hey everyone! j3 here, and welcome to our q&a session for the take the leap,invest within the week online seminar series. now, when i createdthe five videos, a lot of you guys were sending in questions and i've observed that, youknow, there's a slight pattern with the questions and i figuredit would be really nice and extremely helpful if we made this q&a session. so acouple of weeks ago i sent in an e-mail to some of the earliersubscribers
to send in their questions and you know what? thank you for sending in a ton of questions, i received a lot, sowhat i did here basically was to categorize and compile the questions. so, in this session, we'll be dealing withfive kinds of questions. okay, the first kinds of question are about 'counts', 'how to get started', and, you know, pretty much the basic stuff for applying for an online account in col. the second types of questions are about the stock market itself. then, the third type are about investingstrategies.
basically this is, you know, 'how do i buy', and 'how do i sell', 'how they know when to buy and how do i know when to sell', 'what happens if there's a stock marketcrash?' and so on. okay then, in #4, we are going totalk about the other investment option so, this is where i put in the questionsabout 'mutual funds' uits and vuls. okay! then, finally we go to the last section of common questions so,
i think for that section it's just about you know, whoever asked that question. okay? so let's get started with: 'gettingstarted'! so, the first question: 'international banksand application form.' romar asks, "is my metrobank account in korea acceptable to be put in my application form? also," "can my family in the philippines fund mycol account?" okay, now i called col for this, and they said that they only
only accepted local banks. now, you said: 'metrobank in korea.' so if col can deposit here from the philippines to your account in korea. if that's possible, then that means they would accept it. because, they need to be able to deposit it from here in the philippines, locally. because that is how you withdraw money, from col. okay, when you're withdrawing from col,you only have two options.
first is: 'check pick-up.' meaning, you will get the check under your name from the colfinancial. and the second way is through directbank deposits. so, col, you can instruct col to deposit into your bank account. and for them to be able to do that, the bank needs to be local. so again, to answer your question, if it is possible to deposit in your metrobank account in korea, even we're here in the philippines, then yes, that would be acceptable. okay,
then second: "can your family fund your col account?" yes, it's just like making a payment. okay, so it similar to paying you meralco bill, etcetera. it is very easy to fund an account. okay, next question! this comes from leonor, and leonor asks: "does col require us to fund our account on a regular basis. whether that's monthly, quarterly and so on?" "then if i got funds that i would like to move to a regular col account from an
eip account, can this be applicable?" okay, first, let's answer your first question, and the answer to that is: there is no required deposits. everything is up to you. you just need to be able to satisfy the 5,000 initial deposit. and then even if you never add to that initial deposit forever, it is okay. but of course, that's not recommended. so, so there are no penalties if you don't add, but of course, if you don't add, your money and portfolio won't grow. but, again, there's no requirement. then, for your second question,
it's possible to upgrade. so if you start with a 5k account, once you reach 25k, you'll see a link in your account and it will inform you that, "okay, upgrade to the regular account already." and once you hit 1 million pesos in your portfolio, again you'll see a linkthere, so that you can upgrade to another account level. okay, with that let's move on to our nextquestion. "eip and sam accounts and orders."
okay, so sotero asks: "if i have an eip account, do i need to create an eip schedule to buy stocks?" and then, his secondquestion is: "what about in the sam strategy - do i just buy stocks without any scheduling?" okay, first, allow me toclarify some things. first, when it comes to account types, there is no eip account. they removed the eip account because many people were confused. so currently, the col financial, there are only three
account types. the first account type is what we call the 'col starter'. and with this, you can do basic investing already. the minimum isfive thousand pesos. that's the amount that you needto get started with your basic investing. now, they have an account, which is called the 'col plus.' what you get there is that you will beable to access live streaming data. so forexample,
let's say for example it's mondaytoday and it's ten o'clock in the morning. so if you want to see the happenings on the stock market live, you will have access to that when you are already a col plus account holder. if you are still a col starter, meaning: you have a small fund, then you won't have access to the live streaming data but when it comes to the research, you have an access in that particular aspect. then finally, we have the col premium. this will enable you to have a given relationship manager
since you're bringing in a lot of money for them. so if you have a minimum one million pesos, you get a relationship manager andyou will also have a portfolio analysis. now, all of this, this will be live on april 2013, so they are still currently in the testing phase. so, it's possible that even if you have a starting amount of 5k, you will see the functions of col plus. but when they fully implement the system, then the system will revert to it's original state.
and once again, if you started with col starter, and your funds grew to the point that you can avail col plus, then you can easily upgrade your account. okay, now you can place any order with any account type. now, next clarification: 'what is eip?' the eip order stands for 'easy investment program.' and what that does is: it's another way of buying stocks and with the eip order you get to have a reminder
when the stocks will be purchased again. so you can schedule in eip order. you can say, 'okay, i want to buy ayala land every month and this is my budget.' so you specify it in the system like so: ' p3,000 every month, or even p3,000 every quarter.' it will be reminded to you by the system that it is time to buy the stock. and, with this, again, there's no requirement because you can skip it. you can cancel it and there is no penalty whatsoever.
it's just a reminder to you that it is time to buy, or it is time to increase your investment. that's why they call it an 'easy investment program,' because you will have a reminder. so once again, you will have to confirm this purchase; it is not automatic. so you can proceed with it or or you can just cancel it. and then if you cancel it, it will just revert back, until it is that time again to invest. okay? then, about your third question about the sam:
okay, now about the sam strategy, the sam is the truly rich club's way of investing. and, it can be done through any broker or any order type. so even if your broker is not col financial, you can still implement the sam strategy. this is because the sam strategy, it is a stock recommendation list, and youcan buy stocks with any broker. so, you can execute the samejust by placing regular orders or eip orders. there is no
difference. okay? now the important part, when it comes to the sam is followingthe stock commendation list and following the buy-below prices as well as the target prices. so, once again the eip is not related with the sam strategy and with the account types. it is a different thing altogether. okay, with that, let's move on to the next thing. here's some notes,
if you have questions about opening an account, it would be best to directly contact the col. so this is their e-mail: helpdesk@colfinancial.com and if it is more convenient for you to call, you can call them at this number: (+632) 651 5888. okay, they have a fast and very friendly customer service. so, actually, i have questioned them frequently because a lot of people have been asking me. they are very very helpful. okay, i think they are the best person to
contact because i am not an agent of col so i can't really answer all of the specific questions when itcomes to opening an account. but for sure, they will be ableto help you. next: buying the same stock within the same month. so sotero again asks: 'can i buy several times the same stock in in a month? for example, i bought 300 shares of dnl last march 2. now, can i buy again, for let's say 500 shares on march 16?'
