Moral invest stock market philippines bo sanchez

If you have been following the news, you may have noticed that the Philippine stock market seems to be at record highs. This could mean that many investors feel that the Philippines is a safe place to park their money.

But my personal journey into stock investing goes back much further than year When I was in my first job, I learned about the stock market from the periodicals and trade magazines we were asked to read. We were writers and our job was to comprehend what we were asked to read then summarize it in our own words. I did contact this one stockbroker inquiring on how to do stock investing.

I thought he would teach me how to invest in stocks. Instead, he sent me a long contract and asked me to give 20, pesos right away as my initial investment. However, after some time the government opened its small investors program and my officemates eagerly started investing. The problem was they too had no idea what they were getting into. I observed all this from the sidelines since I had no money to invest with.

And the bubble did burst, leaving many investors holding stocks that were now worth much less than what they had paid for. This was my first taste of the value of education in stock investing. So I chose to write this article to help clarify to myself my opinions about stock investing in the Philippines.

I hope at least some of you who read this will also be enlightened about why you should or should not invest in the Philippine stock market. Some companies may have only one owner while others may have two or more owners.

This simply means that if I am Stock Investor A and I have shares while my friends Investor B, Investor C, and Investor D have only shares each, then I have more money invested in the company and would be more interested in making the company profitable because then my profits would be bigger as well. This is a very simplified way of looking at how a business is formed.

First of all, let us clarify why people invest in anything. For example, a college education is an investment because you pay for tuition and textbooks plus you spend time and energy studying. It becomes an investment because you expect to get something in return for your time, energy and money — in this case you get knowledge and skills. Stock investing too is a form of investment because you put out money to buy stock shares and use your time and energy learning how stock investing works.

In return, you expect to get money in the form of profits. This money will then be used by the company to improve or expand their business operations. This is why company owners choose to take their company public. The money you invest into the company can be used to buy more machinery, put up more branches, and even create more jobs.

This is why the government supports stock investing — it helps the economy develop and more people will be able to earn money when they are able to work for pay. This was the time when many IT-based companies were set up when it became apparent that the Internet was the next big thing. These managers bought expensive things and paid themselves huge salaries using investor capital — but there was no money coming in as sales or service fees from customers.

The investors lost all their money and there was no way to recoup the losses. This is why you should be very careful about which companies you choose to invest in. The normal result of stock investing is that the investors get a percentage of the company profits based on how well the company did in business.

If the company is not managed well, the company can go bankrupt and you lose all your money. These are the two possible outcomes in any stock investing transaction. Financial planners recommend investing in stocks to people who want to create wealth.

Some want to create wealth for their retirement plan. Though Bo acknowledges the risk inherent in equity investments, he points out that these give the highest returns which is why financial planners recommend having a percentage of your money in equity funds.

That factor is TIME. If you are looking to earn big fast such as within one or two years then stock are probably not for you. True, if you spend every waking hour monitoring the stock market to buy and sell stocks then you are a trader and can rake in big profits. This will help you avoid get-rich-quick schemes such as the dot com bubble I mentioned. This also means that if you choose the right companies and they are managed well for decades then you can really expect your capital to bear fruit over the long term.

This is simply the influx of money into your pocket on a regular basis. You can get regular cash flow if you receive a steady paycheck from your job or if you have a business that has regular sales coming in. Some people borrow money from friends and family to do stock investing but that is very risky especially if you make a mistake choosing companies and you lose most or all of the money you borrowed.

So Bo simply recommends you set aside a portion of your monthly income specifically to invest in the stock market. This is the Turtle Strategy that Bo endorses to any small investor. Is ethical stock investing possible? First, it means that the company protects the environment so that the business practices do not harm or will repair the harm done to the environment. Second, it also means that the company treats its employees well by paying them wages that they can survive on and providing work conditions that will not harm them.

That being said, it is actually difficult to find companies that adhere to these two definitions. This is especially true in the Philippines. These corporations may be highly profitable but that is because they do not do what they are morally and legally obligated to do. One valuable lesson I learned from my professor in Organizational Management is that some employees sabotage the companies they work for if they are not happy with how they are treated.

Four rules for getting rich | Inquirer lifestyle

For example, I once was buying something from a street vendor when the employee of Famous Fast Food Chain sat down near us and ordered coffee from the vendor. What the employees say in private may be vastly different from the image the company wants to project. BUT this does not automatically mean that a company is destroying the environment or paying wages that are too low to their employees when the underground stories are negative.

