Showing posts with label Stocks Notes. Show all posts
Showing posts with label Stocks Notes. Show all posts
Friday, 24 June 2016
Want to learn how to trade stocks? Here are free stock trading seminars that you can attend.
07:03:00
Interested in trading in the Philippine stock market but you don't know how and where to start? I highly suggest that you attend free stock trading seminars first, so you'll get to learn the basics and give you some sense of direction. It will then be easier to look for more references since you already know what you should be looking for.
I've listed below the schedule of free stock trading seminars provided by different online stock brokers in the Philippines. While I recommend the seminars conducted by COL Financial, it should be ok to try out the others as well. Anyway, there's no commitment required, they won't force you to open an account with them.| Broker | Seminar Title | Description | Schedule / Venue |
| COL Financial | Investing in the Stock Market Today | This seminar will introduce the basic concepts and opportunities of investing in the stock market. Popular approaches of stock analysis will be explained to help guide the new investor in making well informed investment decisions. This seminar is for interested market participants, with minimal to no market experience. | February 26 2:30 PM February 27 10:00 AM March 3, 5, 12, 17, 19, 26 2:30 PM COL Training Center, 24F East Tower, PSE Centre, Exchange Road, Ortigas Center, Pasig City |
| Introduction to Fundamental Analysis | This seminar will discuss the process of identifying fundamentally attractive stocks. It will also tackle concepts and principles used in the process such as industry and financial analysis, the impact of economic cycles and valuation techniques. This seminar is for interested market participants, with some market experience. Note: Walk-ins will not be accomodated.Seminar is free of charge to COL Clients, has a 500 Pesos charge to Non-COL Clients. | March 10, 24 2:30 PM COL Training Center, 24F East Tower, PSE Centre, Exchange Road, Ortigas Center, Pasig City | |
| A Primer into Technical Analysis | This seminar will introduce the rudimentary concepts and principles of technical analysis - the study of market trends to improve market timing. This seminar is geared for market participants with some market experience. Note: Walk-ins will not be accomodated.Seminar is free of charge to COL Clients, has a 500 Pesos charge to Non-COL Clients. | March 4, 18 1:30 PM COL Training Center, 24F East Tower, PSE Centre, Exchange Road, Ortigas Center, Pasig City | |
| FirstMetroSec | Stock Market Basics | February 27 2:00 PM First Metro Investors Center - Makati, 18/F PSBank Center, 777 Paseo de Roxas cor. Sedeño st., Makati | |
| Introduction to Fundamental Analysis | February 23 10:00 AM First Metro Investors Center Binondo G/F Wellington Bldg., Plaza Lorenzo Ruiz, Binondo, Manila | ||
| Introduction to Technical Analysis | February 23 2:00 PM First Metro Investors Center Binondo G/F Wellington Bldg., Plaza Lorenzo Ruiz, Binondo, Manila | ||
| Philstocks | Stock Market 101 | Get started. Learn the Stock Market basics. Learn how to pick the right stocks. | February 24, 26 5:00 PM 2003B, West Tower, Philippine Stock Exchange Center, Ortigas Center, Pasig City |
| Stock Market 201 | Create your best entry and exit point strategies: The Basics of Fundamental Analysis Note: For existing clients only | February 28 10:00 AM 2003B, West Tower, Philippine Stock Exchange Center, Ortigas Center, Pasig City | |
| Stock Market 201 | Create your best entry and exit point strategies: The Basics of Technical Analysis Note: For existing clients only | February 28 2:00 PM 2003B, West Tower, Philippine Stock Exchange Center, Ortigas Center, Pasig City | |
| Utrade | Investing in the Philippine Stock Market Today! | Discover the basic concepts, analysis and fundamentals of the stock market. A step-by-step guide on how you can invest on the right stocks. | Every Thursday 4:00 PM 3/F Majalco Building, Benavides corner Trasierra Streets, Legaspi Village Makati City 1229 |
COL Corporate Day: Rising Stars (Growth Companies to Watch Out For)
07:01:00
Yesterday, I attended an investor briefing sponsored by COL Financial. It's like a mini-roadshow of up and coming growth companies that are listed in the PSE. Some of them have products that are easily recognizeable by the public, while some really needed the roadshow to introduce what their company does. Nonetheless, it was a good experience since it gave me more idea of the stocks that I'm buying (specially SSI and Xurpas), and also learned about the growth prospects of the said companies.
CNPF (Century Pacific Food, Inc.)
Yes, this is the popular tuna brand. Aside from the Century brand, they also carry 555, Blue Bay, Argentina, Swift, Angel and Birch Tree. It is worth noting that their products are being sold in the US as well as in the middle east. To add, there's still a lot of areas where they can explore for sales internationally. They just need to market their tuna and make the health benefits known to the public to gain more following. Their new TV ad was also shown, encouraging the public to replace one meal with tuna, for a healthier you. :P
Although the growth potential and plan is good, I might pass on this one.
