All posts by investmentsko

Old is cool: Reasons why I love my old car

After typhoon Ondoy struck Metro Manila four years ago, we decided to move and rent an apartment in another subdivision because our previous place was heavily flooded. Since our access to the main road is a bit far, my wife and I realized that we need car so we bought a 12-year old car online. Owning a manual transmission car is a very big challenge to me. Why? It’s because I don’t know how to drive! So the car needs to be parked in the street for several months before I can use it. At the time, the idea of investing in stocks has not come to me. In summary, here are the top reasons why I love my old car based on my experience:

It can take me and my family from point A to point B. Like most brand new cars do, my old car takes me and my family safe and sound from one place to the other. Now I don’t have to rush early in the morning to the bus station for the first trip whenever we decide to go to Laguna for a weekend break or a vacation.
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Easy to diagnose when there’s a problem. I save a lot of money here. My trusted car technician will visit me or I’ll call him describing the problem then the next day, he already had the parts needed to fix it. That saves me from expensive cost of parts and taxes because most cheap parts are available from local shops in Banawe.

Cheaper maintenance cost. Although it encountered a lot of repairs from the beginning, when I sum up all my expenses and compare it against getting a bank loan for a brand new car with monthly amortization of 15,000 pesos a month, I realized it just cost me less than half of the amount.

Fuel efficiency. Compared to its brand new and a more recent model, my car is much more fuel efficient because it has a smaller engine. I was shocked when I ask one of my colleagues who owns a recent model; his car’s full tank gas capacity is just good for 1 week while mine can last up to 3 so that’s a huge difference. But of course there’s a lot more factors to consider here like the driving habits, road and traffic conditions, etc.
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Personal education. Aside from learning basic maintenance and repairs I experienced in my car, it also turns out to be an “automobile university”. During rush hours, instead of listening to the radio or music and complaining over the traffic jam, I view it as an opportunity to learn from my favorite motivational speakers and best-selling authors like Brian Tracy, Robert Kiyosaki, Bo Sanchez, etc. I listen and learn from their audiobooks and seminars. I also believe that when I’m stuck in a traffic jam, God gives me time to reflect and pause for a while.

It allows me to invest. This is probably one of the best benefits when I decided to buy a used car. I imagined that I bought a new car and I need to pay a monthly amortization of 10,000 pesos a month. I set aside this amount every month and put it in the stock market following Truly Rich Club’s recommendation. Also whenever I get bonuses and extra money, I also added it in my investments. After investing each month for almost 3 years, I was amazed how my money grows. Early this year I realized I can now buy a new car! But of course I’m not gonna do that because my old car still rocks! Besides, a new car losses its value of around 25% the moment you drive it off the lot while my investments continue to grow and gives me dividends.

Do You Want to Earn Thru Dividends or Capital Gains

Just want to share you this sample stocks update from Bo Sanchez’ Truly Rich Club. I’m so excited in the power of compounding in the years to come. I remember the day I told one of my relatives about the dividends I received the first time. He was very excited to know and asked me “how much?” and I answered “well “it’s 200 pesos”. He laugh at me and said “are you excited with that amount”.  But that was 4 years ago. Now it multiplied many times because of my habit of investing month after month after month…  Thanks to the Truly Rich Club team for the motivation and encouragement.  You are doing a great job!

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Do You Want to Earn Thru Dividends or Capital Gains?

