 Okay, we are live on YouTube Okay, we are live on Facebook. Hold on guys Hi, so good morning. I'm Rafael from hardware sugar and today. I thought I would do a Investment course. I did an investment course on a live stream a couple of months ago and I thought It was the right time to make an investment course now because of The way the stock market has been reacting lately, so it's going to be a Casual yet complete course. So it's a free course. So like I have I have an outline which will be going through So a little bit more of my background I took up literature and Law so I don't have a financial background but really When part of Adolting because I noticed that most of our subscribers on our put them on in on our YouTube channel are within the 30s or late 20s and Really part of adulting is being able to save up for the future I'll rather I wouldn't say the word save is the proper term because then It's sort of not enough to Save your salary when you're thinking about retirement and I'll talk about that in a bit shout-out Mark Lewis. Good morning 1122 so good morning So yeah, so I don't have a financial background, but it's sort of like being able to Being able to know to know about stock investing is part of adulting You don't need to be a master stock trader. In fact, you don't even need to Actually buy stocks for you to learn the mere fact that you have an understanding of how businesses transact Makes you more aware of how to make your own business decisions So one one not in one one thing that everyone always asks me when they ask for advice is You know, I want to I want to make passive income But I don't want to learn stock trading because it seems difficult. It's hard and then I'm like, yeah You can make passive income through other ways. However, being able to understand the the heartbeat Heart fleet heartbeat up was the supposed the pulse of the economy one of the places where you look How what people are buying is to look at the stock market because the stock market is a place where you or people put Money into businesses that they believe will succeed. And so you can actually Steal or borrow the concepts of what make these businesses do well and Incorporated them into your own. So yeah one of the signs one of the things that you want to do when you put Up a business is you want to make sure it succeeds and the reason as to why lots of people give a lot of money for instance to Amazon or Jollibee is because they know how to make Money more money how to succeed. So you that's why we end up borrowing Ideas made by successful people and One of the big things to help point you towards who is successful is you look at So yeah, so you can actually learn the stock market but out having to put money in and there is value There's value in learning how the stock market runs even if you don't buy stocks So highly a magnetic Casey and J. Hi Casey. Yeah, oh Being minimalist design studio now, maybe drop the computer hardware So let's begin with What's my my outline? So why so first off? Why do we need to care about? investing I can general forget the stock marketing. It's because Inflation so Inflation is the inevitable increase in prices of Basic goods so basic goods and services. So the best example I could think of was Buying a movie ticket in Ayala buying a movie ticket for instance in Greta back in 1995 was maybe 60 pesos Now that could be anywhere between 220 to 350 pesos and that's and that's even if you pick the old theaters are not you onion your mom Fancy fancy schmancy and in moving theater kind of things no like even a coke can if I remember right back in 1993 I would get one coke can for 10 pesos. I don't think it's 10 pesos now And so there the point is that whatever money you make It's going to be of less value Usually of three percent per year meaning you need to spend more for the same things So you can just imagine that let's say you're putting away You're putting you have a savings account and you're just putting money in there every day every year And then after that you're like Yes, okay, so sold now. Oh when I retire because hey, you know, I put in 30% of what I earned But the thing is My compounding in inflation. So the buying power of what you put in at the time is Less when you use it like 30 years down the line So essentially the value of 100 pesos back in 1995 is not the value of 100 pesos it is today So just like if you want a clear example, let's say now you only save let's say now. Let's say you put away Like in 1995, let's say now you said to yourself. Oh, you know what? I'll save one I'll put 100 pesos into my date fund for my girlfriend back who I'll have in 2005 call my girlfriend now. Oh, so that's like 10 years later You're thinking oh, wow, you 100 pesos. Yeah, my 2005 year old self will be able to I don't know I'm 100 pesos fine thousand alone. Let's say in 1995 you put in a thousand pesos Into like a trust fund for your date in 2005 and you're thinking. Oh, you know Puedenian and in Magpinina or five-star hotel dinner a thousand pesos in 22 in 2000 even in 2005 Um, I don't think would have gotten you a Five-star meal at the time. So yeah, so the point is inflation and another reason as to why we invest in stocks and equity funds for instance or hell even real estate is because it provides you passive income passive income is just a way of saying you get money without doing anything and you know who really wants to Uh, Liam Magnia the camera is wide. Okay, I can only mean let me scale back Transform not used to such a just me Fit the screen. I am there we go. There are my black bars Trans but it makes me look less weird. No, yeah, okay. So there at least I'm not like wide Yeah, Casey exactly the point 20 pesos will get you a long way, but now it's like a hundred. So yeah You need to be able to put your money in something which will keep up with inflation So you can buy real estate like you can buy a house and then well, especially especially land land Especially out of out of all the other choices really goes up in value, especially in metro manila because County the land and our population keeps going up up up up and In short, there is not enough land to go around. So in fact, even condos which originally before Didn't appreciate are now Appreciating in value in metro manila even old condos are going for a lot higher than Previous markets simply because we're turning into metro manila is turning into like a new york city Families live in condos And I don't before I don't remember back in 1998. It was like that It was sort of like a relatively middle-class could afford houses, but now Gave would