HOUSE (8990 Holdings, Inc.)
I needed this roadshow to know more about HOUSE. In fact, their CEO, JJ Atencio, also thought of the same thing. :P Their company is involved in developing affordable homes. I learned that they have 2 foreign investors, one coming from Malaysia and one from the US, each owning 8% of the company. They're also teaming up with PAG-IBIG to hasten the processing of loans. JJ mentioned that their partners have been convincing them to bring their act to other countries also that might need their expertise in affordable housing. However, at the moment, it is not yet in their plans since there are still a lot of areas in the Philippines that can be developed.
I am still partial on investing on this stock.
IMI (Integrated Micro-Electronics, Inc.)
Whenever I read about IMI, the first thing that goes to my mind is semiconductors. Yes, that's true, but aside from semiconductors, they're also involved in research and development, with the aim of becoming a part of people's daily lives. Although it's a Filipino company, it already has offices in many countries (USA, Singapore, Japan, to name a few). They also handle the 4G network in China.
An interesting video they showed demonstrates their share in the smart car of the future (which according to them, will be available in a not so distant future). The video ended by showing a car parking by itself (similar to that in the new Ford Focus).
IMI has a lot promise and potential. I'll include this in my stocks watchlist.
SSI (SSI Group, Inc.)
Most probably, you're familiar with brands such as Marks and Spencer, Hermes, Kate Spade, Michael Kors, Lacoste, Aeropostale and Old Navy. Well, these are only a few of the Store Specialists Inc.'s brand portfolio. They also own Family Mart. SSI is the first company from the Rustan's group to go public. For the past few years, sales have been rising and store footprint has been increasing. Whenever you see a new mall being developed, most likely, SSI already has a spot there. According to their President, Anthony Huang, new stores are still on the way, some of which will be opened in 2016. There are also 5 international brands that they are talking to currently, so that's something to look forward to.
With more Filipinos having more disposable income, sales of their brands continue to grow. The arrival of competition such as Uniqlo and H&M didn't have much effect on SSI, in fact, it appears that they have driven up SSI's sales too.
I currently have SSI on my portfolio and what I heard was reassuring. I'll hold on to my shares at the moment. :P
Xurpas (Xurpas, Inc.)
Last but not the least is Xurpas, the stock that gave me almost 100% gain during its IPO. Ever heard of pinoyexchange? It was founded by Xurpas' President and CEO, Nix Nolledo. Nix started his talk by showing their makeshift office when they were still starting. He also boasted that they never needed to make a loan for their business (except until the IPO). He showed mobile contents/products that are being utilized by Globe Telecoms. He also introduced Storm, a company that they acquired recently.
In the age of internet and mobile computing, companies such as Xurpas offer unlimited possibilities. According to Nix, you don't look at 10% or 20% gain. Instead, you should look at 100% or 200% gain. Juanis Barredo also asked if there's a possiblity that Xurpas will acquire another company in the next 1 to 2 years. Nix's reply was, "1 to 2 years is too long". It appears that Xurpas is aggressive in acquiring more companies, which will help drive its growth further.
Again, it was a reassuring talk. I'll hold on to Gav's Xurpas shares then. I have so much faith in Xurpas that Gav Fund only has Xurpas shares at the moment. :p
CNPF (Century Pacific Food, Inc.)
Yes, this is the popular tuna brand. Aside from the Century brand, they also carry 555, Blue Bay, Argentina, Swift, Angel and Birch Tree. It is worth noting that their products are being sold in the US as well as in the middle east. To add, there's still a lot of areas where they can explore for sales internationally. They just need to market their tuna and make the health benefits known to the public to gain more following. Their new TV ad was also shown, encouraging the public to replace one meal with tuna, for a healthier you. :P
Although the growth potential and plan is good, I might pass on this one.
HOUSE (8990 Holdings, Inc.)
I needed this roadshow to know more about HOUSE. In fact, their CEO, JJ Atencio, also thought of the same thing. :P Their company is involved in developing affordable homes. I learned that they have 2 foreign investors, one coming from Malaysia and one from the US, each owning 8% of the company. They're also teaming up with PAG-IBIG to hasten the processing of loans. JJ mentioned that their partners have been convincing them to bring their act to other countries also that might need their expertise in affordable housing. However, at the moment, it is not yet in their plans since there are still a lot of areas in the Philippines that can be developed.
I am still partial on investing on this stock.
IMI (Integrated Micro-Electronics, Inc.)
