Peso Korner

Peso Korner

Monday, July 13, 2015

Investment in Stocks for every Juan



Nangangarap ka bang magmay-ari ng Jolibee, Petron, PLDT o SM? Naku kabayan, wag lang mangarap dahil hindi sya imposible. P5,000!  yan lang ang kailangan mo kabayan to start investing at pwede ka nang mag-own ng shares ng malalaking companies. 

I'll try to explain stock investment the best way I can, so here it goes. Ang isang kumpanya ay binubuo ng isang group pooling their resources together to raise capital. Business partners na nag-aambag-ambag para magka puhunan to start a business. Kahit ang malalaking companies nangangailangan din ng extra funds, puedeng for expansion, for purchase of additional machineries, additional product line or for whatever purpose. Hahanap sila ng ways to raise funds, one way to do that aside from resorting to borrowings from banks or financial institutions, ay magbenta ng stocks. Dyan tayo papasok.

Ano ba ang stocks? Eto ay shares of ownership sa isang kumpanya. Ibig sabihin, kapalit ng pera mo ay magkakaroon ka ng ownership rights in terms of number of shares. So every time mag-de-declare ng income ang company kikita ka din based sa investment mo. In other words, isa ka na ding business part-owner!

Ano ba ang potential earnings sa pag-iinvest in stocks? Katulad din ng regular na may-ari ng isang company, kikita ka kapag nag earn ng income ang company mo. Ganun din as stock investor. Just to illustrate, I sampled a few stocks available in the Philippines Stock Market, if ever you invested your P100,000 to these companies 5 years ago  how much would your investment be worth now?
Note: data as of July 13,2015

If you invested P100,000 in Max's Group 5 years ago, ang pera mo ngayon ay P536k na! That is more than 5 times your initial investment. Kung sa Jollibee ka nag invest then your money earned 250% ng iyong initial investment. Hindi ka naman nag-trabaho di ba? Hindi ka nag contribute ng any services. Yan kabayan, ang kapalit ng pera na pinasok mo sa company. On top of that, you could also earn dividends in cash or in stocks.

Pag yung P100k mo hinayaan mo lang sa savings account, after 5 years how much na ba? P101,250 at 0.25% annual interest rate. P1,250 lang for 5 years! 

Sigurado bang kikita pag nag-invest sa stock market? Of course not. Lahat ng negosyo involves risk. Pag bumagsak ang economy, pag pumangit ang service o quality ng product, pag wala ng demand sa product na pino-produce possible na malugi ang company  Napakaraming possible reasons ng pagbagsak ng isang negosyo. Eto ang isang aspect kaya risky ang investment in stocks. Just to give you an example, I pasted a sample of stocks below at a loss. If you invested your P100,000 5 years ago sa mga stocks na yan, how much na ang worth ng pera mo?
Note: data as of July 13,2015

For AgriNurture  your P100,000 5 years ago ang value nya nalang is P10k! OUCH! 

I am not scaring you guys, I'm only opening your eyes to possibilities. Anything in life involves risk, what we need to do, is prepare for it. So how do you prepare yourself before investing in stocks? STUDY READ RESEARCH READ RESEARCH STUDY! Do that a lot of times, then decide which one to pick and invest!  

So what is the perfect formula in investing in stocks?  Sorry, but there is no such thing as a perfect formula in investing since we cannot predict the future. You can read a lot of "predictions", but it's up to you to make the decision.  All we can do is research, study and learn from experience. 

You don't have to be a graduate of Finance to understand stock investment. If your investment goal is long term, ask this before you invest your hard earned money; say 5 years or 10 years from now, given all the info you've gathered about the company, sa tingin mo the company's profit will bloom or not? Let's take Jollibee for example, 10 years, 20 years from now, sa tingin mo sikat pa din ang Jollibee and tatangkilikin pa din ng mga pinoy? Possible right? Kasi Jollibee is 100% pinoy in terms of culture and taste. Quality is improving and expansion is huge. Review their financials and everything is going up, earning is constant. With those data alone, magtitiwala ka ba sa Jollibee? Are you confident that you will earn? Based on your research and your guts, go for it. Trust your instinct! 

Goodluck! I will post on "how" to invest in stocks next time. Ciao for now!







10 comments:

  1. honestly, i know nothing about investment but I am really eager to be part of it someday... is it really that risky? I guess we really need to do extensive research when investing so you can get good outcome in return..
    thanks for sharing

    ReplyDelete
    Replies
    1. everything in life involves risk. Holding on to your money and leaving it in a savings account 'coz you are scared to invest also involves risk. You won't earn because inflation will eat up your interest income. So yes, you have to start researching! Goodluck! ;)

      Delete
  2. I had a stock trading game account when I was taking my MBA, the share values are 7-10 times more now. It's a really stable investment when you know the dynamics.

    ReplyDelete
    Replies
    1. congrats Franc! You did the right thing. It is really important to invest early, financial literacy is really a key to financial independence.

      Delete
  3. I will be coming back for your post on how to invest in stocks. I feel like I'm starting late (I'm turning 26) pero better late than never. I just got an insurance/investment from Sunlife, and currently working on my own business din. Maybe I can also do stocks. Thanks for making this easier for most of us to understand! :)


    xoxo,
    gelleesh.com

    ReplyDelete
  4. I also invest in stock market. Thank you for sharing which companies are doing well and those that are not.

    xoxo
    MrsMartinez

    ReplyDelete
  5. Thank you for showing this. I'm planning to invest in the stock market soon. Now I know what companies to invest to.

    ReplyDelete
  6. I don't know anything about stock investment. For me, parang it's too complicated kasi. Yung tipong kelangan mo talga pag aralan ng mabuti. Hehe. But thank you for sharing this, medyo madami akong nakuhang mga na ideas and tips. :)

    ReplyDelete
  7. I think I have to read this over and over again para ma-grasp ko man lang, but really, investing on something like this does reward in the future and majority of the Pinoys, are commonly and unfortunately not into this. Pero dapat talaga...

    ReplyDelete
  8. I'm really thinking of investing in the stock market. I'm just finding the right time to buy shares of stocks.

    ReplyDelete