreciation.

First, capital appreciation in stock market is never guaranteed. An investor should not expect that his investment in stock market will surely appreciate after some time, even after a long time actually. There is simply no such thing!

Ultimately, the price behavior of any stock, whether it will go up or down, will depend on the prevailing supply and demand of the stock each trading day.

Second, capital appreciation can also turn to capital loss. This could happen when investors lose confidence in the future of the company which translate to investors selling their shares ultimately pulling the stock price down. This is a main risk involved in stocks investing.

Unlike capital appreciation, dividends as a way of earning from the stock market is easier to manager. Briefly, dividends is one way for the company to actually share a part of its earnings with its shareholders. This could be in the form of cash or additional stocks, credited directly to the account balance (if cash dividend) or stock portfolio (if stock dividend) of the investor.

One thing to note about dividends is this is also not guaranteed. Whether a company will give dividends or not will depend on the decision of its board of directors usually done on an annual basis.

An Actual Example

Let’s see how this translates to an actual example.

Cebu Air Inc (stock code CEB), the company operator of the leading brand in low-cost air travel in the Philippines, is a company that is enlisted in Philippine Stock Exchange. That means its shares can be bought through our own Philippine stock market. (If you’re flying with Cebu Pacific Air Buses, you can probably get part of your airfare by buying shares of this company).

Let’s talk first  in terms of dividends.
Luckily, CEB is one of those companies that give out dividends.
Is board of directors has declared the following dividends in the last year.

how to invest in philippine stock market for beginners 3 dividends


Since I had shares of CEB as of record date, I was part of the list of its shareholders eligible to receive this dividend (total of P2.00/share). This is already a clean money! Below is the notification sent to my email.

how to invest in philippine stock market for beginners 4

So far so good for dividends!

Now let’s examine how it fares when it comes to capital appreciation.

For the purpose of illustration, we’ll check its price history in the same period last year, starting from August 19 2015, when its price was at 90.30 pesos per share.

Imagine you’re investing at this point, your 10k capital could buy (10,000/90.30) = 110 shares including all fees and commissions.

But what happened in the next six months could be the total opposite of what you you’d expect as its investor.

how to invest in philippine stock market for beginners


Instead of making capital appreciation, it turned out to be a capital loss, with its price slowly sliding down to 82.55 after six longs months of waiting. Certainly not good if you need your money back for some reason – you’d be selling at 8+% loss.


What happened after another six months, up to today, Aug 15 2016, is however a totally different story.

After struggling to reach its original price, gaining a little momentum in mid-May of 2016, and consolidating at around 95-100 pesos level from June to July, it finally broke out end of July and reached new highs in the last 52 weeks.

how to invest in philippine stock market for beginners after


So imagine you didn’t sell when you had 8+% loss, and instead hold your investments, then you’d have earned a nice 32%.  (plus the Php 2/share cash dividend!) That’s certainly bigger than what the banks offer!


You could see the entire picture of what happened during that 1 whole year period

how to invest in philippine stock market for beginners 02


Hindsight is always 20/20

But before you get excited with these figures, we have to remember that we’re doing all this calculations in hindsight. In other words, nangyari na! It’s easy to brag these gains when everything had already happened. It’s a totally more difficult decision-making process when you deal with the actual present market conditions.

Also, one needs to answer the question what would be a better decision – selling the shares now if one believes the price will go down, or holding even longer, if one believes that there’s more room available for the price to continue inching up.

These questions in turn is related to the timeframe consideration and market timing expertise of the person investing. So we’re back here to basic foundation of investing – drafting the goals, knowing the time horizon and coming up with the investing strategy of the person.

There you have it –the factors affecting your possible returns/loss as an stock investor.

Your strategy is up to you

Of course, your actual strategy can deviate from the one discussed above – which is merely a BUY-and-HOLD strategy.

Another strategy for example is the monthly buying of its shares, in effect accumulating shares especially when its price was down. By regularly buying especially when the price is down, one is able to maximize the returns with the cheaper levels the stocks are bought.

See for example the actual returns of this strategy coming from Truly Rich Club of which I’m a long-time member. They do this with their strategy called Strategic Averaging Method. You can learn more about it here.

how to invest in philippine stock market for beginners 23

(You can check what’s inside Truly Rich Club here.)


So going back to the question  – How much can on earn investing in the Philippine stock market,
we found out that the answer will depend on
(1) the skills of the investor when it comes to timing  – this affects capital appreciation

(2) the time horizon of the investment

(3) the dividend rate of the stock (if there’s any)

(4) and the specific strategy employed (as a way of maximizing the three above)

Just remember that the time horizon put into investment won’t directly translate to better performance. In other words, even if one is invested in as long as ten years or more, if the stock price doesn’t follow and improve over time, the long time one is invested is useless. The longer time only allows the investment to ride the short-term fluctuations in its long-term uptrend (if this turns out to be the case), ultimately rewarding its smart investors.

Have fun investing,
Omeng 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!

Tips, Tricks & Traps for new pinoy investors (Free webinar)

If you are new investor in the Philippine stock market, this free tutorial is good for you.

Some of the lessons shared are

  1. Maximizing your every invested peso
  2. Resources where to get good stock picks
  3. What to avoid as new investors
  4. Common mistakes newbies do
  5. and answering frequently asked questions


If you want to learn more about Truly Rich Club & SAM (Strategic Averaging Method) mentioned in the video, you can click here for a short tutorial.

If you have not yet started investing, It will be  really good for you to watch this video  answering the question HOW TO BEGIN INVESTING so it will be easy for you to follow the discussion in the above seminar.

(1) The Open-Fund-Win step by step guide how to start
(2) How to fill out account opening application forms
(3) What to expect when opening an account
(4) Choosing between Mutual Funds or Stock Investments or Insurance
(5) Choosing between trading and investing
(6) And some of my personal investing practices

Also pls keep a copy of your quick start guide document here. It will give you a brief overview where to start investing.

Have fun investing

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!

in case may tanong ka pa about how to start, watch this webinar

Probably  you still have so many questions like how to start, what to do, where to begin, how much to start, what are the requirements at kung anu-ano pa even after reading everything you can.

Or maybe you still have fears, or confused pa sa ilang mga bagay you find it hard to start and give it a shot.

So, so, so…

in case you have other basic questions  needing really quick answers, just watch the webinar below – almost all related questions have been answered there.


Also pls keep a copy of your quick start guide document here. It will give you the basic of the basics. It will point you to several online resources that will help you.

Don’t allow the info overload to discourage you to start.

Better yet, join our next webinar this Oct 25 2015 | 9 PM| Manila time and find out the tips, tricks & traps for new investors. Register here.

free webinar how to invest in philippine stock market


Have fun investing,


Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!

Are you in? Free Financial Basics Seminar (+ coaching)

Looking for a venue where you can learn more on personal finance and investments?

IMG offices around the globe now hold basics of financial literacy + investments seminar open for everyone!

The good thing is that this seminar is totally free to the public and offered with totally no obligation.

Unlike other seminars out there, its topics are really practical to the point that you can apply it right after the session (like in the way you save, invest, increase you income, settle utang, etc) so I suggest that you take advantage of the free learning. Some pay a lot just to hear a similar talk.

My only problem is that since you get this free, you might not have the drive to apply the lessons in your life … which will be really sad.

This is unlike the case when one gets serious in the application of the learning because of the learning investments aka seminar fee paid by the person.

I hope you’ll apply even just one realization you’ll have in case you’d be attending this. One change in your financial practices may start the big chain of improvements in your quest for financial security. If di naman, might as well skip this session and leave the seat available to those ready to have better financial life.

But if you’re IN, I suggest that you bring your friends so they also get the chance to learn with you. That way, you can exchange notes after and discuss even more. Para matanggal din ang hiya (toxic shame) you may have. This is also very ideal for couples so bring your spouse if you can. I’m sure lives of families will have drastic improvement if family heads will apply even just some ideas from here.

Other higher series trainings are also free but are open to IMG members only.

If you’re interested to attend, just email me >> so you’ll receive right away the next steps for this. Or simply sign-up below

Sign-up for free seminar on personal finance basics and investment strategies

That’s it, just a quick note for you.

Never stop learning… and earning!

Have fun investing,

PS: Bro Bo Sanchez has also learned lessons from IMG. And look where he’s now, blessing more & more people.

“I recommend that you attend these meetings and seminars because you will learn how to grow your finances, how to become financially free, and how to solve your financial problems. You’ll learn it step by step, and so much more.” – Bro Bo Sanchez

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!

How to choose what stocks to buy & sell in Philippine Stock Market

Choosing what stocks to buy and sell in Philippine Stock Market is the real game when it comes to investing.

In this post, I’ll be giving you some practical guidance to completing this step.

It’s actually easy to buy and sell stocks in Philippine stock market (the manual part of it is contained in this tutorial >> How to Buy and Sell Stocks in Philippine Stock Market), but whether the action will give you profits is another more important question.

In fact, this is one common question coming from any newbie investor: What stock can I buy now?

The answer of course depends on several factors, but each one of them practically boils down to your target destination.

What is your target destination?

Your target destination can be one of these two: (1) Target Date         (2) Target Price.

To give you an example, let’s say your Target Date of realizing your stock market gains is on your retirement time – which, for example, may come at least twenty years from now.

