Last updated on May 7th, 2020
(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download your free ebook here.)
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.
She also knew about finance & business learning venue Truly Rich Club of Bo Sanchez being an attendee of The Feast and has actually already had 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 the 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 would performs well, then she’d consider moving the rest of her investments into the stock market.
As much as I wanted to encourage her to consider 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 & consistently earning companies and have a longer projection, those really bad times can turn out to be great opportunities. The difference basically lies in the time horizon of the investor & more importantly on the quality of the companies she would invest in.
I used to believe that the 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 a 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 much better way.
Truly Rich Club style of investing has a way of doing it relatively quicker with its Strategic Averaging Method (SAM), still with not so much effort for people who really don’t have the time to do all the analysis and just wan to focus on their day job or business. (You can read this blog for a description of this method.)
For example, in below latest update from the club, it tells of its profitable recommendation to buy one stock – DNL – for fifteen months after which was already advised for selling last May 9 after reaching near its target price. (You can check at the end of this post how it performed within this entire period.)
Result? 30-40% growth for those who followed.
This is notably a much better growth within a much shorter period compared to average returns and holding period of mutual funds.
Now you see one of the reasons why the Club shifted to this more active SAM strategy from its previous very passive way of investing – to get the benefit of choosing faster giant companies to make your money grow faster than if you were doing totally passive investing (which takes years).
The shorter period – with selling after few months once target prices are reached – also allows the investors to secure and lock-in profits. This really multiplies the earnings nicely. What it only requires is the discipline from the investor to invest regularly following the SAM house rules.
So going back to the story, I shared this same note to my friend to give an option in her stage of “trying it out” (of course with the risks involved). I also said that I’m going to share with her the stock picks I receive from the club (through its stocks update) just in her experimental period. After all, the mentors and brains behind the club see incredible growth this coming 2015, so I think she could possibly ride on it.
In our Facebook investing group forum – Investing in the Philippine Stock Market – Tips & Tricks, one will not take a long time to notice the main problem of many after already deciding to invest and opening a stock brokerage account: knowing exactly what to buy, when to buy, and when to sell. And all these “initial challenges” I believe can be solved by the stocks update of the club minus all the efforts of doing Philippine stock market analysis with one’s premature skills. With this resouces, people can just look at the buy below price and target prices to help them in their monthly buying activity (and selling when it comes). You can check this blog talking more about stocks update and stocks alert.
Read below update from Bo Sanchez:
Congratulations, TrulyRichClub Members—You’ll Get 30%+ Profit In One Stock!
My members are happy.
Last February 2013, I recommended to our TrulyRichClub members to buy the stock of a relatively unknown but great company that produces food ingredients.
My simple advice was, “Buy small amounts each month.” Since a lot of people didn’t know the company, they asked, “Jeepers Bo, I’ve never heard of them before. Why will I invest there?” I explained, “Yes, you don’t know this company, per se, but you know the clients of this company. They’re the country’s biggest food ingredients provider, serving companies like Universal Robina and Jollibee.”
When we recommended this very profitable company last February 2013, its stock price was P6.45. After 15 months, it’s now P9.25. That’s a whopping 43% growth. (Note: To compare, your money in the bank grows at less than 1% a year.) Some analysts believe that this amazing company will still go up, because it’s got a fantastic future; BUT because we’re very conservative, last week, I already asked TrulyRichClub members to get ready to SELL very soon if it reaches (or almost reaches) our Target Price.
And I asked them to transfer their money to our other recommended companies that we believe still have lower prices, especially one specific company that’s into power-generation.
Oh yes, in the past 15 months of buying this great company, there were “terrible” months when the stock went down, and some asked me, “Bo, I’m freaking out. Gosh, I’m actually losing money!” I smiled and said, “You may be losing on paper, but if you don’t sell, you’re not losing. Just close your eyes and keep buying small amounts each month!”
Today, my TrulyRichClub Members are a happy bunch. Because now, they see their nice profits and understand how this entire thing works. They realize that investing in the Stock Market isn’t a quick-rich scheme.
They realize that there will be terrible months when the Stock Market is really down and they’ll be terrified—but they also now know that it’s during those terrible months when they earn the most terrific profits IF they buy during those terrible months. And all they have to do is “close their eyes and keep buying small amounts each month”—and they’ll come out as big winners in the end.
My message? You have to invest every month for YEARS, and in due time, you’ll earn your MILLIONS.
Here’s why: Moving forward to 2015, I see incredible double-digit growth for MOST of our recommended companies. Oh yes, there will be the usual “terrible” dips along the way, where you’ll be scared and want to strangle my neck for getting you into this, but in due time, you’ll realize that these dips are when you make the biggest profits if you buy during that time.
May your dreams come true,
There you have it. Exciting times are coming.
Hope this helps in your “aral muna bago invest” stage.
To end this, I always say that knowing what stock to buy is just a TINY component of investing and more so in designing one’s financial life that’s why I constantly urge people who ask me to really sit down and see the bigger picture of personal finance planning.
Did you know that going into investments is actually one of the last steps in drafting a comprehensive personal financial plan? At delikado pag puro investments lang??? Now you know!
I’ll explain more in future posts.
Have fun investing (for faster growth),
– oMeng Tawid 🙂
PS: See how DNL performed in the last 15 months below. Enjoy easy investing! Click here to learn more about how to invest as easy as this one.
PS2: Check more tools, resources and tools for you here.
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