and the answer to that is: there's nolimit to the stocks you can buy and how frequently you buy them. if you'rewith an online broker, you will be in charge when will you buy the amount of stocks you prefer. of course, this is considering that you have the appropriate amount of money in your account. the important thing to consider is that: should you buy the same stock over and over again withinthe same month. and that depends on the strategy, so it's possible, but the strategy concerning that is a different matter altogether.
okay? now, the next question on this category, about 'getting started': and tonio shares that: "my salary is exact. until now, i'm searching for a better paying job. i also don't have anyideas for a business. desperate question!" okay, so the problem here is if you have meager resources, is it possible to invest? and here's the answer: investing actually is in the later stages of achieving financial freedom. so if youdon't have money now,
then there's no need to rush it. so in other words, you shouldn't actually invest. it is a step by step process. if you can't invest, don't force it. for now, i think your priority should be increasing your income, finding moreopportunities to increase your income, and decreasing your expenses. it is necessary to balance the amount you receive and the amount you spend. otherwise, you will have nothing to invest. and you really can't force the process. with that here these are my suggestions: first is increase your income, and sometips on how to do that:
first thing to remember is that income is always equal to the value that youprovide to others. for example, the child that guides you when you reverse your car. so the value that the child provides is the assurance that you can properly reverse your car and direct the traffic out of your car's way. and for that, we pay 5 pesos, or 10 pesos. okay? so there is value. if there's value, expect income. if you want to increase your income, then you need to find ways to solve other people's problems.
okay? then, so again it's finding ways to help more people. if you want to increase yourincome this is the way to do it. it's being aware of the problems within your community. now i can't suggest specific advice on how to increase yourincome because thre problems you see in your own area, in your own network, that's for youto solve. the opportunity lies in you, not in me. so i can't
recommend an opportunity for you because it's yours. okay? this can also be your source forbusiness ideas. it's just about solving problems.it's just about being generous in your talents; in what you do for other people. and if you follow that, the money will come. now, next thing is decrease your expenses. make sure that you really understand the difference between your needs and your wants. there should be no:
"ah, i can't live without coffee everyday so it's a need." it's a want. if you managed to live without it before, it's just a want. okay, so you really need to simplify things if you want to start investing. but asyou do this, don't lose hope because it isstill a step forward. it's just the earlier phases of financialmanagement. so control your cash first, then when you manage to generate a spread, that is the time that you can start investing. so i hope that helped,
now we'll move on to the stockmarket. so the first question is: "if the company gives dividends, how will i get it?" and thank you forasking that, dj. and the answer is: if you're with an onlinebroker it will be automatically credited to your account. so you will receive an e-mail that states that 'company so-and-so declared dividendsand this is the money that you received' andthat money will be automatically credited to your account whether that's a dividend in
cash or in property or in stock. okay, about taxes. "if an ofw with a different citizenship or with a dual citizenship invests in the stock market, is it still needed to file an income tax return in the philippines?" this question was sent in by maro. okay, my answer is: please consult a tax expert. i'm not one. it is dangerous if we assume things. but here's what i know: gains from the stock market are considered to be final tax. meaning,it is not added
to the income tax. it is not needed to be declared. i don't know if this will change givendifferent citizenship or who is the person really in charge of handling your tax. that is why i'm really suggesting and really encouraging that you consult a tax expert. okay? get an accountant. they can properly advice you on this matter. now, next: transaction fees. "are there any fees when withdrawing themoney invested in the stock market? and how much would it be?" this question is also sent in by dj and here are thetransaction fees:
funding and withdrawing funds. when you put in money, or if you're withdrawing from col, there is no fee at all. now, it's possible that your bank may charge some, but that is the required fee of the bank, and not of col. i think that if you only deposit a small amount to col, some banks may charge their own fees. so you'll have to check that with your own bank. now, col only charges its commissions plus regulatory fees and taxes.
so col only charges for transaction fees, funding or withdrawing isn't charged at all. but if you buy or sell stocks, that is the only time you incur transaction fees. now, there are fees when you are buying, and there are fees when you are selling. for buying, this is what you will have to pay for: first is the commission of col, which is 0.25% of the total transaction amount. or, 20 pesos, whichever is higher.
okay? so for example, we are going to invest 1000 pesos. we are going to transact for p 1,000. so 0.25% of that amount is p 2.50 . and you know, p 2.50 is lower than p 20 so the fee we will get charged with isp 20. next thing is the vat, which is 12 % of 0.25 %. the vat goes to actually only to the commission. the vat only applies to the commission. so it's
12 % of 0.25 %. it is not the 12% of the total transaction amount. then next, the pse, the philippine stock exchange also has fees which is 0.005% and the sccp which would cost 0.01% for atotal of 0.295 % of the total transaction cost for buying. when it comes to selling, the same fees as buying stocks applies so that's a total of 0.295 % plus there's an additional sales tax of
0.5 % for a total of 0.795%, for a grand total of 1.09 % so for example, you will transact for p 100,000 then your taxes would be, your total transaction costs wouldbe p 1, 090.00 that is 1.09 %. now, i would like to direct your attention to the commission because it can get a little tricky. remember that
its p 20 or 0.25% whichever is higher. so actually, if you invest p 1,000 the commission ( if the 0.25 % rule is followed) should only be p 2.50. but because they have a minimum commission of p 20 per transaction, you will be charged with p 20, which is more than eight times as much. with that, here's something to take note of. thetransaction fees has a total of 1.09%.