you call it? The prices for even for just a basic two bedroom condo is this crazy. So anyway, so yeah passive income Uh, if you buy real estate for instance, you can get rent Or you can or you can get rent and you can sell the land later on in the future. So There and then for stocks you can get passive income through two ways, which I'll show you But you know at the point of being able to invest money in stocks or wherever is so that You're not working all the time for new money. You can let the money you have now work for you So, uh, when to do it when do you want when should you invest in stocks? Actually, you should really invest in stocks early And I know a lot of people have heard that than an early Excuse thing, but uh, you know why aren't buffett said so and actually there's a lot of logic to why you should invest early for me, I invested as early as 16 years old and Uh, I've learned a lot of things being such an early investor, which is that Hopefully that this is true for all things. No matter how F up the world is The stock market will eventually still go up I have an example for that, but first before we go anywhere else. Oh, we're from our sponsor Oh Hold on Games apps activation codes or windows 10 Check out our video on cdk offers in the video description Madeleine For the software you need add to cart check out done because of payment options Nela Wala pa isang minuto finished Me legit working cdk ka na sa software na pinili mo Ghamitin ang aming promo code para makakuhapa ng extra 20 discount sa purchase mo Kung naghanap ka ng mura legit and original software check out cdk offers dot com Thanks. Thanks guys. Uh, uh, I said, uh, hi revan john And what do you call that? I hope you're you're you're you're okay and your stuff is okay We have a number of customers saying that na flood yung Ghamit nela and your pcs Please I hope everything is everything's good And you stay safe from the rain Hello kenzo Ken's cast Sana yung video niyan? So, uh, where was I? Oh, yeah, so Uh, oh, I made a video about investing early in which I invested my allowance at the time From grade one all the way up until college and then I looked at the value of the I looked at the value of my Allowance in present day. So I made that video you just type in hardware sugar and you type in stocks It's the first video that shows up there the point is that stocks There's a saying that One of the true one of the absolute truths is that the stock market will always go up And I really believe that simply because uh, the graph just tells you that ever since the psci like a philippine stock exchange ever started It will go up and down up and down But in the end it's always trending Uh, wait, let me get rid of the outline It is always trending upward And so I made an example in which I invested my allowance from grade one all the way to college And then I wanted to see if all sorts of weird stuff That happened in the past made an impact on the stock market like uh, hello garcy ng gma um marawi uh september 11 So there's we're the philippine So we have no shortage of bad things which happen in the country Which would encourage investors to pull their money out so talagang We're really a good example of that truth, which is the stock market will always go up And um here I have uh, I have a clip from my from that video in which I In total from grade one all the way up until fourth year college third year college because I only have three years I invested 100 000 pesos that's a top right the 99 714 pesos I invested my allowance Once every month for that entire duration. So my capital was 100 000 starting since 1993 I think I don't have all the lists down there But so you know total and then if I pulled out uh as of I made this video two months ago so if I pulled out like uh May May of 2021 and that's dream covid na I would still be able to take out A net profit of seven hundred twenty eight thousand pesos. So that's a seven hundred thirty percent increase in my capital And that's a lot that happened including covid And so the reason as to why I say start early is because you can outrun Any problems and the start early is also there because if you're already old like 80 or you're 90 Two problems come up number one You need the money earlier Because of health reasons as we get older our body degrades and so we need to spend more When you're young the only thing you need to spend on is your girlfriend Uh, you know, especially if you're a teen or hell. I hope it's your girlfriend because Mahirabh din and if you're a if you're a student who's working to up his education But you know, uh, when you get married and downing responsibilities And another the second reason as to why you should start young is because you can wait out the disasters Like for instance me I I am I invested in two an amount a rather large amount in Before covid in I think in pld t And so I got hit pretty hard because sorry I I invested in pld t in 2014 and I'm still down Up until today that is what six years later. So I'm really pissed off at pld t But you know, uh, even though my stocks are down in pld t I'm you know, I'm 33 so I don't mind waiting to see it go up again. I don't want to realize the loss because I I have the faith Number one. I have faith in pld t, which I can't believe I'm saying I have faith in pld t, right? But uh, it's been around a long time. So go run the money can recover Uh, but the point is the earlier you invest The longer time you have to wait out these disasters which affect your investment And yeah, since it's a it's passive income It's an investment which will which doesn't really require you taking care of it like unlike a house My leak then you need to put in more capital to repair it. It's stocks. They just they just wait there until you want to use it That's why Then this maya came to pld t Oh, that's true. And they actually, you know, you know, I wouldn't mind pld t so much if they just I don't know if they answered their phone, you know I mean pld t, you know, philippine long distance So like it's it's supposed to be a phone company first and foremost But have you tried calling their hotline during the pandemic? Well, I mean, it's like, uh, it's a recording It's crazy. It's crazy. You know, I mean a telco company which is also supposed to specialize in Landlines can't be reached. You can't email them or rather you can email them, but they'll never apply You can't call them because they it's automated and then they say that they can't get back to you Uh, it's a disaster. Okay. So pld t yo, what's up? Okay, back to onion. Uh, yeah fritz. Yes, I have my stock