The obvious answer is “Both!” Let me backtrack. There are two ways of earning in the stock market. The most popular way is through Capital Gains. That’s what gets bragged in the office cafeteria. “I bought this unknown company at P1.23 last month. Today, it’s gone up to P2.58! Whoot!” And a lot of congratulatory high-fives follow. But that same guy didn’t mention how he bought another unknown company at P0.45 last month and it’s doing P0.08 today. No one talks about losers, only winners. Because talking about the winners is exciting. And it makes you look very sexy. Hey, I like Capital Gains too. Who doesn’t? It’s like winning the lotto. In the history of the TrulyRichClub, we’ve had wonderful stories of Capital Gains. Not from unknown companies, mind you, but from our humongous giants. (For example, when we sold JGS last year, we enjoyed a 40 percent capital appreciation.) But as exciting as these are, I believe the bulk of your long-term profit will come from dividends. Wharton finance professor Jeremy Siegel studied the stock market returns from 1871 through 2003—a span of 132 years! Do you know what he found out? In that loooooong period, 97 percent of the total returns from stocks came from dividends, and only three percent came from capital appreciation.

What does that mean? In the long-term, a huge part of your earnings will come from DIVIDENDS. That’s when the gigantic company you buy gives you annual or semi-annual share of their profits. Sometimes, it’s two percent or three percent or four percent or five percent a year… It really depends on the company. These tiny dividends aren’t very exciting. But over time, they compound. And they will make you very rich. In 20 years, this is what will make you a multimillionaire. (Obviously, this works if you reinvest the dividends as we always tell you to, and not withdraw it from the stock market to buy a wide-screen TV or take a trip to Hong Kong.)
Here are a sample of the SAM Stocks that give you dividends:

  • BDO – 2.2%
  • EEI – 2.2%
  • LRI – 5.5%
  • TEL – 6.7%

I know, they don’t look very exciting. But believe me, in the decades to come, they will…
Have a fantastic year ahead of you!

Happy investing!
May your dreams come true,
Bo Sanchez

Afraid investing in stocks?

A lot of people know and heard about the stock market, its benefits over the long term and specially if compared to banks’ offered savings and time deposit accounts. Surprisingly, few people get started investing. I’m also guilty about this. The most common question is: “How and where do I start?”

Knowing where to start investing in the stock market is very important. Most people are stuck to this because they don’t know where and how. I remember 3 years ago when I heard about investing in stocks. Somebody sent me the e-book of Bo Sanchez where he explains the stock smart. Although the book is easy to read, I have run through it many times until convinced myself that I should start it out. But along the way, while having our regular date in the mall, I saw the opportunity to “invest” and own a townhouse somewhere in Rizal so I decided to grab it instead. Luckily, (because I call it as a blessing anyway), after several months of paying the down payment for our townhouse unit, the developer got involved in a scam so all the amount of money I put in was wasted. Then again I remember the stock market. I used my reserved cash for the down payment as my initial investment. I did it afraid thinking that I’m entering again into another scam because I don’t have any friends or relatives to ask for advice. I convinced myself that if I can invest into a scam for a bigger amount, these 5,000 pesos is just small. So I did what was instructed in the book. Author Bo Sanchez recommends Citiseconline (now COL Financial) as a broker in buying and selling stocks of giant companies. So I filed a 1 day vacation leave and went to their office in Ortigas. I was surprised to know that in less than 1 hour, I already have my COL EIP account. It’s very easy!

Fast forward after 3 years of religiously funding my account and following the Strategic Averaging Method of the Bo Sanchez’ TrulyRichClub, my money earned 10 times the amount of money I lost in my wrong investment in townhouse. Investing really pays off!

If you’re still struggling in starting out or opening an account here’s two simple steps that you can do:

1. Go to COL Financial’s office in Ortigas and bring a valid ID (driver’s license or SSS ID)
2. Fill-up the form and pay the initial amount of 5,000 pesos

That’s it! You will have your account already. Just wait for COL’s email for the login credentials so you can buy your first stock during the trading day which is from Monday to Friday, 9:30am to 3:30pm.

So stop making excuses now. Start investing today! As Ernie Baron said, “Knowledge is power”. What if you have the knowledge but lacks of action? Obviously, the power is wasted. We can then add action and improve this statement: “knowledge + action is power”.