Whenever I read about IMI, the first thing that goes to my mind is semiconductors. Yes, that's true, but aside from semiconductors, they're also involved in research and development, with the aim of becoming a part of people's daily lives. Although it's a Filipino company, it already has offices in many countries (USA, Singapore, Japan, to name a few). They also handle the 4G network in China.
An interesting video they showed demonstrates their share in the smart car of the future (which according to them, will be available in a not so distant future). The video ended by showing a car parking by itself (similar to that in the new Ford Focus).
IMI has a lot promise and potential. I'll include this in my stocks watchlist.
SSI (SSI Group, Inc.)
Most probably, you're familiar with brands such as Marks and Spencer, Hermes, Kate Spade, Michael Kors, Lacoste, Aeropostale and Old Navy. Well, these are only a few of the Store Specialists Inc.'s brand portfolio. They also own Family Mart. SSI is the first company from the Rustan's group to go public. For the past few years, sales have been rising and store footprint has been increasing. Whenever you see a new mall being developed, most likely, SSI already has a spot there. According to their President, Anthony Huang, new stores are still on the way, some of which will be opened in 2016. There are also 5 international brands that they are talking to currently, so that's something to look forward to.
With more Filipinos having more disposable income, sales of their brands continue to grow. The arrival of competition such as Uniqlo and H&M didn't have much effect on SSI, in fact, it appears that they have driven up SSI's sales too.
I currently have SSI on my portfolio and what I heard was reassuring. I'll hold on to my shares at the moment. :P
Xurpas (Xurpas, Inc.)
Last but not the least is Xurpas, the stock that gave me almost 100% gain during its IPO. Ever heard of pinoyexchange? It was founded by Xurpas' President and CEO, Nix Nolledo. Nix started his talk by showing their makeshift office when they were still starting. He also boasted that they never needed to make a loan for their business (except until the IPO). He showed mobile contents/products that are being utilized by Globe Telecoms. He also introduced Storm, a company that they acquired recently.
In the age of internet and mobile computing, companies such as Xurpas offer unlimited possibilities. According to Nix, you don't look at 10% or 20% gain. Instead, you should look at 100% or 200% gain. Juanis Barredo also asked if there's a possiblity that Xurpas will acquire another company in the next 1 to 2 years. Nix's reply was, "1 to 2 years is too long". It appears that Xurpas is aggressive in acquiring more companies, which will help drive its growth further.
Again, it was a reassuring talk. I'll hold on to Gav's Xurpas shares then. I have so much faith in Xurpas that Gav Fund only has Xurpas shares at the moment. :p
5 Things I Did to Recover from the 2008 Global Financial Crisis
07:00:00
I began trading stocks in April 2007 after attending a basic stock market seminar from Philstocks (an online stock broker). I then joined stock trading forums such as Finance Manila and Trader's Pizza. In just a few months, with the help of tips, rumors, and a little bit of luck, my portfolio immediately grew by 30%. I felt good. I felt that earning from the stock market was easy. I felt I was good. It even came to a point when I was already contemplating on setting up a fund where my sister and her officemates can invest their money (in return, I'll have a cut on the profit).
Then came the subprime mortgage crisis in the second half of 2007, which lead to the US recession, and eventually, the global financial crisis of 2008. Add to that the Manila Peninsula siege in November 2007 that caused a massive selldown in the PSE. I suddenly found myself staring at a 50% drop in my portfolio. I was humbled by Mr. Market, slapping my face with a six-digit loss. I didn't know how to react,ang bilis ng mga pangyayari. Parang isang bangungot. Nakakapanghinayang. Should I sell and swallow the losses or should I just hold? I didn't know what to do.
In 2010, I was finally able to recoup my losses and started earning again. It took me quite some time to recover, but I'm glad that I'm still in the market up to now. I had better luck compared to others who simply quitted and vanished from the stock trading forums.
I would like to share the 5 things that helped my stock trading portfolio recover from the global financial crisis. May it be a lesson to newbie traders, help them prepare mentally and emotionally, for the next bear market cycle.
1. Think Long Term
I told myself that I'm in for the long haul, that I'll be trading stocks for more than 10 years. What happened was just a temporary setback to my trading career.
Right now, including the time I stayed away from the market, I'm already on my 8th year in stock trading. I'm glad I stayed. I think I'll still be trading even after I retire to keep me busy.
2. Learn to cut losses
The problem I have with my stock portfolio before was that it contained several penny stocks and second liners. A rookie mistake that I also did was that I entered the trades without a plan. I didn't consider if I'll go short term or long term, and I didn't have a cut loss plan. That's the reason why my losses kept on piling.
Eventually, I sold the penny stocks and most second liners, eventhough it hurts. At that point, I needed to preserve my capital. I then used the money to blue chip stocks such as TEL and AC.
