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 :)
No comments:
Post a Comment