Building Wealth Through

Stock Market Investing

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

“of households in “Only 4 out of 10

<1% Manila own stocks, Filipinos actually
bonds, mutual funds, save money.”
or Govt Securities” Source: BSP National Baseline Survey
2015
Source: Money Sense Survey 2012

“of people say that

1 in 5 “households receive
money stress is
financial assistance
from abroad”
40% affecting their
Source: Money Sense Survey 2012 productivity at work”
Source: https://retirehappy.ca/financial-
stress-affecting-workplace/#
Your road to What's all
financial security!
this for?

Increase Savings

Learn to Save Improve Standard

of Living

Invest your Savings Prepare for

well Unexpected
Events

Be consistent with your Plan for a Home

investment /Car /Education

Have enough for

Vacations/
Retirement
Why Save? Your starting point…
The Proper Saving Formula
Build up Capital!

Income – Savings = Expenses 

Income – Expenses = Savings 

Keep your money

SAFE!
Why Invest? Investing over time… 132M

The Power of
Let Money
work for you ! Compounding

9.3M 10.5M

2.06M
1.09M 796K
468K 218K
142K
92K

109,001
69,658
66,277

80,870
63,060
60,000

O YR 5 YR 10 YR 15 YR 30 YR 60 YR

1% SAVINGS 9% INVESTMENTS +60K /YR

Disclaimer: Past performance does not guarantee future results

 The Stock Market

past performance does not guarantee future results

Stock Exchange
Companies (Stock Broker) Investors
(IPO) (Shareholders)
The Stock Market :
• Companies can raise capital by listing (IPO) in the PSE
• You invest into these companies by buying their shares of stock
• As a shareholder, you can partake in a company’s growth
 The Stock Market
How do I Make Money?
 Price Appreciation - the rise of a stocks’ price over
time driven by its potential value
 Dividends – distributed profits companies issue to
their shareholders:
 Cash dividends
 Stock dividends

Stock prices of great companies climb over time as the value of their
shares rise along
pastwith the demand
performance does notto buy those
guarantee futureshares!
results
 PSE Index
A fixed basket of 30 stocks selected by the PSE to
represent the movement of the general market
# PSE INDEX MEMBER CODE # PSE INDEX MEMBER CODE
1 AYALA CORPORATION AC 16 METROBANK MBT
2 ABOITIZ EQUITY VENTURES, INC. AEV 17 MEGAWORLD CORPORATION MEG
3 ALLIANCE GLOBAL GROUP, INC. AGI 18 MANILA ELECTRIC COMPANY MER
4 AYALA LAND, INC. ALI 19 METRO PACIFIC INVESTMENTS MPI
5 ABOITIZ POWER CORP. AP 20 PETRON CORPORATION PCOR
6 BDO UNIBANK, INC. BDO 21 PUREGOLD PRICE CLUB INC PGOLD
7 BANK OF THE PHILIPPINE ISLANDS BPI 22 ROBINSONS LAND RLC
8 DMCI HOLDINGS, INC. DMC 23 ROBINSONS RETAIL HOLDINGS RRHI
9 FIRST GEN CORPORATION FGEN 24 SEMIRARA MINING & POWER SCC
10 GLOBE TELECOM, INC. GLO 25 SECURITY BANK CORPORATION SECB
11 GT CAPITAL HOLDINGS, INC. GTCAP 26 SM INVESTMENTS CORP SM
12 INTL CONTAINER & TERMINAL SERV ICT 27 SAN MIGUEL CORPORATION SMC
13 JOLLIBEE FOODS CORPORATION JFC 28 SM PRIME HOLDINGS, INC. SMPH
14 JG SUMMIT HOLDINGS, INC. JGS 29 PLDT INC TEL
15 LT GROUP, INC. LTG 30 UNIVERSAL ROBINA CORP URC

Note: On occasion the PSE may alter the line up of these 30 stocks depending on their qualifications
Why be a Returns, returns,
shareholder? returns…

₽
Vs Vs

Property ALI Shares Time Deposit BDO Shares

Invest in 2003 Php 1M Php 1M Invest in 2008 Php 1M Php 1M

TIME DEPOSIT
End 2017 Php 2.9M Php 14.1M End 2017 Php 1.2M Php 3.6M
15yr Return
190% 1,310% 10yr Return 20% 260%
Annual Return 7.4% 19.3% Annual Return 1.8% 13.6%
C’mon, we have
to do some work Learning the Basics:
Stock Market 101

Remember these guidelines:

 Invest for the Long term
 Invest into Quality businesses at
Reasonable prices
 Invest using Diversification
 Invest regularly by using a Plan
Invest for the LONG TERM

The PSEi has been on a general up trend (along with a few hiccups)
Looking for GEMSS!