picks. So at the end of the video I'm gonna go through my outline. But thanks for asking. So where do you put in money? So how do I get into the stock market? There are two ways to get into the stock market one is by buying individual stocks And the other one is through an index fund. So individual stocks. Let's move on to We line is not moving Manual use need to manually All right. So what are stocks stocks and first and foremost so onion a lot of people get intimidated first by I think stock market. Uh, what does this do? What is that whatever? So what first are stocks? So everyone has a concept of what a business is like if you go to a restaurant and you dine in there That's a business. Is it registered in the stock market? Probably not If you go to hardware sugar are we registered in the stock market? No, but we're also a business Every stock every company on the stock exchange is a business And so now you have to ask yourself what kind of businesses are there? So number one, there's a sole proprietorship There's a partnership And then there's a corporation Now all stocks that you can buy Are only corporations So you can't buy stocks from a sole proprietorship. You can't buy stocks from a partnership So all stocks that you see on the exchange are being sold by companies that are registered with the sec And um So there that's that's important to know because people don't understand what the word stock is sometimes they say Can I buy stocks in hardware sugar? um You could because hardware sugar is a company, but we're not selling And that's another distinction not all companies are publicly listed on the philippine stock exchange And when you mean publicly listed it means that the public can just buy stocks And these are family or close corporations In meaning that these companies like a yalla corp or smph They they need they need capital from the public. That's why they're on the stock exchange They're not I mean if you want to know why companies go on the stock exchange It's because they need capital. They need money in order to expand or to improve on their services Uh Now the reason as to why for instance hardware sugar is not on the stock market is because we don't meet the requirements So you need to be of you need to have as you need to have a substantial amount of capital You need a request to be on the stock exchange and so forth So essentially if you're on the stock exchange, you have more or less a lot to provide Uh Investors that's that's that's the that's the number one thing Of course, you need to make sure you need to be careful also on what company you buy into All right back to the outline. All right, so So you buy a stock. Uh, what is it to me? What is it to you? First off you're actually buying a part of a company and being able to buy Casey we can buy stocks of hardware sugar stocks of gpu and tequila. That's true I I totally agree like, you know, recall that really what what makes up a computer gaming store now is Uh, would you recommend trading via banks facility or pure trading facilities? Uh, Casey actually there are two ways that you can trade stocks via the bank For instance bpi my online stock trading Uh program sila and second you can also ask bpi if you can be patched into a Person a stock trader I would recommend you just Uh, learn how to use the bpi online stock trading system Or I think every bank has their own stock trading system. I just know that the best ones are uh bpi and um col financial And first metro Uh, I recommend that you do it yourself because the stock market goes crazy And then you don't want to be you don't want to be that guy who anyone Who makes who has to make a phone call to the guy every time to make a sale you can just do it yourself online Especially and you said the the value could go up between two percent to five percent in a matter of like seconds You don't want to wait for that lag time and then Absent by your stock trader mo. Oh my god You kill yourself So back to the outline So so one of the rights that a stock holder get has so after you buy the stock. Yeah, okay cool It's in your it's in your online Stock program stock program But what most people don't know is they actually get rights, which is number one they get to be elected into the board of directors or If you don't want to be elected into the board you can vote who forms part of the board of directors and The you know, it's not really very complicated, but the board the company Only functions through its board of directors. That is the principle of centralized management So who hires the board who hires the rank and file people? It's the managers who hires the managers the high ranking officers like the president But who hires the president? That is the board of directors to decide Okay, so they pick the The most high ranking officers who then have the responsibility to hire the lower But the point is that if you're on the board You have a substantial amount of control on what the direction of the company should go and when you buy a stock No matter if it's like one stock of Jollibee you're automatically given the right in fact Uh, I always get emails from my stock trading app. See well financial now. Hey my onion There's a stockholders meeting for For the board of directors. Can you go and if you can't go magproxy card? So it's kind of cool now You have a say in these big companies and all you need to do is spend like what 20 pesos if it's a stock That's only 20 pesos per share and even though it's a small it's even though it's it's uh, it's one share You still have a vote and you get to go and eat free food When they these are in these stockholders meetings now, it's pretty big Casey yes calling stock people is still a thing Uh, I had to do it for somebody relatively recently. So yes, it is still a thing And what you call that bdo allows you to do stock trading with american stocks But only through like a stock trader guy on the phone Uh, which you know something for you to know See any nc fritt, uh, you call it Hi, mica other than stocks. Have you looked into g-cash investments? Uh, mini investment like look pretty attractive mica who is a banker by profession By the way, no marketing but at but work at banks But definitely you are marketing the you are marketing the the things that the bank were trying to sell Um, I haven't looked into the g-cash. However, I know that you can make a large amount of interest now by leaving money in there So, uh, I wanted to focus on this video on just Classic stocks first and then I was gonna go into other stuff like ing interest. By the way, ing is awesome You know ing