Building Wealth Through Stock_Market Investing

8/4/2019 Building Wealth Through Stock_Market Investing

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Building Wealth through

Stock Market Investing Presented by:

Juan G. BarredoVice PresidentCitisecOnline.com, Inc



CitisecOnline.com… who we are

CitisecOnline is a leading and fastest-growing online stockbrokerage firm in the

Philippine Stock Exchange.

CitisecOnline is the largest capitalized

stockbroker with over half a Billion Pesos in

resources, COL is publicly listed in Philippine

Stock Exchange & is also member of the

Hong Kong Exchange

CitisecOnline is committed to empowering

the Filipino investor to achieve financialindependence by providing online access,

research information, and educational

seminars about stock investing



Retirement

Children/Education

Cost of Living/Housing

WHY invest?

Investing is the most effective way

to build your personal wealth and

reach your financial goals!



Year

Purchasing power of Php100

stashed away in 1970* (not invested)

1970 100

1980 59.87

1990 35.85

2000 21.46

2009 12.85

WHY invest?

* Assuming a 5% annual Inflation (currently at 4%)

0.002.00

4.006.008.00

10.0012.0014.0016.00

18.0020.0022.00

939495969798990001020304050607080910

Interest Rates (91-day T-Bill)

Allow money to growfaster than interest rates!

Safeguard capital against theeffects of Inflation!

1 2



What is the Stock Market?

The stock market is the place where you can invest

in other peoples’ publicly listed companies.

A company sells shares of stock through an Initial

Public Offering (IPO)

Companies sell part of themselves to new

shareholders at future valuations to raise more

money thereby funding their growth faster

The faster and more durable a company's growth…

the more attractive its becomes

Investing in the Stock Market



How do we make money in stocks?

You invest into a company to participate in its growth

through:

Price Appreciation - the ability for a stocks’ price

to increase in value as driven by investors demand

to buy into a prospective or already growing

business

Dividends - profitable companies may return some

wealth back to shareholders by distributing someof its profits back to them

Cash dividends

Stock dividends

Investing in the Stock Market



Stock Market Superior Track Record

History has proven that

investing in quality stocks

can provide greater

returns than most

instruments; giving a good

run over inflation…



Stock Market and Investment Funds

Mutual Funds:

• Investing through a fund that

pools investor money to have

access to broad investments

and is run by a fund manager

• Risk can be spread out thru

diversification

• Gains may be moderated dueto diversity

• Poses no time concern for busy

folk / no control over fund

Direct Investment:

• You invest directly into

companies you like – you

become your fund manager

• You directly control your risk

• Good stock picking can open

up gains

• You must spend some time to

learn / review / rebalance

your investments picks



Stock Market and Investment Funds

http://business.inquirer.net/mutualfund/mutualfund.pdf

PSEi Performance

YTD 33%*

1-YR 35%*

1-YR High 47%

1-YR Low -7%

3-YR 12%*

5-YR 91%*

* No cash dividends added



Stock Market 101

Remember some guidelines:

Invest for the long term

Pick good quality stocks

Diversification and Money Management

Use a methodology

Also take advantage of technology –

onlinetrading facilities can support a wider scope

of research and stock information gathering



0

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PSE index

#1: Invest for the Long Term

Long terminvesting solvesthe problem ofvolatility. Allows acompany time togrow and workout

faults and profitfrom compoundedinvestments.

Marcos:People Power 1986

Aquino:Coup De Etats

Asian FinancialCrisis

Edsa II Revolution

Ramos:Power Crisis

Global FinancialCrisis



#2: Pick Good Quality Stocks

Look for companies that:•Grow their Earnings/Income = Look for strong,

lasting, and increasing profitability

•Are Cheap in Value = Look for good stocks

whose Market Price is preferably lower than

what it is expected to be worth (Fair Value)

