What are the Blue Chip Companies?

Many newbies asking from people/ group what are the blue chip companies? Can you recommend 5-10 top blue chip companies?

Individuals will answer Ayala Land Inc, Ayala Corporation, SM Corporation, SMPH, Metrobank, BPI, BDO, Jollibee, PLDT and others.

Blue Chip Companies that are listed in the Philippine Stock Exchange Index (PSEI) with proven track records, sell high-quality products and services. Whatever the market is, these companies are stable and reliable. Companies that where there 10years before and will still be there 10-20years after.

Where to find the status of the companies, you can search in Google, Company Website, PSE, Financial Times, Bloomberg, Newspaper and brokerage firms (COL Financial have research tab where you can read about the companies).

What to do when your stocks are RED?

What to do when all your stocks are BLOODY RED or losing?

As a member of Truly Rich Club, we are just calm and excited when the market is down, Brother Bo Sanchez will email us regarding the news why the market is down.

And the good thing is Stocks are on Biggest Sale!!!! Woooooh enjoy the supermega sale!

We sold some stocks before like the MER (Sell when you are gaining and Hold when you are not).

Here's what he told us:
1. Just buy every month the usual amount you invest.
2. Buy the TRC recommended SAM stocks and spread the love. Don't put all your money in  just two or three stocks.
3. Buy slowly.



P.S. To received email from Truly Rich Club and Stock Updates click http://bit.ly/TrulyRichClubBrotherBoSanchez

What if you miss buying stocks monthly?

When I first started investing in Stock Market, one of the questions in my mind is if I don't have extra cash to buy stocks what will happened?

Same questions I read for newbies who wants to start investing in the stock market or just started investing.

Here's my views:

1. It is alright if you cannot add funds to buy stocks monthly, you can buy quarterly, semi-annually, annually or anytime if you have extra cash. Bro. Bo Sanchez maids or driver did not buy stocks monthly. Their strategy is every quarter where their savings will reach 6,000 or more and buy stocks to maximised the transaction fees. It is entirely up to you when are you going to buy stocks.

2. It is not like insurance, SSS, Pag-ibig that if you miss 2/3 or more months your funds will be disqualified. That is my worry at first because I don't like to pay monthly cause we don't know the future, I might have more expenses the following month, or I need to buy something that is beyond my expenses.

3. But if you follow the Saving Method of 20-80 or 10-20-70, where 10% is for tithes, 20% savings and investments, 70/80% is for living expenses, then you don't have to worry about funding your account to buy stocks.

Make a strategy in buying stocks, there are three ways:

1. Buy and hold where you buy in bulk amount and hold it for long time (ex. Buy stocks for 100,000 in one company and live it for 10years).

2. Buy and hold monthly/ quarterly/ semi-annually, annually to average down the stock prices. (recommended for long term investors).

3. Buy low and sell high for few days or months (for people  who are traders).

MUTUAL FUNDS: where to invest?

Where to invest? Which investment vehicle?

Where to invest depends on your investment goals.

If you have short-term goals, then invests short-term instruments and 

if you have long-term goals, then invests in Long-term instruments.

Short term instruments may give lesser return.

1. Less than 1year               Save on Bank Savings Account or ATM 

2. 1year to 7years               Save on Banks, Time Deposits, Bond Fund, Treasury bills/notes

3. More than 7 years          Mutual Funds  and Stocks

Types of Mutual Funds

1. Bond Fund (Government Securities 90%, commercial paper and cash accounts 10%) you can invest in BPI, BPO, Sunlife and etc. Average return is lower.

2. Balance Fund (portfolio allocation in balance fund : 50% in Stocks and 50% in fixed income securities) Average return on investment is more than 12%

3. Stock/Equity Fund (portfolio allocation in equity fund: Stocks 90% and fixed income securities 10%) Average return on investment is more than 18%

In MUTUAL FUNDS there is a professional fund managers (full time experts) who focus in growing your money and investing your money in Stocks. Example mutual funds in Philippines with higher return are PhilEquity Management, Inc., ATR Kimeng Asset Management, Philam Asset Management, Inc.

STOCK MARKET makes a small initial amount of money to grow in large sum by investing in big growing companies through Capital Appreciation and through Dividends.

Take Charge of your Future, take responsibility of your life. 

Steps in Building a Solid Financial Foundation

People before are lack of financial education.

Many investment firms before are only targeting and prospecting wealthy clients, rich people and those who can afford  but in reality it's for everyone.  It should change people's perspective that building a solid financial foundation is for everybody the wealthy, rich, poor, educated, uneducated with the right mindset and should be  free, available and easily accessible.

1. Increase Cash Flow which means you increase your  income and increase your dream. Earn additional income on your spare time, you have 24hrs/day, 8-12hrs/work, spend some time to earn extra income.
Use the 10-20-70 Rule in money/salary management
10% to tithes, 20% to savings and investments and
70% you can enjoy on your expenses.

2. Ensure Proper Protection, you need INSURANCE, and medical/ healthcare needs you may say you don't need it now cause you are healthy, but you don't know when you will be sick/ill. It's better to be protected especially if you have family who is dependent on you. And when you retire, you cannot bring the healthcare benefits from your company when you resign or retire.

3. Reduce/ Eliminate Debt

4.Create Emergency Fund, it is recommended to save 3-6 months worth of your monthly income as an EMERGENCY FUND.

5. Build Long Term Assets Accumulation, rich people have multiple sources  of income. Learn how to create PASSIVE Income.
 Two Types of Income: Active Income - in exchange of your time and services, example if you are employed (nurse, agent, doctor, lawyer, OFW, seafarer you are paid for your time and services. And if you stop working, your income stops.
While Passive Income keeps coming in even if you  are not working. Money works for you. this includes mutual funds, stocks, bonds, long-term healthcare, businesses.

PASSIVE INCOME increases your income without increasing your workload.

guide for investing in stock market in Philippines

What is Stock Market?

Stock Market is the market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. It is where you buy or sell stocks/shares of a company that is publicly listed. Be a part owner of the company.

How to Earn money in Stock Market?  

1. The stock market makes it possible to grow small initial amount of money to a large sum through capital gains.

2. When Companies make profitable gains, stock market investors make money through Dividends that company is paying out.

Will you lose in the stock Market?

Possibly , investors can lose money if the companies whose prices of the stocks goes down and the investors sells the stock at a loss.

Terminologies:

Public Listed Company - a company that has issued certificates through an Initial public Offering (IPO) and is traded in one of the stock exchange.

Securities and Exchange Commissions (SEC) - companies must meet the required set of requirements including disclosure of financial statements, annual reports and status of the company. SEC will determine if the company is allowed to be listed for trading.

Investors - are group of people, company or individual who invest money in company shares.

Capital Gain - the difference between the original purchase price and its current market price.

Dividend payout ratio - the percentage of distributable earnings paid out as dividends.

Bear Market - a market which share prices are being driven down by selling activities of pessimistic investors

Bull Market - a market in which share prices are being driven up by the selling activities of optimistic investors.

Bid price - the price that a market maker or dealer will pay to buy financial asset


Is Stock Market Risky?

Yes, Stock Market is risky and you can loss money without proper knowledge and mentors. As Brother Bo Sanchez said "85% Of People Lose Money In The Stock Market  and if you don't want lose money, Be Part Of The 15% Who Earn Money in the Stock Market if you follow the specific investing method."

You need to control your emotion and don't panic. To learn more about stock investing click here and if you want to be a part of Truly rich club stock market investing click here.

My youtube video on how to open an account with COL financial.

If you want to be a part of Truly Rich Club  and retire as a millionaire.