in order to break even, you need to gain a little more than this. so the difference of what you buy and what you sell should be more than 1.09%. but because of the commission of 0.25% or p20, your transaction cost could go over 5%. if you're dealing with small amounts. so for example, in p 1,000, the commission will be p 20. and what is p 20 compared to p 1, 000? that's already 2%! so you will incur it when you buy,
you will incur it when you buy, meaning 4% will be deducted, and that is for the commission only. and there are still other fees. so it can reach up to 5% if you have low transaction amounts. with that, here is my suggestion: for long-termed investors, buy only when you have p 3,000 to p 5,000 worth to invest in acompany. do not rely in retail, so that the commission
remains at its lowest. okay? if yourbudget is p 1,000 per month, deposit monthly, but buy quarterly only. here's what i mean: for every p 3 - 5 k you have, buy only one company. okay, so here's a sample schedule: month 1 - deposit only p 1,000. there are no transaction costs because you only deposited. month 2 - deposit only again. month 3 - deposit only again, so now you have p 3,000.
then you buy one company. okay? buy one company. month 4 - deposit only again. month 5 - deposit only again. when month 6 comes, you have p 3,00 again. buy your second company. okay? now it's important to deposit every month because that establishes a habit to invest, to save. the frequency of depositing creates a habit of investing. the act of buying, however, that is something that should be done quarterly to minimize the commission on the transaction fees.
so month 7 -deposit, month 8 - deposit. month 9 - you buy your third company. and then month 10. month 11, month 12, you go back to your first company. so you still get to diversify into different companies. you will just have an increased shares to buy at any given time. so that way, you will minimize the commission. you will not be affected much by the rule 'whichever is higher.' okay? for short-term
traders, for the people who frequently transact, make sure the minimum amount per trade should bep 8,000. that is the preferable exact amount. 0.25% of p 8,000 is p 20. that is the amount wherein it will be balanced out. at least p 8,000 when you're trading because trading, you know, you're going for short-term gains. 5%, 10%, relatively, these values are already high. but if your transaction costs already comes up to 5%,
that means to make money, it would be to gain 10%. and the supposedly additional 5% has a large impact when you're trading in short periods oftime. so, that's also the reason why col limits the live streaming data to people who have at least p 25,000 in their accounts. because it is not practical to trade, but only in retail. you will have a hard time. and actually, the chances of losing much more is higher, because the commissions will get the better of you.
so again, this is so that the transaction cost remain at 1.09% and it will not go up. now next, the next question was sent in by rommel, an he's asking: "how long will it take to buy stocks? how long will it take to sell one? what if there are no sellers or buyers?" okay, here's something you have to know rommel, most of the time there is a buyer and a seller. the more important question is 'at what price?' so for example, pldt is trading for p 2, 500. it means that there is someone willing to sell and buy at p 2, 500.
now, right now, there is no one willing to buy in pldt for p 5, 000. but if you lower that price, let's say p 1,000, there will be many who will fight for that. so the question, always, is 'at what price?' most of the time, there are trades that naturally happen, the question that remains is 'will you get it at the price that you want?' when the stock market is going down, well, expect that the prices of the stocks will also be going down. okay? when the market is going up, expect that, you know, people would onlybe willing to sell
higher amounts because the trends are higher. now, there are some exceptions. there will be specific stocks that will have no transactions; the transactions is not daily. some of it will be weekly, some will be monthly. these stocks are usually those small-time companies, companies who are unheard of, it happens that transactions do not occur, and sometimes, it is called 'trash stocks,' because of this. so if you stay away from these 'trash stocks,' from these unknown companies, you can assureyourself there will be a buyer
and a seller. and the only issue that will remain is 'at what price will you be able to buy?' and'at what price will you be able sell?' okay, the next question comes from joemar, and he asks, "what are blue-chip companies?" "how do we identify them", and "how many are there?" the funny thing about blue-chip companies is that it doesn't have a strict definition. it is only used, it is a loosely used term of a layman. it refers to companies who are moderately large, and somewhat famous,
and who somehow demands a little superiority when it comes to their industry. actually, the term 'blue-chip' comes from poker. 'blue-chip', meaning it refers to the $1,000 chip. high-value chip, that refers to a high-value company. okay, so because we have no strict definition of a blue-chip company, we really can't name a list. because the large companies, definitely, they are 'blue-chips.' then if you are gradually getting smaller, some people would opt to put these companies to their blue-chip list. some people would exclude it.okay?
now, with that, let's go to buying and selling strategies. okay, stock market crash. "i have heard/read that we areheading to a bear market very soon. thoughts?" and that's for marie, and joemar asks again: "will there be a stock market crash thisyear?" and this is the answer: yes, definitely the market will go downand we will have to be in the bear market. now, when will it happen? how soon will it happen? no one can tell. no one can exactly predict a date and time
when this will happen. what you should know is that what's protecting you from any crash is your strategy. every strategy has a fail-safe plan in the event that a crash will happen. we will go to the strategies one by one and i would like to you to recall them as discussed in the previous tutorial videos. okay, so first is the buy-and-hold and it involves buying stocks and then
you will leave it there for ten, twenty years and so on. okay, and the action there if a crash happens is to wait it out. you have to be very very patient. that is why it is called 'buy-and-hold', you will buy, then the crash happens, the price will definitely go down. but you just wait it out. there are no recorded crashes that lasted 10 years. meaning, it will revert back to its original price, eventually. provided that, of course, it is a good company, that it's a giant company in its industry.
so just wait it out. that will be the action. now, next: peso-cost averaging. this is the case of buying every month, regardless of the price, whether it goes up and whether it goes down. and the actionthere is you keep buying even if the stocks decreases in value. take note, this will be the source of your money. because when the value of the stock decreases, it will be discounted; it will be very cheap;
it will be so undervalued. so when the crash ends, when the market starts to recover, then you will earn your money. and the value that you need there is discipline. usually, people are afraid when the stock value decreases and they often think, 'will i still put my money here?' it's decreasing and it is on its way to ruins, so why would you add your money there? that's a very hard thing to do. but, you need to be able to do that whenyou are following a peso-cost averaging strategy. you need discipline. now, next is market timing. this is the instance where you buy, sell, buy, sell, buy sell, buy, sell and repeat.
