It was last October 4 when I decided to sell all my BPI shares after hitting its target price of 80 pesos per share. I earned around 17% after consistently buying shares since February when its price is still in its “buy below price”. After selling all my shares in the morning, I received an update in the afternoon which encourages keeping BPI. From the COL investment guide, I also saw BPI with upgraded (or new target) price of 91 pesos per share. This week, BPI’s price drops to around 77 pesos per share so I decided to buy again because BPI has now a “buy below price” of 79.13. At the time of this writing, its price went up at 82.95 per share. Here are some of the surprising facts and top reasons why BPI is a good stock pick:
- BPI is the oldest bank in the country and in South East Asia. The company operates over a hundred years already.
- BPI is the country’s most profitable bank.
- BPI is the largest bank when looking at market capitalization
- It’s the largest network of branches with 800+ branches. BPI’s internet banking service is also fantastic and very easy to use specially when paying utility bills, credit cards and funding a COL account =)
- When looking at assets, BPI is the third biggest bank in the Philippines
So for long term investing, BPI is another great choice. The chance of this fantastic company to be around after 30 years is very high. I’m now keeping it and wait for its price to drop down the “buy below price” and buy more shares. I remember last year it was only 52.xx pesos per share! Whew!
This is the latest stocks update from brother Bo. The new SAM table shows that the target price for SMPH was increased from 16 to 16.65 and its “buy below” price is adjusted to 14.48. This allows us space to buy shares of this company from its closing price of 13.8 per share last Friday.
From his message below, bother Bo discusses that in investing, there is always risk. I also believe that “not investing is more risky” because inflation eats our money and slowly evaporates in the bank. This is guaranteed year after year. In SAM, this risk is minimized by investing only in giant companies.
The other day, a very concerned friend talked to me, “Brother Bo, can I ask you something? It’s rather serious.”
“Sure,” I said.
“I’m really scared for you….”
“How come?” I asked.
“Aren’t you worried when you suggest to your members what companies to buy in the stock market?”
“Well, what if one of your recommendations turn out to be a flop? And your faithful followers lose their money. Then they’ll get angry at you and blame you for their losses. Because you’re a preacher and spiritual leader, won’t that affect your reputation?”
I smiled. “Thanks for your concern. I’ve thought about it a lot, actually. I’ve counted the cost.
I’ve long accepted the fact that in life, there’s always risk—no matter how small. Waking up in the morning is a risk. Walking out the door is a risk. Even inhaling oxygen is a risk. In this world, there is no such thing as zero risk. If a person won’t take risks, he’ll remain stagnant. We can’t erase risks but we can MINIMIZE them. And I minimize it by recommending only gigantic companies and never penny stocks. I also recommend that people invest in many gigantic companies—about 5 to 10—so that even if one fails, they’ll be okay. Finally, we don’t trade but invest, using an investment program called SAM or Strategic Averaging Method.”
“Fair enough,” my friend said. “So you’re betting your reputation that these stocks will grow?”
“My members’ welfare is more important than my reputation. I’m taking this risk because I want to help people build a retirement fund for their future. So that they grow old rich, not poor. I’ve long realized that if I don’t recommend specific stocksto my members, they won’t buy. They’ll freeze. And that will be a greater disaster—because people will grow old poor.”
“So you’re really convinced that your recommended stocks will go up in the next 20 years?”
“Yes, I do. But by your question, I realize that you still don’t get SAM. Here’s the fantastic thing about SAM… Even if the stocks don’t go up in the next 20 years, but just go bounce up and down—if my members invest EVERY MONTH during those 20 years—they’ll still earn.”
“Okay Bo. I get you. Where do I sign up for your TrulyRichClub?”
“Not so fast,” I grinned. “I have a very important question for you. Will you get angry at me if one of my recommended stocks turns out to be a flop?”
He laughed. “I guess there are things beyond your control…”
“Just like you, my TrulyRichClub members are intelligent people. They know that. They know I can’t guarantee that 100 percent of my recommendations will do spectacularly well in 20 years. But the chances are exceedingly high that MOST of my recommended stocks will make them wealthy.”
After talking with him, I realized I didn’t mention a very important point to him on why I believe our risks are small: In the last 12 months, only seven out of 47 national stock markets around the world have posted gains.
That’s how bad the global economy is. But out of those seven stock markets, the Philippine Stock Market is number 1.
We’re the best performing stock market in the world today. Can you believe that? The momentum is on our side. We’re experiencing a “high tide” here—and as you know—a high tide lifts all boats (great companies).