3. Continue studying
I attended the free Fundamental Analysis (FA) and Technical Analysis (TA) seminars provided by COL Financial (formerly CitisecOnline). Believe me, the Tektite Auditorium was jampacked with traders and investors! I guess, just like me, they got trapped due to the financial crisis.
Edward Lee, the Chairman and CEO of COL Financial, knew why we were there. Aside from the FA and TA lessons provided by April Tan and Juanis Barredo, respectively, he gave us valuable tips on how to approach the current market situation (he's already a veteran at that). One thing that stuck to me was that, in a recovering market, the first to bounce back will be the blue chips. So that's what I did, bought TEL and AC and held on to them for more than a year.
Aside from the seminars I attended, I also read books on TA and discovered the usage of other technical indicators. I was able to apply the acquired knowledge eventually.
4. Learn from the experience of others
Whenever I read the forums, aside from checking the discussions on different stocks, I also read the sharing sessions of traders who have experienced the similar thing in the past. In Trader's Pizza, there was a trader who also lost 50% during the Asian Financial Crisis, and eventually recovered the losses after 10 years. Another trader lost 80% of his capital, but was also able to recover after several years (that guy is a stock "guru" now).
Hearing their stories gave me hope that it's possible to recover the losses in time. Just like saying that there's a rainbow always after the rain.
5. Take a break from the market
Watching the Dow Jones drop 400 to 600 points daily was very stressful. Since the PSE was coupled with the US market, it's sure that the PSEi will be hit pretty hard too. Seeing your paper losses go higher each day was stressful indeed! There were times I just wouldn't login to my trading account so I won't see the paper losses.
After I bought TEL, AC and other blue chips, I laid low from stock trading and just let the blue chips do their thing. When I checked my account after a few months, I already saw encouraging developments. And by 2010, I was able to recover all the losses, plus some gains.
Then came the subprime mortgage crisis in the second half of 2007, which lead to the US recession, and eventually, the global financial crisis of 2008. Add to that the Manila Peninsula siege in November 2007 that caused a massive selldown in the PSE. I suddenly found myself staring at a 50% drop in my portfolio. I was humbled by Mr. Market, slapping my face with a six-digit loss. I didn't know how to react,ang bilis ng mga pangyayari. Parang isang bangungot. Nakakapanghinayang. Should I sell and swallow the losses or should I just hold? I didn't know what to do.
In 2010, I was finally able to recoup my losses and started earning again. It took me quite some time to recover, but I'm glad that I'm still in the market up to now. I had better luck compared to others who simply quitted and vanished from the stock trading forums.
I would like to share the 5 things that helped my stock trading portfolio recover from the global financial crisis. May it be a lesson to newbie traders, help them prepare mentally and emotionally, for the next bear market cycle.
1. Think Long Term
I told myself that I'm in for the long haul, that I'll be trading stocks for more than 10 years. What happened was just a temporary setback to my trading career.
Right now, including the time I stayed away from the market, I'm already on my 8th year in stock trading. I'm glad I stayed. I think I'll still be trading even after I retire to keep me busy.
2. Learn to cut losses
The problem I have with my stock portfolio before was that it contained several penny stocks and second liners. A rookie mistake that I also did was that I entered the trades without a plan. I didn't consider if I'll go short term or long term, and I didn't have a cut loss plan. That's the reason why my losses kept on piling.
Eventually, I sold the penny stocks and most second liners, eventhough it hurts. At that point, I needed to preserve my capital. I then used the money to blue chip stocks such as TEL and AC.
3. Continue studying
I attended the free Fundamental Analysis (FA) and Technical Analysis (TA) seminars provided by COL Financial (formerly CitisecOnline). Believe me, the Tektite Auditorium was jampacked with traders and investors! I guess, just like me, they got trapped due to the financial crisis.
Edward Lee, the Chairman and CEO of COL Financial, knew why we were there. Aside from the FA and TA lessons provided by April Tan and Juanis Barredo, respectively, he gave us valuable tips on how to approach the current market situation (he's already a veteran at that). One thing that stuck to me was that, in a recovering market, the first to bounce back will be the blue chips. So that's what I did, bought TEL and AC and held on to them for more than a year.
Aside from the seminars I attended, I also read books on TA and discovered the usage of other technical indicators. I was able to apply the acquired knowledge eventually.
4. Learn from the experience of others
Whenever I read the forums, aside from checking the discussions on different stocks, I also read the sharing sessions of traders who have experienced the similar thing in the past. In Trader's Pizza, there was a trader who also lost 50% during the Asian Financial Crisis, and eventually recovered the losses after 10 years. Another trader lost 80% of his capital, but was also able to recover after several years (that guy is a stock "guru" now).