Like a life saver on I put like a lot of money in ing because their interest rate of What was it about four percent before kovid was so great That and um, now it's now it's like 2.5 percent Pero gravei. I mean like really just young interest man. Like it just comes in at the end of the month You feel good. Like, you know, it's better than getting like centavos and bpi anyway, uh back to my outline, so Uh, you have the right you have certain rights as a stockholder and it's I recommend I recommend if you want to learn more That the best way to learn is to buy any stock. There's one just one like that's not a lot of capital output Let's just get a cheap stock. Let's get a good stock like onion Let me see what what's any like get some get get some jollybee in there. I think jollybee is trading at um Let's see what's the jollybee trading at Oh What's that? 100 something in 100 yen So I just buy one stock and then when the stockholders meeting comes open, which is annually Go attend the stockholders meeting and then you share the stockholders meeting the company representatives tell you what their plans are the long-term plans and the reason why they have these meetings is to Solicit they they already have some since you you as a stock owner of their company therefore have Are already interested and so these stockholder meetings are meant to Get you further interested to put more money in a stock. You're already probably familiar with so They're there to impress you with all sorts of numbers while you eat free food and free wine and free whatever Uh, of course, you're not supposed to listen to all of that blindly You have to do your own research and so part of this video is to also highlight what that is Yeah, yeah, that's free food. That's a classy and see Classy and see Ayala See well by you see mom april leetan, sir I don't know. I'll check Uh fritz, I won't be deleting this video. You can return to it any time. All right back to the outline So bought online. So some of the because people are always asking me. Yeah. Yeah, okay Yeah, I know about stocks, but I don't know where to buy them. Okay. There you go But uh Don't tell me I didn't tell you where so you can buy stocks by if you're getting a bpi account and then from bpi you can You can online register. I think for a stock brokerage account And then uh, if you're a bpi account holder already, it's easier But you just call you just go to a bank or you call bpi and be like, hey How can I how can I enroll in the stock brokerage uh firm thingy online? And then the second one is co l financial, which is been around a long time. So you'll financial used to be called I forget what co l financial used to be called, but it's been around like 20 years one of them co l financial has been one of the Leaders or the original people who started doing online stock trading And then there's also first metro Which is run by metro bank. So you go online and then you You are you look at their form. So which is usually government id application form email And then and then after that, um, you just need to learn how to use the stock trading thing which is It looks intimidating at first, but really it's just like I want to buy 10 shares of what company? of Ayala land Execute okay there. That's that's it. I mean that's it in simple terms And then after that if you want to sell I want to sell How many shares 20 of what company pl dt? That's all right. I forgot what what price pala, uh, how much do you want to sell them for? I want to sell it for 120 Yeah, there, but the thing is uh, not every your first bid may not be Taken so you might want to sell at 120, but no one's buying at 120. Let's say they're buying at 115 So what happens is that stock order remains there for the day? Until it someone matches it to 120 Now if no one matches it then that uh stock order is gone and you can also cancel the stock order anytime However, if you want to autopilot your stocks Like when I mean autopilot, I'm like I want if I want if I for instance if I buy if I buy Ayala at um Okay, let's say then let's pull out now a actual number. Let me see Okay, uh Ayala corporation right now is trading or I traded earlier today at 731 pesos So assuming I buy at 731 pesos I can tell cwell financial or whatever trading app that I want to issue a good till canceled order Which is a gtc. So if I bought at 731, let's say I want to sell at 750 So you put in okay, uh 20 shares at 750 and then it will auto cancel after one month that way you don't need to baby it because You know here, Jen is if it goes up like a lot and then you're not there and then you're like Because I one of the things people get turned off by stocks is they think they always need to watch it Which in truth you shouldn't be because that's the stocks are a long-term investment And even if you're into short-term trading You can Make it so that it's automated Auto-sell just in case that you're not around or you're busy, you know, you're busy. You don't want to check your stock thing every time Jug lord but All right next How do you make money from stocks a lot of people seem to be very in this is another Intimidating thing. It's like, oh, hey Boom in on stocks, but how do I make money off it? Two ways only. Okay One is through dividends in which great. Let's just go with the basic the first one is To mass your stock value like being into more. Okay, that's simple as that. That's how you make money That's the first way. So in our example if I allies at 750 Beneath them an 800 per share and you're sure when you're just sending one share my 50 pesos gonna net profit. Okay. Well, maybe like 47 because There's a trans there's a there's there's tax and then the fee of the stock trader. But the point is Um, you make month there are two ways to make money through stocks and the first way It's just to sell it at a higher value than what you bought it for And the second one is dividends So dividends sounds like a complicated term, but it's really just as simple as My para yung company from my profit on company in general Tapos then a dispute nila yung profit yun So how much profit do you get it depends on two things it depends on one How much profit they want to distribute and how much of a slice of the pie you own of the company So assuming you have a net let's you mean the company has a net profit of 100 000 pesos But it only wants to give it only wants to distribute 50 000 pesos and you own 1 of that company So you get 500 pesos. They follow me example is net profit of 100 000 pesos But they don't the company doesn't want To distribute that 100 000 instead. They only want to