Monday, November 27, 2006

i have a dream

it has been a dream of mine lately to be able to put up a mutual fund ala berkshire hathaway :) but i guess its kinda difficult here coz people here are not that well versed when it comes to the stock market. when people hear stock market the thing that goes into their mind is crashes, panics and insider trading. maybe the pse should do something to improve the image of our stock market. ive been trying to convince my friends that we pool together money and then i'll invest it in the stock market. but thats the usual responses that i get. investing oir trading in the stock market has also a lot of advantages. if you find a good company with good management you could buy the shares of the said company and then "ride" on its growth. assuming you could buy shares at the right price you get better returns than just leaving your money in the bank. and owning shares allows you to be a part owner of a very good business. thats the approach that i use when analyzing stocks.... you dont own stocks. you dont buy stocks. your not just holding a piece of paper but you are a part owner of a business. in other words you dont buy stocks buy but buy parts of businesses. :) my target is actually very modest 15% compounded return but of course if i could do 20% or more why not. :) 15% compounded return is double your money in 5years and four(4) times your money in ten years. :) not bad right? :) im still researching on how to put a mutual and hopefully someday my dream will come true. :)
we are undergoing a correction right now but i still believe that our market is still trending upward. to tell you the truth im even happy that we are having a correction right now coz lets say that the psei closes the year over 3,000 i think that the upward movement of our market is too abrupt and might cause panic selling. there are still good stocks out there. just remember to do your research before buying something. dont just buy something from what you heard from others. its kinda fun in the banking sector right now coz of all the speculation of what bank will be bought and at what price etc etc. but i still should say that asia is a very undervalued stock. its pr reatio is below 11, its book value is 16 and is conservative book value is just below 13. if there is consolidation now in the banking industry this company will most likely by bought and at the same time your holding an undervalued company :) theres been a lot of movement the last few trading days. is something up? i heard that they had a stockholders meeting last satuday. lets just wait for the news to come out. good luck on your trades :)

Friday, November 24, 2006

this week in review

gold is steadily climbing up..... are you thinking what im thinking??? i really believe that the american economy is going to overheat soon :) spyfrat agrees with me and this is also the observation of dr marc faber :) im reading his book right now :) just give it a few years it will overheat or go into a recession. its just my opinion i might be wrong knows or i might be right also. anything can happen in this business. :) i have told some of my friends about my blog i hope that i would be able to encourage them to get into the stock market. ive wanted to gather funds from my friends and then manage it and let it grow. just like the way the great warren buffett started.but its really hard to convince people to get into the stock market cause everytime you tell them they ask about market crashes and all the risks being in the stock market and losing money etc etc. i guess mr faber was right, its all a cycle the economy will go up and what goes up must come down and then the money that the people put in the market will go somewhere else and then create another boom. just like in science energy is never lost it is only transformed into to something else. :) between emerging markets vs the us right now i think the former will win.
it would seem to me that the philippine stock market is going thru a correction right now but you always have to remember to look at the bigger picture :) i really believe that the market is still undervalued and still has a lot of upside. december is usually a month where the market goes up so lets wait and see. as warren buffett said "the ticker is just there as reference if someone is selling something at a foolish price."
Congrats manny pacquiao! everybody should aspire to be like you and how you climbed the ladder of success with hardwork and determination. :) mabuhay ka manny!!!! :)

Monday, November 20, 2006

common sense investing

everytime i meet someone who's into the stock market one question that i never fail to ask is "what's your investing style?" im sure you ask that question too. so how did you develop your style? just last weekend i attended a seminar in our office and there was a questionnaire that we answered to find out your personality. i was an owl meaning your into numbers and methodical. in a way i was happy coz i was equipped for an important part in investing in the stock market which is research and financial analysis :) i also helps that im an accountancy graduate. :) i like numbers i guess thats why i was called into the field. :)my family is also into business and that really influenced my way of thinking :) my idols in business and investing are my dad, mr henry sy and warren buffett. there are a lot but they are the ones that i really admire. i remember that my parents were really against investing in the stock market coz it was 'gambling' but a few years after they were ok with it already coz they can see that my style is sound, feasible and makes sense. buy low and sell higher its as simple as that :) mr sy i admire for his focus, patience and being an astute businessman :) warren buffett for his patience and very sensible approach to investing :) what do all my idols have in common? they are patient. llke a tiger waiting for the right time to strike his prey :) they are all focus investors:) as the saying goes put all your eggs in one basket and watch it closely :) and they all have a simple strategy in investing or in business. buying low and selling high to get a high rate of return :) keep it simple thats what makes their style so effective :) i patterned my style after my idols :) as my friend hernan calls it "defensive investing" but i call "common sense investing" :) for one year i tried technical investing but it just didnt work for me coz i have a day job. in the end your environment, lifestyle, way of thinking will shape your investing style. if you have the passion anybody can succeed in the stock market. good luck!!!!!!! :)

Monday, November 13, 2006


the psei has a minimum upside of 3,150 and what will bring it there? of course higher share prices and for that to happen.... better earnings for companies and stable political environment. well for now the opposition has kept quiet and companies have been reporting higher earnings. so far everything looks good :) but for the psei to go higher it needs the big caps like smph, mbt, bpi, glo and especially tel to push it up. for the psei to go beyond 3,000 by my rough estimate tel should hit 2,700-2,900. that is attainable bacause the pe ratio of tel is around 9-10 right now. lets just be patient and in due time we will get there :) good luck

Friday, November 10, 2006


nice run by the psei! :) i hope that this could be sustained next week. im happy coz so far i have done ok and i have stuck with my target of beating that index. :) for the year the index has risen 35.46% closing at 2,839.38 today. my portfolio so far is doing 38.02% and i really hope that i could keep this up until the end of the year :) the stocks in my portfolio are: urc, ali, v, jfc, ubp, mbt, smdc, smph, feu, chi, meg, bpi, sgi, epci, ans, asia, ephi. iv been holding urc, ali, v, jfc for more than 2 years already :) for more than a year ubp, mbt, smdc, smph and the rest i bought this year :) i bought this companies because i know that they are good companies and at that time the shares of their company was selling cheap or below their real value :) i really dont have any plans to sell any shares as of now but when the price is really good i just might sell :) the market has still a long way to go to its minimum upside of 3,150 :) as peter lynch said "when holding a good stock time is your friend but when holding a bad stock time is your worst enemy" :) i really hope that my ortfolio will break the index and i hope you will too :) Love you angel2!

Wednesday, November 08, 2006

in the long run.....

i was in shanghai for almost a week and what can i say? its beautiful and their culture is interesting and so rich! i was really impressed it was like i didnt know that china is now world class :) i was made a believer of the saying that ""in the long run china will will win" :) china's big advantage over the rest of the world is that everything is cheap in china and it helps that they devalue the yuwan :) that is their main edge over the us. i believe that it is just a matter of time before the us economy will falter and china will survive. as they say the higher you are the harder the fall :)china is taking jobs away from us citizens and corporations will be forced to open factories in china because it is cheap there and that is the only way for them to stay competitive. how can a country progress when its people have no work and means to support themselves??? consumer spending will go down and crimes will go up! if you compare to china to its counterparts in asia like singapore and hong kong it still has a long way to go and yet it is already very progressive. and toi think that its counterparts are aleady adults whoi;e china is just a baby learning how to walk! can you imagine what it will be in another 10years? china is announcing its arrival as one of the big players in the world with 08 beijing olympics and 10 shanghai expo. the next question i would like to ask you is will the philippines go ur with china or will we go down with the us? that is something for us to think about.