Stocks Update: Expanded SAM

Yesterday, Bo's regular stocks update talks about expanding SAM or Strategic Averaging Method. This method lies between the active and passive means of investing. From the previous 6 recommended stocks, he's adding 4 more.

Below is the list of SAM and it's target price.

Current SAM Stocks: Target Price

Ayala Land (ALI) P21.65
Aboitiz Power (AP) P37.06
Cebu Pacific (CEB) P109.20
Energy Devl Comp(EDC) P8.36
First Phil Holding(FPH) P107.16
Metrobank (MBT) P108.00

New SAM Stocks:

BPI (BPI) P80
JG Summit (JGS) P35
Nickel Asia (NIKL) P26.20 (upgraded soon!)
SM Prime Holdings(SMPH)P20

That brings SAM to 10 Stocks.

According to Bo, at this particular point where facing a booming Stock Market. It will help us to have more fantastic companies where we can invest our money.

The next issue of stocks update will discuss these new recommendations in detail so watch for it!

Cash Dividend from FPH

Last June, I started investing in SAM (Strategic Averaging Method) recommended by the TrulyRichClub.  First Philippine Holdings (FPH) is one of the 5 giant companies where I invest my money regularly.  When the stock market crashes last September, I bought more shares of FPH until it reached a total of 1,110 shares.

Last week, my broker (Citiseconline) notifies me by mail of my cash dividend @ 1.00 peso per share.  This is the 3rd time I received cash dividend this year.  First two came from SM Prime Holdings (SMPH) and SMDC.

The Five Virtues That Will Make You a Great Investor - by Bo Sanchez

A lot of people think winning in the stock market just requires technical knowledge. That’s not true.
You need character.
You need spirituality.
To be multimillionaire investors, you need these five powerful virtues:

1. Patience
Impatience causes you to make very bad decisions. When you’re impatient with your child, you scream
and say to him, “You’re so stupid! You’re so foolish!” Words that you’ll regret later.
In the same way, when you become impatient with your stock market earnings, you make bad decisions
too. You fall prey to “tips” that your friend or neighbor gives to you.
Be patient! If you keep investing each month following SAM, in due time, you’ll become a multimillionaire.

photo credits: http://farm1.static.flickr.com/52/134293024_ef434c0c6e.jpg

2. Gratitude
You might hear your officemate earning hundreds of thousands from a penny stock.
It’s very tempting to put your money in crazy stocks that go up 30 percent in one day!
But my stock market guru says, “Don’t envy these gambler-traders. Their aggressive strategy guarantees
that they’ll lose it all in one day.”
Here’s a fact: They will lose their money as fast as they got it.
Be grateful with your small but steady earnings in the stock market.

3. Discipline
A few people are getting bored with my advice.
But the boring investments are where you win. Discipline means being boring as the sun. The sun is up
every morning. How boring can you get?
But that’s how multimillionaires are made.
Each month, invest your small amounts in our giants.
That’s it!

http://farm5.static.flickr.com/4077/4780565670_12e8691238.jpg

4. Simplicity
Some people who earn money in the stock market withdraw their money and buy a new cellphone, iPad,
car...
Believe me, you’ll never grow your retirement fund if you keep doing this.
Live simply. You’ve heard people say, “Live within your means.” That’s not enough. You need to live
below your means, so you can grow your millions for your retirement.
Be happy with simple things.

http://farm4.static.flickr.com/3456/3188700716_8c512b3372.jpg

5. Love
Why desire to create wealth?
Do it because you love. Do it because you want to share your wealth to others. Do it because you have a
dream to serve God.
Greed may make you wealthy, but you’ll never be happy.

 http://farm4.static.flickr.com/3563/3397519800_8ddac86fc4.jpg

This article was just an excerpt from Bo Sanchez' monthly stocks update issued last July 22.  To receive Bo's complete report of this monthly stocks update, join the Truly Rich Club now!

Investing in the Philippine Stock Market

Investing in the Philippine stock market was probably my toughest  "move" and decision last year.  I am so happy ever since I started it last November 2010.  I can see my hard-earned and taxed money growing compared to my savings in the bank.  The banks offer a 0.5% of interest per year for savings and 2.5% for a time deposit account.  If you consider the inflation, time deposit cannot cope up with the average annual inflation of 7%.  If you don't have plans to use your money or you want to save it for a long time, then the stock market is the ideal place.  Stock market is a place where you can invest in publicly listed companies.  Giant companies or "blue chips" such as Jollibee, SM, Ayala Land are some of the choices you can invest for the long term.  By investing your money, you also participate in its growth and later earn profits thru dividends and price appreciation.  This way, you become part-owner of the company.

So how did I get started with investing in the Philippine stock market?  It begins when I read the book "My maid invests in the Stock Market" by Bo Sanchez.  That time, although the book is very simple to understand and inspiring, I still decided not to do anything about what its saying instead I grabbed the opportunity to own a low cost townhouse located in Binangonan, Rizal.  But after several months of paying the down payment something went wrong with the developer so my dream of owning a townhouse was gone because they were blacklisted by PAG-IBIG where I supposed to apply my loan. 