How to smell a scam away

“Make your money work for you” is a very popular slogan used in scams to attract investors.  Now if you are not aware, chances are you will fall to this trap especially if they promised to give enormous returns over a short period of time that will make you rich quick.  There is a very informative and a real life video from pesos and sense about this where a professor of Adamson University was a victim.  Watch it below:

In the Trulyrichclub, our mentor Bro. Bo Sanchez is giving several tips on how to smell a scam away and how to identify its many faces.  It’s a long article but I think worth your time reading.  Here it is:

Here’s the first rule of money: If you earn it, don’t lose it.
I’m telling you this because there have been many financial scams in the Philippines. You need to learn how to protect yourself from a scam. It’s useless to earn good money and then lose it all to a financial fraud.
Here are the six signs of a scam…

1. Insane Interest Rates

Multitel (Multinational Telecom Investors Corp.), started by Rosario “Rose” Baladjay, was probably the biggest scam in Philippine history.
Some news reports say that two million people invested in this company—which probably reached P100 billion. Reason: This company accepted small investors—even as small as P10,000. This company was so believable, they got many military and police officers to invest.
Why? Multitel promised four percent to five percent interest a month. They also had another offer where you could double your money in 18 months.
Did you notice? That’s 60 percent growth a year.
That’s what I call an insane interest rate.
Insanely high interest rates means a pyramid scam is going on: The company gets money from new clients to pay off the interest of old clients. (This is what you call a Ponzi scheme, named after one of the most celebrated scammers in the history of America, Charles Ponzi.) This charade continues until there isn’t enough new money to pay off the interest rates of older clients. Soon, everything implodes.
For example, Rose Baladjay started by promising 1.1 percent a month interest to her investors.
But by its very structure, you’ll need more and more money to pay older clients, so Multitel had to keep raising the interest rates to attract more customers. Soon, it promised five percent returns a month.
But after Multitel was shut down by the government, people didn’t learn. Cyrus Yap Hao, who worked with Baladjay in Multitel, set up his own pyramid scheme. He founded Royal Manchester Five (RMF). His company promised insane high returns as well—and many more were duped and lost their money. Through Powerhomes, they dangled the promise of P3 million in earnings plus a house and lot. Around P2 billion of clients’ money was lost in RMF.
In 2008, FrancsSwiss did the same thing. It promised four percent a day for 60 days straight or 270 percent returns. But despite the insanity of those interest rates, many executives and celebrities were lured into its bottomless pit. (I know of one Vice President who sent them P10 million and lost it all.)
Remember, if the promised interest rates are too high, stop. There’s something fishy going on.

2.Guaranteed High Interest Rates Every Year

Aside from the ones I mentioned above, there have been many other scams in the country and all of them have been “successful”. Unfortunately. Companies such as Performance Investments Products Corp (PIPC), MMG Holding, Tibayan Group of Companies, Legacy Group, Maria Theresa Santos Trading, etc…
Biggest Reason: Filipinos are financially ignorant.
We think everything works like a bank. We reason, “If a bank can give me a guaranteed interest rate, these investment companies can also do so…”
No, they can’t.
A bank can give you a guaranteed interest rate because they give a measly one: Less than one percent a year for your savings account and around three percent to five percent a year for your time deposit.
But for example, at its height of popularity, the Rural Bank of Paranaque (run by Legacy group) was promising 20 percent a year to its depositors, every year. That should have been a red flag. But people didn’t see it.
Three of my friends invested in Legacy Group. They reasoned, “It’s a bank. As long as my money is below P250,000, my money is insured. I’m covered by PDIC.”
Sounds terrific. But when the collapse came, one of my friends had to wait for more than a year to get her money back.

