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.
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.
Got this video from one of my friends in Facebook showing the latest stocks update from the TrulyRichClub where a sell alert was sent for BPI yesterday. This video also discusses the “off-hours” order feature of COL Financial trading platform where you can sell your shares ATO (at the opening). Enjoy!
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?
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.
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 it 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: Continue reading “Why BPI?”
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,