In that case, choosing giant companies which you think will outlive all of us can be your candidate stocks to buy using the strategy of Peso Cost Averaging (Check here how this strategy works). The goal here is not really to do timing of the market but using your long time-projection to accumulate as many shared of great companies as possible.

So by just knowing your Target Date, you can start streamlining your stocks selection and strategy.

Having different Target Date as destination obviously requires different stocks and strategy. As shared in my last blog, the growth of your investments is a factor of Time, Talent & Treasure you allow your investments to have.

  • TIME refers to how long you’re willing to park your money in the stock market.
  • TALENT refers to your skill in choosing your strategy and stock selection. This  can be monitored as percentage growth your investment money achieved.
  • TREASURE refers to the amount you’re investing. Since growth of stocks is reported on a percentage basis, a bigger base or capital will obviously translate to bigger actual net profit.

In the table below, the same ending target (ending value of 7245) was obtained with different variations in these three factors.

Time Talent & Treasure in Investing in Philippine stock market

With the target date in mind, you can plan how to achieve your goals by looking for the proper combination of your 3T’s – Time, Talent & Treasure.

Now we go to the second type of your target destination – Target Stock Prices.

If you’re investing believing that it’s actually a business, you’d want to invest in a company you believe is going to rise in value fueled by its continuous growth and earnings. This price which you believe a company will achieve some time in the future is called its Fair Value (FV).

More specifically, Fair Value is a company’s estimated worth or fair market value as computed by various ways specific to its industry (i.e DCF, NAV, P/BV, P/E).

This FV kind of target price is different from short-term target prices set by traders who buy stocks to simply ride short-term price fluctuations.

Now, calculating Fair Value is already one complicated animal especially for beginners.

Fortunately, some online brokers provide their own analysis and figures for Target Prices. In addition, some online brokers like COL Financial even give sample portfolio you may want to imitate.

At this point, let’s tackle how online stockbroker COL Financial can help in determining the Fair Value of candidate stocks to buy (If you don’t have an account yet, you can follow this tutorial to open >> How to Open an Account in COL Financial for newbies and OFWs).

This is as simple as logging-in in the website and going to its Investment Guide by following the menu: Research >> Fundamentals >> Investment Guide.

Investment Guide of COL Financial

Here you’ll automatically see the Fair Values calculated by COL Financial’s analysts which you can use as your target price.

Fair Values of Companies by COL Financial

There’s also another helpful data included in the table above called Buy-Below Price (BBP) which you can also follow to give you decent returns when you decide to sell with the FV prices.

The concept of Buy Below Price is very simple –  you only buy when the stock’s current price is below this BBP.

As you will notice, these Buy Below Prices are actually near 85% of the FV, which means that by observing the BBP in your transactions (meaning, you buy only when the stock’s current price is below this BBP) you’re effectively strategizing to have at least 15% expected growth should you decide to sell later on at those FVs.

Fair Values of Companies by COL Financial 2

It’s important to note that computed Fair Values may vary from broker to broker because of the differences in the way they calculate it and the assumptions they make in doing so. Understanding how the FV’s you see were computed is thus important before relying on it. Don’t just follow blindly. Compare using several researches if you can.

The discussion above gives you Target Price you can use. But more than that, COL Financial also has model portfolio you can use in screening your stock selection.

COL Financial Model Portfolio

The model portfolio consists of stocks that COL Financial recommends in its monthly strategy report, COLing the Shots. It consists of the stocks they believe to have favourable fundamentals, and are expected to be the major beneficiaries of the prevailing macroeconomic trends.

In short, it’s a “model” portfolio that COL Financial maintains. COL Financial adds/removes stocks to/from the list depending on their performance and market changes. It’s a porftolio you could literally monitor or copy. You can check this post for updates on COL Model Portfolio.

You can access this info still from the investment guide and choosing the Model Portfolio Set-up.

COL Financial Model Portfolio

Here you can see the selected stocks in its Model Portfolio together with their Fair Values and suggested BBP.

COL Financial Model Portfolio 2

So, if you’re looking for some free guidance what stocks to buy and when, this is a good start. Again, make sure you understand how the figures were calculated before using it in your strategy.

UPDATE: This Model Portfolio is no longer accessible in COL Financial’s website. However, you can see still use as a guide their list of stock picks  in their COLing the Shots reports. An example is shown below. Or you can use SAM by Truly Rich Club which can give you the exact stocks to buy and sell.

COL Financial COLing the shots stock picks

The COLing the Shots reports are available inside the COL website under Research section.

It is “a monthly publication by COL which provides insights on investment
opportunities based on global and local developments that could affect the market. COLing the Shots aims to provide timely and relevant information and analysis as well as a model portfolio for successful investing.”

COLing the shots


Paid Resources

Of course there are online resources you can avail to help you in this task.

Pinoy Investor for example gives you an already consolidated data coming from comprehensive researches of eight online brokers.

By having access to several FV’s computed by several online brokers, you can easily make comparison of their estimates and formulate consensus data. You’re also able to validate in case one broker may have bias to one stock.  Lastly, you can also see how many brokers give buy/sell/hold recommendation to a certain stock.

Piny-Investor-Nesletter Updates and Review

Once you’re decided with the Target Price you’re going to use, you can then slice at least 15% from it and just use it as your BBP.

You can check in this post a short review how Pinoy Investor can be a big help both for long-term and short-term investors. In fact, in its latest performance update, it tells of its 10 out of 13 stocks with BUY recommendation from one broker that outperformed PSEi. You can read more about it here.

Truly Rich Club’s Stocks Update is another one that can deliver all these information straight to your email on a regular basis. But as you’ll read in this Truly Rich Club Review, the club is much more than stocks update.

For example, one benefits of the membership called Stocks Alert recently sent just advised the selling of TEL shares after achieving more than 20% growth. This does not include yet the generous dividends TEL has paid out to its owners. You can check the table below and read this post to see how Truly Rich Club of investing works >> Strategic Investing with Truly Rich Club.Truly Rich Club Review Performance 2

As a last note, it is also advisable to just check your investments once in a while to see how it performs. Maybe once a month will do if you’re not the trader type.

Also, before investing you should see your overall finances in a bigger picture and understand that you have to start with protecting yourself and dependents before plunging directly to investing.

I suggest you start studying BTID (Buy term, invest difference) if you have the time to actively manage your investments. Get a term insurance before starting investing.

Hope this helps in drafting your own investment plan.

If you have other questions, let me know in the comments below.

Have fun investing,

oMeng 😉

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!

3 Truths about Money that kept you poorer (or richer)

Lots have been discussed and shared about handling one’s financial life and honestly, with the tons of information available now, sometimes all these make the whole subject matter overwhelming.

But if we take one step backward, there are actually only few truths about money we need to be all aware and only few facts about life we all need to tackle as early as we can.

So forget everything muna you learned about life and let me help you have a new wider perspective on this. This will also help you avoid scams like what happened to a friend I shared below.

Truths about money

1. Money is only a symbol of value.

Think about it.

The richest people we have in the world are people who have given enormous value to others.

Obvious examples:

Everyone uses Facebook and so we have the youngest billionaire man in the world because of that.

SM Malls got everything for all of us and so we have Tatang Henry as the wealthiest man in the Philippines.

And similar businesses who continue to serve our non-negotiable needs keep their owners on the top list of wealthy families in the land.

Here’s the point: All of them together with all other titans are rich primarily because of the real value they give.

And as people of justice, we reward people who give us something valuable, thus their ever growing wealth.

Coins Falling On House Showing Extra Money And Improved Economy

This also explains why a lot of Lotto winners end up being bankrupt just few years after winning. The money they won simply has no innate corresponding value put into them and so it’s difficult for them to sustain (or even handle) it.

So here’s the key:

If you’re asking how to increase your money, focus NOT on the money you can get, but on the VALUE you can give to this world.

Start looking at yourself and finding ways how you can give something that’s going to be useful to others.

Your immediate boss might be in his current position because of the value he offers. (If you don’t agree, don’t worry, things will reflect this principle soon.)

But if you want a sure-win investment and a continuous supply of wealth, focus on expanding your value.

But here’s what seems an irony.

Why are there people who give real value but are not wealthy? (Teachers, Professionals, priests, etc)

The answer is that these people either chose not to monetize their value or were not aware of the other two truths about money shared below. The second group are simply not equipped with financial education, which is critical in one’s financial life.

2. Money has a time value.

The value of money constantly fluctuates through time.

In other words, your money’s value is a function of TIME.

The same amount of money you have now won’t have the same value in the future that it has today which is why investing is a crucial step to cope up with this fact  – to make sure that your money’s purchasing power is made intact.

You don’t want to just save money because inflation would just eat up slowly its value to purchase things and services.

And finally…

3. Money follows certain laws.

I love universal laws.

Natural laws, like law of gravity, make everything in order.

Regardless whether a person is good or bad, the same set of laws apply to everyone.

Because of this very nature of laws, our life becomes more predictable.

Imagine if we have different set of laws that hold in different times, it would be impossible to create the future that we want because it could happen that different principles govern life in the future which we’re still not aware at the present.

By being aware of the laws of money, we position ourselves to a better creation of our financial future.

So what are the laws that govern money?

In our last post, three basic money laws were shared.

First Law of Money: Pay Yourself First – A part of all you earn is yours to keep.
Second Law of Money: Get only into a business you understand. Seek advice only from competent people.
Third Law of Money:  Make your gold work for you. Make an army of golden slaves before you buy luxury.