S
S • Strong
M • Superior
Products/
Balance
Sheet
• Management Services
E Credibility

• Earnings
G Growth What makes a story stand out?

• Growing
Industry
Look for Value: COL’s Investment Guide

Know what is fair and what is not…

Code Company Price COL Rating COL FV Buy Below

Two types of Price: 1) Market Value 2) Fair Value

Manage risk through Diversification!

“Don’t put all your eggs • Investments should be

in one basket” spread into various
instruments to handle risk

• Stock investments can be

spread into various
industries or stock picks

• Mutual Funds can be an easy

way to diversify
Introducing
Mutual Funds!

Professionally managed funds

that are pooled together and
invested in various asset
classes and held by multiple
shareholders
 Invest in Mutual Funds with COL!

©COL Fund Source

Introducing
Equity Index
Funds!
• In the Philippines, an index
fund invests in a basket of 30
blue-chip stocks

• These are all member

companies of the PSE Index

You can begin to own all these

with as little as Php1K - Php 5k!
Buying Stocks, have a Plan! Keep emotions
in check
Use a Methodology:

• Value & Growth Investing

(Fundamental Analysis)
Trading • Trend Timing
(Technical Analysis)

• Gradual Buy and Hold

Strategy
Peso Cost • Make steady and fixed
Averaging Peso investments through
time on good companies
COST AVERAGING:
No rocket
Investing made science needed!
Simple and Easy

Peso Cost Averaging Advantages:

• It is simple and easy to do

Investing a fixed amount of money
Into your favorite Stocks/Mut. Funds
At regular intervals
Over a period of time
• No need to time the market
• It reduces market price risk
and volatility
• You can start investing
anytime even with a small
amount of investments and
build your way in
Cost Averaging in action
Peso Cost Averaging is a personal wealth-
building strategy that involves investing a
fixed amount of money at regular intervals
over a long period
Designed to reduce market risk by stretching out
the purchase of stocks over time, buying more
when prices are low and buying less when it is
high, effectively keeping your average cost down

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 # of Shares Ave Cost per
Price per Share
Purchase Purchase (Php) bought* share
1-Jun 5,000 10 500 10.00

1-Jul 5,000 11.75 400 10.77

1-Aug 5,000 11.5 400 11.00

1-Sep 5,000 11 400 11.00

1-Oct 5,000 10 500 10.77

1-Nov 5,000 9 500 10.44

1-Dec 5,000 7.5 600 9.90

1-Jan 5,000 7.1 700 9.41

1-Feb 5,000 8.5 500 9.31

1-Mar 5,000 9.1 500 9.29

1-Apr 5,000 9.5 500 9.31

1-May 5,000 10 500 9.37

* Controlled by Board Lots Total 6,000 @ Ave cost of 9.37/share

Peso Cost Averaging
P35.50

The PLAN: Quarterly Cost Averaging of ALI Total Investment: P105,000

Investment: P15,000 per Quarter Current Value: P122,527 (+16.7%)
Peso Cost Averaging

Ayala Land (2006-2018) P40.75

What more if you have been doing

this for the last 5 to 10 years?
 Introducing COL’s EIP
COL Investing Simple and Easy
The COL Easy Investment Program is the
latest service from COL Financial which
makes it easier for our customers to apply
the method of peso-cost-averaging.

Features:

Premium Stock List – have access to our

research and premium growth stock
recommendations.

EIP Portfolio – have access to your EIP

positions anytime and track their performance.

Schedule Calendar – plan out your purchases

over time by building a continuing calendar of
orders that will prompt you through Email
reminders.
 Some Stocks We Like
Long Term
COMPANY NAME COMPANY NAME
We filter looking for good AC Ayala Corp. MBT Metrobank
stocks by looking for ‘GEMSS’
ALI Ayala Land Inc. MPI Metro Pacific Inv Corp.

Growing industry AP Aboitiz Power MWC Manila Water Corp.

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 TEL PLDT

ICT Int’l Container Term URC Universal Robina Corp

JFC Jollibee Foods Corp Index Any Index Funds

How to start your EIP

1. Learn More
2. Create an EIP
schedule
3. View/alter Schedules
4. View detail
5. Cancel or Change EIP
Schedules
 Getting Started
with Stock Market Investing

Get your
Do something
investment
account
today that your
ready
future self will
thank you for!

Choose Funds/
Companies to
invest in
 Customer Support:
THANK YOU! Helpdesk @colfinancial.com

Service Hot Line:

(632) 6-515-888