distribute 50 000 So they distribute 50 000 based on the percentage that each stockholder owns So assuming that I own 1 percent I get 500 pesos or 1 percent of 50 000 So there that is dividends and You can still Sell the stock later. So when you end up selling the stock Your accumulated net profit is one the amount of dividends you earn during the time you owned it and two How much you sold it for? For higher or less negative or negative or positive so and Stocks So essentially essentially if you want think of dividends as an allowance No, I put in a lot of money. Let's say I put in money in the stocks In a specific stock and now I want to have some, you know spending money Dividends in a way is spending money The problem with dividends is you don't know if the company will declare it Because you have to think about it from a company perspective. So let's say when our same same example 100 000 pesos They only issued 50 000 pesos worth of dividends. What are they going to do in 50 000 the remaining? You see capital expenditure, meaning they they put the money back Into the business to further improve their business. So if like it's PLDT let's say that the they put in that x 50 000 in order to put up more telco towers or to Get better customer service so in fact A lot of a lot of companies don't even issue dividends regularly so you can go like some years without any dividends, especially if the company is Doesn't have any profit because in order to declare dividends it presupposes that there is profit So if your company is not making money at all Then you know, there's no dividends the only way that you would make money out of a stock from that company would be if miraculously the stock price goes up and And Stock prices go up and down based on investor sentiment, which means When I'm not talking investors for whatever reason Ba ba ba yung price because everyone's selling Or if whatever reason my stock tip Not here at all, but they but the investor believes it's true And in lots of people ride on with the stock even though there's no there's no truth to it Just that kind of game stop what happened in game stop game stop grab it Again Essentially from my understanding of the game stop incident uh, they really just they really just Kept buying the same stock even though there wasn't much to go on It meaning there was no foreseeable future that this company would be extremely profitable Apparently just wanted to stick it to the people in wall street. Yeah, you know what ba ba da yung Game stop. Eh, well what we'll do now is we'll make it go up Like there's no logic behind it Uh from what I answer from what I remember for the main reason as to why the stock went up all right Next wait, what's my next slide? Okay properties I don't know why my OBS is acting up. All right. Here we go. All right, so um Now I said that there are two ways to enter the stock market and one way is through stocks and the other way is through index funds So an index fund is essentially you're giving money to someone else who will then Put the money into their choice of stocks. So you are there are three parties involved. There's you The guy who wants to buy money in a nicks fund There's the index fund manager person b who gets the money from me that was that fund manager Let's say I give the fund manager one thousand pesos the fund manager can choose Where to put that one thousand pesos you can choose to put it in bdo You can choose to put it in bpi. I don't have a say in it. Just that I trust the fund manager now You know, I love my stock market. You know that's essentially What a equity fund is Now the problem with an equity fund is you don't actually own the stocks that the fund manager bought It's the fund manager who owns the stocks And so if there's any dividends it goes to the fund manager, right? Now we as the stock as the investor in an equity fund We make money by only the first means Which is You sell it Higher than what you bought it for so I remember in stocks You can make money two ways dividends or selling the stock here in equity funds. You can only make money by Selling your shares in the fund Now the reason that's why I bring up equity funds is because stocks are Um, they move a lot They and yeah, they're very volatile, which is a fancy word for saying Most grab a young changes in um percentage on what their value is one day. It could be five percent the next day It could be negative 10 Especially now during our I mean during our um Our COVID crisis. So the by the way, these numbers are very These are less risky options than buying for instance bitcoin now. I am not anti cryptocurrency simply because I mined bitcoin with uh, Anton back when back in 2010 so We're like one of the original like early on super early on came to bitcoin in the philippines so I know what it's like to reap profit from a bitcoin the thing is Bitcoin is also just so dangerously volatile that I'm scared to To go in something that you know goes up and down 25 percent in one day to 40 percent I mean these numbers might not seem like a large amount if you have like only a thousand pesos invested in but Some people lose their entire life savings or retirement fund because they put everything on bitcoin So something to consider. I would think that equity funds and uh, philippine stocks are less risky Um simply because they're not as volatile, of course, you won't also get as big of a gain So, right let me drink water All right So I talked about uh equity fund. Um, it's the fund manager who owns the stocks And not you and So, so you might be wondering. Oh, what's the point of getting into an equity fund? If No, reduce your choice of the avenues of making profit. You don't get dividends The first one is you're not the one thinking Okay, so someone else is doing the thinking for you and shy down your expert number two Uh, it's less risky in the sense that uh, for instance an index fund Follows only the ps e I to give you an example the ps e I Let's pull out market watch ps e I All right, the ps e I went up 1.78 percent as of 1149 this morning And then if I go to that's 1.69 But I know I know like companies like uh, uh, alliance global went down like dramatically a couple of months ago Like 10 percent in a day. So essentially you won't be seeing as high a number of drops or ups if you invest in an equity fund you should expect to see Uh, uh 1.5 to maybe 2 percent at max increase or Loss a day, but then when you invest in individual stocks It could be pretty drastic like I think bdo lost 4 percent in one day just a couple of days ago So and that's just a single day A lot of people