3. You Can’t Understand How They Earn Money

Not one of the companies above could explain how they could earn such high returns. Some will try to explain their investment strategies in esoteric language specifically for the purpose of confusing you.
For example, Royal Manchester Five said that they grew their clients’ money by trading in European currencies. But that’s impossible. Anyone who has done foreign currency trading knows that it’s highly volatile.
(My mentor says that 97 percent of people who trade in foreign currencies lose their money.)
Most of these pyramid companies hire salespeople to invite people to invest their money. These sales people are usually investors themselves. And they earn one percent to 20 percent commissions from the money being invested. Most of these sales people are very sincere. They really believe in the company. They don’t know it’s a scam. So they believe they’re doing their friends a favor by asking them to invest in these companies.
So when you ask these sales people (usually called counselors), “How can the company earn such big amounts?” they’ll never be able to answer your question. Because they themselves don’t know. They’ll usually say, “I don’t really know how they do it. It’s too complicated. Something about European currency trading. But it must be fantastic. All I can tell you is that it works. I’ve been investing with them for three years now and I’ve been getting my interest checks every month like clockwork…”
And then tragedy strikes.

4. It’s Just Too Good to be True

There are other kinds of scams.
One day, a man came up to me and said, “Brother Bo, I received an email telling me that I was chosen to be the recipient of a huge inheritance money from a British lady who had no heirs. It’s worth 1.2 million pounds.
When I receive it, I’ll donate half to your ministry.”
Groan. Gently, I told him that it was a scam.
He said, “But what if it isn’t a scam? I’ll lose the 1.2 million!”
I told him to go ahead and find out for himself. I warned him, “If they ask for money, it’s a scam.”
The following week, he told me with a sad face, “You were right. It was a scam. I called up the number of the attorney. The guy asked me to send him $400 to expedite the transfer of the inheritance money to my account.
And to think that I almost fell for it…”
In another scam directed to OFWs, a text message was sent to them, saying, “Congratulations! You’ve just won $40,000 in the lotto…” The lotto was reportedly sponsored by then President Gloria Macapagal Arroyo for OFWs. But to claim their prize, they needed to send some dollars to Western Union—so they could remit the prize money from the organizer, which was supposed to be the GMA Charity Foundation. None of these were true. But some Filipinos fell for it.
If it’s too good to be true, stop!

5. They Seem to be Good and Credible People

The people talking to you about the scam could in fact be very nice, honest, and kind people who wouldn’t hurt a kitten.
But they could just be as ignorant as you are.
In the Royal Manchester Five scam, the top sales managers were Born-Again Christians. They believed in
their company so much, they asked their religious friends and even churches to invest.
Some, however, may just be very good pretenders.
Example of someone who seemed to be very credible? Bernie Madoff. In the biggest and longest-running
scam in America, Madoff wasn’t only seen as a good guy, he had all the credentials. He was former chairman of
NASDAQ stock exchange.
He was so believable, his Ponzi scheme lasted for possibly 30 years. Because of his reputation, Madoff was
particularly attractive to very wealthy investors. When his entire operations fell, reports say that his clients lost
$65 billion.

6. Your Financial Advisor and Financial Manager Are the Same Person

I love what I do in TrulyRichClub. Because I’m your financial mentor, coach, advisor, teacher, sensei… But
I don’t hold your money.
Instead, I ask you to put your money in the stock market—specifically in gigantic companies like JGS and MBT and BPI… (Even Citiseconline doesn’t hold your money. They’re just a middleman receiving your money and sending it over to the giant companies you buy.)
Do you see the difference?
If it’s a scam, your financial advisor is also your financial manager. He holds your money. He invests it. He
has full control over it. Theoretically, he can run away with it.
Example of a very dangerous situation: I manage the money of my older aunts and uncles (age 80+). I do
it because at their age, they have no choice. I love them. But what they’re doing is dangerous. If I was evil, I’d
spend their money—and they won’t be able to do anything about it. Thank God their nephew’s a good person.
Handsome too, but let’s not go there.
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Smaller Bottomless Pits

