Category Archives: The Working Money

Free stocks update with video tutorials

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!

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=jhpc899Y0Rc]

Why You Should Never Be a Trader

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.

Ayala Corporation

Last week I was eyeing to buy Ayala Corporation (AC) shares.  But when I look at COL’s Investment Guide, the rating for this stock is HOLD so I had a second thought buying.  This Tuesday it was upgraded to BUY with a target price of 520.  Luckily, this company is now added to SAM stocks list so I’m happy and started buying it.
Looking at COL’s latest report, I got to know its core businesses – ALI, BPI, MWC and GLO (Globe Telecom) and other recent activities.  According to the report, a favorable growth for these businesses is expected for the next few years because of our growing economy.  BPI on its lending business, MWC’s expansion within and outside the east zone, and GLO’s aggressive marketing in the telecom business is paying off.  GLO has improved its subscriber market share and revenues despite of the merging of its competitors.  AC is also involved in the power and infrastructure businesses.  In the power industry, AC has a target of 1,000MW generating capacity by 2016.  Related to this, AC has entered into a joint venture with A Brown for a 135-MW coal-fired plant in Iloilo and with Trans-Asia for the construction of another 135-MW plant to be started on the next quarter.  AC also entered a joint venture agreement with MPI and AEV to strengthen its position to win PPP (Public-private partnership) projects.

Knowing this latest report indicating the company’s recent activities, there is no doubt AC is another turtle that will be a sure winner in the coming years!

Why BPI?

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: Continue reading

Stocks Update: I’m Sticking My Neck Out So That You Can Grow Your Money

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.

bo-sanchez-sam-stocks-update

 

 

 

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?”

“Why?”

“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,

Bo Sanchez

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

Join the Truly Rich Club

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

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Stocks Update: What You’re Doing Now Is the Best Way to Build Your Wealth

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,

Bo Sanchez

sam-stocks-update-july-2012

Stocks Update: Our Stocks to Go Sideways

The latest issue of Bo’s stocks update.  Another great news as our favorites stocks will go sideways and more opportunity to buy cheaper.  Keep investing folks!
Join the Truly Rich Club

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.bo-sanchez-stocks-2012

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,

Bo Sanchez

Stocks Update:Europe Plummets, China Slows, America Dips… But the Philippines Stabilizes

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,

Bo Sanchez

 

The Upcoming Stock Dividends From SMPH

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.

Happy investing!