The good thing is that money laws are very simple and easy to follow. However,  you can either make these laws work for you or work against you. The difference between the two spells the direction if one will become  rich or poor.

For example, the Law of Compounding can apply to multiply the earnings of your investment (thus working for you) or multiply the interest of your credit card debts(working against you in this case).

I recently had a friend who seemed to ignore the Law of Risk & Returns and so was duped into one alleged investment SCAM recently reported. (I thank him for allowing me to share this with you.)

Invetsment SCAM in Philippine Stock Market

SCAM in Philippines

Again, these laws are solid and this universal power of laws helps you predict the future and thus gives you either a positive hope or a warning that the worse is coming.

T3 Law of Growth

Another law which apples to growing your money is what I call the T3 Law of Growth.

According to this law, your money’s growth will depend on 3 T factors – Time, Talent & Treasure.

Simply put, your money’s earning is dependent on the Time you give for it to grow, your Talent in growing it (how much returns you can make for each peso) and your Treasure (how much capacity of money you can invest).

For example, let’s say you only have 1000 pesos (low Treasure), you find an investment that give only 2% returns a year (low Talent), but you have 100 years holding period (high Time), your money will become 7245 after that period. But who can live beyond 100?

And so you study to get better returns (higher Talent) that is 20%, that same initial1000 (still low Treasure) now can reach the same target of 7245 after only 11 years (lower Time). Much better than 100 years!

But what if you start with 7000 right at the start (high Treasure), then that 7245 can now be achieved in 1 just year (low Time) even with 3.5 annual returns (low Talent).

You can see the summary below.

As you can see, the same ending target result can be achieved by varying the magnitude of each of the three T’s.

Time Talent & Treasure in Investing in Philippine stock market

In short, focus on the T3 you can apply to your assets for it to generate the specific goal you want.

Time Talent Treasure in Growth of Money

So those are the basic truths to money, which will help simplify your road to wealth.

The Real Money Game

But ask yourself:

Why again am I here on this game of money??

Well, one reason – YOU have life goals.

In fact, you probably just went into all this money mumbo jumbo because you wanted to achieve some of these life goals and you just realized that  “hey, money seems to play a big role in realizing these goals.”

In the end, we’re led back to our realizing life (and purpose). Unfortunately, life, while achieving its purpose, also faces risks. This in turn leads us to two basic truths about life.

Two Truths About Life

  1. Life has risks.
  2. Life has goals.

The two major risks you currently face in your life are (1) You die too soon or (2) You live too long-Long.

Each one should find a way that suits his preference, personality and capacity to address both of these risks.

In my case, I have my set Life Insurance  to answer the first risk and Long-Term Medical Savings (Kaiser plan) and other investments to address the second risk. Interestingly, my Kaiser plan also has insurance coverage so it’s good as starting point for those who don’t have both life insurance & long-term medical savings yet. More so, this same Kaiser plan also has some short-term benefits too but if you have short-term HMO provided by your company, your Kaiser plan can then focus on supplementing your long term medical savings as its original objective. This is also the reason why I got the same plan for my older sister. (It also has online facility that allows me to track my payment history and set schedules for its services).

My Kaiser Plan

Disclaimer: IMG (International Marketing Group) is the exclusive broker of Kaiser healthcare and as an IMG associate, I was able to save third-party broker fees when I got this plan for myself and my family. I can also get tiny commission whenever I refer people to my trusted agents. Kaiser is only part of my overall financial portfolio. I also have other plans from other finacial vendors like Sun Life Financial. Email me if you’d like to get proposals here.

After addressing these real life risks, now we go back to achieving your financial goals: you can starting saving for your dreams/goals by investing a portion of your current income in various instruments (stocks, mutual funds etc) with a specific timeline and target attached to it.

But I believe that the best solution still is to increase your cash flow so you can add more on your investments on top of your initial investment power coming from your primary income source. I always tell people to explore others ways to have multiple sources of income. You can check my related post here >> How to increase your cash flow.

I believe once your cash flow has stabilized and keeps growing, the rest of the steps in financial planning process – settling debts, securing emergency fund and protection, etc – will easily follow.

That’s it.

Hope this helps to give you a new perspective in your financial planning.
If you can add anything on above,  let me know in the comments below.

Have fun investing,
oMeng 🙂

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when you share financial concepts and people don’t care…

Let me share with you a little confession about this advocacy of financial literacy I have.

You see this was not really an all out effort all the way from the start.

You check my facebook wall before and you’ll see little posts about anything financial.

My reason?

I didn’t want to combine my personal wall with my advocacy wall. I regard them as two different untouchable worlds.

Seems like hypocrisy no?
Advocacy pero may limitation.
Well let’s just say I actually did that before only to find few interests from people who saw it.
Then I did it again, and almost same feedback. Then again, and same thing.

But when I shared same content in financial groups in facebook, it felt great seeing it stirring up people’s reactions.

So being tired with the wa-paki signs, one day I just told myself, “ok, wag na muna sa mga taong nakapaligid sakin, dun na lang sa mga interesado”.

And it did me good.

I no longer experienced “virtual rejection” simply because I didn’t attempt anyway.

Somehow the move acted as my pre-screening. People come to me already lit up.

I already knew that people sending email to me/PM in facebook are already open people so I no longer need to convince them. They’re already great absorbers. They have made their own way to educate themselves. And it’s a great discussion I have with them every time.

My turning point

Until one time, few weeks ago, I came to know about the financial mess in life of a friend and how he’s struggling for quite a long time

In his 13 years of working, he doesn’t have a single peso of savings.

Why? Because he was instantly buried in debt when one of his family members had to undergo an operation.

Any person who had experienced the same know how one hospital emergency could wipe out all one’s assets!

In his case, he had to borrow more than a million for that!

And so after more than a decade of working, sa bayad-utang lang napunta halos sweldo nya.

But here’s the point.

After  hearing about it, I felt an inner guilt.

If that man had only known about proper financial planning even before, probably mas ok sana sya sa finances.

That single moment led me to my turning point.

When I came home, I sent him an SMS, “bro, i want to help you, let’s have a session”.

And come appointment time, we met in a coffee shop, and stayed there for almost 5 hours discussing what he could do at this point. ( I realized I talk too much).

It was long but also fulfilling. And we were both happy. He resolved that in a year, he’d be debt free.

From that point forward, I made a decision to really share it na to immediate people around me.

And you know what?

Some people still don’t care, HAHA!

But I am also surprised by people coming to me after they see my posts. People ready to learn and are just waiting for a leading hand.
People who had already the interest that could have been not responded if I didn’t share a content in my personal wall.

And here’s one thing I realized.

When the purpose is much bigger than your preference

We people do things
i. at  first for our own satisfaction,
ii.and then we realized it’s kind of selfish doing it for our own, so we stop doing it.
iii. Then at some turn of events later on, we decide to do the same exact thing.. because we found a bigger purpose then

Why? Because we came to a point when the purpose is now much bigger than any other excuse we may have.

We come to our senses and we say “This is no longer about me, but about the purpose.”
Kaya any unfortunate result, negative comments, nvr (no visible reaction) we just ignore it but keep doing the same thing for the advocacy.

And if you think about it, it applies to any aspect of our lives.

We sometimes do things in life we don’t want to do (maybe because it’s inconvenient or even against our own beliefs) but since  we’re after some bigger reason, we choose to do it anyway.

Another example, The Feast  founded by Bro Bo Sanchez.

If you know its story,
i. Light of Jesus (LOJ) was at first a closed community bounded by strict rules and regulations.
ii. Then it realized its mission so it decided to reach out to “unchurched”  by offering something unusual – “aLive songs & talk ” after the holy mass.
iii. Many people loved it but some archdiocese didn’t like the idea and so there are still places now who still in a struggle to having the regular Feast.
iv. But despite the unwelcoming remarks (which they respected), they keep on finding ways to make it into a reality.

Again, it’s no longer “about the people behind the Feast but the bigger purpose of reaching out and finding the lost coin(s)!” No longer about the rejection but about the direction.


So maybe like you, you have people,, family and friends perhaps, you want to share financial concepts with, but are not YET responsive.
Worse, they brand you like “kuripot”, “madamot” etc.

I urge you to keep sharing anyway.
Maybe now, that person won’t respond right away, but keep on planting seeds.

Time will come, when that person becomes more open, he’ll know one person to go to.

And he will thank you later on.
happy sharing,

PS:If you think about it, financial concepts can have a lasting impact down a whole generation! wow! This very seems like a GREAT MISSION!

PS: I’d also want to hear from you. Did you have a similar experience? Share it in comments below.
Or maybe FB chat will do. Here’s my fb profile. Better yet, let’s have a meet-up, kwentuhan lang din. Let me know.

PS2: Iloilo people, i’ll be going there on Aug 10 to do a talk.  Check details here.
Check here for Pesos & Sense seminar schedules.

Avoid losing money and become a smarter investor!

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How to grow your money faster the easy way

Two weeks ago, a friend came up to me after reading an ebook I wrote back in 2011 – Investing in Philippine Stock Market – A Quick Start Guide for Beginners, which is designed for newbie investors even with zero knowledge.

Investing in philippine stock market - A Quick Start Guide

She also knew about Truly Rich Club of Bo Sanchez being an attendee of The Feast and has actually already have investments in the form of mutual funds.

