Friday, June 3, 2016

Stock Update

The Economy Looks Promising (And So

Do Your Stock Market Investments)
I guess it happens every time there's a new President. 
People keep asking me, "With a Duterte presidency, what will happen to our economy? Will the stock market continue to rise?"
Our happy diagnosis: In the coming years, we believe the economy will continue to rise. We're NOT saying there will be temporary downturns—we will always have them. Up, down, up, down. But our long-term trajectory remains the same: The Philippines will rise!
And so will your investments.
But if you want to know what will happen to our economy (and therefore to our favorite stocks) before you look at what the new President will bring to the table, you must first look at the two huge pillars of the Philippine economy...

Economist Dr. Bernie Villegas said (before the elections), "The six to seven percent (GDP) growth we experienced for the last four years is going to be sustained whoever is elected as president."
So even without a new President, our economy was already going gangbusters. Because of these two drivers.
OFW remittances (sometimes the only good news of our economy at certain stages of our history) gave us $25.8B in 2015. No matter how incompetent past administrations were, this kept our economy afloat.
Today however, there is a real concern that it may slow down, especially from the Middle East, because of low oil prices around the world. (From $100-plus a barrel, it's down to $30-plus.) Note that there are 2.5 million Filipinos who work in that part of the world, 40 percent of them in the Kingdom of Saudi Arabia.
Despite this, the government is still projecting three percent to five percent growth rate of the remittances. But more conservative analysts put it between two percent to three percent growth.
And then there's this sector that was started 15 years ago.
Last year, BPOs employed 1.1 million Filipinos and earned $21.2B for the country. Very soon, its yearly earnings will surpass OFW Remittances, because the BPO Industry grows 17 percent a year.
Some analysts are questioning the future of this industry—particular voice (call centers)—wondering if the demand for them will remain the same if the younger generation is adept at dealing with (mobile) websites, requiring no human intervention. While enjoying the fruits of its aggressive growth, industry leaders will need to adapt to the coming winds. Just based on these two drivers, the Philippine economy will be difficult to beat.
The big question: Will the Duterte Presidency add or subtract to this growth scenario?
Some economists are saying it will add.
I must repeat what I mentioned in the last Stocks Update:This essay is NOT about Duterte from a spiritual or moral perspective, especially with his conflict with the Catholic Church. This is also NOT the venue for my personal views about him. This is purely an economic discussion. With a Duterte Presidency, economists say there may be four potential positives:
Business people are talking excitedly about the prospect of new airports, seaports, roads, and railways all over the country. Fact: Massive infrastructure spending will prime the economy. And long-term effects? These projects will benefit the provinces, attracting people to go home to their birthplaces to find jobs, start businesses, and (hopefully) decongest Metro Manila.
The new administration promises to make it easier for foreign investments to come in. Duterte also wants to create more Economic Zones in Mindanao. If done, there is a chance that the control of our economy by a handful of families (oligopoly) will be broken, and our economy will expand.
Big businesses who've built their presence in Davao report of their hassle-free, bribery-free experience with government agencies there. Transactions that would otherwise take many months to file in other cities would only take 72 hours in Duterte's city. The big question is if Duterte can replicate this "business friendly" scenario all over the country. Only time can tell.
4.     Increase Tourism
Last year, Amazing Thailand attracted 25 million tourists. "It's More Fun in the Philippines"? Five million. Why do we only get a fraction of the tourists they get? Doesn't the Philippines have the same glorious beaches and amazing islands? We believe that if enough infrastructure is built and peace is established, we will see an increase in tourism in the coming years—boosting the economy of the provinces.
Will this rosy picture happen?
As always, it boils down to the political will to execute.
Keep investing your small amount each month!

May your dreams come true,

Bo Sanchez

Wednesday, June 1, 2016

Why Strategic Averaging Method (SAM) Is So Much Better Than Peso Cost Averaging Method

I need you to read my essay very carefully.

Because you need to understand how terrific your investment strategy is compared to other strategies out there.

In the TrulyRichClub, you use the Strategic Averaging Method (SAM). It's an improved version of the Peso Cost Averaging Method.

Why is SAM better than Peso Cost Averaging?

Answer: Because you'll earn more. How much more? In the long term (20 years or more), you'll earn MANY MILLIONS more.