Before the end of 2010, I've overcome all negative thoughts in my mind such as "money is evil", "investing in the Philippine stock market is too risky", "you will lose your money in the stock market", etc.  For the first time, I refused about these negative "whispers" inside my head and instead, I opened an account in Citiseconline.  I enrolled Citiseconline's Easy Investment Program.  I bought my first stocks of SM Prime Holdings (SMPH) and Jollibee (JFC).  While buying the shares, my hands are shaking and I feel very nervous for some reason because I know nothing about what I am doing.  I just keep telling myself, I can throw away 5,000 pesos to buy shares of SM and Jollibee compared to the amount I've lost in the down payment for the townhouse.  But because I have my day job where my cash flow is coming, I decided to have a mentor for this. Bo Sanchez, the author of the book offers mentoring for a minimal fee.  So I subscribed right away.  Every month he is sending Stocks Update (the most exciting) and wealth strategies that share several tips on how to grow your financial life.  Bo also shares his montly "powertalk" so month after month, I listen to his uplifting, positive messages encouraging to invest for the future.

Bo Sanchez recommends a Strategic Averaging Method or SAM.  SAM is where you buy stock picks and hold it for 6 months or more then sell it once the target price is reached.  Currently, I have these stocks in my portfolio based on SAM:

• Ayala Land (ALI) - buy below Php 16.73
• Aboitiz Power (AP) - buy below Php 32.60
• Energy Development Company (EDC) - buy below Php 6.93
• First Philippines Holdings (FPH) - buy below Php 71.47
• Metrobank (MBT) - buy below Php 74.50

 Later I will update this post how much I earned once I sell them.  

Last month, I received my first dividends from SMPH @0.27 per share and was credited to my Citiseconline account. Although the amount is small, I am very happy as I’m planning to hold this stock for a long time solely for the college education of my kids.  Now my vision for the future looks good!

Do You Want to Gain Financial
Wealth and Spiritual Abundance at the Same Time?

Join the truly rich club NOW! Click here.

Simple Steps To Retire A Millionaire

I got this article from my officemate.  Seems so easy to retire as millionaire ;).  Read on.

1.   SET THE GOAL

Nobody plans to fail, but plenty of people fail to plan. Saving money is a basic concept of personal financial planning, and key to financial success. Yet many of us don't have a formal savings plan. Without such a plan, the chances of ever saving enough money to meet long-term financial goals or achieve financial security are very slim. Having a million-dollar portfolio is a retirement dream for many people. Making that dream come true requires some serious effort.

2.   START SAVING

If you don't save, you'll never reach your goal. As obvious as this might seems, far too many people never even start to save. Finding the cash to stash may be a challenge, particularly when you're young, but don't let that stop you from pursuing future riches.

3. START SAVING EARLY

 Remember that a little goes a long way. Don't think you have enough money to start investing? You can get into a good savings plan as low as 2000 monthly or 1500 can be arranged.

That's why, when you're young, you need to invest fairly aggressively. You should invest nearly all your money in stocks/equities (as opposed to bonds and conservative investments) in hopes of netting a bigger return. You'll certainly have ups and downs, but over the long-term, TIME (again, your best friend) will smooth them out for your benefit.

Bottom line: Getting rich is easier and more painless the earlier you start!

4. GET AGRESSIVE

Studies have shown that the majority of the returns generated by an investment are dictated by the asset-allocation decision. If you are looking to grow your wealth over time, fixed-income investments aren't likely to get the job done, and inflation can take a big chunk out of your savings.

Investing in equities entails more risk, but is also statistically likely to lead to greater returns. For many of us, it's a risk we have to take if want to see our wealth grow.

5.  PREPARE FOR RAINY DAYS

Part of long-term planning involves accepting the idea that setbacks will occur. If you are not prepared, these setbacks can put a stop to your savings efforts. While you can't avoid all of the bumps in the road, you can prepare in advance to mitigate the damage they can do.

6. SAVE MORE

Your income should rise as time passes. You'll get raises, you'll change jobs, and maybe you'll get married and become a two-income family. Every time more cash comes in to your pocket, you should increase the amount that you save. The key to reaching your goal as quickly as possible is to save as much as you can.

7. WATCH YOUR SPENDING

Vacations, car, kids and all of life's other expenses take a big chunk out of your paycheck. To maximize your savings, you need to minimize your spending. Buying a home you can afford and living a lifestyle that is below your means and not funded by credit cards are all necessities if you want to boost your savings.

8. MAX OUT YOUR OPTIONS

Take advantage of every savings opportunity that comes your way. . Don't let any chance to save get away.

9. HAVE  PATIENCE

"Get-rich-quick" schemes are usually just that - schemes. The power of compounding takes time, so invest early, invest often and accept that the road to riches is often long and slow. With that in mind, the sooner you get started, the better your odds of achieving your goals.

10. LEAVE IT ALONE

 The prospect of making a lot of money without doing anything sounds good on paper. But, admittedly, in practice, it can be maddening. Every time you receive your account statement, you watch your balance s-l-o-w-l-y inch up -- or even drop. How on earth are you ever going to get rich at this pace?

Good things come to those who wait. You must be patient for compounding to work its awesome power. Remember that as your money earns more, it'll earn even more. You certainly won't get rich overnight this way. But you will get rich if you start young, invest wisely and leave it alone.

THE REALITY OF RETIREMENT

Retirement might seem far away, but when it arrives nobody ever complains about having too much money. Some people even question whether a million dollars/peso is enough.

That said, with lots of planning and discipline, you can reach your retirement goals and live a comfortable life after work.