However, not satisfied with the growth of her mutual funds, she’s now considering going one level higher – investing in Philippine stock market directly.

But as with the case of many, she doesn’t know what to expect investing in stocks. When she told me she just wants to try it out, I asked her how long she considers doing it.

“Six months”, she answered, adding that if it performs well, then she’ll move the rest of her investments into stock market.


As much as I wanted to encourage her to start stocks investing directly, I told her the truth that having such a short-term projection may not be a good plan. I shared that there’s a possibility that the Philippine stock market can perform really bad in the next six months, but if she keeps investing even during those bad times to sound giant companies and have a longer projection, those bad times can turn out to be great opportunities. The difference basically lies in the time horizon of the investor.

I used to believe that stock market is a good place to park your money if you’ll never need it within the next 10 years. In fact, in comparison, one chief operating officer of a mutual fund investment company in our country tells its prospective clients to consider at least five-year holding period for their mutual fund investments to grow. Obviously, this idea is not compatible with what my friend wants to do.

Now there’s a way.

Read more

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Simplify all the analysis – Easy Investing with Strategic Averaging Method (SAM)

There are basically two ways how to invest in the Philippine stock market.

You can either be an investor or a trader.

Some call it passive investing versus active trading.

In a nutshell, passive investing in stocks is a long-term approach ranging from few to several years timeframe whereas active stock trading is a short-term strategy with days or few weeks duration.

Active trading means buying and selling every few days or sometimes even within a day. Passive investing just keeps on buying carefully chosen stocks on a regular basis and seldom sells, allowing more time for the investment to grow.

But before going straight to Strategic Averaging Method (SAM), let’s recall first the four rules of making millions in the stock market by being a long-term investor as summarized in Bo Sanchez’s book My Maid Invests in the Stock Market… and why You Should, Too!

Rule #1: Invest Small Amounts Every Month for 20 Years or More

Rule #2: Invest Even When There’s a Crisis

Rule #3: Invest Only in Giants

Rule #4: Invest in Many Giants


Needless to say, these are relatively sound stocks investing strategy, but also a pretty boring one. HAHA

If you stick to this strategy, you definitely need three things: money to regularly invest, discipline to stick to the strategy and patience to let your investments grow over time.

Good thing Bo Sanchez’ Truly Rich Club has its third alternative – and it’s called SAM, short for Strategic Averaging Method. This has some minor but profitable differences compared to the common Peso Cost Averaging method outlined above.

The whole story is contained in his book The Turtle Always Wins so you can grab your copy in bookstores to get the complete picture of it. But even before that, Truly Rich Club has already introduced SAM to all its members in its June 2011 stocks updates.


Read below Truly Rich Club’s discussion of what SAM is all about and the reason why the club has shifted to this kind of strategy of investing in Philippine stocks market.

Meet Your New Friend, Sam.

By SAM, I don’t mean Uncle Sam.

By SAM, I mean Strategic Averaging Method.

There Were Only Two Ways of Getting into the Stock Market, Until…

In my mind, there were only two ways to invest in the stock market: (1) passive investing and (2) active trading.

With SAM, I’m introducing a third way. (I didn’t invent SAM. My mentor did. He’s a billionaire who has done all three methods with incredible success. The stock market has been his playground for the past 38 years.)

Before SAM, I taught people to be passive investors, not active traders.

Reason? Eighty five percent of people lose money in the stock market. That’s a fact. And most of those are active traders. Active traders buy and sell stocks every day. I have friends who are successful active traders, and believe me, they’re very rare. They trade fulltime, they study every day, and they follow very strict rules. Without these rules, active trading is gambling, period.

Passive investing is long-term. Active trading is short-term.

Passive investing only looks at the quality of the companies. Active trading only looks at their share price. Passive investing comes by many names. Many people call it “money cost averaging”, or “peso cost averaging”, or “dollar cost averaging”. Citiseconline, our preferred online broker, calls it the Easy InvestmentProgram (EIP).

So what is SAM?

SAM is in between passive investing and active trading.

SAM is semi-passive investing.

SAM uses the 4 Rules of Passive Investing, tweaks them, and adds a 5th rule.

To refresh your memory, here are the 4 Rules of Passive Investing:

Rule 1: Invest monthly for 20 years or more.

Buying stocks each month using your small monthly savings. It’s really making the stock market your piggy bank. You do this long-term—for 20 years or more!

But in SAM, we tweak this rule. If you use SAM, there’ll be times when you don’t invest, and choose to stay away from the market. These are times when we believe the market is overbought and is going down. We’d rather wait for the market to go down and buy when the prices are cheaper.

Rule 2: Invest even when there’s a crisis.

Passive investing means disregarding if the prices are up or down, if there’s a tsunami, earthquake, coup d’etat, or recession. You just keep buying month after month after month. In SAM, we tweak this rule too. If possible, we try not to buy on the way down, we try to buy when it’s already down.

Rule 3: Invest only in Giants.

Passive investing means buying only established, enduring, blue chip companies that we believe will be there for the next 50 years. We don’t dabble in penny stocks. Because we believe in people who buy penny stocks will become penniless.

In SAM, we tweak this rule too. Generally, we don’t buy penny stocks. At rare times though, we find gems among them. And we make an “intelligent speculation”. Because of its volatility, we only put “extra funds” in these gems.

Rule 4: Invest in many Giants.

Passive investing means not buying one Giant but a handful of Giants. Why? There’s such a thing as “Black Swan” in the stock market—when an unexpected event happens. We don’t want all our money to be in one company—and tragedy hits that company.

If you’re doing passive investing, we recommend 10 Giant companies or more.

If you’re doing SAM, we recommend five to six companies only, because we’re able to move from one company to another.

I repeat: SAM uses all 4 rules, although tweaked a bit. But it adds Rule 5.

And Rule 5 is the magic sauce that makes SAM more profitable than passive investing.

The 5th Rule of SAM

What is the Rule 5?

Rule 5: We buy when the price is beneath our “Buy Below Price” and we sell when the price is near our “Target Price”.

In my Stocks Update Report, I’ll provide both the Target Price and the Buy Below Price for you.

Remember, SAM is in between passive investing and active trading. In one sense, it is semi-passive investing.

Passive investing never use timing. Active trading is all about timing. SAM uses a little bit of timing.

Passive investing looks only at how good the companies are. Active trading looks only at the share price.

SAM looks at both: companies and share price.

Passive investing never sells. Active trading always sells every day or every week. SAM sells after a few months. We’ll give you the “Buy Below Price” and the “Target Price” of each of our recommended Stocks.

Here are 4 Big Advantages of SAM

1. Faster Giants

As I write this, Citiseconline is recommending 16 stocks for its Easy Investment Program (EIP). They’re fantastic, enduring companies that will most likely be there 50 years from now. But from experience, having so many stocks to choose from can cause confusion. And confusion causes inaction.

For SAM, we’ll narrow down the list to five to six stocks only.

Lesser choices mean lesser stress for you!

Why narrow down the list to five to six stocks?

Because not all Giants are created equal.

Some Giants are so gigantic, their growth may be slower.

Some Giants are in a mature industry, so the growth will be minimal at best.

So we’ll choose the Giants that we believe will rise faster.

Obviously, we don’t have a crystal ball with 100 percent accuracy. So we could be wrong in one or two of our selections. But we’re hoping that our right picks will be enough to make your money grow faster than if you were doing totally passive investing.

2. Lower Prices

Just like in passive investing, you’re to buy a particular stock each month. But in SAM, you only buy when its price is beneath our “Buy Below Price.”

Here’s a secret in making more money in stocks: You make your money when you buy, not just when you sell. What do I mean? If you buy it at a cheaper price, your earnings increase many times more.

How does SAM do this? I’ll give you a “Buy Below Price” for each of our recommended stocks. This will prevent you from chasing a rising stock all the way to the top.

3. Secured Profits

In passive investing, you never sell.

In SAM, we’ll tell you to sell after a few months—when our recommended stock hits our Target Price. By selling, you lock-in your profits. You take your profits off the table. You take your money from a company that’s already gone up and put it in another company that still has room to go up. This multiplies your earnings nicely.

4. Nice Jackpots

And then there are jackpots. Lepanto (LC) was our jackpot stock this year. My mentor mentioned it to me last December 2010—and I wrote about it right away. If you bought when I recommended it last December, you would have earned 157 percent by now.

I warned people that it’s a volatile stock. It may go up or down. So this isn’t our bread and butter in SAM. But I told you that if you had extra money (that you’re willing to lose if things go wrong), you can buy Lepanto (LC).

My mentor calls these calls “intelligent speculations”. I repeat: As a rule, we don’t speculate with penny stocks. But every once in a while, he finds a gem among the penny stocks. It’s very rare. But when he finds one, he’ll tell me—and I’ll tell you. The risks are higher, that’s why I ask you to put your “extra money” only.

So there, that is SAM when it comes to investing in Philippine stocks. You can also scan through the click-by-click tutorial below to see an actual example how it worked recently (2014) for one sample stock. For your quick reference, you can get get a sample copy of this SAM discussion here.


Have fun investing!

– Omeng Tawid

PS:Get constant updates. Like our facebook page and follow us in twitter. Check more resources here.

PS2: Below table shows the top 10 winners stock picks of Truly Rich Club. More than showing off the past success and victories of the system, it’s an inspiration to encourage new and existing members to stick with the system and be faithful to their monthly investments with the present stock recommendations. It’s a way of reminding everyone that their patience and discipline will one day pay off. To try it out, you can get more details here.



