Where Do You Invest Your Savings?

**badkuk** · August 10th, 2015 10:24 AM

Pansin ko blue chip stocks haven't been as stable. My uneducated guess is foreign funds tend to limit their purchases to blue chips, and they won't hesitate to buy up/sell down blue chips at the slightest hint that the economy is going north/south -- which makes blue chips unstable. Granted they're nothing like basura stocks, but iirc a 2-3% move was already a big deal back then.

If you don't have the interest in playing stocks, you could get an index fund. Then again, you still have to check the stock index to know when to buy or pull out. The important thing to remember for UITFs is that you only make/lose actual money when you sell it, it's not like a bank deposit where you're guaranteed (an insanely small) interest per annum.

**rmsoriano** · August 10th, 2015 10:53 AM

Originally Posted by rollyic

i was just thinking...
in this site, there are 30 blue chip companies: Blue Chip Companies in the Philippines | Pesobility

if i have 3M, is it advisable to invest 100K each?
the idea is, i just want to have investment for long term like min. 5 yrs. time.
or should i just invest it in mutual fund.
which one is better?

If that is the case, just invest it to FMETF (Exchange Traded Fund), same thing, directly invested the 3M to the 30 blue chips of PSE index in proportion, can also be subscribed through the online stock trading.... But if I were to invest it there, I will not subscribe it one time 3M lump sum, instead I will cost average it till all the 3M is fully invested....

**macsd** · August 10th, 2015 11:15 AM

Originally Posted by jut703

Stocks. In a rapidly growing economy like ours, the equity market is a great place to be in. Only 1% of Filipinos invest in stocks, even if returns over the past decades have been significantly better than bonds.

I would still advice to have insurance coverage, as well as having fair diversification in other ventures such as real estate, but for money that you won't really need in the next 3-5 years, stocks are the best option since it's much more liquid than real estate, and can grow as quickly too.

TY sir. I got practically a mix of everything from ROP & Corporate bonds, UTIF, real state ( some doing very good while others are just sleeping or non-moving) and coop. My experience in stock is mix as well (though foreign) loose & gain. Besides, stock is really like gambling, you just have to watch every deal so as you'd know when to go in & out. That i have lost interest as i hate watching, parang security guard.

May be let me rephrase my question like, if you have 2M seating around, where's the best place to invest it that would gain above inflation?

**jut703** · August 10th, 2015 12:01 PM

Not all blue chip stocks are good investments. The basic principle of choosing what stock to invest in is to buy a stock than will increase its value in the future because it's currently undervalued, or because the growth outlook of the company is very positive.

Some blue chips are already too expensive, such as Globe or BPI. Others are reasonably priced and the companies are still expected to grow, and these are the ones you need to invest in.

**jut703** · August 10th, 2015 12:14 PM

Originally Posted by macsd

TY sir. I got practically a mix of everything from ROP & Corporate bonds, UTIF, real state ( some doing very good while others are just sleeping or non-moving) and coop. My experience in stock is mix as well (though foreign) loose & gain. Besides, stock is really like gambling, you just have to watch every deal so as you'd know when to go in & out. That i have lost interest as i hate watching, parang security guard.

May be let me rephrase my question like, if you have 2M seating around, where's the best place to invest it that would gain above inflation?

Stocks aren't like gambling, if you know what you're doing.

As Benjamin Graham states, there are speculators and then there are investors. Speculators are those who gamble, those who rely only on market timing and public sentiment to choose which stocks to "invest" in.

Defensive investors are those who invest in companies with solid fundamentals but are not yet overpriced.

I only check my stocks once or twice a month. It's not a time-consuming affair. You just have to look at the stock's current price, its buy-below price, and its future value. As the name implies, if a stock is priced lower than buy below price, you buy it. Then, when the stock has reached its projected future value, you can sell.

**macsd** · August 10th, 2015 09:53 PM

Originally Posted by jut703

Stocks aren't like gambling, if you know what you're doing.