Hearing their stories gave me hope that it's possible to recover the losses in time. Just like saying that there's a rainbow always after the rain.
5. Take a break from the market
Watching the Dow Jones drop 400 to 600 points daily was very stressful. Since the PSE was coupled with the US market, it's sure that the PSEi will be hit pretty hard too. Seeing your paper losses go higher each day was stressful indeed! There were times I just wouldn't login to my trading account so I won't see the paper losses.
After I bought TEL, AC and other blue chips, I laid low from stock trading and just let the blue chips do their thing. When I checked my account after a few months, I already saw encouraging developments. And by 2010, I was able to recover all the losses, plus some gains.
Lesson from Jerry Maguire: Just Roll with the Punches. Tomorrow is Another Day.
07:00:00
I have to admit that Jerry Maguire is one of my favorite movies. In fact, I have a copy of that movie in my phone, which I listen to whenever I'm bored in the office. :P I love the short messages that Dicky Fox (fictional character) gives, which I find applicable also to business and investments.
So what's my favorite line in the movie? No, it's not "You complete me". The line which I like the most is "Just roll with the punches. Tomorrow is another day."
Whenever the stock market falls down really hard, just like what happened yesterday (April 15, 2015), I remind myself of that line. Just accept the losses that Mr. Market is giving you right now. On the next day (or next couple of days), it will eventually bounce back and give you new hope. That's why it is very important to select the stocks you trade or invest in wisely. Choose stocks with sound fundamentals, and avoid penny stocks. By having good stocks in your portfolio, you don't need to worry about cutting your losses, and for sure, you'll still be able to sleep well at night despite of the massive market sell-off. When the market goes up again, usually, these stocks are the ones who recover quickly.
Aside from absorbing the impact of the down market to your portfolio, you must also take advantage of that opportunity, if possible. Buying UITF units or MF shares during the period is a good idea. With the decreased prices, you'll be able to buy more units/shares. That means higher profit for you once the prices go up again.
The last thing that I want to say is to go long term on your investments, as much as possible. When you go long term, you don't have to worry about short-term market fluctuations. You'll treat bloodbaths as just an ordinary day. When you sell or redeem your investments in the future, you probably won't remember these "down" days.
With the Dow up by 0.44% as of writing, I'm pretty optimistic that the market can bounce back later. I wish us luck in our trades and investments.
So what's my favorite line in the movie? No, it's not "You complete me". The line which I like the most is "Just roll with the punches. Tomorrow is another day."
Whenever the stock market falls down really hard, just like what happened yesterday (April 15, 2015), I remind myself of that line. Just accept the losses that Mr. Market is giving you right now. On the next day (or next couple of days), it will eventually bounce back and give you new hope. That's why it is very important to select the stocks you trade or invest in wisely. Choose stocks with sound fundamentals, and avoid penny stocks. By having good stocks in your portfolio, you don't need to worry about cutting your losses, and for sure, you'll still be able to sleep well at night despite of the massive market sell-off. When the market goes up again, usually, these stocks are the ones who recover quickly.
Aside from absorbing the impact of the down market to your portfolio, you must also take advantage of that opportunity, if possible. Buying UITF units or MF shares during the period is a good idea. With the decreased prices, you'll be able to buy more units/shares. That means higher profit for you once the prices go up again.
The last thing that I want to say is to go long term on your investments, as much as possible. When you go long term, you don't have to worry about short-term market fluctuations. You'll treat bloodbaths as just an ordinary day. When you sell or redeem your investments in the future, you probably won't remember these "down" days.
With the Dow up by 0.44% as of writing, I'm pretty optimistic that the market can bounce back later. I wish us luck in our trades and investments.
My Notes from the Philippine Retail Investment Conference 2015
06:59:00
Last May 16, 2015, I attended the Philippine Retail Investment Conference 2015, an event presented by the CFA Society of the Philippines. Ticket price for the event is 2500 Pesos, but through the generosity of COL Financial, COL clients (like me) were able to attend the event for free. Thank you Uncle Edward Lee! :)
In line with my advocacy to spread financial education, I would like to share my notes to my blog readers. Although not complete, I believe readers should be able to learn a thing or two from this.
Speaker: Mr. Hans Sicat, President of the PSE
Keynote Speech
The PSE is taking part in the Invest Asean initiative.
The "Invest ASEAN" intiative includes:
- an ASEAN Exchanges website
- the creation of an FTSE ASEAN Index series
- an ASEAN trading link.
Right now, the ASEAN trading link only involves 3 markets -- Malaysia, Singapore and Thailand. Basically, a trader/investor in one country can now easily buy shares of stocks in another country. This is good news especially to those who want to diversify in the global market. The Philippines, together with 2 more countries, are expected to be included on the next batch.