So keep investing, my friend.
May your dreams come true,
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…”
“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.
May your dreams come true,
A fresh stocks update from Bro. Bo. As you notice, it’s getting hard to buy stocks nowadays because we saw them cheap 2-3 weeks ago. I hope to see more “sale” in the stock market, but as long as our stocks are still “buyable” and haven’t crossed the “buy below price” we can still buy them. Below is the latest stocks update.
My goal for this issue is to give YOU peace of mind that you’re doing the right thing. Investing in the stock market is the BEST way in building your wealth.
And you don’t have to take my word for it.
Believe Jeremy Siegel, a Wharton Professor from the University of Pennsylvania. He studied various investments choices—specifically stocks, bonds, treasury bills, and gold—spanning more than 200 years.
Imagine that in 1802, you had $4. And you decide to divide your $4 to four asset classes and invest $1 in gold, $1 in treasury bills, $1 in bonds, and $1 in stocks. How much will you have in 2006, 240 years later?
Your $1 in gold would be worth $32.84.
Your $1 in treasury bills would be worth to $5,061.
Your $1 in bonds would be worth $18,235.
Your $1 in stocks would be worth $12.7 million!
The difference is HUGE.
Always Go long-term
Obviously, you won’t last for 200 years. (Although I hear that it’s possible that our grandchildren may live that long, thanks to advances in genetic medicine.)
But by using “200 years”, Jeremy Siegel is telling us, “When it comes to the stock market, go long-term!”
A friendly reminder from your Financial Coach: Don’t withdraw your money from your stock market account to buy gadgets, clothes, or vacations. Even when I tell you to sell a company because it hit our Target Price—simply transfer the money by buying a new stock. In other words, you’re merely switching stocks. That way, you are always FULLY invested.
If you follow this simple rule, your retirement fund will grow tremendously.
Aren’t you happy to know you’re investing in the best asset class in the world?
May your dreams come true,
The US,Europe, and China Stock Markets have gone down a lot. And for the past decade, Japan has really never recovered.
But the Philippine Stock Market hasn’t gone down like the rest of the world. Why? Our economy is simply doing so much better today.
But because of this, our stocks are now more expensive compared to the rest of the world. Because the foreign fund managers earned money here, they’re selling their stocks in the Philippines and sending their money over to the US and China to buy depressed stocks there.
Result? The Philippine Stock Market will go sideways for a longer period of time than we expected. In our last issue, I mentioned that perhaps our stocks would start inching their way up next week.
We’re now seeing that may not happen, after all. We now believe that there will be a delay.
As a long-term investor, this delay is beautiful. It will be very useful for you because you can keep buying our favorite stocks at cheaper prices.
Don’t be afraid. Your “numbers” maybe negative right now. That’s okay! Trust the incredible system we’re using. Buying regularly when our favorite stocks are down or sideways will be the reason why you’ll have MILLIONS in the future!
May your dreams come true,
This afternoon Bro. Bo released the most awaited, regular stocks update for the TrulyRichClub. Read this latest issue of stocks update to see what’s happening worldwide. Keep learning, stay invested and enjoy!
Note: To understand the stocks update, first read Bo’s Ebook, My Maid Invests in the Stock Market.
“Lord, may our stock market go even lower…”
My crazy friend said this crazy prayer. He’s a TrulyRichClub member who has now been completely brainwashed by our investing philosophy—that a stock market that stays sideways or goes downward is FANTASTIC for our long-term investments.
But I’m afraid God won’t answer his prayer. Not this time.
Why do I say that? Just look at the terrible fear that’s gripping the world. Everything is falling apart. But the Philippine Stock Market is stabilizing.
Europe Going to Recession?
First,Europe is crashing. Greece and Spain are bankrupt. And they may opt to leave the European Union to escape paying their gigantic debts—which will cause chaos in the financial companies that lent them money and insured these debts. Or they may stay in the EU, with Germany and France lending them even more money. Either way, recession in Europe is almost inevitable.
China—Crashing with a Soft Landing
Second, China’s economy continues to slow down—intentionally. (Reason: Too much hypergrowth in the past years.) But the good news is that the Chinese government is sitting on a massive mountain of cash. (Rough estimates say $3.5 trillion is at their disposal.) This is the total opposite ofEurope where many countries are bankrupt. And the Chinese government is now starting to spend on infrastructure to “soften” the economy’s landing.