But have some relatives or friends asked you to invest in their businesses? And has your money vanished into thin air?
They weren’t scammers. They just didn’t know what they were doing. Don’t blame them.
Who’s to blame?  You. (Sorry. I love you.)  You turned over your money without due diligence. You didn’t read their financial statements. You didn’t research about the industry. You didn’t ask mentors who are familiar with the
business.  You abdicated your responsibility over your money.  I speak with bluntness because I did these foolish blunders
myself. Many times! (I was hardheaded.) I’ve lost millions doing this silliness.  But today, I’ve learned my lesson. Finally! I don’t do it anymore. I’ve decided to keep my investing very simple now.
So today, I invest in two things only:
First, I invest in my personal businesses, where I’m in full control of the money. If I’m not in control of the money, I don’t put in my money.
Second, I invest in the stock market. I buy gigantic companies. Even if I’m not in control, it’s okay, because those who are in control are legends like Henry Sy, John Gokongwei, and Jaime Zobel, etc. When you invest in the best companies in the stock market, you partner with business titans. Because of these two simple decisions, my money has multiplied tenfold.
Keep away from scams.
Keep investing simple.
And your money will multiply as well.

May your dreams come true,
Bo Sanchez

 

How budgeting can alleviate your savings experience

There are many such people who may have been saving for quite a long time now, but to no avail. So, what would you be required to do, in order to can save up more? It is important to have enough savings, so that you can lead a secure retired future. Furthermore, savings is important for emergency situations too. Therefore, you need to take stock of the situation, so that you can save up more than before. The health of your finance depends on how you handle or manage your money.

Improving the budgeting techniques

One of the greatest crucial factors, with regards to effective budgeting is, keeping your expenses lower than that of your income. You will have to set up a goal and work on achieving that. If you have been following a budgeting plan, try to set up a new one. In order to get the things changed, with regards to budgeting, you will have to check the old receipts. These can be the receipts based on rent, mortgage, grocery, insurance and debts or even more. Find out what the past expenses have been, on an average and work on the changes as required.

In addition, you will have to:

  1. Follow separate budgeting techniques – You can start following separate budgeting techniques, for different requirements. Like, you can prepare a separate budget for a week and a separate one for the month. Then, you can use a separate budget for your everyday living, and a separate one for traveling and so on. This may help you in saving up more and from every other aspect of your life.
  2. Set up some savings goals – Set up a proper savings goal, so that you can work towards achieving the same. If you have already been saving, you will have to set an even higher goal standard. If you can achieve the new goal, set an even more stringent one.
  3. Gift yourself if you reach the goal – If you think that you had easily been able to reach the goal, you can gift yourself a small nothing. For example, if you had set up the goal for a month, but if you were able to achieve it within 25 days, you can get a gift for yourself.
  4. Try going frugal – You can try going frugal, if you had not been able to save up lots through simple budgeting techniques. You will have to save on electricity, on gas, on other bills and even on grocery through couping.

These are the ways in which you can obtain more savings and can go on to improve your finances too, in the long run. This may further, help you in avoiding debts and thus you may also see improvement, with regards to your finance and credit rating.

Yes, stocks are down again!

Yesterday, stocks fell even lower compared last week with 6.75% loss (442 points) closed at 6,114.08.
I saw this market dip happened two years ago, sometime in September 2011. This is another great opportunity to buy more shares at a cheaper price where everything is on sale for a big discount.
I have tabulated my list of stocks and checked the future growth with reference prices as of closing date yesterday June 13, 2013.  This shows “how far” the current price to the target price of each stock.

my-stock-table

As you can see, BDO is more attractive to buy followed by LRI.

This week I sold my two year old stock, FPH and switch it to TEL and some other portion to BDO and MEG. Good thing is I still earned around 30% on the sale which is pretty good after it reaches below a hundred pesos per share.

As bro Bo says, “This is all TEMPORARY. The important thing is you try to keep buying
during times like these. RED means GREEN!”

Happy investing everyone! Investing is still more fun in the Philippines!