PDS stake acquisition
According to Mr. Sicat, the PSE is also getting involved in the bond market through the Philippine Dealing System (PDS). With the acquisition of the majority shares of PDS, we can look forward to lower fees for the bond market.
Speaker: Robert Stammers, CFA
Topic: Retirement Security Problem
Longevity Risk
Longevity risk is living past the life of your useful assets (or what you've saved for your retirement). Based on statistics, life expectancy for men is now at 78, while 80 for women. With the advancements in the field of medicine, people are now living longer (and this means you need to save more for your retirement).
On developing fiscal discipline
- create a household budget
- learn to save before you spend
- track your spending
- build an emergency fund (3-6 months of monthly household expenses)
- keep the cost of your lifestyle constant (put windfall income to savings/investment)
- manage your debt (before pursuing the savings plan)
Investment Tips
- Diversify on global stocks and bonds for risk mitigation
- Make consistent capital contributions -- if you keep on waiting for the right timing, there's a higher chance that you'll miss out the best days of the market
- Purchase low cost financial products (in terms of management fees and other charges)
- Think long term (financial planning is a marathon, not sprint). It takes 20-25 years to establish fund for 20-25 years of retirement.
Speaker: Tolmas Wong, CFA
Topic: IPS - Investment Policy Statement
On Diversification
Diversification without really thinking is like building a zoo. When diversifying, ensure that when an assett class goes down, another one will go up to offset the losses.
On Market Timing
You can't time the market. For most average investors, regular saving and regular investing is recommended.
Pitfalls in retirement planning
- Too little -- magic of compounding will wane
- Too late
- Too conservative
- Too haphazard -- leaving everything to chance
On cutting losses
Cutting losses at 10% compared to cutting when you're already down 50% gives you a better chance of recovering faster. Take note that if you cut when you're already down by 50%, that means you need to gain 100% in order to breakeven.
Panel Discussion
Topic: Frauds, Scams and Consumer Protection
On Investment Scams
There are 37 pending cases in court related to investment scams.
The public is not vigilant on the products that they invest in. Before going into an investment scheme, ask yourself: Why is it giving returns better than the market?
Common investment scams:
- Pyramiding scheme (sellling/recruiting)
- Ponzi Scheme/Affinity Scam
From SEC Chairperson Teresita Herbosa: Based on the Supreme Court Decision, even if you're not the the mastermind of a scam, even if you're just an employee or just tasked to make the presentation, you are considered as an ostensible agent for the mastermind and will be held liable for the violation of the securities law.
How to report a scam:
SEC - you can even use a dummy email if you want to maintain anonymity
BSP - Financial Consumer Department
Check "Alerto Ako" for tips.
Speaker: Robert Ramos, CFA
Topic: 12 Common Mistakes in Investing
1. No investment strategy
2. Investing in individual stocks instead of in a divesified portfolio of securities
- mutual fund diversification is not portfolio diversification
- by investing in same investments from different banks, you are over-diversifying
3. Investing in stocks instead of in companies
4. Buying high (avoid performance chasing. Instead, invest in the asset because of the sound fundamentals)
5. Selling low (due to holding on to investments, so make sure to have a stop loss)
6. Churning your investments (frequent trading cuts into investment returns)
7. Acting on tips and sound bites
8. Paying too much in fees and commissions
9. Decision making by tax avoidance (tier 2 investments are exempted from tax)
10. Unrealistic expectations
11. Neglect (failing to begin investing due to lack of knowledge)
12. Not knowing your investment risk tolerance
Should i have stop-loss for UITF and MF?
You must have stop-loss for everything, especially if you'll be needing the money in the near future.
Panel Discussion
Topic: Risk and return outlook of stocks, bonds, properties and private equity
4Q 2015 or 1Q 2016, most likely bond rates will increase
Is there a property bubble in the Philippines?
Not really. Real estate, in the next 3-5 years, is a good investment
On Private equity
Involves companies that are not publicly listed (illiquid and for long term). Minimum investment is 1 million dollars
Investment Tips
If you're still young, allocate more on growth assets (60-70% on equties). If you're older, objective is capital preservation.
It's time, not timing, that determines your personal wealth.
In case of fed rate hike, buy on dips.
When interest rates go up, it's bad for the real estate market.
If you have 50K pesos, you may invest 100% equities, BUT "It's not your age that matters, but when you'll need the money".
How much of your monthly salary should go to mortgage? -- Not more than 25%
Outlook for 2016 election and how it will affect the stock market? -- 70% of filipinos contribute to consumer spending. Regardless of the president, Filipinos will still spend.
