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Stock Investing Q&A

Should I start investing in Philippine stocks right now?

Before diving into stock investing, we suggest building an emergency fund first. Without one, you might face difficulties later when you need money, especially during market downturns when it’s not ideal to withdraw from stock investments. Prioritize financial stability by living below your means and paying yourself first. It’s also wise to explore less volatile investment options like time deposits, treasuries, or the Pag-IBIG MP2 program. Having a foundation of stable investments can support your future stock investments. However, because stock investing is highly educational, we encourage you to start learning about it now. Even if you’re not ready to commit, studying stocks can teach you a lot about businesses, the economy, and the workings of the world.

Many brokers in the Philippines are now competing to attract new investors, making it easier to sign up for an account. With the rise of online platforms, you can start investing with a small amount, even as low as 1,000 pesos. Additionally, the Philippine Stock Exchange is actively working to make investing more accessible to the public by lowering entry barriers, which will enable people to buy stocks with even smaller budgets. Keep an eye on updates for more opportunities in the future.
It’s not necessary to look at stock prices every day. Frequently checking prices can lead to impulsive decisions based on short-term fluctuations. Stock investing is fundamentally about buying into businesses, and businesses generally evolve more slowly over time compared to daily price changes. It’s important to be thoughtful about the businesses you invest in, focusing on companies with strong fundamentals rather than making impulsive decisions. Patiently waiting for things to develop can lead to more successful investment outcomes.
Investing in stocks can feel like gambling if you don’t have the right mindset and education, as you might end up guessing and looking for easy ways to make money. However, for those who take it seriously and view it as buying into businesses, there are strategies to approach it in a scientific and evidence-based manner. Risk management techniques, such as diversification, play a key role in this. We are strong proponents of value investing, which we consider to be a top risk management tool. By understanding the intrinsic value of businesses and buying only when prices are reasonable or undervalued, investors can minimize their risk and potentially enhance their returns.
While it might seem attractive to go after stocks that could give big returns in a short time, this approach can be very risky and difficult to maintain. Instead, aiming for steady returns over a long period of time can be a smarter strategy. Dividends contribute significantly to this kind of stable growth. By targeting annual returns in the range of 8-12%, and allowing the power of compounding to work over time, investors can build wealth consistently and securely. Imagine a company that grows its business by 5-8% each year and pays dividends of 3-5%. This steady approach makes reaching satisfactory returns possible across various stocks in a portfolio. Having your investments grow gradually and reliably can be more effective and less stressful than betting on unpredictable, large gains. It allows the whole portfolio to progress steadily, helping you build good wealth without relying on luck or risky bets.
It’s a common misconception that only experts can make money in the stock market. Investing in stocks is essentially about buying businesses, and this is something retail investors can learn. Most of us have exposure to businesses in our daily lives; even regular employees often understand how their companies generate revenue. As consumers, we also gain insights into companies by observing which products are popular in stores and which brands people prefer. Over time, retail investors can learn the fundamentals of investing. That’s why we suggest starting small, gradually increasing your investments as you build knowledge, experience, and confidence. It won’t happen overnight, but as you grow as an investor, your investments can grow with you.
Many great investors agree that trying to time the market is nearly impossible and not a productive endeavor. Instead, focusing on a long-term strategy and sticking with it is often more fruitful. By carefully selecting well-run businesses for your watch list, you can take advantage of market opportunities when they arise. Occasionally, the market or a specific stock might dip, allowing you to buy at attractive prices—this is known as “buying the dip.” Remember, we are not at the mercy of the market’s ups and downs. Instead, let the market work for you by using its volatility to uncover opportunities to buy strong businesses at reasonable prices.
While technical analysis and trading based on charts can be effective and have made some individuals profitable, it’s a misconception that this is an easy strategy to master. Many people who rely solely on chart reading end up quitting after a few years, often not returning to stock investing. It requires significant skill and experience, and institutional investors often excel at it due to informational advantages that retail investors lack. Even successful active traders typically incorporate fundamental analysis into their strategies. For retail investors, we suggest starting with fundamentals and value investing. This approach tends to be easier to implement and is highly valuable, serving as a strong foundation for any strategies you may explore in the future.