Let me explain why.

In the Peso Cost Averaging Method, the investor buys stocks of gigantic companies on a regular basis (for example, monthly), always buying, never selling—for decades. He just buys, buys, buys.

In SAM, the investor also buys the stocks of gigantic companies each month for many decades, but we do two things differently:

1. We sell when we believe the share price is very expensive (it hits or goes above our Target Price). This is like a "reset". Because when we sell, we get our cash back and start deploying again to cheaper stocks slowly.

2. We buy only if the price is cheap (we only buy if the price is below our Buy-Below Price).

These two big differences will give you superior returns.

Note: This won't be obvious in the first five years of investing. But it will become very obvious after the fifth or sixth or seventh year... Because at a certain point, Peso Cost Averaging becomes almost a Buy-And-Hold Strategy. (Buy-And-Hold Strategy is another method of investing where you plunk a huge amount and buy a stock—and don't do anything anymore afterwards.)

Why is the Peso Cost Averaging almost like a Buy-And-Hold Strategy? Let's say you invest P5000 a month faithfully. After 20 years of investing, your money would have grown to P5 Million. So your monthly investment

RigNtocks Update

(P5000) is now only 0.1 percent of your total portfolio. It won't make a dent anymore. So it's almost like a Buy-And- Hold Strategy.

But if you follow SAM and—at very strategic times sell portions of your portfolio—you actually multiply your returns because you can buy more stocks at cheaper prices.

I believe that SAM will increase your average growth by a few percentage points. I love giving this example: If a woman at age 25 invests P3000 a month, by the time she retires at 65, she would have P30 million—if her stock market investments grew by an average of 12 percent a year. But if she uses SAM and nudges her average growth upward by just 2 percent, it'll be glorious. At 14 percent growth, she won't have P30 Million, she'll have P55 Million.

NOTE: In the past four years, if TrulyRichClub members simply followed our instructions, our average growth has been 17 percent-plus a year. It's been pretty amazing.

Bottom line, I just want you to appreciate the powerful strategy that you're using here at the TrulyRichClub.

Happy investing!

But if you follow SAM and—
at very strategic times sell portions of your portfolio— you actually multiply your returns because you can buy more stocks at cheaper prices.

Monday, May 30, 2016

Invest 30 Percent (or More) of Your Income Into 3 Specific Funds

           Last week, I urged you to live only on 70% of your income.
           So what will you do with the 30 percent that you don't spend?
           You deposit it into 3 Funds.

           First is an Eternity Fund.
           This is your greatest investment with out-of-this-world eternal returns.
           This is your tithe to God. 
           Give 10 percent of your income to this fund.
           Where do you give?  I urge you to financially support your spiritual family—so that they can continue to support your spiritual needs—and bless the world.

           Second is your Emergency Fund.
           You need this when the house roof leaks and needs repair.
           You need this when the baby gets sick and needs hospitalization.
           You need this when the car breaks down and needs a major overhaul.
           You can't put all your savings in your long-term investments such as your money in the stock market, properties, and business. 
           You need some money in the bank.
           So put 10 percent of your income into an Emergency Fund—and make it reach at least three to six months of your monthly income. Once it reaches this amount, you can divert this 10 percent into your third Fund below…

           Third is your Emancipation Fund.
           You put 20 percent (or more) of your income into this fund.
           I've noticed that Filipinos love putting their savings in piggy banks, Pringles cans, mayonnaise jars, and under the mattress.
           Believe me, nothing will happen if you leave them there.
           I strongly suggest your Emancipation Fund is invested in the Stock Market.  If you know how to do it, investing in the Stock Market is the safest and most effective way of long-term investments in the world. 
           What is your goal?  When your passive income is equal or bigger than your expenses, then that's when you can say, "I'm free!”

           Question: Do you have an Eternity Fund, an Emergency Fund, and an Emancipation Fund?  Which should you work on more?

           May your dreams come true,

           Bo Sanchez
The Law of Duplication Works in Your Income Too

If you duplicate yourself, you duplicate your income.
It's very simple. 
When you duplicate yourself, you increase the number of people you serve. When you increase the number of people you serve, you increase your income.
If you don't duplicate yourself, your income remains stagnant. 
And even if it does increase, your income only enjoys linear growth. If you duplicate, your income enjoys exponential growth.