US Market Gripped by Fear
Third, the US Stock Market has gone down even more. Why? Irrational Fear. Because if you look at big US companies, their earnings are actually going up.
So why are their stocks going down? Because of what’s happening inEurope and China, people aren’t buying stocks. They were burned in 2008 and they don’t want to be burned again. Thus, the fear.
There’s More Fund in the Philippines
What about the Philippine Stock Market? Economically, we’re one of the few bright spots on planet earth. Gosh, we’re not used to this kind of news. It feels weird.
We’re used to being the basket case of the world.
Not this time. Despite what’s happening worldwide, our stock market is holding. The sideways motion continues.
Now if a gigantic event happens—like a Greece or Spain pullout from EU—we’ll feel a jerk downward.
But our fearless prediction is that we’ll bounce. (If we’re wrong and we’ll stay down, we’re still okay. Because we’ll have more time to buy our fantastic companies at cheaper prices. And it’ll also mean that my friend’s crazy prayer above was answered. Sheesh.)
Last month, we said that the Philippine Stock Market would have a sideways or downward motion for three to six weeks. So we’ll probably have two or three more weeks to go before we start inching our way up again. (These are all intelligent guesses. We don’t know exactly when…)
So what should we do?
Our strategy has always been the same—in good times or in bad times: Keep buying every month. Our very simple SAM (Strategic Averaging Method) protects us from all sorts of crisis.
Another fearless prediction: After 20 years, you will outperform 90 percent of all the traders out there who are trying to “time” the market.
Aren’t you happy you’re in the TrulyRichClub?
May your dreams come true,
I remember when I first jump in with investing, my relatives are laughing when I mentioned how much money or cash I received from companies I’ve invested in thru dividends. Since I only have few shares at the time, of course the amount is so small that made them laugh at me. A year later, my investments grew by almost 12 times along with the dividends. My gosh, thanks to the truly rich club; I made the right decision to act immediately in investing. Now my investments give me cash dividends that I can have free groceries for a month. Well it’s not as big as many people think but for me, it’s free and the best things in life are free! I don’t plan to take the dividends out instead I’m re-investing it by buying additional shares of my favorite SAM stocks.
Last month, SMPH came out with a 25% stock dividend. This time, it’s not cash that will be given but a stock. This is the first time I’m gonna receive a dividend in the form of stock. The Ex-Date (or the cut-off) is May 21, 2012. This means, you should be holding SMPH shares before May 21 to be qualified. To be exact, the last day is May 18 (Friday). At the moment, the free SMPH shares are not yet credited on my portfolio. According to the source, it will be credited on June 20, 2012 (dividends payable date) so let’s see by then. I’m actually excited to see this! Now I have more potential profit in the future because of these additional freebies.
A sample cash dividend from FPH can be viewed here.
The stock market is still “sale” and SAM recommended companies are still cheap at this time. Still asking yourself why you need to invest? Read on Bro. Bo’s article below to be enlightened and start your journey in the world of investing!
Greg is a 63-year old man.
The salt and pepper hair fit him nicely. Makes him look elegant. Greg also wears cool clothes that make him look like a rich gentleman.
But his eyes can’t hide the bone-chilling terror inside.
Yes, Greg has a cushy job.
But he knows he will retire at 65. That is just two years away. And he’s scared. Very scared. Because on that day, he won’t have a monthly paycheck anymore.
“I’m sure you have savings, right?” I asked Greg.
He looked down, shaking his head. “Not more than P200,000 in the bank. I’ve never been very good with the savings bit. I just spent my money. And there were many emergencies along the way. I know I should have saved more. But I didn’t.”
I asked, “But you’ll get a nice retirement package from your company?”
“To pay my debts,” he sighed. “I just borrowed to buy a car last year. And did some house repairs this year. We also travelled as a family last summer, paid for by another loan. So whatever I’ll get from my retirement will erase my debt. But nothing will be left. Absolutely nothing.”
I couldn’t help but groan.
Greg was staring at the perfect storm. A financial calamity that was coming in two years.
I pitied him so much…
My Two Boys Have More Investments Than Greg
My sons, ages 12 and 7, are investors.
It’s never too young to start your investments.
Benedict has P337,631 and Francis has P358,714 in their Stock Market investments. Benedict would invest money from his odd jobs, his small business, and both of them would invest their Christmas cash gifts from Ninangs and Ninongs (godparents).
And let me repeat: Their money is in the Stock Market. Not in the Bank.