always concern are always concerned that you know, it's only like 2 percent You know, what's the big deal? But if you know if you have a client that's 10 million pesos there Percent is rather a lot and that's just one day You know, if there's a downtrend for a certain company Overall, you could look at maybe a 40 loss. That's what we're looking at prior covid so equity funds essentially are like your Security blanket They're the ultimate in terms of Um, put your money there and forget about it because it takes a while to make a lot of money from equity funds Now, uh, how do you make so how do you how do you how do you track for instance an equity fund? My favorite equity fund is uh fill equity So fill equity dot net just type that in fill equity dot net And then you get um go to historical nav So let's let's do an example on how how money grows in an equity fund So you go to fill equity dot net you go to historical nav's And then after that, uh, you go to you select pse index fund now for this example Let's pick year 2000 June 15 So June 15 the nav or net asset value per share is 0.9177 Let's just assume that I put 5 000 pesos on June 15 So, uh, what happens is you you give cash So what happens is you're converting your money into Your cash into shares So it's 5 000 pesos divided by the net asset value, which is 0.9177 So you get five thousand four hundred forty eight shares. So just remember that And then let's say you want to cash out on uh, July 26, which was yesterday So it's five thousand four hundred forty eight shares times 4.3 So your five thousand pesos Which was back in year 2000, which is now 12 hours 21 years ago It's now 23,440 pesos or That is essentially a 368 percent gain So you can imagine if you put in a million pesos that would you would get back You would get back around 3.6 million pesos in total so being at the point of the No, it's a divide Fritz it's I think it's it's divided. That's why I was wondering Anyway, so it's five. It's in order to get the number of shares It's your capital divided by the nav and then those shares multiplied by the nav that you're getting out so, uh, yeah What you can see here in the example is you have Your money just sort of grew in spite of all the chaos involved in Involved with the Philippines I mean like think about it. What were the things that happened Uh back in 20 years like there was the numerous Right, let me get her the let me get her the slide here So just think back Because a lot of people are always so negative about the stock market now. Uh, ba ba It's gonna it's gonna it's gonna implode and stuff like that, but do not 21 years later The money you put in still has a gain In spite of all the weird stuff that happened So in spite of The international global community thinking that the Philippines is not a safe country. Like I think the but don't bust union you Study recently that were like one of the unsafe most unsafe countries in the world, which I don't believe right But you know that in international sentiment is the Philippines is dangerous and we've always sort of had that But in spite of that, uh money still goes up In the stock market Now the thing is one thing to always consider is Not so much that the money will always go up But you need to worry about your Opportunity cost, which is would you have made more money? Elsewhere, so it's that's one thing you should always remember because a lot of people always think Ah, bastanian my profit. Okay. No Like if you can make two percent profit in one business And make if if it's you could if you make two percent profit in one stock But for the same duration you could make an 80 percent profit in another stock wouldn't you want to go with the 80 percent So it's all about the numbers and the opportunity cost And the game so actually I've I think about it Uh, if I put the money for instance in the In the american s and p 500 I think was much less though But in the end, but you know, sometimes you don't want to A lot of people they don't want to Yeah, fritz. I also agree. I mean like I mean like what do you call it that that that report that the philippines is anion one of the dangerous countries in the world like afghanistan now is safer Afghanistan is safer in the philippines like crazy Sorry, onion. I feel from afghanistan, but I know like things are going down over there right now um, but anyway, um the point is The longer you wait The higher the chance that I'll get you stocks more Okay, uh When to buy stocks, okay So we're gonna reach the end part of our video now, which I give my stock tips and how I'm buying stocks now So first off you need to think about how you're going to go about buying the stocks. So I We so So I told you how do you buy stocks? You go use your online platform you put there I want to buy 10 stocks of so-and-so for this price, but You have to ask yourself. Is that a good price? What is a good price? Should I buy all my stocks in one go? Hey, what about your market now? Does that mean I should buy? Hey, too much the market But that's what India or Malino So these are the tricky questions. So what so that's that's a whole different avenue of when to buy and how to buy So what do I mean by when and how? Uh, there is something called the peso savings method, which is you put the same amount of money every time The same amount of money every time every month. So let's say Usually it's usually it's usually any of the salary days. So like let's say you get your salary on the 15 You put in the same amount of money. Let's say let's say someone makes 20,000 pesos Let's say that a person makes 40,000 pesos a month So on the 15th he gets 20 So you can he can allocate 5,000 pesos into an equity fund or a stock of his choice at the same time every month And the peso savings method is you don't care You're not getting into the value of Stock that and that's what I demonstrated in my video, which is I put in my allowance at the same time every month Which is that the same logic is In the long run, you're still going to win the problem is it might take a little bit longer And you also don't know you might be buying at a bad time So the because the stock either went down or went up on that specific day But you know the peso savings method is there to get rid of the pressure Is it now is a good time? Just get out of your mind. I'm just gonna put in the same amount of money every time At the same time of the month that is the peso savings method where there's not much thought in it and it works it works because 20 years down the line You win out in the end That's one method. The second method is you really you