Employees Who Duplicate Get Promoted

         Do you want to be promoted in your job?
Duplicate yourself.
As an employee, duplicate your output. Duplicate your production.  Duplicate the great results you're getting.
How? Find a way. Use your ingenuity. Use your creativity.
As a manager, duplicate yourself by training your staff until they can replace you. Believe in them. Raise them up. Develop them. Make them better than yourself.
         Some are afraid to do that. "Bo, if I do that, they won't need me anymore and fire me!”
         But if your boss is intelligent, the opposite will happen. She'll recognize your leadership. Because only leaders can duplicate themselves. And leaders rise to the top.
         I can hear you now. "But Bo, that's the problem. My boss isn't intelligent!”
         Remember what I said before? If your present boss won't recognize you, another person will. Word about your leadership will go around. People will talk about you. And you'll be promoted, perhaps not in your company now, but in another company. Or in your very own company. 

A Second Job

         I'm not a great fan of getting a second job to increase your income, but I need to mention it here. It's also duplication.
         When you go to the States, it's very common to meet Filipinos who hold two jobs. They work 16 hours a day, not counting the travel time to go to work.
         My friend does that. She sleeps three to four hours a day just to be able to hold two fulltime jobs. She drives a brand new BMW. Yes, she earns more because she has duplicated herself by having two jobs. But it's a weak way of duplicating.
Today, that friend of mine is sick. Her body is caving in.
         My advice? This should be a temporary situation.
         Move on to a better way of duplicating yourself...

Two Kinds of Income

         There are basically only two kinds of income in the world:
         Active Income and Passive Income.

1. Active Income

How do I define Active Income?
You exchange your time for money.
A skilled laborer exchanges one day of work for P500.
A manager exchanges one day of work for P5000.
A dentist will pull your tooth for P600.
A heart surgeon will do a bypass for P300,000.
What do they have in common? All of them exchange time for money.  When they stop working, they stop earning.
Let me give you an example.
Remember my story of Ate Guy?
Ate Guy is the terrific masseuse of my wife who offers massage and torture at the same time.
Lucky for her, there are enough deranged people in the world who want that type of massage. Like my wife, for instance.
So Ate Guy is always in demand.
She can massage five clients a day—and she usually does.
Because of this, she earns P50,000 a month.
But let's say she takes a vacation.
Her earnings drop to zero.
And when she gets older, let's say she doesn't want to work this hard anymore. Instead of five clients a day, she wants to massage only two people a day. But if she does that, her income will go down a lot.
Or what if Ate Guy wants to earn P100,000 a month?
She can't massage 10 people a day. Sure, she can raise her prices, but by only so much.
My point? Active income is limited.
The only way to earn more is by switching to passive income. 
And the only way to do that is by duplicating herself.
First, she can train other women the "Ate Guy Torture Therapy” and form an army of Ate Guy-Trained Torture Therapists—and earn a commission from each of them.
Second, she can create the "Ate Guy Healing Oil” in a bottle, ask other masseuses to sell them.
I repeat: Active income has a limit.
But passive income is virtually limitless. 

May your dreams come true,

Saturday, May 28, 2016

Live on 70 Percent of Your Income

Live on 70 Percent of Your Income
           I can hear you now.
           "Bo, that's impossible. How can I live on 70 percent of my income? I live on 110 percent of my income!”
           I want you to look at the list below.
           If you cut back on buying some not-so-essential items, and invest it in an investment vehicle that grows at 12 percent a year (or more), you'll be earning millions. (NOTE: If you followed the guidance of the TrulyRichClub
 in the past 4 years, your investment would have grown at an astounding 17.3%
           You think it's just a few pesos today—so why not spend it?
           But when you do, you're also throwing away your earnings.
           If you quit smoking, you would earn P6M.
           If you cut back on coffee, you could save yourself P10M.
           If you give up lotto, you'd have another P6M.
           Take a look…
Little Things
35 yrs @ 12%
2 cans per day
1 cups per day
Internet on-line games, video games, CD rent
1 per week
Ice cream, dessert, junk foods, candy, etc.
1 per day
1 pack per day
Extra cellphone load
1 per month
Lotto tickets
2 tickets per day
Movie tickets
10 per month
Buying "sale” items
1 per month
Total: P74 Million
Fact: You're Throwing Away Millions!
           Obviously, you have to watch your big-ticket purchases.
           That's where a lot of people lose money.
           Example: I've been driving my car for the past four years now. (And it was even given to me!) A lot of people are telling me, "Bo, it's time to buy a new one. You can afford it anyway.”
           Yes, I can afford it.
           But my car is still in a great condition.
           Sure, it isn't as smooth as when it was new. And its interiors are showing its age. Its mileage is pretty huge because I go all over the country.
           But I don't have plans to change it yet. Not now. I'm having so much fun investing my money and seeing it grow.
           May your dreams come true,
           Bo Sanchez

Monday, May 14, 2012

How To Become A Successful Stock Investor

Location is of utmost importance - proximity to the city centre and allied services. In the outskirts, connectivity and access to facilities, and social infrastructure hold the key. Apart from this, the age of the building, quality of construction, and the returns on investment expected, are other factors. In terms of the rate of returns, commercial property garners up to 12 percent while the returns on residential property is five to six percent. Increase in rentals depends on the market conditions, and the demand and supply equation.
Let us use, for illustration purposes the case of a Filipino residing in the Philippines, employed and with a salary of Php12,500 monthly. He also has a credit card with Php35,000 credit limit and Php10,500 cash advance limit. This beginning investor, following the program suggested in Finding the Money for Investment, decided to pay himself first, setting aside 2% to 10% of his salary or a minimum amount of Php275 every month. His plan is to invest his savings in common stocks listed in the Philippine Stock Exchange (PSE) using BPI Trade for his online stock broker or Citiseconline. He will also open a Bank of the Philippine Islands (BPI) Express Teller Savings account once his total funds is in excess of Php3,000, the monthly average daily balance (ADB) requirement of this type of account.
EB5 is a United States immigration visa that is available to investors from foreign nations. This visa is given to the investors with certain restrictions. If the investors live in the US for two years by the guidelines of the visa, he is eligible to get a permanent citizenship. The immigrant investor visa is given to investors that promise to provide permanent jobs for the people of the United States. The immigrant investors are directly responsible for the creation of thousands of employment opportunities. These jobs might be full time or part time. It is important for the investors to live by the guidelines of visa for at least two years to be eligible for the green card visa. Getting the green card visa helps them to apply green card for their families as well. The main advantage of the EB5 visa program is that it is responsible for bringing billions of dollars to the US economy as capital for the business. The EB5 visa program is helping immigrants to live happily in the US, meanwhile their capital is helping the US to improve the economy.
Finally, you need to learn the techniques so thoroughly that they become second nature to you. Those techniques will involve finding properties that have great potential, becoming an effective negotiator, structuring deals that will make you the most money with the least amount of capital outlay, and then how to resell the properties for the greatest amount of profit.
The Connecticut Real Estate Investors Association, or CT REIA, is announcing the start of its 3-evening new investor workshop. This program will begin on Thursday, February 3, 2011. Additional dates for the program are Thursday February 10 and Thursday February 17. This workshop will take place at the Comfort Inn, 900 East Main Street, Meriden, CT from 6:00pm to 9:00pm. Tuition for this 3-evening program is $140 for CT REIA Members, and $180 for not-yet-members.
Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.
The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too common experience. You can avoid making that huge mistake by avoiding buying things when they are high. It should be obvious that you should only buy when stocks are low and only sell when stocks are high.
If you decide to look for angel investors outside of the family, then you are going to have to woo them with more than a keen business plan. If you can somehow get a working prototype of your new company, then you will be able to accomplish this. But that feat is easier said than done. However, angel investors want to be able to see with their own eyes that their investment has a potential for a return.
Additionally, a basic business background, plus biographies, and past experience will make closing new deals easier. For banks, providing a complete package with the investor information can move a transaction much more quickly than waiting for them to reach a point where they request the information. Having all this information prepared in a manner allowing a quick electronic transfer can be useful However, many investors will (and I advise) insist that the information not be transmitted electronically. This is the best course because sending a hardcopy numbered version for a specific individual reduces risk of the misappropriation of the sensitive personal identity information included in the package.