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!

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