Dec 2010 to
 May 2011
5 Months
P0.34 to P0.85
Mar 2010 to
May 2011
14 Months
P47.50 to
Security Bank
Mar 2010 to
May 2011
14 Months
P53.00 to
Sep 2010 to
May 2011
8 Months
P27.25 to
Int’l Container
Sep 2010 to
May 2011
8 Months
P32.40 to
First Gen Co.
Mar 2010 to
May 2011
14 Months
P9.80 to P14.78
Jul 2010 to
May 2011
10 Months
P1.54 to P2.30
Nickel Asia
Oct 2010 to
May 2011
8 Months
P15.00 to
Ayala Land
Mar 2010 to
May 2011
14 Months
P11.25 to
Energy Dev’t Co.
Mar 2010 to
May 2011
14 Months
P4.85 to P6.49

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Bo Sanchez’ Truly Rich Club Stocks Update

Truly Rich Club Stocks Update is one of the benefits Truly Rich Club gives to all its members when it comes to picking stocks and knowing when to buy and sell in Philippine stock market.

You can check below the latest update of Bo Sanchez’ Truly Rich Club regarding investments in the Philippine Stock Market ( Note that this stocks update is as of August 2014, and so the below stocks update and stock picks summary by Bo Sanchez team may no longer be applicable as you read it now. You can follow this tutorial >> how to join Bo Sanchez Truly Rich Club in case you want to become its member and get access to all its timely Stocks Update, stocks picks, alert and other lessons).

Bo sanchez truly rich club stocks update

Bo Sanchez truly Rich Club stocks update. Click here to join and get the latest update.

As you probably know, the club gives regular stock update to help its members in taking charge of their investments in the Philippine Stock Market. But there’s a LOT more components in the entire Truly Rich Club membership than just the easy-to-follow Stocks Updateincluding the Wealth Strategies, ebooks, powerful talks, Stocks Videos, quick-start seminars, mastermind meetings,  and a whole lot more of learning  materials!

In this post I summarized a comprehensive review of what Truly Rich Club can offer and how it keeps on improving.

Many associate Truly Rich Club with stock market.

That’s understandable given the fact that its founder Bo Sanchez has published two of his finance books that are both related to stocks investing particularly in Philippine Stock Market.

The first one which shocked the world is entitled My MaidInvests in the Stock Market… and Why You should Too! This book contains the exciting story of her two maids who aim to make their millions by investing in Philippine Stock market with his own guidance.  In effect they’re getting their club membership for free.

TRIVIA – As of July 2016 latest update, the first maid who started her investment program under Bo’s  guidance now had P920k++ in her stock market portfolio! Great job! And she’s only 30+ years old. Check the story details here.


The second one, entitled The Turtle Always Wins, on the other hand relates the story of four kinds of participants in the stock market. It also introduced to the public the current strategy of the club which is (SAM) Strategic Averaging Method, one that refined the original strategy of the club during its first days. You can check this post discussing how SAM works >> Easy Investing with SAM (Strategic Averaging Method).

But if you examine more closely the structure of the club, there are more resources available to its members growing their money in the stock market.

Stocks Update vs Stocks Alert

Stocks Update is a formal report sent to members that update the current stock recommendations of the club. Stocks Update is sent every two weeks.

Initially, Stocks Update is merely a short report (at most 2-3 pages) that includes the specific stocks to buy, a buy-below price and a target price with few words from Bo Sanchez summarizing the changes in their recommendation (if there’s any).

However, since we’re in the stock market world, the club devised a more strategic method and called it Strategic Averaging Method. It also made the stocks update more comprehensive by having another section that gives closer examination of the current stock picks of the club. This is where Mike Viñas enters the picture.

The new stocks update also gives summary tables  that show the main point of the stocks update where members can base their next buy or sell. Below is a sample of this summary table (as of June 20 2012).

By doing this, they effectively  serve two kinds of audiences – those who don’t want to study companies can just read the words of Bo and go directly to this table, while those who want to be more knowledgeable of the reason behind the recommendations can also read the section on the closer look of chosen stocks written by Mike Viñas.

You can get here a summary description of SAM but it is almost the same with the original strategy except for very few things.

Both still rest on the power of having your monthly investments and putting on your money at fixed interval of time. But with SAM, the list of stocks to buy is more explicit. You’re given five to eight stocks you can choose from in buying your stocks. This is fewer than the original strategy that contained three subs-plans having its own list each.

Moreover, since this is more explicit and more refined, the stocks update became more useful and easy to follow for the members. It also led to more profits in a much shorter timeframe since there’s now a more concrete direction to sell from time to time.

Here is a sample of a stocks update when it introduced the SAM in the club  – click here.

Now what are stocks alert?

From the name itself, it is an alert for the members whenever the club has important market updates.  Remember that stocks update are sent only every two weeks.  But any stock market can have lots of surprises.  Hence, Stocks Alert  is the way of the club to give quick short important updates to the members between the Stocks Updates release. In effect, through the Stocks Alert, members are guided every day.

It has also a more direct instruction, telling you what exactly to do with what stock – whether to buy, hold, or sell. That’s why many find the Stocks Alert helpful since these short updates guide their hand when there seems a lot to be happening in the market.

Below are sample Stocks Alert.

Stocks Alert: Sell NIKL

Confused?  Yesterday, I said “Hold NIKL” (Nickel Asia).

Today, I’m asking you to sell it.

Let me explain.  The reason why NIKL shot up was because Indonesia issued an export ban for nickel.  So that leaves the Philippines as the biggest nearby source of nickel for China.  So initially, we suggested that you hold NIKL because we feel it’ll go higher soon.

But after much thought, we believe that there are better places to put our money—because of one reason: China’s growth may slow down—and its hunger for nickel may slow down too.  (Obviously, no one can be sure of these things.   We can only guess.)

We’re not saying Nickel Asia will go down.  (Gosh, we could be totally wrong and the price go even higher.)  Nickel Asia’s future is very bright. But because of other options available to us, we can sell NIKL now and transfer our money to other recommended companies (such as MEG).  Perhaps in the future, we’ll recommend that you buy NIKL again.

May your dreams come true,

Bo Sanchez

PS. We’ll explain more in next week’s Stocks Update.  Watch for it. [03/23/2012]

Stocks Alert: You Can Buy MEG

A few weeks ago, I asked you to sell ALI (Ayala Land), so our SAM List went down from 10 to 9.   But out of the 9 Stocks, 4 of them have already crossed our Buy-Below-Price—so you can only actually buy 5 Stocks.Thankfully, we have a new Stock to add to our list.

If you have extra money, you can buy MEG (Megaworld). AGI (Alliance Global), the mother company, is buying back MEG shares. That’s always a good sign.  That means the mother company thinks that MEGis cheap at this level. We’ll explain more about MEG in our regular Stocks Update next week.  Butin the meantime, you can already buy MEG. [03/21/2012]

Stock Alert: Nothing Is Wrong With SMPH

Don’t panic by the BIG negative you see in your SM Prime Holdings (SMPH) stocks.  (Mine says I’m negative 21%!)

You see, SMPH came out with a 25% Stock Dividend.  (That’s a good thing in the long term, believe me.)  Its price was already adjusted today, but your new shares will be credited on your portfolios by June. So everything will be alright by June.   Kick back, drink your fresh coco juice, and relax.

Mike Vinas will talk more about it this Friday’s issue of Stocks Update. [05/21/2012]

Stocks  Alert: Buy: Ayala Corp

We’re now including Ayala Corporation (AC) into our SAM Stocks.

Our Target Price is P520.  (As I write this email to you, it’s now P426.)

Board Lot is 10, so you’ll need a minimum of P4300 to buy.

Reminder: You’re a long-term TrulyRich investor.  If after you buy AC, its price goes down, be happy.  Dance the Gangnam Style.  Because you can buy again at cheaper price next month. [10/22/2012]

There you go!

I hope this clears some of your questions regarding the way Truly Rich Club helps its members who are investors in the stock market.

But as I told you, many are focused too much on these Stocks Alert and Updates that they forget that there’s actually more in it than stocks investing. You can watch this 11 minute video of Bo Sanchez to discuss more how the club can help you but essentially, the entire package consists of below.

  • Receive 2 PowerTalks every month (instant access via MP3)
  • Receive Bo’s Success Mentors Collection (1 every 3 months for 1 Year)–FREE
  • Receive 2 WealthStrategies newsletters every month–FREE
  • Receive Daily GodWhispers Email–FREE
  • Receive How To Be Truly Rich Seminar–FREE
  • Receive How To Conquer Your Goliath Ebook–FREE
  • Receive How To Turn Thoughts Into Things Ebook–FREE
  • Earn Passive Income by being Bo’s Affiliate in the TrulyRichClub
  • Earn Passive Income with Bo’s other Internet Work
  • Receive Bo’s Very Practical Ebook, My Maid Invests In The Stock Market…And Why You Should Too.–FREE
  • Receive Bo’s Stocks Update. –FREE

The fifth, sixth, seventh and tenth are one-time downloadables. The rest are continuous as long as you choose to continue to be a member.

Money-back Guarantee

You can also just try it out first to see if you’d find the materials a powerfully inspiring Wow experience and simply cancel within 30 days so you won’t be charged with its money-back guarantee. So just for trying, you can have and keep all the great stuff that come along with the first month.

