Stocks Update: Don’t Buy and Hold – Do the SAM!

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Yesterday, Bo Sanchez sent this stocks update that talks about “buy and hold” strategy which most people is doing even some of the TrulyRichClub members.  I’ve done this strategy before SAM comes in last year when I decided to sell those stocks I’ve been holding for a while like Manila Water (MWC), SMDC and Jollibee (JFC).  I have no regrets at all specially when I checked my portfolio last week and compared it with the total amount I deposited to my COL account.  I’m surprised it already earned around 26% including all the dividends which I re-invested.  In this issue of stocks update, Bro. Bo continues to inspire us to be faithful to our SAM stocks and avoid the “buy and hold” strategy.  Let’s be focused and consistent to our SAM investments!

Yesterday, I got alarmed when I bumped into a TrulyRichClub member.
I was walking in the mall when a young woman greeted me. She said, “Brother Bo! Thank you so much for building the TrulyRichClub. You’ve helped me so much.”
“So have you started your investment program?” I asked.
“Yes!” she said, “I put all my savings in the stock market. It’s not much. Just P200,000.”
“And do you invest every month from your monthly paycheck?” I asked, guessing that she had a job. (Her office uniform gave her away.)
“Sorry, Brother Bo,” she said sheepishly, “I don’t have the discipline yet. I know I should, but I’ve been postponing… I shop too much!” she giggled.
I held her arm and said, “Then you’re not doing SAM…” I said as gently as I could, “You’re doing a buy and-hold.”
“But I put my P200,000 in your SAM stocks. FPH, BPI, EDC…”bo-sanchez-sam-stocks
“Right stocks, wrong strategy.”
“Is it really bad?”
“No, it isn’t. Buy-and-hold is okaaaay….but you’re not earning as much as you should. How is the original P200,000 you put in?”
“It’s gone up a little. But you’re right, not much… But at least, I’m very happy that my money is far away from me. That’s what I’m thankful for. So I don’t spend it on shopping!”
I smiled, “Imagine if you were doing a monthly investment—even if it’s just a small amount from your monthly paycheck each month—it would be much bigger today.”
“I know, Brother Bo. Aw, meeting you today isn’t a coincidence. God is really telling me to be more disciplined!”
Lesson: If you’re a TrulyRichClub member and you see me walking in a mall, don’t be ashamed to greet me! It may be God telling you to be more faithful to your investment program.
Don’t do a buy-and-hold. Anyone can do that.
Do SAM. No matter how small, add to your original amount every month!
My last argument against buy-and-hold: It’s
TOO inconsistent. Can you grow anything in life inconsistently? No, you can’t.
You can’t maintain a healthy body inconsistently. You need to exercise and eat the right food consistently.
You can’t maintain a marriage inconsistently. You need to serve your spouse and communicate consistently.
Should I go on? You can’t raise your kids inconsistently. You can’t grow in your spiritual life inconsistently.
Shucks, you can’t even be really good at Angry Birds inconsistently.
If you want to grow in ANYTHING, you’ve got to be in the thick of things, slugging it out consistently.
To grow your investments, you’ve got to put in your little amounts of money consistently as well.

Happy investing!

May your dreams come true,
Bo Sanchez

bo-sanchez-sam-stocks-update

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