re you study You study the fundamentals when I mean like studying the fundamentals you look at Inflation you look at how companies in general are doing. Is there foreign investment coming in or is it foreign investment going out? It's a whole different analysis all together Now, uh, just for curiosity's sake if you want to feel the pulse Of the stock market, I recommend you just go to market watch dot com What I do is I go to google and I type in a yellow corp market watch And then it shows me the graph of the entire lifetime that a yellow corporation was in existence on the stock exchange and you can really see the life graph And um here is what I mean. So what I did was I slide So here this is how I am how I'm trading now or These are onion. These are what I am doing Uh, I look at these six companies, which I'm sort of interested in buying And I'm basing my purchases one of the reason one of the things I'm basing on when it's like if it's a good buy is It's based on their price before lock down. So for instance Ayala corporation, which is the ac So every company has a code, which is uh, it's called a ticker So ac is Ayala corporation a li is Ayala land ink jfc is jolly b food corporation sm ph is sm and sec b is security bank and bdo is banko de oro so I looked at the The the graph so on feb 16 for instance for Ayala corporation the price before lock down was 750 This was sort in my opinion. This was the This was the this was the going rate that Ayala was go was was doing before lock down And then the lowest price during onion during last year was 410 Uh, just to give context on what that is now Ayala corporation is now selling at 731.5 So you can imagine if you had bought that 410 You're almost getting like what what is that 80 percent return But it was only for like a couple of days. It's really it's really quite fun to look at to look at how the stock Evolved from nothing To like like like like how and how investors just were terrified about covid and they just bailed They ran away And then after that a couple of days they're like, wait, take a look at the pc i reaching 4,800 is like Super load like I know I know covid's bad, but it's a good amount. We're gonna survive covid. See there That's the investor thinking ahead Which is the truth about all these disasters If you wait long enough, we're gonna make it out of it The only thing we're not gonna make out of is if there's world war three in a nuclear holocaust I am Money won't matter at that point. Anyway, we think about it, right? so um And so what I made in this graph here this yellow one is The current price which was what it was trading earlier at maybe like 10 a.m And then the points before lockdown. So it was the price it was the price before lockdown less Current price Here the equations there in blue. So the price before lockdown less the current price would give you that number of 18.5 And then after that I got I got the percentage difference between the Price before lockdown and the current price What does that mean? It means that at the very end it would take 2.5 percent more for Ayala to get back to pre covid trading levels Interestingly enough if you look at Jollibee food corporation They are above. They are above pre covid prices 9.8 means it's above 9.8. It's 9.8 more than what it was trading before march lockdown so um, it's interesting because some companies are Are even above What they were before covid which makes you wonder like Do the do stock do that do do some investors know something about jfc jollibee that we don't like is there Like because one thing about jollibee, which is interesting to note is that more is that 50 percent of their earnings Are now coming from overseas So they opened up a lot of jollibee branches abroad. You can go on youtube and you can see so many people reacting Yeah, okay. See actually it's here. The equation is at the bottom the light blue And then how did I get these numbers? Your current price and then your price before lockdown Come to Market watch. There you go. Look at it. That's why it's important to know the dates It's important to know the dates of when crises happen because that's how I label it. I label it as a trigger one example of a trigger is Yeah One of my favorite examples is the fiser announcement So the psci on november 9 2020 was priced at six thousand six hundred eighty five pesos And this was before the announcement because I remember quite quite clearly that the fiser announcement that it was 95 had a 95 efficacy rating against covid 19 was announced here My 8 p.m. So that means 8 p.m. On november 9 meaning the stock trading was done for the day So the reaction the reaction to such an announcement came the day after which was 7,035 it ended trading on 7,035 which was uh, you see that was a 5.24 percent gain in one day because of investor sentiment that there's hope And I think you can learn a lot about people in general Just by looking at the stock market because it literally this this jump of 5.24 percent Is purely on the hope That the world is no longer going to end And I think that's actually quite quite poetic and then you're putting in that hope into Value which is the monetary value which is I I'm gonna put money in the stock market right now Go go go because that's the end of covid now Of course, that's not what that's not the whole story, right? So if you look at my third trigger which was may 24 2021 The lowest that the paci went was 6164. This is the lowest post fiser announcement And the reason as to why it went down locally in the philippines paci Is because we had a jump in cases from march all the way up until like may And then the stock market began to sort of boom in june So, uh, someone was asking me canina what stocks to buy Well, first off one way to identify what stocks to buy versus number two is is is first is How is the health of the overall philippine stock market? because lots of people get regardless of what stock you pick people get turned off if Everyone is in the red so Sometimes there's nothing wrong with the company like if you ask me, uh, aya la corporation is a great company Uh, it's just that if everyone else goes down like everyone's like, oh, you call it's not a good time to buy anything So yeah, I won't buy aya la even though I believe in their cost. So Sometimes it's not big. It's a lot of time. It's not based on any rational reason So my herd mentality to hi everyone's selling. So yeah, I've been to natin. Hi, everyone's buying. So yeah, I've been, you know, Billy tayo And so before I buy any stock, I see first I look first what the overall investor sentiment is