To get to know more about it, click here.

Enjoy the day!

Have fun investing (with a guide!)

Omeng  \(“,)/

Top 10 Past Winners of TrulyRichClub’s Stocks

If you followed TRC’s Stock Recommendations in the past, you’d have enjoyed these earnings. This is an encouragement for you to be faithful to your monthly investments today.
Never give up. And you’ll have great winners 10 to 20 years from now!

(Disclaimer: Past performance doesn’t guarantee that you’ll have the exact same results in the future. After all, your earnings all depend on the market’s performance.)

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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The Easy Way of Investing in Philippine Stock Market – Peso Cost Averaging for Beginners

Many say that the stock market is dangerous.

And you know what, I agree.

After all, statistics says that an average of more than 80% of all the stock market players lose money.


Mark Twain once said, “October is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”

That’s essentially the whole year!

An office mate actually once shared to me his first impression on investing in stocks. He said he couldn’t see the returns being worthy of the time, energy and brain cells being poured into it.

And there’s some truth into that. With the many things that need to be factored in when evaluating entry to and exit from the stock market, it’s really very hard to discern when to start and actually plunge into it.

But the last time I checked, ignorance remains to be not an excuse in trying out something. Most of the times, you only need to know the very basics of anything to make it sense for you.

The Easier Option

History acclaims an established way of investing in the stock market that requires minimal effort. Your fifteen minutes time every month to browse the internet would be enough for this method of investing. That translates to three hours every year – the same amount of time you spend in liking status in facebook a day! :p

It’s called Money Cost Averaging, or in the Philippine context, we say Peso-Cost Averaging.

Peso Cost Averaging (PCA) only means buying stocks of great greatest companies, regularly, little by little, month after month.

The strategy is basically to invest fixed amount of money at regular intervals over a long period in a great company you believe will perform well in the long term.

This is a very passive approach.

Here you’re eyeing for the long run.

You don’t expect big earnings in the near term, but instead a decent profit in the long haul.

If you’re the type of person dreaming for instant money back and returns, sorry, this is not the strategy for you.

But if you are the type who just wanted to make something more meaningful out of your money you won’t need anytime soon, to earn something greater than what Philippine banks normally offer, without breaking your day to day routine, this is the exact method for you.

All you need to do is buy every month of a company which you believe would continue to perform spectacularly in the next 10 to 20 years.

You do it little by little, maybe monthly, not putting all your money in one big shot (lump sum).

You simply invest fixed amount month by month, without worrying about the present market condition.

In other words, you don’t do timing here.

You don’t mind the slips and turns, because you know those are just tiny pixels of the uptrend larger picture you expect in the future.

When will you sell?

Oh, you sell after ten or twenty years or more. Seriously.
In most cases, this will happen come your retirement years.

That’s why you need to select only those companies that you believe would still be consistently earning even after decades. Their solid history and consistent earnings will serve as the safety net surrounding your investments even without your active monitoring.


Right now, I have two sets of funds.

One is my investment/retirement fund, and the other my emergency fund.

Emergency fund is a  non-negotiable before you go to investing, and ideally should be worth three to six times of one’s monthly salary.

It’s part of the budget that’s strictly for emergencies, and therefore is saved in short-term liquid investments, making it readily available anytime. Normal ATM accounts can be a place for emergency fund.

What’s the use of emergency fund?

This will serve as your buffer fund. This is important because you don’t want to see yourself dipping into your investments, or worse selling your stocks at a loss, just so you could cover your emergency needs.

Emergency fund also gives you that inner peace knowing that you’re more than ready financially anytime in case these unfortunate events happen unexpectedly.

With this mentioned, it’s also prudent to complete again this emergency fund in case you have used it for your needs.

But if you’re all set with your emergency fund, then you can now start considering starting your regular investments using Peso Cost Averaging technique.

Important Note

Just always bear in mind that Peso Cost Averaging if applied strictly really takes a long time.

For beginners, it’s difficult to develop that patience while seeing your investment going up and down and not minding the fluctuation. The emotions involved often go in the way and can break your investment horizon. If that happens, you step on the border of another strategy called marketing timing, which is a more active approach and therefore requires more resources such as time and skills.

The Four Rules of Making Your Millions in Stock Market

In Bo Sanchez’ book My Maid Invests in the Stock Market, Bo simplified investing, and shares four house rules of making millions in the stock market:
RULE 1: Invest Small Amounts Every Month for 20 Years or More

RULE 2: Invest Even When There’s a Crisis

RULE 3: Invest Only in Giants

RULE 4: Invest in Many Giants

(You can download a free copy of that book here).

Obviously, the rules only make things straight using  the Peso Cost Averaging technique.

COL Financial’s  Easy Investment Program (EIP)

Online brokerage firm COL Financial, formerly Citiseconline, the leading online stockbrokerage firm in the Philippines, has launched its Easy Investment Program (EIP), making it easier for its passive customers to apply the method of Peso-cost-averaging.

Under this program, investors are to put consistently (though not mandatory) fixed amounts every month into solid giant companies with criteria summarized in the acronym GEMSS (Growing Industry / Earnings Visibility / Management Credibility / Superior Products or Services / and a Strong balance sheet). These criteria assure that clients only choose solid fantastic giants and dynamic corporations that compound their expansion over time. COL already provides customers with a list of stocks they can choose from based on the GEMSS criteria.

Since it started last Aug 2008, the EIP list has included only six companies namely ALI – Ayala Land Inc,; BPI – Bank of the Philippine Islands; JFC – Jollibee Foods Corp; MWC – Manila Water Corp; SMPH – SM Prime Holdings and TEL – PLDT.

As of this writing (2011), they expanded their recommendation list to sixteen (16). You can click here for the expanded recommend stock list for EIP or just click the image below. (Make sure to always check their updated list).


COL Financial EIP List of recommended companies

UPDATE: Download an updated Recommended Stock List for EIP as of Oct 1 2014 HERE. Make sure to always check the updated list in their website.

How to invest in Philippine stock market for beginners


Keep the habit

So you now see the importance of your regular saving habit as your first step in investing.

A portion of your savings, that which you can afford not to use within the next 10-20 years, can leverage on PCA, letting it grow steadily year after year after year.

Invest that small amount regularly every month, and then go back to your normal life.

No need to actively daily watch the market, or hear news about our economy, or be aware of the Wall Street happenings, or bothering with gossips about our bachelor president’s love life.

But take note that you still need to monitor it from time to time,maybe once a month.

Enjoy time with your loved ones instead. Focus on your job or business to increase your cashflow.

Then after ten to twenty years, go back to me.

Subtract from your millions by treating me and my children a Jollibee hamburger!

Take charge of your financial future. Retire a multimillionaire.

Have fun investing!
Omeng 🙂

NOTE: Truly Rich Club, a great learning club started by Bo Sanchez, now employs Strategic Averaging Method or SAM in investing in Philippine stock market.

This works like Peso cost averaging but with some modifications for faster growth and securing profits. This in turn multiplies the earnings nicely.  You can learn more about it in this page. It’s also my personal strategy of choice.

No fear for newbies with peso cost averaging


PS: You can also check out Truly Rich Club and see if it will fit your investing needs.
This club gives exact spoon-feed directions specifically when and what stocks to buy and sell.
I’ve been a member of it for years and it has really helped me improve my financial life!

Click here to find more details about it.

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!

Investing in Philippines Stock Market Tips & Tricks – Watch Guide

This page summarizes the stock picks and recommendations  of several online brokers.

This will be constantly updated so make sure you bookmark this page for your own reference.

Happy investinG!

Investing in Philippine Stock Market - Tips & Tricks as of May 6 2015

ConsumerDNL14.2417.80COLing the Shots
ConsumerCICremoved from COLing the shots on May 6 2015removed from COLing the shots on May 6 2015COLing the Shots
ConsumerGTCAP11761470COLing the Shots
PowerAPremoved from COLing the shots on May 6 2015removed from COLing the shots on May 6 2015COLing the Shots
PowerFGEN28.836COLing the Shots
AirlinesCEB124.8156COLing the Shots
BanksMBT87.2109COLing the Shots
PropertiesSMPH18.8823.6COLing the Shots
ConglomeratesAC701.6877COLing the Shots

Check the coverpage of our facebook group for more updates.

How to Use

Buy the stocks only when the price is below the “Buy Below Price”.

By following this model portfolio, you’re effectively using the basic strategy – “Buy Low, Sell High” .

The basics of Value Investing is buying great companies at a discounted price. By observing the “Buy Below Price”, you’re able to buy ONLY when potential upside is at least 15%.


Last traded market price for the company or index.

A level at which capital appreciation potential is already attractive relative to the fair value estimate. Any price below the Buy Below price is considered an attractive level to buy the stock.

Fair Value is a company’s estimated worth or fair market value as computed by various ways specific to its industry (i.e DCF, NAV, P/BV, P/E) provided by COL.

COL Financial EIP List

A selection of Premium Growth Stocks carefully selected by the COL Research Team that represents listed companies that will continue drive shareholder value in the long-term. EIP is designed for long term investing using Peso Cost Averaging. Check this post for a comprehensive discussion of this passive strategy >> Easy Investing with EIP


Other financial indicators you can use
The PE ratio is the most commonly used valuations measure. It shows how much is paid for each unit of earnings. The PE of a stock describes the price of a share relative to the earnings of the underlying asset. The lower the PE, the less you have to pay for the stock, relative to what it earns. PE is also considered a relative valuation measure.