I know of one large corporation that runs gas stations throughout the country that actually set up a foundation for various socio-civic activities in various parts of the Philippines. This means part of the company profits is put in the foundation to support their non-profit programs. But the Human Resources Manager of the company confided in me that they have a big problem with employee theft.

The pros and cons of stock investing in the Philippines – Cyber Isko

So the company has to file lawsuits against its own employees who steal from the company. Just because the employees stead does not mean the company itself is negligent. It may just mean that the company hired employees with bad habits.

I set up a writing company recently where I am the sole proprietor. To make life easier for me, I plan to do all the company work myself, meaning I have to be the writer, secretary, marketing department and janitor all in one.

Fortunately this means I get to keep my profits for myself which is fair since I do everything myself.

It is true that to make big profits a company will have to hire employees because the business operations also become more complicated as the company grows. Some foreign companies do reward their employees for their loyalty after the employees have proven their value to the company. Are you familiar with Microsoft?

This company literally made its employees co-owners of Microsoft by giving them stock options. What this means is that a loyal employee who has worked a long time for Microsoft is literally a millionaire when he resigns or retires from the company.

This is one reason for the ability of Microsoft to hire talented employees — the stock option perk is really too good to pass up. The reality is that many Philippine companies do not offer stock options to loyal employees.

This could be because the company owners do not want to raise their labor costs. However, an accountancy instructor in De La Salle University pointed out a more important reason — the issue of control. Employee ownership is not yet widely practiced in the Philippines because of this. Some companies though may give stock options to very valuable employees because these employees can make or break a business.

There are other ways for an employee to be deemed valuable.

For instance, a Food Technology graduate can be deemed a Keyman because she can create new types of food that the company can sell in the market. A chemist may become a Keyman because she can formulate new types of medicine for a pharmaceutical company.

The company owners and managers may agree to offer stock options to these employees because they really are very valuable — take note, these employees hold trade secrets of the company in their head. To avoid having competitors pirate Keyman employees, the company offers stock options so that the employees are motivated to keep working for that corporation.

If you are an employee, you might be feeling oppressed and resentful about the wages that you are currently getting. Believe me, I can relate because I used to think that way in my first job. I even told the Personnel Administrator that I was getting cheated because I thought I should get more wages per month. But according to Juan Bernardo Patino author of Stock Market Jumpstarter ebook and investing disciple of Bo Sanchez you should also look at the situation in another way: If you think that you can easily get higher wages from a competitor of your employer, well, that is always your prerogative.

I am not saying that employers should pay low wages — if they can afford to pay more including giving medical and dental care then that is an employer worth staying with. It is always the duty of the employer to pay good wages and is actually a good business policy. If you do intend to do stock investing, it is important that you do due diligence before putting out money. Patino gave these examples: If it destroys the environment then eventually it will run out of viable business locations to work in.

So when you hear of companies that are embroiled in lawsuits or you read news reports of products from certain companies that are reportedly harmful to human health think lead poisoning from Chinese products then it is wise to steer clear of those companies.

You can surf for his website if you like.

Bo Sanchez’s Maid’s road to millions- Now It’s Your Turn – Smart Pinoy Investor – Investing and Personal Finance for Pinoys

He charges a fee for this service but you can get his ebook My Maid Invests in the Stock Market for free. Juan Bernardo Patino also offers his ebook The Stock Market Jumpstarter for free so do surf for that as well. The advantage with consulting Bo Sanchez is that he will provide you a list of the companies he and his team feel are good investments.

So you choose which one you want to read. I admit that my understanding of the stock market in the Philippines is still very limited.

But I hope this article has helped give you a glimpse of how I view the stock market at this point in time. Good luck with your investing activities in the near and distant future. You are commenting using your WordPress. You are commenting using your Twitter account.

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Why you should invest in stocks First of all, let us clarify why people invest in anything. Now why should ordinary people invest in stocks? The problem of ethical stock investing Is ethical stock investing possible? The problem of control It is true that to make big profits a company will have to hire employees because the business operations also become more complicated as the company grows. April 13, at 8: Thanks a ton for this particular piece of writing. I will talk about it with people I know.

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