COLing the shots

Just in case you are not aware of this, COL as part of their research product has a regular report called “COLing the shots”.  It is a monthly detailed report covering the insights on investment based on global and local market updates.  This report also gives essential information and analysis which may help us in our decision so that our investments will be a success.  It has a “model portfolio” similar to trulyrichclub’s SAM table which anyone can follow.  Below is the “COLing the shots” table as of April 3, 2013.

coling-the-shots-april-2013

This report is available exclusively for COL account holders and can be found under Research –> Archives.  Click the Product drop-down menu and select Coling_the_shots and click search to list all previous reports.  Remember, the above list is not updated anymore.   A new report will be coming out most probably next week.

 

Avoid the free lunch attitude

It’s been a while since my last post but here’s another great article from Bo Sanchez’ TrulyRichClub.

Two years ago, I thought I could not sustain or afford to pay the monthly subscription of the TrulyRichClub to receive the twice a month issue of stocks update and other materials.  But after overhauling my finances through reading books, attending seminars and paying myself first, I realized that I’m earning enough.  I also follow the “Simple System” Bo Sanchez discussed in his book “My Maid Invest in the Stock Market” that uses an “envelop”.

This is one of the many reasons why I believe Benjamin Franklin’s saying that “an investment in knowledge always pays the best interest”.  Today, my money grows in numbers that I never expected.  Without the TrulyRichClub, I could have spend it in doodads (unnecessary expenses) and just vanished leaving me hopeless again.  And what about the subscription fee for the club?  Well now, it’s “free”.   Enjoy!

Remember this crazy story?
Someone who smoked for 20 years is now suing Phillip Morris because he has cancer.  Or how about this story: There’s a thief who sued the owner of the house he was trying to rob, because when he went out of the window to escape, he fell and broke his leg.
Absurd, right?
In other words, we like free lunches. Smoke for 20 years and let others pay. Rob a house and let the owner pay.
Let me tell you another crazy story…
When I give my financial seminars, I give a “No Questions Asked” Money Back Guarantee. That means we give back the fees if participants say they didn’t like the seminar.
I think we’re one of the few organizations in the country who does this. (In fact, in some of our more technical seminars, we’ll even add P1000 when we return their seminar fees—as a way of paying for their lost time.)
One day, my staff showed me a letter from a seminar participant, asking for a refund. The reason was out of this world.
He wrote, “I became too busy with my schedules and I wasn’t able to apply what I learned in your seminar. Can I get a refund?”
I laughed.
I instructed the office, “Give him a refund.”
My staff went berserk. They couldn’t believe it. They said, “But Bo, it’s not our fault that he didn’t apply what he learned in the seminar. It’s his fault. Why will we give him a refund?”
I said, “Out of pity. With that kind of attitude, he’ll always be a failure. Because he keeps looking for the free lunch.”

Graduate from Your Free Lunch

Twice in my life, friends gave me a car.
I’m extremely thankful they gave me a car. When they gave me my first car, I was traveling all over Luzon, preaching to various groups. I couldn’t afford a car so it was such a huge blessing.
Yes, the free lunch is a wonderful gift from God.
But I now believe it’s not His best gift for us.
What is a better gift than free lunch? The capacity to earn and pay for your lunch.
Recently, I bought a new car with my own money. From the sweat of my brow. From the earnings of my businesses.
Hey, receiving a free car was incredible. I loved it.
But I noticed that when I bought the car with my own money, the feeling was a THOUSAND times better! Honest.
Because aside from the car I bought, I felt I grew.
I became wiser. More business savvy. More financially literate. The car was merely a symbol of who I’ve become.
Remember that the first and most important skill you’ll ever need in becoming successful is to take personal responsibility.
If you’re receiving a free lunch today (in any form), thank God for it. Perhaps your parents are still giving you money.
Perhaps you live with your parents and they don’t ask you to share in the expenses. Perhaps a best friend always treats you out. Perhaps a Ninang (godmother) always gives you a monthly allowance even if you’re already 27 years old.
But for the sake of your own personal growth, I urge you: Graduate from free lunches.
Move on. Grow up!
Free lunches are crutches. They’re there to help you while your legs heal. But once they’re healed, you need to throw away the crutches. If you don’t throw away the crutches, your legs will never be fully healed.
In the same way, if you don’t avoid free lunches, you’ll never grow in your capacity to earn.