A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset

An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.

The difference between Last price and Fair Value in percentage (%). Most investors prefer to buy stocks with at least 10% Upside and ideally 15% and up.


Investment Guide’s Rating Definition

BUY – Stocks that have attractive fundamentals and valuations, based on COL’s analysis. COL expects the share price to outperform the market in the next six to twelve months.

HOLD – Stocks will either (1) attractive fundamentals but expensive valuations, (2) attractive valuations but near term earnings outlook might be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely inline or underperform the market in the next six to twelve months.

SELL – Both valuations and fundamentals of stocks are not favorable. COL expect the share price to underperform in the next six to twelve months.

Technical Guide’s Rating Definition

BUY – an up trend showing an ongoing upward drive

HOLD – stay with what you have or, if without a position, wait for a BUY

TAKE PROFITS – suggests a reduction in position as a loss in upward momentum may trigger a consolidating reaction or pullback to support

RANGE TRADE – proposes a trading buy from rebounds off supportive areas

LIGHTEN – reduce positions as range rallies seem to be tapering off

SELL – a down trend showing a continuing downward drive

SELL INTO STRENGTH – a down trend showing a technical rally that may offer better prices to sell to, especially if it nears next resistance



Stock(s) that have favourable fundamentals, and most likely to outperform its peers from their respective sector (Banks and Financials, Consumer, Property, etc) selected by COL. These stocks are the top bet for the “current” year.



1. Do NOT just buy stocks with the highest UPSIDE unless you are a hardcore Long Term investor, a “Contrarian” investor and has the patience of Warren Buffett and Philip A. Fisher who don’t sell for decades. Fisher’s longest was 49 years!

2. Buy when: it’s near the support as much as possible (check your broker for their Technical Analysis guide); RSI is oversold; MACD is bullish (or starting to be bullish); price closes above Moving Average; PSEi is on up trend.

3. If you’re looking for actual stock analyses, research, reports, and expert information being given to you on a regular basis, PinoyInvestor newsletter is for you, whether you’re in the market as an investor or trader. Click here to learn more.


Happy investing!

PS: For those who haven’t signed-up, receive free updates in your email by subscribing to our group’s news letter HERE.

Avoid losing money and become a smarter investor!

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IPO (Initial Public Offering) in the Philippine stock market

IPO or Initial Public Offering is one way a company can get enlisted in a stock market. (The other indirect way is through backdoor listing.)

Through this process, a part of the ownership of an initially private company becomes available for the public to purchase, after which this company becomes a ‘publicly-listed’ or ‘publicly-traded’ company. Thus Initial Public Offering is the first time company stocks are being bought and sold, the issuing company being the only seller, and with price set at IPO Price. This IPO price is announced before the offer period, during which a lot of rumors and excitement in the market could be generated leading to the grand listing day.

Once the IPO is over, the sold shares are then traded just like other stocks with both the buyers and sellers coming from the investing public.

How to Invest in IPO’s

There are two ways for an ordinary Pinoy to participate in an IPO.

The first way is through your online broker subscription.

If you already have a trading account in an online broker, chances are they will offer some number of shares to its clients like you, and announce it in their homepage. This is really quick to do – as easy as submitting an online form – but a common challenge is the limited number of shares the broker can offer, and so allocation of shares is not guaranteed.

If there are more buy requests than the number of available IPO shares allotted to your broker (a case of oversubscription), a raffle is usually made to distribute them to the few lucky ones. If you’re unlucky, you will get no shares so you can try the second method – Local Small Investors Program (LSIP).

Other brokers like First Metro Securities allocate their available shares based on merit system (according to the number of trades ranking of each client availing of the IPO shares).

Local Small Investors Program (LSIP)

LSIP is PSE’s own initiative to encourage more small investors to participate in IPO’s and a direct way to buy IPO shares from the underwriters. A company going through an IPO must allocate shares for this program. The program is also designed to reach out to as many small investors as possible with its  Php25,000 limit maximum investment amount and accepts minimum board lot. Most clients have a higher chance of securing some IPO shares with the LSIP.

The basics instructions to subscribe in LSIP are as follows (the updated instructions should come from your broker):

> Accomplish LSI forms and Signature cards provided by your broker
> Completely fill up the required details
> Go to your broker’s office (your own personal messenger is possible) to have the form stamped
> Attach photocopy of your 2 valid IDs.
> Submit the forms and photocopy of IDs to any of the receiving agents. The list of receiving agents will also come from your broker (which could include offices below) and therefore has to be verified. Personal appearance is mandatory.

PSE Ayala Office
2nd Floor, PSE Plaza
Ayala Triangle, Ayala Avenue, Makati City

PSE Tektite Office
4th Floor, Philippine Stock Exchange Centre
Exchange Road, Ortigas

Sample IPO in Philippine Stock Market

Given below is an example of an Initial Public Offering (taken from CitisecOnline  – now COL Financial) of the company GT CAPITAL HOLDINGS, INC. wanting to go public in the Philippine Stock Market last April 2012.

Here you can see the usual information contained in an IPO announcement (Offer Price, Minimum number of shares, Listing date, etc) and the process on how to participate in such an undertaking as set by the Philippine Stock Exchange.

Included also is a sample IPO Request Form for those who want to avail of it through COL online subscription option.

If you try to get IPO shares through your broker subscription, you will receive an email as to whether you’re allocated shares or now, as shown below.

Allocation of 300 shares during IPO of INTEGRATED MICRO-ELECTRONICS (IMI)
Non-allocation during IPO of CROWN ASIA CHEMICALS CORP (CROWN)

Hope this gave you a clear picture of joining in IPO’s in Philippine stock market.
If you’ve got more questions, just put them in the comments below.

Have fun investing,
oMeng 🙂

Avoid losing money and become a smarter investor!

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How to Apply for SSS Salary Loan Online (and get it in two weeks)

Good news!
SSS Online website now allows any valid SSS member to apply for an SSS Salary Loan online!
This is an alternative to in-branch application if you already have an active MySSS Account.

Just for the sake of trying, I tried applying for this benefit online in their website and was surprise to receive the check in two-weeks’ time. It was a Php 32000 Salary loan upon my first application less 1% processing fee giving me a net of 31, 680.

The following table shows the payment schedule spread within two years in 24 equal monthly installments. The loan is charged a nominal interest of 10% per annum. For employed member-borrower, the first salary deduction shall start on the second month following the date of loan.

Just to reiterate, I did this SSS salary loan application for trying’s sake and don’t really recommend incurring a loan especially if you have poor discipline in payment and money handling. I presently don’t see a need in my life for any loan (praise God!), but this info may be helpful for others who could have valid short-term credit needs.

Another thing to note should you decide to take out a loan: the processing time may vary in your case depending on the type of support that your employer will give in your application. Specifically, your employer need to certify your application before SSS can proceed with the next steps. Make sure you follow-up your employer (or HR department) for that needed action from their end right after submitting your application just to make sure they are informed.

Your eligibility and applicable loanable amount will also depend on the number of contributions you have made and other past transactions or obligations you may have had with SSS.

How to apply for an SSS Salary Loan

There are only three simple steps I did to apply for the loan:

(1) Create a MySSS account online
Go to and in their homepage, click the button for registration.
This is a one-time registration only and you will need your CRN/SS number and a working email address.


(2) Apply for a Salary Loan Benefit
Once your account is active, and you have a working SSS online account, then you can try to apply online for SSS Salary loan under E-Services.  Here you will get your transaction number.  At this point, inform your employer of your application.





Below is additional info from MySSS website:

A borrower may file the salary loan application at the branch nearest the place of residence or business. A member who is registered at My.SSS can submit the salary loan application online. The salary loan submitted online by an employed member will be directed to the employer’s My.SSS account for certification, hence, the employer should also have an SSS Web account.


OFW members may also file their salary loan application at the SSS Foreign Representative Offices in selected countries. In case there is no SSS office in a particular country they may send their application and supporting documents to their relatives here in the Philippines and authorize them to file at the SSS branch. Documents issued in other country should be duly authenticated or certified by the Philippine Consulate Embassy.


Note: The employer shall submit an updated Specimen Signature Card (SS Form L-501) to be updated annually to avoid delay in the processing of salary loan applications.
Complete details including eligibility and filing procedures are available here.

This is also a good time for you to explore the site and verify the recorded contribution payments your employers, including the previous ones, have made.

(3) Wait for the check
The waiting begins here assuming there’s nothing that could delay or disapprove your application.

In my case, it took less than two weeks before my employer sent me a notice that the check had come from SSS and is available for pick-up.

That’s just it!

Overall, the process is easy and smooth for a first time loan.
If you have more questions, you can write it in the comments below or contact SSS directly via email ( or thru their Facebook page.

– Omeng 😉

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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Four Simple Tips for Newbies in Philippine Stock Market

Investing in the Philippine stock market is easy.
However, whether one will be profitable is another more important question.

In fact, this is a common challenge especially for newbies.
With no enough experience, and limited knowledge, they may have incorrect assumptions that could lead to losses when starting this venture.

This is what happened in one OFW who shared his realization.

And I have seen this happended in way more people simply because of failing to do enough study before diving in.

How to avoid losing big when starting?