and you know, you trade frequently. the action there is follow your cut losses, or your cut loss points, sorry. cut losses. the thing with trading plans, those who use market timing, they have what they call acceptable loss. if it surpasses that point, they will sell that stock, even if it doesn't have merits. for example, a particular stock went down to -5%, then they will automatically sell that stock. cut loss at 5%. meaning, if there is a crash, and the market fell to -50%, and that happens,
if the market drops down at 50%, the market traders cut off their loss immediately the moment it reaches 5%. if the market fell to -10%, and the stock still isn't sold, then that is a bad market trader. that is the sign of a bad trader. because in the first place, when the market fell to -5%, they should have cut it. that's how market timing deals with a crash. so, the value needed there is, i don't know how to call it so i just put in here,
ruthlessness. you should have no mercy. you should not be afraid to sell even though you lost. now, i would just like to share with you what happens in the sam strategy. with the truly rich club. how does the truly rich club deal with a stock market crash. the answer to that is an excerpt from the jan 25, 2013 stocks update. and i'm going to read to you a segment of it. bo sanchez said that:
"today the stock market is growingsmoothly. but this is nothing compared to whatwill happen at a future date. the stock market will explode upwards. everyone will be partying. . ." following that, "and one morning, my mentor," edward lee, the founder of col and the stock market giant, will call me up. i'll hear him tell me, 'bo, it's time. . . get out.' in less than five minutes, you willreceive a short email from me.
and instead of telling you to buy thisparticular stock, i'll tell you to sell the whole enchilada." okay, in other words, if you join the truly rich club, you will get an email when to sell all of your shares and when to get out of the stock market and move all of your possessions into cash. so that's the strategy of the truly rich club. now, i don't mean to scare anyone here that, 'it's scary, there will really be people who will sell all of their stocks in one go.'
actually, that happens when a crash occurs. the question is, 'what is your strategy?' if you are not sure with your strategy, you will really panic when the stock market crashes because you are not aware of what you are going to do. so, if you're a buy-and-hold investor, do not meddle, wait it out. if you're a peso-cost averaging investor, you keep buying. if you are a market trader, you make sure that youcut your losses. and if you're following the sam, you trust the advice of
edward lee and you sell everything. if you don't follow the supposed action when a crash happens, then you will encounter a deficit. you will panic; and you will not have the peace of mind investing is supposed to get you. okay? so the lesson here is stick to your strategy because that is your protection against a stock market crash. with that, let's move on to the next question. and it comes from nilo and richard, and they are asking: "if you have 70+% gains already,
should you sell" and "how do i know when ishould sell a stock already?" okay, again, this is a question that is answered by your strategy. there is no fixed amount that you need to target. okay, so, we'll go back to the four strategies we were talking about. for buy-and-hold, you will only sell if you truly need the money in the future. as in if you will really withdraw twenty years, thirty years down the roadwhen you will already get the money for your retirement. for peso-cost averaging,
it's the same thing. when you really need the money, then that is the only time that you will sell your stocks. because peso-cost averaging is buy, buy, buy, buy, buy, buy, buy, and so on. when you only need the money,that's the time that you sell your shares slowly. so for example, if you plan to retire five years from now on, you start selling some. you will sell it slowly, and at good prices.
with market timing, it depends on your cut loss points, whether that's static or moving. and it also depends if you have a target percent gain with your stocks. the only time you set a target percent gain is if you're market timing. and for the sam or the truly rich club, when the target price is reached, so thisis a fixed amount, it is what the target price really is so that you will know when is the right time to sell it. what is its fair evaluation?
and when you hit that, that is the time to sell. so, 'when to sell?', it depends on your strategy. we move on to our next question, which is from clyde. and he asks: "which is the better strategyfor diversification: a condensed diversified portfolio (few stock, more shares) or a diluted portfolio with more companies in it?" in it okay very good question clyde and here's my answer. remember that
diversification is not a goal. you should not classify being diversified as a goal, because diversification is protection against the risks. what is risk? risks are things that you do not know. the less you know, actually, the more you should diversify. if you don't know which of the two companies is more advantageous, you invest in both. but if you know which of the two is better, you only invest in one company. actually, warren buffett, one of the world's best investors,
doesn't diversify. he dislikes diversification. but he advises to an average investor to diversify because he knows thatthe average investor is not as smart as him when it comes to investing. he knows that the average investor isnot informed. that is why he says to average investors that, 'you should diversify because you don't know which is better.' but in the case of warren buffett, he clearly has a list of what is thecompany #1, company #2,
company #3, and so on. so , he would only choose to invest in only the best of the best ofthe best of the best companies. and the only reason he diversifies is because he already has too much money on his hands. and he can't add on the best companies so he is forced to accommodate some good companies. okay? so with this, what i'm telling you is that diversification is not a goal.