•Good Story = Look for companies with a buzz,

great products/services or a catalyst for growth

PROFITS



#2: Pick Good Quality Stocks

Prices and Fair

Values (or price

targets) are

shown

Projected

Earnings also

shown for

coverage list

Assess their

dividends

Investment Guide



#2: Pick Good Quality StocksCompany Reports



#3: Diversify & Money Management

*These are only suggested percentages based on investors’ capacity to take on risk; as a rule of thumb,

younger investors can take more risk given that they may have a longer period to withstand volatility

I n v e s t m e n t M i x

Rule 1: Spread OutDo not put all your eggs in one basket;

spread out to different investment classes

(i.e. different stocks/industries)

A l l o

c a t e C a s h

Rule 2: Be comfy with your investment size

Compute 100-Age = Max % of Savings that

can be invested in Stocks*

Ex. A 35 year old can invest up to 65% of savingsinto the Stock Market



Your Portfolio Page – track your cash and stock positions anytime

#3: Diversify & Money Management

Get yourBalances and

Positions

anytime

Access your

account

ledger



• Trend Trading Strategy

• Time market swings to provide short term entry

and exit strategies

MarketTiming

• Gradual Buy and HoldStrategy

• Make steady and fixed Pesoinvestments through time

on good companies

Peso CostAveraging

#4: Use a MethodologyMarket Timing or Cost Averaging



Method A: Market Timing

•Trend Trading is thetechnique of taking

advantage of short to

medium term swings in

market action

• Aim: Identify and follow

market direction

•Technique: Buy into Up

Trends; Sell into DownTrends thereby limiting

downside risk

Ayala Land Inc (2001-2009)

Try COL’s Java Charts!



6

5

4

3

Peso Cost Averaging is a personal wealth-building

strategy that involves investing a fixed amount of money at regular intervals over a long period

Month 3

Buy Php5,000 worth of stock ABC atmarket price

Month 2


Month 1


Designed to reduce market risk by stretching out the

purchase of stocks over time, buying more when pricesare low and buying less when it is high, effectively

keeping your average cost down

Method B: Peso Cost Averaging

1 2 3 4 5 6 7 8 9Month

Ave Cost per Share

You get buy

more shares

when pricesare low, less

when prices

are high…!



A viable long term plan

Peso Cost Averaging

Stock/

Indicator

Effective

Annual Yield

Time

Frame

TEL 18.88% 18 yrs

BPI 16.92% 18 yrs

AC 11.16% 18 yrs

JFC 10.7% 14 yrs

Inflation 5.7% 18 yrs

Retire with an Extra 10 Million!

Invest Monthly Php5,000

# Years 21

Return Rate 16.9%

Total Investment (P) 1,260,000

Will result in a…

Future Value (P) Php10M+

Investment Gain 740%

Share price history from 1990 to 2007



Introducing COL’s EIP The COL Easy Investment Program is the latest service from

CitisecOnline 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



Trading Online: In the palm of your hands!

• Direct execution and Off Hours Order

Placement

• Live quotes and market statistics• Live portfolio monitoring

• Research studies and Seminars

• Charting tools

• 24/7 online service

• Customer Service

• Best commission rates

at ¼ of 1% (or 0.25%)

Getting Started! CitisecOnline Provides:

http://www.dreamstime.com/globalreachbyworldwideweb-image325963

http://www.dreamstime.com/computer-image183529



COL’s Web Features



Getting Started with COLOpen an

Account

• Fill up application form

(downloadable)

• Provide a photocopy of a valid govt issued ID

• Provide any copy of

your latest billing

statement*

* For non face-to-face meetings

with account holders

Funding your

Account

• Choose account type:

• COL EIP - P5,000

• Trading - P25,000

• Deposits at our Business Center

(PSE Centre Tektite Pasig)

• “Merchant slip” or “Online”

deposits thru our partner banks:

• BDO• BPI

• MetroBank



THANK YOU!

To learn more about our COL Easy Investment Program or know

more about our services and free seminars…

Please visit our website at www.citiseconline.com

Call our customer hotline: 6-333-777 (Mon-Fri 9am-5pm)Email: [email protected]

Documents

Building Wealth Through Stock_Market Investing