investmentsko

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!

In a recent report, COL raised its target price for MEG from Php2.87 to Php3.34 per share.  Considering a 15% profit, the new buy below price for MEG will now be Php2.9.  At the time of this writing, MEG is traded at 2.78 per share.  Below is a portion of COL’s report about the MEG’s growing rental business.  I believe this is the main reason why there’s no sell alert for MEG last week after it reached (2.82) nearly its target price.

MEG has successfully replicated its well-received live-work-play model in Eastwood to other parts of Metro Manila such as McKinley, FortBonifacio, and Newport. Coupled with the rapid growth of the BPO industry which has led to strong demand for office space, MEG’s leasing business has been expanding rapidly. In 2009, MEG’s commercial leasing business contributed just 29% of the group’s income from operation. In 9M12, the leasing business contributed 46% of the group’s income from operations. We believe that MEG will continue to benefit from the strong growth of the BPO sector given the group’s large landbank in the Fort Bonifacio area, which remains to be one of the top choices of BPO locators. With the growing contribution of the leasing business and its attractive longer term potential, MEG’s earnings stability and visibility will continue to improve.

megaworld

DISCLAIMER:

This week is one of the most exciting times in the stock market. Imagine, for the first time I received 2 stocks alert this week from TrulyRichClub.  The main reason is its now in a “harvest season” or profit-taking from two of TrulyRichClub‘s SAM recommended companies. Last week I earned from selling BPI after exceeding its target price of 91 (I sold all my shares at 96.45 per share!) and this week, I sold SMPH where I earned 20% after almost 10 months of investing on it. Plus, remember SMPH’s 25% dividends given in the form of shares?  Yum yum yum!  Sad thing is, its getting hard to buy other SAM stocks although some are still in its buy below price. Obviously the price is now higher because almost everyday the PSE is soaring to record breaking highs.  Now I have my funds from selling SMPH and BPI and I realized, the more money I inject in my account, there are more chances of giving me a higher return!  This is exciting; my money is making more money without me working so usual I’m gonna fund my COL account payday after payday.  Thanks to the TrulyRichClub for the guidance in riding this rocket called The Philippine Stock Market!

Investing nowadays is a very “hot” and popular topic in many forums online as well as in Facebook. First timers are getting confused about “investing” and “trading”. Like someone is saying “I want to start investing in the stock market, can you teach me how to play?”  Most probably because in many online forums, although the subject is entitled “investing in the stock market”, a lot of people talk about their recent “trading” activities and giving out tips (or “bulong”) what stocks to buy. Because of this, “newcomers” think investing is also trading. I believe this article from Bo Sanchez is really worth sharing. It will help and guide those who are new to the world of investing what’s the difference between an investor and a trader.

Just a little bit of definition of terms here…Investors buy stocks and don’t sell for six months to 20 years.
Traders buy stocks and sell them after a few hours or days…
Here’s another difference: Investors buy only the giants we recommend in our list below. Traders buy anything, especially penny stocks, because they’re more volatile, and thus give them more opportunity to earn more money (theoretically).

Here are three reasons why you should never become a trader:

1. Traders Pay More Fees
Every time you sell stocks, you pay a fee.
Yes, the fees are cheap. But still, they do add up.
And that’s subtracted from your profits.

2. Traders Need More Expertise
Some of my closest friends are fulltime traders.
The stock market is their fulltime job.
They don’t do anything else.
Guess what: A lot of them still lose money!
Despite ALL their training. 

3. Traders Need More Time
How much time a day will you spend in actively trading your stocks?
One hour?
Question: Why not invest that one hour on your business?
One hour every working day is five hours a week.
If you’re a salesman, use that one hour to call up former customers just to say “Hi” and build relationships.
If you’re an entrepreneur, use that one hour to study how to market your products through the Internet.
Believe me, you’ll earn more money!
And whatever added profit you earn from your business, you can plow back to the stock market as an investor!

What You Should Never Do

After giving a talk on stock market investing, a participant (who probably came in late and didn’t hear my entire talk) came up to me and asked, “Bo, my bank is offering me a personal loan of 0.9 percent monthly interest.
Can I borrow and put it in the stocks? If I can earn at least 20 percent a year—I’ll be on top…”
Questions like this make my toes curl.
I told him, “I care for you. Don’t do that. If I had an enemy I wanted to torture, I’d tell him to trade the stock market on borrowed money.”

Work on Your Business, Not the Stock Market

Here’s the harsh reality.
You can’t invest in the stock market if you don’t have cashflow.
What is cashflow?
Cash that flows to you. (Gosh, I’m so brilliant.) Every month, you have a steady income stream that pours money into your lap. That income stream could be your job or business.
If you don’t have cashflow, you can’t invest in the stock market. Period. So what should you do?
Spend 99 percent of your time (creativity, energy, attention) on your business.
Create your cashflow.
Increase your cashflow.
Multiply your cashflow.
And then spend 1 percent of your time on investing that cashflow on the stock market.

If I Can’t Stop You, You Could Trade with Your Loose Change

One young man told me, “But Bo, I want to really trade! Investing is so boring. But trading is so much fun!”
If you really want to trade, then trade with your loose change.
Meaning? Money you can lose without having a heart attack.
But the huge bulk of your money should be long-term investments in giant companies.
If you really like to learn how to trade, Citiseconline gives free seminars on technical trading. You can call them up and ask for their schedules.