it's not an objective. look at it as an expense. diversification is an expenditure because you don't know who will come on top or who has a larger profit, you will be forced to put your money in both companies. but if you really know the which of the choices is a better investment, then definitely, then why bother putting it in a good company if you can choose the great company. with that, i can't really advice how many companies should you hold in your portfolio,
but try to establish if you are content, or happy with that kind of investment. now, next thing: investing for dividends. erick and mark both asks: "is it worth buying a company even if it's already expensive given that you're following the peso-cost averaging because you're looking at the dividends it will give in the future? which one will give betterprofits?" okay, then mark asks: "i compiled a list of highest dividend
yielding stocks from the past. do youthink it's a good strategy to do peso-cost averaging on them?" okay, here's the answer: consistent dividends is a sign that it is a healthy and profitable company. it is because dividend is a sign of earnings, of excess money, that they can pay out in share holders. but, the lack of dividends does not mean that it is a bad company. the lack of dividends does not mean that
the company is not profitable. because it is possible that the excess funds is re-invested into its business operations for expansion and for growing the business further. so it is possible that a company is profiting, but the profit is added to the bussiness operations. and when a company is doing that, it will be reflected in its stock price. it will be visible because the business is growing. so, naturally, the stock price
will follow. so it doesn't mean that the lack of dividends equals to not profiting. because it is possible that you have capital gains. okay? so, dividends, is it a good strategy? yes, it's logical, that you're investing in a safe and profitable and healthy company. it's a safe play. but, it is not a perfect play. i don't know the perfect play, i don't know the perfect strategy, because there are companies that
doesn't give dividends but they are growing well. okay so dividends in usual reading going okay? so you can't make dividends a one sure way. there are a lot of factors to consider. okay, this is related to the previous question as well: "where can i get financial statements of the companies? by looking at the financial statement, how do i know if it's a good company?" this was asked by joemar and mzpangs wants
me explain the p/e ratio, eps, price to book value, and other terms. so for this one. first the financialstatements: financial statements are accessible in the pse website. get the annual report so that you'reprovided with comprehensive review. okay, so i'd like to show youexactly where to get it in the pse website so i'm just going to exit thispresentation for a while. so we head into the pse website, which is www.pse.com.ph ---- okay, so this is the pse website,
and to access the financial reports we click on 'listings & disclosures' and click on 'corporate disclosures.' now over here, we move to 'company reports' over here atthe top navigation bar, and then type in whatever company that you want to find. so let's just go with pldt, tel, and then for the disclosure type, click on 'annual reports' and we search it. search 'company reports' and this will come up. so here we can view the 2011 annual report,
the 2012 version is not yet available, but you know, we can expect that to happen. so if we click on that, you will be directed, you'll be able to see 'view and download'the company report of pldt this past 2011. okay, so let's just wait for it since it's a huge file, and it's still loading. okay, so we have here, the company report, the annual report of pldt. and it's a pretty lengthy report, and if we scroll down,
we are here near to the end, and so you'll be able to see the expenses. this is the complete financial report, and actually it's very nice if you can readthis, and you will really understand the business of pldt. so we have here the cash flows, capitalization, etcetera. with that, let's go back to the presentation and answer the next set ofquestions, which is, you know, how do you read this
financial statement. okay, and the answer there is to study fundamental analysis. there are no shortcuts; this is somethingthat you have to do. okay, so to get you started, this is my recommendation. please read 'warren buffett and the interpretation of financial statements' by mary buffett and david clark. you'll be able to buythis in any bookstore, this book is quite widespread. and i was able to buy it at p 1, 079.
the great thing about this books is the data is presented in a simplified manner. it goes line by line; what does this line really mean in a financial statement. and it also explains what is the relevance. there are e-books going around and i believe it is quite easy to copy one, and it is for free, but my suggestion is that you don't get it for free.
you get the physical book and you buy it. the reason there is that we value it; whatever we pay for, we value more. chances are, if you justget a free copy of this book, you won't read it. but if you pay p 1,000 for it, there is a high possibility that you will read it. that is something that we investors have to realize, that it is important to really pay the price when it comes to education. becausethat's how it gets
value. for example, from my statistics, the 5 training videos, did you know that only 60% watch all5 videos? the other 40% just watch one video and then leave. time wasted. and do you know why they have the the convenience of leaving? that is because they didn't pay for anything. because it's for free when something isfor free we take it for granted so when you're reviewing this book purchase it, buy it.
don't settle for something that's freebecause the learning is less. there is lesser psychological motivation too from the book. okay,with that let's move on to our next set of questions. so day of the week isthere any particular day of the week that thisbook to buy or sell and you know might as well ask is it butto buy the start of the month end of the monthany particular month and here's my answer um you know that what they see is thatthe best time to buy a stock
in march k and in april me june july and august this also nice and september the decemberists very verygood months and you know what environment for barrier also good timesthat by stop stay in other words what now 10 except framing jan there's no particularly be there isno particular there's no particular one by a stock
its all in your strategy be focused on your strategy soul mix not training videos and market by minchakorea's the have anything in the us for treating and thisone was sent in by eric and my answer is no i don'thave any and i don't plan on making armored i'm chips oreos in the near futurehere's the reason why i believe that every filipino should be investing in the stock market at leastbeso
cost averaging i don't believe thateveryone should be trading in the stock market so right nowmy priority is he just getting the word out there that he okay it the best of us averaging pay then maybe sometime in the future andeach reading pay but as a thought awesome now not yet and as of now i will be creating any chips are you videos on them buthere's what i am recommending to you to get you started 8 technical analysis
in get really really confusing lookingthe more lamb also and mercy similar and this is whereyou start this should be your checklist when youare learning but the fact that the check was notthough then you have my blessing on 23 be the first thing you should learn is i'm gonna go throughthis very fast so his people boss the video or will takedown notes on this first thing that you need to know is howto tell the difference between a uptrend a downtrend in the sidewaysmarket
based on the graph they meet market butass happened in the bucket but number and in the budget my numbers and google backsideways there's a state the finish on of high of the highs and the lows for it to becalled an uptrend once you have that figured out the nextquestion you need to answer is how to draw support and resistance lines if you have no idea what support andresistance lines art right now then google it is simply an