Speaker: Marvin Fausto
Topic: Analyzing Mutual Funds
Balance Qualitative vs. Quantitative
Qualitiative
1. Why (Your purpose? Your goal? Emergency fund? College education? Vacation?)
2. Who (Fund house? How long the fund is in existence? How long has the fund manager been overseeing the fund?)
3. What (Investment objective of the fund? What kind of investment will the fund invest in? What is the investment style? What is their process in choosing investments?)
Quantitative
1. Performance -- historical performance
2. Risk -- standard deviation of returns
3. Risk / Return - Sharpe ratio (formulated by William Sharpe)
4. Fees - expense ratio
COL Fund Source
Participating Mutual Fund Companies:
SunLife Financial
Philequity
ATR Kim Eng
ALFM
FAMI
Philam Asset Management
There are 24 mutual funds offered in the COL Fund Source.
According to studies, only 6% of those who learned Financial Literacy improved.
Difference between Mutual Fund and UITF
UITF is being regulated by the Central Bank. MF is being regulated by the SEC.
Speaker: Noor Quek
Topic: Preserving Family Wealth Through Generations
Is it ok to transfer your assets to your children while you are still living?
Although it can show how much you love your children, it was suggested that parents should also learn how to use and spend the wealth they've established, after all, they've worked for it for many years. It's just right that they also reward themselves. As long as they were able to give their children good education and taught them the right values, that should be enough. Children must also learn how to work for themselves.
The problem with transferring the assets too early
If you give your assets too early to your children, in case the child dies, you'll have a problem taking back what you gave him/her. Problems can arise especially if your child is already married. Your wealth will surely go to the spouse.
From clogs to clogs
This often happens: parents start from scratch, children inherit the wealth, then spend the family's wealth.
On passing your business to your children
Parents should not force their children to take on their business, especially if that's not what they want to do. In addition, parents should know when to act as business owner and as parent to their children.
If the parent thinks that his/her children cannot handle the business, it's ok to just sell the majority part of it, but still holding on to substantial number of shares, so the parent will still be able to receive earnings.
From Ms. Rose Fausto: For the money you receive for your child, put it in a savings account (or investment) so it won't comingle with your money.
In line with my advocacy to spread financial education, I would like to share my notes to my blog readers. Although not complete, I believe readers should be able to learn a thing or two from this.
Speaker: Mr. Hans Sicat, President of the PSE
Keynote Speech
The PSE is taking part in the Invest Asean initiative.
The "Invest ASEAN" intiative includes:
- an ASEAN Exchanges website
- the creation of an FTSE ASEAN Index series
- an ASEAN trading link.
Right now, the ASEAN trading link only involves 3 markets -- Malaysia, Singapore and Thailand. Basically, a trader/investor in one country can now easily buy shares of stocks in another country. This is good news especially to those who want to diversify in the global market. The Philippines, together with 2 more countries, are expected to be included on the next batch.
PDS stake acquisition
According to Mr. Sicat, the PSE is also getting involved in the bond market through the Philippine Dealing System (PDS). With the acquisition of the majority shares of PDS, we can look forward to lower fees for the bond market.
Speaker: Robert Stammers, CFA
Topic: Retirement Security Problem
Longevity Risk
Longevity risk is living past the life of your useful assets (or what you've saved for your retirement). Based on statistics, life expectancy for men is now at 78, while 80 for women. With the advancements in the field of medicine, people are now living longer (and this means you need to save more for your retirement).
On developing fiscal discipline
- create a household budget
- learn to save before you spend
- track your spending
- build an emergency fund (3-6 months of monthly household expenses)
- keep the cost of your lifestyle constant (put windfall income to savings/investment)
- manage your debt (before pursuing the savings plan)
Investment Tips
- Diversify on global stocks and bonds for risk mitigation
- Make consistent capital contributions -- if you keep on waiting for the right timing, there's a higher chance that you'll miss out the best days of the market
- Purchase low cost financial products (in terms of management fees and other charges)
- Think long term (financial planning is a marathon, not sprint). It takes 20-25 years to establish fund for 20-25 years of retirement.
Speaker: Tolmas Wong, CFA
Topic: IPS - Investment Policy Statement
On Diversification
Diversification without really thinking is like building a zoo. When diversifying, ensure that when an assett class goes down, another one will go up to offset the losses.
On Market Timing
You can't time the market. For most average investors, regular saving and regular investing is recommended.
Pitfalls in retirement planning
- Too little -- magic of compounding will wane
- Too late
- Too conservative
- Too haphazard -- leaving everything to chance
On cutting losses
Cutting losses at 10% compared to cutting when you're already down 50% gives you a better chance of recovering faster. Take note that if you cut when you're already down by 50%, that means you need to gain 100% in order to breakeven.
Panel Discussion
Topic: Frauds, Scams and Consumer Protection
On Investment Scams
There are 37 pending cases in court related to investment scams.