While luck can sometimes play a role in investing, with occasional stories of people scoring big, relying on luck for long-term success is not viable. The pursuit of quick riches has become saturated with noise and scams, making it difficult to navigate. We prefer focusing on achieving satisfactory annual returns that are sustainable over the long term. By sticking with a consistent strategy, you can benefit from the snowball effect, allowing your investments to grow steadily and reliably over time. Don’t be fooled—the snowball effect is powerful, and you might be surprised by the significant growth you see from the 10th year onwards.

Mutual Funds and UITFs can be good alternatives if you want to invest but don’t have the time to manage your portfolio. However, whether you manage your investments yourself or entrust them to a fund manager, it’s crucial to educate yourself. Some investors have experienced minimal returns with mutual funds or UITFs in the past, leading to regret over their investment decisions. This often results from not taking the time to learn about the markets before investing. Educating yourself is essential, regardless of whether you choose a hands-on or delegated investment approach.

Pag-IBIG MP2 is a great option for many investors due to its relatively low risk and competitive returns, especially for those looking for a safe place to grow their money. Although we encourage Filipinos to invest in stocks, the reality is that the current returns of MP2 are really good. We believe it should be a part of every Filipino’s portfolio. Ultimately, the decision to invest in stocks is yours to make. However, we recommend studying stocks even without committing financially, as it provides valuable education on businesses and the economy. Since the barrier to entry in stocks is quite low—sometimes as little as 1,000 pesos—you can start applying what you learn with minimal risk. Over time, you can gradually increase your exposure to stocks as your knowledge grows.

Many believe that buying stocks immediately is a great way to learn through experience. However, we suggest starting with a strong foundation of knowledge before investing. The market’s ups and downs can be confusing for beginners, so understanding these fluctuations is helpful. When you’re ready, begin with a small investment. Stay eager to learn but manage your emotions when trading. Gradually expand your knowledge and investments as you gain confidence. You’ll naturally sense the right moment to increase your investment.
Blue-chip stocks are generally seen as safer options because they come from large, established companies with significant advantages in their industries. These companies are often market leaders, which gives them a certain level of stability. However, it’s important to remember that no stock is completely risk-free. Some blue-chip stocks have lost substantial value over time, showing that they aren’t immune to risks. While they may be more stable than other stocks and a good starting point for beginners, not all blue-chip stocks are always safe. It is essential to keep learning about investing. This ongoing education will help you make informed decisions and choose stocks that suit your comfort level and investment goals in the future.
We think it’s best for investors to put money into things they know well and understand. Diversifying your investments is also important. Real estate is a solid option for many people. If this is something you know a lot about, it could be a good path for you. There’s no one-size-fits-all answer to what’s the best investment. Each person is different and has their own situation, comfort level, and goals. It’s important to invest in what feels right for you and what helps you feel secure and at ease. If you want to learn about stock investing, this website can guide you and be a great start to your learning journey.

Let’s Learn Together

We’ve prepared a series of lessons to help every beginner Filipino investor navigate the Philippine stock market. We’ve carefully put together what we believe will best equip beginners for a successful investing journey.

We’ll also share our insights as we analyze dividend-paying stocks in the local market. No complicated jargon, just practical lessons to guide you in your investing journey.

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Who We Are

We are real investors actively participating in the Philippine stock market. As firm believers in fundamental analysis and value investing, we see it as the most effective way to navigate the market. Beyond investing, we create content on social media to share our knowledge and help more Filipinos build wealth through smart investing.
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Tita Glo

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Tita Glo is a Chemical Engineer and former OFW who worked as an R&D Engineer in Japan and Singapore. With a passion for financial literacy, she shares her knowledge and experiences in saving and investing. She hopes to inspire and guide fellow Filipinos toward financial freedom by making investing simple and accessible for everyone.

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Kuya Jon

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Kuya Jon follows the teachings of legendary investors like Warren Buffett and Charlie Munger. He focuses on wonderful stocks and takes a long-term approach, letting compounding do the work. Adapting to the Philippine market, he prioritizes dividend-paying stocks—combining steady income with long-term growth.