but that's a necessary skill the nextthing is how to use the 65 130 and 260 moving averages next is how to interpret themacd and our society and then finally what are the components of retrievingblack more specifically the entity and theexit want scoop on what may be some thirtyonce you have these five things covered you can start with basic leading and you can start making money when itcomes to treating
pay now just a few more in mind there'swhen it comes to chart operates gender team at the last min whowill hun macau not gonna chart patterns are created equally pay me my chart patterns not wasmeh the last movie keep at and then by the moma simple and an outlet mall for a beginner as a starting died just studied try again and how to treatit you triangle mapping the lunar that'sone of the simplest happens you will see in the stock marketokay
and that's one of the things that youshould look out for so after he studied 25 study thatrandall and then few feet 3 this out your your first reading strategy i'm a personwill not get i hope that help even if one of whom thebeginner when i will be begin a seminar on ontechnikal & anne now next not dating tips i really wantto start trading befitting a dealing more in a smallamount of i'm just the eagles might urge to do so
i know there is this higher-gradecompared to other methods is there any advice that you can getfrom don paolo okay here's the thing reading it's not about being more riskyit just looks more risky since there aremore things that you should know in order to be successful so he showedthe again soon about committed three to pay it just means unique tool more things in order to be successfullyand more specifically gain on milkha singh reading plan indeed onlydecision if you're doing best boss averaging and you're doing bye and willget it unless
degree ski cool and the strategies thatlists kirsten but here here another set the tips so before you today make sure that youhave this one and three point for a recent by i'm a british apostle there'sa stop number two exit points i'm a britishonline a bus a stock and exit points are created in two ways first is it got lost point in a coupleblocks up but the thing pressure been i the week nexus your market pricemeaning couple the money generation bit hyundai pay sothere's a
upper limit in the lower limit the pricethat you will be able to accommodate and then lastly you need to have 80s the word rations in sanaa pay so of course their word always has to behigher than the risks you aren't taking when it comes to rating and you know %uh never it never anther stop with out 8 reading plan me but impossible %ahabsolutely to figure out who leeson bombing on a bus this strategyneeds to be full updating blanc needs to be he would andwell-planned and
well well then the monaghan notconfidence in your trading plan it's not about yourpersonality being no accommodating to risk a singlelooking and receive got into a competing plan gonna high 80s 100 birds the sea when i'm skits 10 intelligence you youlandow but if you have a plan even if you'rethe most conservative burson here in the world and you findall your plan you will get returns you'll get goodreturns
mustapha man gone rating your tradingban that'll be your source for confidence looking next kiana next emma spanos i asks he makes things she once investmentnight so okc was investment nights as a broker ceo i'll give stock recommendations inorder to guide their customers for three so big local hospitalinvestment gates and see when br for free the first is that the ips
the second is the fundamental investmentguide the 30s that they can't on investmentguide and we will go through with this one by one first is the ceo and the idealist and this is their stockrecommendation list for long-term best cost averaging so this is a list composed of 16different companies ass off march 2013 and the way to do this is econom three to five companies and you know duo bezel cost averaging onthem so
it was 16 companies in up on the screenat the mint cond to be giants 2b leaders in their in thestate okay so again this is for long-term beso cost averaging next east the fundamental investment guy and this gives users the financial metricsof the different companies in the stockmarket and it provides a date on fifty plus companies and part of the day there would berecommended by metal prices
and target prices and yes this is justlike the truly bridge club made by bill racethen it better than sit down market pricesand big meal you can get this for free now you will also have othermetrics like mitt income pe ratio eps dividend dividend yields and so on my timing data not be noprovide equal on the fifty companies now i would justlike to show this to you before we proceed okay so i've already logged on into my issuei'll financial account
and to access this yes this me go onresearch and muscle over and fundamentals and then we click on investment guide and here you will see i love of bothcompanies and a lot of bait up available and here's the bible price in this is yourtarget price but here it's called the fair value if it's been all this press you buy itif it reaches the fair value then you senate and
it also contains the cor ratings and are50-plus companies over here peso again to accessit just click on research fundamentals and then investment guy okay with thatlet's go back to the presentation okay now the next in thethird died is that technical investment died inthis nine is for market readers he so it shows technical data onninety-plus companies the support and assist them points the52-week highs and lows and know what police before using thisyou need to be able
to know how to do technical analysis that is a must if you don't know how todo that yet min please stick to the c-one yeah hedied donna truly rich club this are the fundamentalinvestment guy with that let's move on to a questionthat you're already probably thinking right now when we discussed notfundamental guy that question is %ah only be between a updates on conf through their investment died apple'smove member 13 and brc
me but w in full not who are more mention who were not done on and this isfrom early marley welcoming aleman with a leg onthe guggenheim the up first thing that you should knowis she was guide is more comprehensive readmore day up for company to the beginner this isboth an advantage and disadvantage it's an advantagecustomers myrmidon be banana once mining companies are coveredbut from my experience it's also a disadvantage
qassim mush and the loma timinginformation kaylani process in mad at us many people onbeginner so you have more decisions to make incopper chimney guy might be late from those 50 companies legally own mom be at my unseemly so in summary here are the differences when it comesto this your died in the prc's strategic averaging fun okay for the seal investment guide you have access the data for fifty-plus
companies but the things that truly richclub sam method then back forty-plus companies will be matterabout the 528 company so do almost made the normandy cycle andleaving was the movie in those five to eight companies are thesame companies that edwards b the chairman of schoolrecommends the boss anxious and recommenced all the members of but truly rich club okay so it's a much narrower release the last meetingbetween when it comes to giving data
you have to be paid by the low price inthe target price plus you get the other financial metricsfor the sea well investment night so too rich club whatyou get is just the bbp they recommended stocks in email switch and satellite so at the allknew about the google email okay we will sell all of this stops imu into this matter company but theseinvestment guide win email its it's all up to you to decidenot locate this
looks like a better company now becauseof this and so and so with 3-inch love again you get my handson guidance by this said this by this send this plus when the crash comes in the stockmarket crashes you get my email bill okay it's time to you about the stock market now the cost for the fundamental investment guy it's for free see oil provides that to or its customers and clients for freewith a truly rich club you have to be