Did you know that money in the Bank slowly “evaporates” under the heat of inflation? Your money shrinks over time, just like how water dries up under the heat of the sun. Let me explain: Inflation—or how the purchasing power of your money decreases—is at 4% to 6% a year. The interest you earn in a bank is less then 1% a year. So each year, your money in the bank shrinks by 3% to 5%.
In the Stock Market, if you follow my simple investment method (NOT trading!) which I call Strategic Averaging Method, you’ll grow your money at 12% to 20% a year over time.
You Don’t Have To Make The Mistake Of Greg
Some people think that as you grow older, you’ll have to grow poorer.
It’s not true for everyone.
You don’t have to make the mistake Greg made.
I can help you avoid growing poor by teaching you how to invest. You don’t have to be afraid of growing old. Because you can grow older and richer at the same time.
Thousands of people have already joined my TrulyRichClub, and following my guidance, have started investing in the Stock Market. And they’re very happy.
TrulyRichClub Members who joined me 2 years ago—and who invested in the Stock Market with my guidance—have enjoyed wonderful profits. Here are the Top 10 Stock Recommendations we made in 2010 and 2011…
What does this show you?
That quiet, boring, monotonous investing small amounts of money each month in carefully chosen stocks can build your wealth!
(By the way, we no longer recommend some of these companies for this year…)
What’s Will Happen For The Rest Of 2012
Like a runner that is catching its breath after a long climb, the Stock Market is “resting” now, trying to regain its energy for the next sprint up the mountain. We see a sideways or downward motion for the Stock Market in the next 3 to 6 weeks.
After that, we see that it will start to rise again. If this is your first time to enter the Stock Market, now is the perfect time to enter. Because we believe that the Stock Market will continue to go up for the next three years.
Out of our 9 stock recommendations, 3 are near our Target Price. But 6 are still “buyable”. That means they’re still cheap and we can continue to buy them every month.
And we like it that way. (This is one of the crazy views we hold: We love it when our Stocks are down for a long time!)
Why? So we can buy our companies at very cheap prices every month. Because we’re long-term investors.
The important thing is that you start investing right now.
I repeat: Don’t be like Greg. You don’t have to be afraid growing old and poor.
Stop postponing! You’re missing out on these earnings. Most importantly, you’re missing out on gaining financial freedom.
Change your financial life today. Learn how to invest in the Stock Market today.
How? Join my TrulyRichClub and change your financial future today.
To join, click the link below:
May your dreams come true,
PS. Start NOW! To gain financial freedom for your future and join the TrulyRichClub, click the link below:
Below is the latest stocks update from Bro. Bo. This is just an excerpt to keep you informed and inspired because the market is down nowadays but actually, its “shopping time”. My main concern is, payday is still a week away. Hopefully next week this market condition is still the same or maybe even lower than today so we can buy more cheaper SAM stocks at discounted prices. Happy investing!
I started investing in the stock market in 2007.
You can imagine how catastrophic that was for me. Because in 2008, the biggest economic storm hit the world. It was so big, many economists compared the 2008 Recession to the 1923 Great Depression! Meaning: The last time the economy was that bad was 90 years ago.
And my stocks showed it: My stocks were down by 40 percent.
Ugh. I remember I had around P3 million in the stock market. It whittled down to P1.8 million. On “paper” (or on my computer screen), I lost P1.2 million! If it wasn’t for my faith, I bet that would have been enough to give me a full-blown depression.
Thankfully, I also had wise mentors who looked me in the eye and said, “Bo, that’s nothing! Forget about it. Keep buying. Now!”
I did. And one year later, in 2009, BOOM! The stock market soared by 100 percent.
Every time there’s a dip in the stock market (like what we’re experiencing now), I like telling this story.
If you feel depressed every time you open your Citiseconline page because of all the negative numbers you see in your portfolio, relax. Take it easy. You’re okay. Just keep buying.
In a month or two, the stock market will turn around and start going up again.
Unless, of course, another crisis pops up.
Like if the China-Philippine tension escalates, that will be a crisis—and the stock market will plunge.
Or if the Corona case explodes into political mayhem, that will be a crisis too—and the stock market will plunge.
As long-term investors, we LOVE crisis. Because we can buy great companies at cheap prices.
So either way, up or down, we’re good.
Remember the Bible story of how the apostles were panicking in the boat when a storm hit them, but Jesus was sleeping in the boat? That’s what we need to learn to do. We need to be like Jesus. We need to learn how to sleep in the storm.
May your dreams come true,