The public is not vigilant on the products that they invest in. Before going into an investment scheme, ask yourself: Why is it giving returns better than the market?
Common investment scams:
- Pyramiding scheme (sellling/recruiting)
- Ponzi Scheme/Affinity Scam
From SEC Chairperson Teresita Herbosa: Based on the Supreme Court Decision, even if you're not the the mastermind of a scam, even if you're just an employee or just tasked to make the presentation, you are considered as an ostensible agent for the mastermind and will be held liable for the violation of the securities law.
How to report a scam:
SEC - you can even use a dummy email if you want to maintain anonymity
BSP - Financial Consumer Department
Check "Alerto Ako" for tips.
Speaker: Robert Ramos, CFA
Topic: 12 Common Mistakes in Investing
1. No investment strategy
2. Investing in individual stocks instead of in a divesified portfolio of securities
- mutual fund diversification is not portfolio diversification
- by investing in same investments from different banks, you are over-diversifying
3. Investing in stocks instead of in companies
4. Buying high (avoid performance chasing. Instead, invest in the asset because of the sound fundamentals)
5. Selling low (due to holding on to investments, so make sure to have a stop loss)
6. Churning your investments (frequent trading cuts into investment returns)
7. Acting on tips and sound bites
8. Paying too much in fees and commissions
9. Decision making by tax avoidance (tier 2 investments are exempted from tax)
10. Unrealistic expectations
11. Neglect (failing to begin investing due to lack of knowledge)
12. Not knowing your investment risk tolerance
Should i have stop-loss for UITF and MF?
You must have stop-loss for everything, especially if you'll be needing the money in the near future.
Panel Discussion
Topic: Risk and return outlook of stocks, bonds, properties and private equity
4Q 2015 or 1Q 2016, most likely bond rates will increase
Is there a property bubble in the Philippines?
Not really. Real estate, in the next 3-5 years, is a good investment
On Private equity
Involves companies that are not publicly listed (illiquid and for long term). Minimum investment is 1 million dollars
Investment Tips
If you're still young, allocate more on growth assets (60-70% on equties). If you're older, objective is capital preservation.
It's time, not timing, that determines your personal wealth.
In case of fed rate hike, buy on dips.
When interest rates go up, it's bad for the real estate market.
If you have 50K pesos, you may invest 100% equities, BUT "It's not your age that matters, but when you'll need the money".
How much of your monthly salary should go to mortgage? -- Not more than 25%
Outlook for 2016 election and how it will affect the stock market? -- 70% of filipinos contribute to consumer spending. Regardless of the president, Filipinos will still spend.
Speaker: Marvin Fausto
Topic: Analyzing Mutual Funds
Balance Qualitative vs. Quantitative
Qualitiative
1. Why (Your purpose? Your goal? Emergency fund? College education? Vacation?)
2. Who (Fund house? How long the fund is in existence? How long has the fund manager been overseeing the fund?)
3. What (Investment objective of the fund? What kind of investment will the fund invest in? What is the investment style? What is their process in choosing investments?)
Quantitative
1. Performance -- historical performance
2. Risk -- standard deviation of returns
3. Risk / Return - Sharpe ratio (formulated by William Sharpe)
4. Fees - expense ratio
COL Fund Source
Participating Mutual Fund Companies:
SunLife Financial
Philequity
ATR Kim Eng
ALFM
FAMI
Philam Asset Management
There are 24 mutual funds offered in the COL Fund Source.
According to studies, only 6% of those who learned Financial Literacy improved.
Difference between Mutual Fund and UITF
UITF is being regulated by the Central Bank. MF is being regulated by the SEC.
Speaker: Noor Quek
Topic: Preserving Family Wealth Through Generations
Is it ok to transfer your assets to your children while you are still living?
Although it can show how much you love your children, it was suggested that parents should also learn how to use and spend the wealth they've established, after all, they've worked for it for many years. It's just right that they also reward themselves. As long as they were able to give their children good education and taught them the right values, that should be enough. Children must also learn how to work for themselves.
The problem with transferring the assets too early
If you give your assets too early to your children, in case the child dies, you'll have a problem taking back what you gave him/her. Problems can arise especially if your child is already married. Your wealth will surely go to the spouse.
From clogs to clogs
This often happens: parents start from scratch, children inherit the wealth, then spend the family's wealth.
On passing your business to your children
Parents should not force their children to take on their business, especially if that's not what they want to do. In addition, parents should know when to act as business owner and as parent to their children.
If the parent thinks that his/her children cannot handle the business, it's ok to just sell the majority part of it, but still holding on to substantial number of shares, so the parent will still be able to receive earnings.
From Ms. Rose Fausto: For the money you receive for your child, put it in a savings account (or investment) so it won't comingle with your money.
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