the membership cost okay now next when it comes to ease of usethe c-one investment bank is slightly easy pay letthe moment alicia britain amid but when it comes to thattruly rich club its extremely he this is so handsome not and again the cost of this hands-onguidance is the membership plus no i want try and convince you that he joined atthe rich got because that's really up to you
to decide what might help you getstarted in investing in you know how the one inthis thing to be in your life how do you want to investso with this i just hope no muslim in theannual shana to be able to make a smarter decision with that how we're going to want to other investment options so the firstquestion mutual funds uavs and the us which among the three investmentsarbiter and
this is the most popular questiondominance and you know lol 0 and here's the answer first clarification is that mutual funds you want the s&p lengthsare not investments they are simply 8 i of investing metal call but paul by method of investing and ewbal method of investing in it but he will goin with the the real kind
of investments now i know i'm own investment and the answer there is witha different asset classes the first asset class rehab is cash orcash equivalent in other words fanta cash next yes what we call bet or bonds own bonds cuzi will no longer be an order will notkoresh on so you'll okay so thats on that back asset class next this we have equities and this is our stock market makes tohave
real estate and then we have commodities gold silver and other pressures met us so your nana asset classes and books now we will investment yunghumma who may not investments when you see i'minvesting into this and this you're investing in aparticular asset class your mom you don't find youi year they are just methods of investing in any of these asset class s so hot in boa we have what'scalled
a barbed fun in the bond fund in the ambest's asset class not bonds or bit k we have what's called a equity fund and your name and he invests at a quickeast asset class now say moments i man on mymutual fund for in a statement on their mommy of fun forgold and silver their sockets been in the works in thefuture probably more government but for now we just have up violence
fun money market fund i equity fund andone fun i saw mitchell on people up but thinknot they're just warm by us of investment so going back to the question whichamong the three investments are better i'm going to push on here that when weare comparing mutual funds right yes and view it it should be in the same asset class thesingle unfair to compare no some bond investments a song equityinvestment a bumper process miller when it comes to the world all investing
okay so if this with that assumptionthat i will answer this question k remember that they areall pool table investments and first you both funds have outperformed betterhistorically and on average came a good thing i'm amutual fund managers but when it comes to corporatestructure much smaller a on you i p s k because the way i ui ef is this sign much mama peace no mcafee site 90 pasa
controller and this is theoretically not big :love: historically much morethan that i'll new book fun when it comes to performance then the ui yet cousins menu ma fun managers also asking gains your personalcost are you a bf i'm a newbie instead of mycost okay but he should be it was reportedthat you ips how over pecan new poll finds davis was reported by %uh efren crews
he's an rfp and the founder personal finance advisers philippines and he wasmolded to be the for most influential when it comes tothe world of personal finance here in the philippinesokay now and next yes what about the us andyet as a lesson osama and the reason is that the us are themost expensive well by fun die in the conventionalinsurance okay with that personally my advice is to just look me up all funds and umtswhen it comes to insurance
not and any investment component into it just think the freemen you know what forinvestments state mutual funds are you mps ordirectly investing into the stock market and that brings usto our second question follow-up question if you're alreadyinvested in you i p s are you both months is it advisable to still directly investin the stock market and been on the muni nest or any chris on almost one in the investment ap teamin both fun dollar
trading meaning directly investing intothe stock market and before i get my answer would justlike to clarify go on about an adult defendants mandelaokay so we have here today investing versus the board fun when itcomes to direct investing the person we stand iron you'reresponsible for the money issue you are your own fund manager when it comes to a pooled fund thensigned the money do the fun manager when it does thepeace you only pay the commission to ceol
or to whoever your broker yes when itcomes to board fun not to be entry/exitmanagement fees commissions chechen now date not when itcomes to pooled funds mean sign human in my armthe month hasn't been a factor in the inside investment or sa asset value automatically be needed tomaia done cya whole fund itself okay so many people get 10 exit and the peacewhen a nigga customer our ability but in but nothingsup net
asset value per share or per unit of course much my husband got up on putfun i'm going to meet them all now when itcomes to restrict shots when it comes to the strategy ego armbehind a you can do anything and when i seeanything meaning when the online all day reallygot me depending on your levin of skill when it comes to pooledfunds fund managers are restricted whatevernot find strategy is so is it advisable
to do direct investing if you alreadyhave me while funds again that depends on you how i am biased towards their investingbecause i know it's cheaper and i'm learning more i don't have a a new book club but what i do have actually is a bond fundis in the oklahoma invest the bonds alone now hold on that's why igot a bomb fun but i'm never gonna get them it may befun because i'm already directly investing into the stock marketpay
now just to give you a little some somestatistics it's possible to beat in fund managerwhen i started investing in my first year i'd be of the mutualfunds out there on time you one equity fundsby a couple of percentage points in my second year in a garden gnomeunlocking trading error and %uh ate up a significant portion ofmy games hey i'm not only in a fund managers pay now this is my third year and no i'm looking forward to beating thefund managers and hopefully
you know it depends on you will be mostand obama muskie so again if he just grabbed alsocouple muskie up they first fight try out thereinvesting while investigating fun check out andsee but its up to you i just hope that witnesses station lackey daniel and mechanical differentsimilar k next forex are the stock market which cast better rip currents and thiswas sent in by jerome
and here's my answer up no i'm not been answered directlyinstead i'm gonna see this a grb which transmit their its this is a very greedy and andopportunistic question and you know what if you are oil for it burns and you know returnsomething i have little then not a lump in hamburg and a no buy it they don't want the best for usit's possible for you to learn several millions couple gettingsomething done obama
because returns isn't the only factor it's not about the difference it's aboutskiers this is about you know how good you willbe when it comes to forex how will you be when it comes to the stock market both abad investment some time now some commuting smuggling some who still looking waslooking it's possible both in why not move it'snot enough to be at the right place you also needto be
the right person in this table you will see chris salts body depending on whether you're in the rightor wrong place and whether your'e you're there right or wrong personmeaning middle-income are you skilled in that area okay if you're in the wrong place andyou also don't have any skiers to support that investment then you're going to lose i'm not a funthis it's definite if you are at the rightplace