Let me share three simple tips you can readily apply as a newbie:

(1) Start small and grow through time.

Starting small allows you to limit your possible losses while you’re not used to investing.
There are as many ways to earn from your trades as there is to lose money, so
this simple principle  minimizes the damage you can incur in case you make a wrong move.

(2)Start investing in Mutual Fund.

The good thing about online stockbrokers now is they also allow their clients to invest not just in stocks but also in Mutual Funds.

Shortly, Mutual Fund investment companies pool money from several investors and invest this in an instrument in accordance to its design (with respect to its goals, risk tolerance, etc). Because of the variation of the purpose and investing time horizon of investors,  an investment company usually has several types of mutual fund offering, all of which are managed by a seasoned Fund Manager. And among these types is the Equity Type which is a mutual fund heavily invested in a basket of equities or stocks. It is this basket of stocks that also gives you the mutual fund benefit of “instant diversification”, Divesificaton is one form of minimizing risks in investing.

In short,  if you wanna experience the feel of investing in stocks but want to minimize the risks that come from limited knowledge as a newbie, an Equity type mutual fund is a good alternative.

In  COL Financial and FirstMetroSec, you can buy mutual fund fom the biggest vendors just like buying stocks. Through time, you will see that your investment in mutual fund will also fluctuate, same as what would happen should you decide to buy individual stocks. The advantage here is you ride on the experience of the fund manager in terms of getting the best returns for your money. This is a much safer bet compared to counting on yourself as someone totally new who may be making buying decisions based on whatever “tip” they see in unreliable venue. You can learn more about online investing in Philippine mutual funds here.

(3) Slowly experiment with giant companies.

Once you have enough feel after investing in mutual fund, you can then choose to invest directly in specific stocks. On this, I’d suggest that you choose blue-chips, or those comprising the Philippine Stock Exchange index. This ensures that you’re investing in the biggest companies we have, and there exposed to less fluctuations compared to penny stocks.

Another option is choosing Stock Picks of your brokers in their long-term sample portfolio.
Below is a sample from COL Financial.

While brokers’ recommendations is never a guarantee that you will gain right away, you can at least be sure that there’s some studies made in coming up with their stock picks.  Just make sure that you’re looking at their long-term recommendations (usually six months-1 year) and not on their short-term guides which is designed for traders.

Still another option is to bet on the index with Exchange-Traded Fund (ETF).
You do this very similar to buying specific stocks using stock code FMETF.
This ETF mirrors the whole PSE index and therefore follows the trend of the PSEi with very tiny different. Remmeber that our PSE index is composed of 30 representative companies from severla industries so when you buy an index, you’re effectively buying a basket of stocks already, which is already a form of diversification.

Index-investing is actually a good way for people who just believe the market and country as a whole will rise without the need to handpick and do the stock picking analysis.

Do a mix and match

Of course you can do a mix and match of these. You can invest most of your money in a mutual fund or index fund, and invest a small portion in a specific high-conviction stocks you personally screen. After some period, say from six months to three years, you can see which is much better for you: mutual fund investing, index investing, or doing your own thing.

(4) Trade with your play money.

The three tips above pertain to long-term investing.

But if you really want to gain real experience on the heat of active trading, you can do so with play money. By play money, I mean money you can really afford to lose. This mindset allows you to separate your emotions from your money, a common challenge of new traders.  At this point, just remember that proper trading follows exact rules, violating which means you’re entering into gambling. This means setting up your own rules – the entry and exit points – before you even go into your first trade.

Doing the above approach will certainly leads you to some lessons and open you up to possible mistakes and hopefully improvements. And that is the best thing about stock market: with continuous experience and humility to start small, and grow through time, one can become better and better, rewarding you until your old age.

Have fun investing,

oMeng 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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How to Invest in Philippine Mutual Funds Online

How to Invest in Philippine Mutual Funds Online

Investing in Philippine mutual funds has never been this easy with the advent of online platforms which allows you to invest in mutual funds directly right on your computer screen.

Unlike before where you’d normally go through an individual agent to buy mutual funds, two of the most popular online stock brokerage companies in the Philippines are now offering mutual fund too together with their primary stock brokerage business.

These two are COL Financial’s Fund Source and First Metro Securities’ FundSmart.

Why invest in Philippine Mutual Funds

A Philippine mutual fund is an investment company registered with the Securities and Exchange Commission (SEC), which pools money from many investors creating a big fund under a common objective of this fund. This fund is then invested in specific types of securities to achieve its stated objective. Economy of size makes this pooled fund as a whole “more powerful” than the initially isolated individual funds in achieving a common goal understanding the risks involved.

With the different possible goals for the fund,  four main types of mutual fund are offered:
Money Market Funds invest purely in short-term debt instruments (one year or less).
Bond Funds invest in “bonds” which are really long-term debt instruments offered by governments or corporations.
Balanced Funds invest in a mix of shares of stock and bonds.
Stock / Equity Funds invest primarily in shares of stock.

Investing in a Mutual Fund (under Balanced or Equity types) therefore is an easy alternative way to invest in the Philippine stock market which requires a lot less time and monitoring on your part.

Little time because you just basically “give your money” as your investment and let the fund manager do the job of judging where to invest it and subsequent monitoring. Compare this with direct stocks investing where you yourself does all the analysis (stocks selection) and trades (buy and sell) needed, something that would obviously demand more time from you,

Another good thing about Philippine mutual funds is you can start investing in it with as low as Php 5,000 only. There’s no required regular addition (or top-ups) but I’d personally recommend that you add regularly and really use it as your giant piggy bank for your long-term goals (at least five years).

Another advantage of mutual fund over direct stock investing is the diversification it offers. If you’re buying stocks on your own, your 5k initial capital can only buy at most two stocks. But when you buy a mutual fund, you’re actually effectively buying a basket of stocks and other securities like government/corporate bonds. Diversification is one common investment strategy in managing the risk for any investment.

One downside of mutual fund over stocks are the additional fees involved in mutual fund investing, such as management and front-end fees. Look at these costs as your “payment” for joining in the mutual fund and riding on the expertise of its fund managers.  The good thing about online mutual fund sellers is they are waiving (as of now) the normally charged front-end fees which means savings for you.

When it comes to possible returns on and of investment, with the very structure of the mutual fund, it’s easy to see that the main risk of losing money lies on the skills of its fund manager. A good way to judge this is to look at the consistency of the fund performance at least in the last five years. (Read >> Which is a better investment: Stock Market or Mutual Fund?)

There’s also typically a minimum holding period for your investment, some with as short as 90-days. You can always cash out your investment earlier than this but you’ll be charged an early redemption fee.

Other details about the mutual fund, such as its performance and portfolio mix can be easily found as part of the resources page of your online broker, like shown below.

How much you can earn

In terms of potential returns, mutual fund is ideal to be part of your long-term portfolio, typically with at least five years time horizon.

You can see below the historical performance of equity type mutual funds in different holding periods, 1 YR, 3 YR and 5 YR. It’s important to note though that just like in stocks investing, the returns of mutual funds are never guaranteed.

Mutual Fund Performance Table

How to buy Philippine mutual funds online

As I mentioned, you can buy mutual funds yourself via online brokers COL Financial and First Metro Securities.

COL Fund Source

COL Financial offers mutual fund through its COL Fund Source.
You can choose from 20+ of mutual funds offered by the top 6 mutual fund companies in the Philippines  with ZERO front-end fees.

With COL Fund Source, you can:

  • Access 26 Mutual Funds offered by the country’s top 6 Mutual Fund Houses
  • Invest in Mutual Funds with only PHP 5,000 to start
  • Invest in Mutual Funds without paying for the Front-End Fees
  • Automate your Mutual Fund purchases for regular investing, and
  • Monitor your investments anytime and anywhere

If you already have a COL Financial account, you can readily buy your first mutual fund.
To explore and start using COL Fund Source, log in to your COL Financial Account and just click on the Mutual Funds tab.

COL Fund Source

First Metro Securities – FundSmart

Another online broker offering mutual fund is First Metro Securities under the Metrobank Group. It’s practically the same as COL Fund Source, offering mutual funds from top six mutual fund houses and also has no front-end sales charges.

Mutual fund with First Metro Securities

If you already have an account in First Metro Sec, then you can also consider buying mutual funds online as part of your diversification.

Below is a sample portfolio holding mutual fund PSFG (PHILAM Strategic Growth Fund) managed by mutual fund company Philam Asset Management, Inc. I just bought this yesterday (April 28 2017) so you will see a tiny loss, but I expect this to give returns after some time which I will update here. 🙂

Final Comments

As a final note, while mutual fund is an excellent choice for passive investors who simply want to have greater returns than what banks can offer, it’s important to remember the importance of goal setting and risk assessment in every investment you’ll take.

Online brokers offering mutual funds normally have its risk assessment questionnaire that will help you decide which type of mutual fund is best for you based on your answers.

Additionally, before you invest, ask yourself the purpose of each of your investment.  This way, it will be easier for you to manage your investment (and your emotions) knowing its original intended purpose. Many newbies fall to the trap of losing this mindset when they start seeing losses even if it’s not yet done within their investing time frame. As with stocks, you’d need to allow your mutual investments to grow over time to achieve optimal returns for your goals.

Hope this helped you in your search of where to invest your hard-earned money.

If you’ve got more questions, you can send them to me through my contact page.

Have fun investing,

Avoid losing money and become a smarter investor!

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