You Need the Pain of Paying 

One day, a woman came up to me and asked, “Brother Bo, why do you charge for your Kerygma Conference? It should be free. Some people won’t be able to go because they can’t pay P500 for the ticket.”
This is how I answered: “The weekly Feast is free. There are no tickets. But the Kerygma Conference is a 3-day conference we hold once a year. We spend P6 million to make it happen.”
She was shocked, “P6 million? My goodness. Then don’t hold it in PICC. Hold it in an open-air place, like Luneta. So that it will be free.”
Very patiently, I explained, “Even if you hold it in Luneta, it will still cost a lot of money. First, we’ll rent chairs at P20 each. Multiply that by 10,000 people. And then we have to get a very powerful open-air audio system. Probably will cost half-a-million. Plus very powerful lights that will cost a lot too. The stage alone will cost P200,000 to rent. And we’ll have to feed 600 volunteers—which will cost about P600,000 for those three days…”
I noticed she wasn’t listening. She said, “But it should still be free!”
I politely ended the conversation. It wasn’t going anywhere.
Personally, I like charging for the conferences. Why? I get quality attendees. Participants put value in the event.
There’s a personal investment. There’s commitment—and it shows in how people love the conference.
My other reason? I’m breaking the free lunch attitude.
It’s not healthy.
People who like free lunches don’t grow up.
Friend, you need to learn to pay your way to success.
It’s the only way!
I love saying it: Pain is the only way you can grow. And having to pay for your own lunch is painful. But this pain will force you to grow.
Avoid the free lunch.
Start paying.
Take responsibility.

May your dreams come true,

Bo Sanchez

Photo credit:
http://timehelix.deviantart.com

Yes its true

Join the Truly Rich Club

As all we noted, time really flies very fast.  It’s been two years already since I started investing in the stock market with the guidance of Bo Sanchez’ TrulyRichClub.  Last year and early this year, I harvested some of the “fruits” of my investments by selling the stocks recommended by the club.  I’m very happy about my profits.  Now I know the truth about Robert Kiyosaki’s idea that money can work hard too through investing; treating your hard earned money as employee.  I wish I could have started investing as early as 2008 when the market crashed!  Here are some of the facts I’ve gathered recently.  In the midst of 2008 financial crisis, Meralco (MER) is 14php per share, Aboitiz Power 4php per share, DMCI (DMC) 3php per share, URC at 4.50php per share and JGS at 1.92php per share.  January this year, these are the new prices in pesos: MER 281 per share, AP 38.10 per share, DMC 53 per share, URC 86 per share and JGS at 38.4 per share.  The above figures only concern the capital appreciation without considering the dividends payout.  These are the returns that will surely make us a millionaire in due time instead of hoping to win the lottery.  There is a truth about the saying, “when there is crisis, wealth is being transferred” because most people who are scared in times of crisis are selling his/her stocks at a loss in which the rich people buys them.

If investing in the stock market is really good, then why there are only 0.5% of the populations are doing it?  Perhaps this is mainly because stocks are viewed as risky investments. In fact, 85% of people are losing money in the stock market.  On the other hand, if done properly, it is said that in a 5-20 year period, stocks outperforms other investment vehicles such as bonds, time deposits (of course), and even real estate (in some cases).

In my experience, our biggest enemy is ourselves due to lack of education about how money works and clinging to an old idea.  We are all brainwashed to work for money since we were kids.

So act now, drop the old ideas and start your journey to financial freedom!

trulyrichclub-stocks-update