but you're the wrong person you'll get ineed the money but it's only temporary now if you're in the wrong place but you'rethe right person you're going to make a little money it'sgoing to me permanent with this i just like to giveme an example of of of internet shops great opera years back so we could do businessidea not internet shop it does the right place tobe so you know our moscow week susiesunburn
internet shop cd month to you then byyou so many people me lots of money know whenthat bad ended no not that was nearly allunion you initial demand for internet shops it wasalready the wrong place in minister hun you my new model macbook loony ghoshal the wrong people they had to close down their business sothe experience little success the experience success it does only temporary you must don't mind my ownlittle bubble
gonna go sheler look below internet shop 1906 got alert internet shoppingcommunity a booming engine buttons in a we keep up until a not much just before but they are still making money now if you are in the rightplace and at the right time the human me huge money eight-mile over here if you are the right person ifyou are still if you are intelligent you will neveruse money when i'm chambre ready in the right place where you're inthe wrong place
you make money if you have the necessaryskills back it up so with this i hope it changes yourperspective when it comes to investing ebay enough fuel a min determined to bea look in the and solar no i just like to give anothersample here humor networking mama multi-levelmarketing companies k most of them are in the hell in thisthing looks like the means mother with racial meh ship but i checked therein right now it's be moving in the stateago
i'm done better blossoms in this the nea but button down in the uk it's because the are there all people inthe business all across a network marketing companyin the moment right now andy murray looked at them book here ina minute got than the little ringing cell company so how do youexpect to be successful even if you're in the right business ifyou aren't the wrong person if you do not bringyourself to be on the right person you will lose money you need other be abetter money is guaranteed
if you are there right or so so don'tchase after you know where where they're atthe inspector so first and foremost be the right invest or okay our next question comesfrom key and he asks on the money is in singaporean dollars in the conversionrate is low now should i invest in singapore or in thephilippines okay now on generalized question you know what it should it be insingapore on
whole dollar same us dollar sir other forms of currency and this is the answer where really use the money after investing it so whatcha got itneeded to be penis singapore's also but let's that is veryimportant will send in a meeting in betar isuggest that you converted already to wherever you will use it so who knows debris in dollars more but nobodywilling to meet them to singapore then might thus when yet grew insingapore
then invested in singapore paper all good us to see me in sabinasbeen converted the bezel right now here are the reasons whybecause it's easier to monitor the actual value economy one subject who flock to a shot only added to see if if you keep it ifyou keep it didn't in a different currency then it will beasked if you are investing in four tix in don't invest in somethingthat you don't understand so who remained in the new economics nosingapore dollar no single core
were in the name in the mail economicsan diego inbio will ban no currency not been andhow often apparently you're book lead stay k peaceful got beso amor no be subject tomeet in russia must be so minus gonna so fluctuationswhen it comes to currencies so with that it depends onwhere you would you say if beso laundry detergent singaporean dollars let it stay insingapore organics question from clyde i investing
is investing in a lending company a goodidea much like any a idea there are risksthough it so identify return and identify therisks when it comes to lending company andsony's basic questions who will borrow the money and what terms how will be collecting back the moneywhat happens if be can't collect how can i be sure that iget my money back does answers to these questions need tobe able to satisfy scores for some original in legal aspect
lamb factors to consider so it's notnecessarily good there but depends on what specifically lendingcompany you are investing and okay we're almost done this is just going to be really greatwith uncommon questions for special but this year suggest thatcompounded interest asleep target every month consideringinflation okay so i'm actually hear that your asking on lombard games without my although some on the location okay ourinflation has been averaging at 5.5 percent per year
in this %uh strange from 3 a sluice 3percent was high as 10 percent and if we were togo over it now in monthly rates then a naturalinclination of any person is inflation 0 point to 47 percent per month at five percent that's point for 47 percent per month inthe 10 percent its .7 97 percent per month if you wantto meet inflation that should be mama good enough target great aside fromthe transaction costs so that they didn't win on
1.09 percent from the transaction costs in the stock market next six sigma andinvesting is their six sigma investing okay are questions are you gettingweirder mine you know this is an industrialengineering term and bill well fortunate that i have a bit of abackground here and six sigma is actually a field of increasing quantity in this all aboutreducing variability in order to increase the quantity fromthe perspective all not close the murder of your destinythough well
on the question of course the ler youmust have a lovely city which had them a bargain you get now or you have the teachingdina not happen said and six sigma is all about reducing don bitch teens k now when it comes toinvesting investing all the returns are alwaysvariable so six sigma i think can be applied withinvesting so him on and people on to a mutual funds equally give a turnoff
12 percent per year over a twenty-yearperiod there'll it's possible led by youpastner been a diana miller will see my namesome you sonya fun all murders yes 10 percentthirteen-percent 11 percent percent six-percentseventeen-percent insulin proceeding is a mutual fund willsee bring me some people fun i 33 percent make it is then percent in fourteen percent forty-percent symington so one little fun without
higher baryons the other mutual fundwithout little bar yes and from a customer perspective should wemust be so close the arena you know it's fixed it's predictable ushere it's near 12 percent for mister percent from athird person for you cinnamon while also broke out in the sauce thiswhat's the next year but one above the pups the nixon because its lumber so lugar it's a roller coaster for theinvestors so i think im that aspect six sigma can be applied to investing now
i don't know if it's being done here inthe philippines but know it's a it's certainly interesting theme to pursue okay so our next beard question comes from josh and he askswhat this binary trading what are your comments on itokay i don't think that may ninth readings even allowed here in thephilippines may not eat reading is basically and all-or-nothing bet now okay 15stocks and then it goes to the table racial who are looking at doing it allup in a limo
when they wanna island pay so it's a bit essentially in the bank that this is amock binary trading because of the all-or-nothing aspect isnot it's more gambling rather than investee then okay this is a final question who work i enjoyed making this q&asession and how can you contact me personallyokay if you have more questions just yourfeet email me gtp at stock market 4 be nice
well and i will reply to your questions in addition that be introducing eighty frequently asked questions in thewebsite so check the section below this video you should see a frequently askedquestions section over there so least beforesending in a question please check out there under the new butwill you lights with that thank you very much for watching thisvideo and i hope you learned a lot
until the next reading that you werecard were smart and make your money work hardfor you
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