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MWIDE Building - Wealth2018 PDF
MWIDE Building - Wealth2018 PDF
Presented by:
Juan G. Barredo
VP-Sales & Customer Support
COL Financial Group Inc.
GLARING FACTS!
“of people live “Only 2 out of 10
70% paycheck to
paycheck.”
Filipino households
have a bank
Source: https://retirehappy.ca/fina
ncial-stress-affecting-workplace/# deposit account.”
Source: Money Sense survey 2012
200
150
100
50
2.06M
1.02M 913K
457K 234K
148K
94K
109,001
69,658
66,277
80,870
63,060
60,000
O YR 5 YR 10 YR 15 YR 30 YR 60 YR
Stock Exchange
Companies (Stock Broker) Investors
(IPO) (Shareholders)
6.0%
3.7%
4.0%
2.5% 2.7%
2.0% 1.5%
0.0%
PSEi 91-Day T-Bills Inflation
5 year CAGR 10 year CAGR
History has proven that investing in quality stocks can provide greater
returns than most instruments;
past performance doesgiving a good
not guarantee runresults
future over inflation…
Investment in
P1.0M Investment in 2002 P1.0M
2002
Makati CBD per SMPH Price/share in
P180,000 P3.03
sqm in 2002 2002
Makati CBD per SMPH Price/share in
P523,000 P29.20
sqm in 2016 2016
MAKATI CBD
Investment Value Investment Value in
P2.9M P12.7M
in 2016 2016
Compounded Compounded Rate of
Rate of Return
7.9%
Return
19.9%
Investing
Time Deposit vs. Stock
Investment in
P1.0M Investment in 2002 P1.0M
2002
Range of
6.3% to 1.1% BDO Price/share in 2002 P16.69
Interest Rate
Investment
P1.4M BDO Price/share in 2016 P113.20
Value in 2016
TIME DEPOSIT
Compound Rate Investment Value in
2.6% P8.2M
of Return 2016
Compound Rate of
Return
16.3%
C’mon…
Investors got
Learning the Basics:
to do some Stock Market 101
work…
Remember these guidelines:
▪ Invest for the Long term
▪ Invest into Quality businesses at
Reasonable prices
▪ Invest using Diversification
▪ Invest by using a Plan
Invest for the LONG TERM
S
S • Strong
M • Superior
Products/
Balance
Sheet
• Management Services
E Credibility
• Earnings
G Growth What makes a story stand out?
• Growing
Industry
We like
discounts too!
Knowing some Fundamentals:
Looking for Value!
Is a Stock Fairly Priced?
P12.00 Expensive
P8.00 Cheap
Where to find?
Some Brokers, Bloomberg & Reuters Terminals
Look for Value: COL’s Investment Guide
Know what is fair and what is not…
Code Company Price COL Rating COL FV Buy Below
Month 1 6
Buy Php5,000 worth of stock ABC at market
price
5
Month 2
Buy Php5,000 worth of stock ABC at market 4
price
3 Average Cost
Month 3
Buy Php5,000 worth of stock ABC at market
price 1 2 3 4 5 6 7 8 9
Months/Years
Peso Cost Averaging
Date of Stock Amount of Stock Ave Cost per
Price per Share # of Shares*
Purchase Purchase (Php) share
1-Jun 5,000 10 500 10.00
*You buy less shares when prices are high and more
shares when it is low (subject to board lot regulations)
Peso Cost Averaging
P35.50
Features:
Earnings / predictability BDO BDO Unibank Inc. RLC Robinsons Land Corp.
Management credibility BPI Bank of Phil Islands SM SM Investments
Superior products or services
DMC DMCI Holdings Inc. SMPH SM Prime Holdings Inc
Strong balance sheet
GTCAP GT Capital Holdings URC Universal Robina Corp
Bonds Income
Professionally Liquid
Benefits of (Buy/Redeem Anytime)
Managed
investing in
Mutual
Funds
Do Your Homework
Choose Funds/
Companies to
invest in
PARTNER BANKS
Poch Mendieta
poch.mendieta@colfinancial.com
Mobile: +63 927 308 7157