14 comments

  1. Anonymous says:

    Stocks are not “usually high risk”, money is made in the stock market by buying and owning outstanding businesses bought at a fair price that suits your book. How can owning Globe, PLDT, MWC, AP and such leading businesses high risk? Buying on price alone is high risk, the most improtant criteria is to value the business, then make a purchase if price is available at substantial discount (a falling market).

  2. Anonymous says:

    What is “usually high risk ” is parking your money in the banks. earning 1 to 2% per annum against 4 to 5% inflation is the surest way to get poor.

  3. Anonymous says:

    In 1998, PLDT (TEL) is available in the stock market at 220 pesos per share , In 2011 PLDT(TEL) paid 221 pesos each share in dividends. so if an investor bought at 220 and never sold, he/she is earning a 100% return on invested capital per annum and at the same time increased his capital by 12 times!( TEL price 2650 Jan 2011 ) a 12 bagger in stock market parlance. a 100K investment earns 100k a year and invested capital now worth 1.2M and change. If however you also bought BW at 82 per share in 1998 ,last traded price 1 pesos a permanent loss of capital of 98.8% . So, it is important to buy outstanding businesses at a fair price than lousy businesses at exorbitant prices.

  4. Anonymous says:

    I agree. You mentioned some of my favorites – Globe and AP. Regarding PLDT, I think it is too high, and I am not sure it will go that higher. But yes, the stock market is one of my favorite places to make good money. Banks, well, BDO and BPI shares yielded me okay returns. But it sure beat what they have given me in return for my savings. But thanks for the tip. I am sure a lot of people will take heed.

  5. Anonymous says:

    Again, I agree. Apart from keeping emergency funds and staving off thieves, those 1-2% banks give do not do much against the 5-6% inflation. People are better off investing their money somewhere – and like you said, stocks is a good option.

  6. Anonymous says:

    Yes, PLDT’s story is classic. A lot of people made a lot of money on it (especially MVP). Imagine being the only telco in the 1980’s. I remember waiting excitedly for a phone line, and when it came, oh boy, it was wonderful. Should have been a no brainer but with the Filipino’s aversion to stocks (many are still afraid even now), I am not sure if a lot of people invested. Same story with Globe and Smart (which is also PLDT), which value are also now in the 3 digits, and which are sure to skyrocket especially with the aggressive marketing/updating those companies are doing. Again, I agree, buying the stocks of outstanding businesses is key. People should just identify the businesses they support – say Jollibee, or Ayala or SM malls – and then have the guts to invest in them. Slow and sure is fine, a P5,000 per month investment is fine, and if they hold on to it and not panic, I am sure they will retire comfortably and happily.

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