As Benjamin Graham states, there are speculators and then there are investors. Speculators are those who gamble, those who rely only on market timing and public sentiment to choose which stocks to "invest" in.

Defensive investors are those who invest in companies with solid fundamentals but are not yet overpriced.

I only check my stocks once or twice a month. It's not a time-consuming affair. You just have to look at the stock's current price, its buy-below price, and its future value. As the name implies, if a stock is priced lower than buy below price, you buy it. Then, when the stock has reached its projected future value, you can sell.

Market sentiments & big players is what i guess drives the stock market. I used to work in a company with all positive notes , yet it's price spiraled down until it delisted. I know another local company who's all **** yet it's prices is 4X it's IPO.

- - - - - - - - - - - - - - - - - - - - - -

Originally Posted by jut703

Stocks aren't like gambling, if you know what you're doing.

As Benjamin Graham states, there are speculators and then there are investors. Speculators are those who gamble, those who rely only on market timing and public sentiment to choose which stocks to "invest" in.

Defensive investors are those who invest in companies with solid fundamentals but are not yet overpriced.

I only check my stocks once or twice a month. It's not a time-consuming affair. You just have to look at the stock's current price, its buy-below price, and its future value. As the name implies, if a stock is priced lower than buy below price, you buy it. Then, when the stock has reached its projected future value, you can sell.

Market sentiments & big players is what i guess drives the stock market. I used to work in a company with all positive notes , yet it's price spiraled down until it delisted. I know another local company who's all **** yet it's prices is 4X it's IPO.

**jut703** · August 10th, 2015 11:21 PM

Yeah, which is why it takes a bit of effort to sift through overpriced turds in order to find underappreciated gems that will grow exponentially in the future, and take you along with it

**jmpet626** · August 10th, 2015 11:27 PM

Any suggestions for a newbie like me sa investing? Yung VUL account is just 2 years old and just recently opened a MF account with Sunlife which I placed in Philippine index fund.

**badkuk** · August 11th, 2015 10:29 AM

Originally Posted by jut703

Not all blue chip stocks are good investments. The basic principle of choosing what stock to invest in is to buy a stock than will increase its value in the future because it's currently undervalued, or because the growth outlook of the company is very positive.

Some blue chips are already too expensive, such as Globe or BPI. Others are reasonably priced and the companies are still expected to grow, and these are the ones you need to invest in.

Good point sir. Hindi porke blue chip e kampante ka na.

As you mentioned, Globe is growing its profits extraordinarily well. On the other hand, PLDT's income is steadily going down. Parehong blue chip, parehong telco, but different profit growth numbers.

- - - - - - - - - - - - - - - - - - - - - -

Originally Posted by jut703

Not all blue chip stocks are good investments. The basic principle of choosing what stock to invest in is to buy a stock than will increase its value in the future because it's currently undervalued, or because the growth outlook of the company is very positive.

Some blue chips are already too expensive, such as Globe or BPI. Others are reasonably priced and the companies are still expected to grow, and these are the ones you need to invest in.

Good point sir. Hindi porke blue chip e kampante ka na.

As you mentioned, Globe is growing its profits extraordinarily well. On the other hand, PLDT's income is steadily going down. Parehong blue chip, parehong telco, but different profit growth numbers.

**jut703** · August 11th, 2015 11:17 AM

Originally Posted by badkuk

Good point sir. Hindi porke blue chip e kampante ka na.

As you mentioned, Globe is growing its profits extraordinarily well. On the other hand, PLDT's income is steadily going down. Parehong blue chip, parehong telco, but different profit growth numbers.

Actually, what I meant to say is that even if Globe's profits are increasing, it's still not a good buy today because its stock price is too high. The stock price already represents the optimism of speculators, and thus isn't expected to go much higher.

Globe's Buy Below price is just P1,440 per share, with a future value of P1,800 per share (roughy a 25% growth). Right now though, Globe is already trading at P2,634/share. As such, Globe's stock price has been fairly flat since Q3 2015: