Buffett in the Philippines

I Lost 6.19% Because I Sold Too Early

2015-02-08T01:11:00.000+08:00

I bought PIP last Jan 9 at 3.98 because I thought it was due for an uptrend. I did my homework, I studied the chart and its fundamentals, and I seriously believed it was undervalued. I set a target price of 4.45, just below its immediate resistance. That would give me a nice 10.31% upside. A sound plan, only problem I foresee is its lack of volume.

When it was still at the same level a few days later, I added more shares at 4.

The following trading days, it peaked at 4.28 only to pull back again to 4.

Three days later PSEi was trading at an all time high. PIP soared at 4.45 just 16 trading days after I bought the stock. My target price! You taught I’d get my 10.31% gain don’t you? Well, that same day, I sold it at 4.20. I lost 6.19% of my potential gain just because I didn’t stick to my plan! The next day the stock is still up, this time at 4.60.

Sector Outlook: Property

2014-07-19T14:51:00.000+08:00

We take a look at the financial data for five of the most popular listed Property stocks in PSE - DoubleDragon Properties (DD), Ayala Land, Inc (ALI), Megaworld Corporation (MEG), Vista Land & Lifescapes (VLL) and Century Properties Group (CPG).

Balance Sheet

As expected, ALI holds the largest assets for this group, as it is almost twice as big as its next competition, MEG. What was really glaring here is how small the other companies are.

Income Statement

Dividend Play on TEL

2014-03-10T14:00:00.000+08:00

Philippine Long Distance Telephone Company recently announced a 62Php regular dividend with ex-date on March 13, 2014. As if that isn't enough, the telco giant also declared a 54Php special dividend. At TEL's current price of 2800 per share, an investor will have dividend returns of 4%!. If you have remaining cash lying I'm mark TEL as a priority BUY. IIF you really don't want the stock you can just dispose of it by March 13 and you'll still be entitled for the dividend! That's a safe way to earn 4% in a few days if you ask me.

The payment date of the Dividend is April 16.

The 15 Stocks Trading Tips You Will Ever Need

2014-03-09T03:09:00.000+08:00

1. Don't buy what you don't know.
2. Never buy higher than previous day's close.
3. Always formulate a margin of safety; know when to cut your losses
4. Moderate your greed.
5. Control your emotions.
6. Be aware of news and disclosures.
7. Stocks trading is a folly. Don't be the biggest fool and you won't lose money.
8. Never worry if your quote is not matched. Rushing in to be bought or sold is a bad idea
9. Don't try to anticipate the news. Just be there when it happens
10. Trading is not a race. It who makes money and who loses it.
11. Don’t be emotionally attached to stocks. What's profitable today may be bad ownership for tomorrow.
12. Observe a particular stock's movement for a few days before buying it.
13. Limit your trade. The more trades you have, the higher the chance you'll make a mistake.
14. Don't diversify…if you know and you're sure of what you are doing.
15. Don't just rely on Technical charts. Study the financials.

Do Credit Card Rewards Pay Off?

2014-02-21T16:52:00.000+08:00

Credit card rewards are one of the things that convince many people to get a credit card. You could use the reward points that you earn to get free dinners, flights, and electronic gadgets. But what can you do to make sure that you maximize your credit cards’ reward points that they really pay off? Read on to get tips on how to do just that.

Don’t Carry a Balance
Whenever you use a credit card in order to earn reward points, make sure you pay your credit card bill every month otherwise the interest you’ll pay on the balance will likely be worth more than the reward points you’ve earned.
The best way to use a credit card is to only use it to pay for goods and services you have the cash to pay for. This helps you earn reward points and take advantage of deals offered only to credit card holders. This also helps you avoid falling into credit card debt and paying for interest and penalties.

Don’t Pay Late
Your credit card reward points may be forfeited by the card company if you pay late. Avoid this so you get to keep your reward points.

Take Note of Your Spending Pattern
Where do you usually shop? If you shop mostly at one particular grocery, then you should consider getting a co-branded credit card from that grocery because this could give you more reward points when you shop there. Same goes for gas station credit cards.

Take Advantage of Promos
Many credit cards have promos that let cardholders earn double or triple points for certain purchases. Take advantage of these promos but only when you already have plans to buy that thing because buying something that you don’t need just to get reward points usually doesn’t pay off.

Reward Points Redemption Sales
Aside from promos that let you earn double or triple reward points, credit cards also sometimes have reward point redemption sales. Keep an eye out for these, perhaps they have offers for something you really need or want.

Don’t Let the Reward Points Expire
If you read the fine print of your credit card agreement, you might find that the credit card reward points have expiry dates. Don’t waste them by letting them expire. If nothing in the rewards catalog catches your fancy, you should considering donating your points to your chosen charity as some credit cards will allow you to do this.

Reward points are just one of the benefits you can enjoy with your credit card. However, these can only pay off if you don’t carry a balance on your card because then you’ll be paying interest on your card and that will most likely be worth more than the reward point you’ve earned. The reward program of credit cards can differ so study the terms of these programs carefully to make sure you’re making the most of your reward points.

The best way to look at reward points are as bonuses you get for using your credit card wisely. Don’t be tempted to buy something just for the sake of getting a reward point and also look into how getting a reward point stacks up against getting a cashback on your purchases. Cashbacks may provide more dollar value than getting reward points for your purchase.

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This contribution is exclusively written for BuffettinthePhilippines.Blogspot.com by MoneyMax.ph, the Philippines’ leading financial comparison portal which helps Filipino consumers make the right financial decisions as they settle on the best credit card, home loan, broadband plan, and more—fast, comprehensive, and free. Visit Money Max blog for more financial tips and advice.

10 Tips to Preparing a Budget

2014-02-01T11:46:00.000+08:00

Your road to financial freedom starts after you have determined how much you earn and knowing where you spend your money. Most of us simply rely on the next payday to pay for our monthly expenses. While many people are aware of the importance of saving, very few make a budget and even fewer people actually stick with it. Whatever your reason for not preparing or accomplishing your budget, I can assure you that the benefits of having one is more important. You’ll be surprised that majority of individuals who earn a steady income doesn’t even know how they spend their money! Do you really want to stay clueless with your finances, and ask yourself after every payday where did your money go? The key to successfully manage your finances depends on your ability to accomplish your budget.

Here are 10 useful tips how you can start preparing your own budget:

1. Set a clear goal on how much you want to allot for Savings & Investing. Remember: Your money equation should be
Income - Savings = Expenses
And not:
Income – Expenses = Savings

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Shariah Compliant Securities: Encouraging Muslim Investors

2014-01-15T00:31:00.000+08:00

The Philippine Stocks Exchange has recently released a guideline for its Shariah stock market program. This aims to encourage Muslim Filipinos in the country, and also an estimated 1 trillion USD of global Islamic funds to invest in Philippine stocks. Shariah is the moral code of Islam which covers the rules, teachings and values adhered to by Muslims. The release of Shariah-compliant securities make it easier for Muslim investors to invest in the country, while also adhering to the teachings from their religion.

As of the initial list issued by PSE, there are 47 publicly-listed companies were considered Shariah-compliant based on these established criteria:
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Philippine Stocks Market Outlook: January 13 - 17, 2014

2014-01-13T02:58:00.000+08:00

This week's market review have a detailed analysis on PGOLD, MWIDE and BPI. Concerns on liquidity were also brought up as net foreign selling continue to bring the local bourse down. TFHI will also debut today by way of introduction.

Register or login now to get the FREE market reports published every week.

Other Stories:

The Philippine Stocks Market 2013: A Year in Review
5 Tips to Avoid Serious Losses in Your Stocks Investment

Download our FREE Stocks Profit Monitoring Worksheet
Subscribe to us via email and follow us in Facebook and Twitter

Walip Yan's story: Four decades of Stocks Investing

2014-01-09T12:11:00.000+08:00

Let me share with you the story of sir Walip Yan, a long-time stocks investor. He has already experienced three market crashes during his time! What did he learn during those years? Let's find out from Mr. Walip himself.

Walip Yan's remaining shares from the delisted Western Minolco Corporation

Philippine Stocks Market Outlook: January 6 - 10, 2014

2014-01-06T11:02:00.001+08:00

Our friends in PinoyInvestor share a collective insight from the top brokers of the country.

In their FREE market report, they expect further gains this week as investors continue to reposition for the year. At current prices' attractive upside, strategic buying is highly recommended. But the report also cautioned that we still need to see a successful break above its downtrend, backed up with higher volume. A pullback from resistance of 5,835 give a signal to sell in the short term.

There is also a special report which divide local stocks into six major groupings:
1. Slow growth stocks
2. Stalwarts
3. High-growth stocks
4. Cyclicals
5. Turnarounds
6. Assets play

Register or login now to get the FREE market reports published every week.

Other Stories:

The Philippine Stocks Market 2013: A Year in Review
5 Tips to Avoid Serious Losses in Your Stocks Investment

Download our FREE Stocks Profit Monitoring Worksheet
Subscribe to us via email and follow us in Facebook and Twitter

Stocks Analysis: Ayala Land, Inc. (ALI)

2014-01-01T12:00:00.000+08:00

Company Profile

Ayala Land is the largest and most diversified real estate company in the Philippines. It was organized in 1988 when Ayala Corporation decided to spin off its real estate division into an independent subsidiary to enhance management focus on its real estate business. ALI went public in July 1991.

Its line of operations include:

Property Development
Residential Business - sale of high-end residential lots and units (including leisure community developments),
middle-income residential lots and units, affordable lots, units and house and lot packages, economic housing units and house and lot packages, and socialized housing packages; lease of residential units; marketing of residential developments.
Commercial Leasing
Shopping Centers - development of shopping centers and lease to third parties of retail space and land therein; operation of movie theaters, food courts, entertainment facilities and carparks in these shopping centers; management and operations of malls which are co-owned with partners.
Corporate Business - development and lease or sale of office buildings; sale of industrial lots and lease of factory buildings
Hotels and Resorts
Development, operation and management of branded and owner-operated hotels and eco-resorts; lease of land to hotel
Services
Construction – land development and construction of ALI and third-party projects
Property management – facilities management of ALI and third-party projects; operation of water and sewage treatment facilities in some ALI projects

Income and Operations
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The Philippine Stocks Market 2013: A Year in Review

2013-12-27T23:18:00.000+08:00

As December 30 and 31 are declared national holidays here in the Philippines, our last trading day for 2013 has ended by the close of the bell last December 27. How did our stocks index fare as compared to last year? Let us look at the comparative numbers below:

As you can see, The Philippine stocks' main index grew by a modest 1.33% from last year. After breaching an intraday record high of 7,403.65 last May 15, 2013 PSEi has since experienced an up and down ride, primarily attributed to tapering talks from the US Fed. It even reached an intraday bottom of 5,562.13 last August 28 with many stocks analysts signalling the start of the bearish cycle. In the end, the local bourse only managed to squeeze-in a 77.10 increase from prior year's close. PSEi increased by 32.95% last 2012.
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User Guide: Stocks Profit Monitoring Worksheet

2013-12-23T21:13:00.000+08:00

Just in case you missed our Facebook and Twitter announcement, I just released the FREE Stocks Profit Monitoring Worksheet which can help you track your stocks better. I also use this in my own investments. I find it really beneficial as it lets me know my total costs and how much my profit would be should I decide to sell. To assist you in using the file, I have provided a brief explanation of the important points included therewith:

If you would notice, I indicated different colors for the different headers in the worksheet - green for buy and red for the sell transactions, while yellow indicates the computed profits.
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Philippine Stocks Market Outlook: December 23 - 27, 2013

2013-12-23T05:35:00.000+08:00

Our friends in pinoyinvestor have an exciting market review for us this week!

First, AB Capital Securities brings a concise 2-page analysis about the macroeconomic backdrop and its impact to the stocks market. Also, on December 26, they will be releasing a Special Report on Philippine Stocks Market Strategies for 2014 exclusive to premium access members so make sure to upgrade now!

Wealth Securities have an interesting take on why they still consider Meralco (MER) and Universal Robina Corporation (URC) a must buy.

For traders, be sure to have a look what market experts think of their stock picks - Aboitiz Power (AP), Globe Telecom (GLO), Energy Development Corp (EDC) and Robinsons Land Corp (RLC).

All these and more in this week's stocks report. Log in now to get exclusive access.

5 Tips to Avoid Serious Losses in Your Stocks Investment

2013-12-22T11:16:00.001+08:00

We've seen the Philippine Stocks Index go up and down for the past several months. Being successful in your stocks investment not only require identifying where you can get the highest possible returns, but also protecting yourself in incurring huge losses.

Here are 5 tips to help you avoid making serious losses in your stocks investment:

1. Don't buy stocks you do not know. Are you the type of person who asks people in forums and social media on which stocks you should buy? Please stop it. They don't know your investment goals. Chances are they don't really care if you lose money. And you don't even know them to trust their investment advice. Buy stocks that you are comfortable holding on to. You owe it to yourself to sleep better at night.
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Steve Jobs

2013-12-21T22:52:00.000+08:00

Apple will never be as successful as it is today without the genius of Steve Jobs. Even after his death, the values he instilled in the company he built remain steadfast and has guided Apple to be hailed as the most valuable brand in the world.

Steve has often been referred to as demanding and aggressive to his wants. But after reading his authorized biography, I know everybody would really appreciate his perfectionism and his artistic sense. In a world where businesses are measured by their bottom line profits, Jobs has proven that quality and innovative designs are as important.

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Things You Should Know About Exchange Traded Funds (ETF)

2013-12-14T18:55:00.000+08:00

In a recently concluded Exchange Traded Fund (ETF) seminar in Manila, Juanita Cueto, Commissioner for Securities and Exchange Commission made a fearless forecast that ETFs will be the next big thing in the Philippine investing industry. "There is no better time than now to educate investors on this product", she said in her keynote address on the said event. Others speakers agreed that availability of ETFs can spur growth in the country and may even attract more investors.

In this article we will list down the basics of ETFs and hope to answer why investment professionals are optimistic about this type of investment.

4 Life Lessons Nelson Mandela Taught Us That Can be Applied to Investing

2013-12-09T13:41:00.001+08:00

Nelson Mandela was well loved for bringing peace to South Africa and ending oppression and racial inequalities to his people. Even in his death, he continues to inspire the World by his ideals. While he is not exactly an icon in investing, the lessons he embodied throughout his life will inspire investors in their own search for finding financial freedom. Here are four qualities he showed the World that can be embodied by every investors:

1. Age is never a hindrance to succeed.
When Mandela was imprisoned, he was 44. By the time he got out he was already 72. He was elected president of his nation four yeas later. Except for the time when he started to have health problems, he continued to champion the people to achieve sustainable peace.
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Taxes on Stocks Investment

2013-12-07T22:06:00.000+08:00

Manny Pacquiao's tax case with the BIR was all over the news the last two weeks where the famous boxer is being accused of not paying over P2.2 billion pesos to the government. Don't worry, we will not dwell on each side's arguments on the matter. But I think this is the best opportunity to discuss the related taxes associated in being a stocks investor. This is an important lesson to understand for new investors, and what long-time investors should already know. We will focus our discussion to transactions involving individual investors.Let's dive in to answer some of the common questions asked by fellow investors:

1. What are the taxes applicable for stocks investing?

For BIR purposes, there is a distinction whether a stock is traded in a public exchange or not.

For stocks listed in PSE, our tax authority requires us to pay 1/2 of 1% of the gross selling price of every stock transaction sold. Here is an example to show you how to compute your tax.

It is important to note that the BIR also requires stock brokers to withhold the amount and directly remit it to them. If you are familiar with how the tax system works, corporations and businesses act as collecting agents
and they would automatically deduct any tax collectible and they would be the ones to remit it to BIR. If what I'm trying to say is still not clear, just think about why you have never received the full amount of your salaries from employment. That's right, your employer automatically deducts the taxes you owe to the government not because they want to, but because they were told to do so.
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Security Analysis: Preface Part II

2013-11-09T00:22:00.002+08:00

Security Analysis is arguably of one the best investment books transcending generations ever since it as first published in 1935. To date, it is still widely used by aspiring investors and professionals as a guide to help them in their journey to wealth. Written by Benjamin Graham and David Dodd, two of the people instrumental to launching the highly successfully career of the Oracle of Omaha. Warren Buffett only has high praise for the book and the authors, "They laid a roadmap for investing that I have now been following for 57 years. There's been no reason to look for another."

We will break down the principles ideas, and insights shared from the book and see how it would help us make investing decisions and guide us through from being part of the herd to becoming an Intelligent Investor.

For part I of the preface analysis, click here.

We continue the discussion with more insights on investing.

Questions that need answered before Investing:
1. How stable is the enterprise, and what are its future prospects?
2. What are its earnings and cash flow?
3. What is the downside risk of owning it?
4. What is its liquidation value?
5. How capable and honest is its management?
6. What factors might cause the owner of this business to sell control at a bargain price?
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Security Analysis: Preface

2013-11-02T10:35:00.000+08:00

Security Analysis is arguably of one the best investment books transcending generations ever since it was first published in 1935. To date, it is still widely used by aspiring investors and professionals as a guide to help them in their journey to wealth. Written by Benjamin Graham and David Dodd, two of the people instrumental to launching the highly successfully career of the Oracle of Omaha. Warren Buffett only has high praise for the book and the authors, "They laid a roadmap for investing that I have now been following for 57 years. There's been no reason to look for another."

We will break down the principles ideas, and insights shared from the book and see how it would help us make investing decisions and guide us from being part of the herd to becoming an Intelligent Investor.

Preface (as written by Seth A. Klerman)
Klerman is a very conservative investor with unconventional strategies, and often holds a significant amounts of cash in his investment portfolio

Klerman makes these important points about Investors and Investing in general:
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A Look at Initial Public Offers in 2013

2013-10-27T11:52:00.000+08:00

The Philippine Stocks Exchange expects a total of nine public listings for this year.

Philippine Business Bank (PBB)
Sector - Financials (Bank)
Initial offer price - P31.50 (Feb. 19)
All time high - P38.85 (Mar. 5)
All time low - P21.85 (Aug. 28)

PBB is a savings bank which focuses on corporate and small and medium enterprise markets. It provides close to a full range of banking services and products including cash management, retail and corporate lending, deposit products, international trade finance, treasury and trust products. Trade price now ranges from P24 to P24.60.

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Guide to Philippine Stocks Market: New PSEi Benchmark Effective September 16, 2013

2013-09-22T11:20:00.001+08:00

Guide to Philippine Stocks Market: New PSEi Benchmark Effective September 16, 2013: A look at the new Philippine Stocks Exchange, Inc. main index as of September 16, 2013: 1. Aboitiz Equity Ventures (AEV) 2. Aboitiz P...

Water Company Shares Pulled Down by Rate Rebasing

2013-09-15T11:10:00.000+08:00

Shares of PSE-listed water companies declined as The Metropolitan Waterworks and Sewerage System cut Maynilad Water Services, Inc and Manila Water Co., Inc's average basic water charges by 4.82% and 29.47% respectively.

Shares of Metro Pacific Investments Corp (PSE:MPI), the parent of Maynilad, fell by 13.73% or .70 centavos two days after the rate cut was announced. Manila Water (PSE:MWC) dropped by 17.57%, hitting its one-year low at 25 before closing at 26.5. DM Consunji Inc., (PSE:DMC) which partly owns Maynilad fell 5.99% to close at 45.5. The parent of Manila Water, Ayala Corporation (PSE:AC) also shed 2.79% and closed at 558 per share.

Now Is the Best Time to Use Your Emergency Funds

2013-08-31T15:38:00.000+08:00

Most investment professionals would advice potential clients and investors to first set aside at least six months' worth of living expenses as an emergency fund before staking their hard-earned money to the uncertainties from investing. In every investment there is accompanied risk, and the emergency fund allow for us investors to still sleep soundly at night even if all our investments are not performing as planned.

credit to moneycrashers.com

Emergency fund really helps because it gives us some breathing room in case there are unfortunate circumstances that may come upon us. Even if we lose our major source of income, knowing we have set aside some money which we can readily pull off helps us to get back on track without significantly changing our way of living.

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