And that's why you look at the psci, which is um, it it monitors the average value of the entire Stocks being traded locally Okay, all the publicly traded stocks And so if the psci goes up You have a high chance that Your top your top purchases will also be going up eventually So the reason so you might be under might be wondering or fail. Why do you choose the fizer? As a trigger, I chose it because it was the it was the time in human history That we knew that vaccines would work and that there was a vaccine which was strong enough Which if you injected everyone would be able to create Herd immunity and we would all be able to return to our normal lives and buy stuff and spend stuff because The market's all about spending now What we're encountering right now is the problem of putting that vaccine in In in the people like because it does a shortage now And so the reason as to why I put there the lowest post covid fighter announcement is it is my belief that assuming that Hopefully not Assuming that um, we turn into like Gabba, I don't really hope not. Uh, we turn into like indonesia uh, my belief is We're not going to exceed 6164 pesos in index value Uh, that's my belief, uh, you know, you can take a grain of salt or rather even if it goes past 61 64 It won't go far. It won't go too far down Of course anything can happen. This is just one way of gauging the pulse of the market So I used the may 24 as my As my what do you call that as my limit because um Everyone at this point so may 24 know That there is a solution to our covid crisis because prior that There were so many articles bbc bloomberg saying that You know, you know, you might not be able to find a vaccine grab it You know must grab it to live in fear forever for many years to come but now we have Taken everything into account including that there is a cure. The problem is, uh, how to distribute that That solution That's why the market is going down now. Our market is going down because of the delta variant And actually if you look at the market And you look at the number of cases our cases aren't are going up But they're not like going up dramatically Yet and so not a lot of investors here. That's why they're pulling out slowly already. They're bringing it down um, and so the reason as to why sorry the reason as to why it shows, uh, may 24 is because This probably might be the lowest in terms of morale Investors in this year will think to go because they know that the cure is there but then also if you know if You knew that it could be the end of the world kind of thing Then the market would just keep going down and down here. It's a question of how long All right, I'm gonna check the chat That being said fizer by the vaks that you got sir. Ha dito sa amin hallo luck, and I believe the highest bidders uh, casey, I got Sinovac Uh, oh you go random. Oh, okay, and um, we're talking about Sinovac Of course, I wouldn't have picked Sinovac if I had the choice I'd pick the fizer a moderna shot Hell, even AstraZeneca shot. Well, actually, I don't know my blood costing but anyway I would have picked AstraZeneca shot anyway, uh, if it was given if the option was to me But I don't regret taking the Sinovac shot because even though Even though people still get covered in spite of getting the Sinovac shot less people die Because you have the Sinovac shot inside you. Well, I you know how it's like onion Zombie apocalypse time and then you have some immunity. I'd rather have some immunity than none that kind of thing Uh, do I blame the government? somewhat like Like I think like I feel I feel like we have some we allotted so much money in the budget and then We didn't use the allotted money because it's like full donations You know and then we were we had a chance Like I remember Singapore got the fires the first ship in a fizer shots because Sabini DFA secretary Someone dropped the ball now, you know, I don't really care at this point now But the point is um right now the country is only able to get a lot of Sinovac shots And I suggest that if you if that's the only thing being allotted to you So you call that it's um, it's uh, it's lottery It's better to get some protection than not. That's how I see it And I really think that 12 months from now You can have your pick of any vaccine afterward. It's how I see it. I'm not a doctor By the way, I see it. You know how you have to get a annual flu shot So you need a touch move. I mean like We get a shot we I think you know after like several months my dissipate the Vaccine of choice and then we can just pick a new one Of course, probably the problem is You're only having an in uh smaller smaller You have a you have less protection as opposed to other people who got like a fires or a moderna shot But yeah, we can't be choosy right now All right guys. So I didn't um that is all for my uh stock presentation I hope everyone is doing well and We'll see you guys. Oh, yeah, uh next month. I'm starting a gaming live stream Thanks to onion. Thanks to some people who recommended that I try I need escape from I didn't target cause escape from target. And then anyway, so I got the game. I got the game and Shit, it's a good game very technical And uh, I can't believe I spent $50 on a beta game Apparently it's been beta for like five years, but it's okay. No, it's okay I like realistic. I like realism first person truth is because it sounds like fun So I'm still learning how to play. Uh, that's what I'll be streaming next month Uh fritz another question. How much would you advise one would spend on buying stuff? Would you recommend investing in a big amount of money right off the bat? Uh Yeah, you know, sorry, I forgot to talk about that So there's the peso saving method which you Allocate the same amount of money all the time or you can Put in one time big time or the third option is you put You put like Like 20% of what you want to invest in the entire year At different days when the stock market is down Uh, I would recommend that you allocate There are a lot actually if you go to an if you go type into stockinvesting.com There's a recommendation there on how much money you should put in from your salary Uh, I think it's like you should put in 10% minimum of your salary into an equity fund Then that equity fund access your, uh, retirement fund Like essentially you're only going to touch it 40 years from now What one on in one cool thing about equity funds and stocks is um You can just leave it there and it's like Savings that you don't you can't touch it or rather. Well, you can't touch it But it's money that is not cash, which you might accidentally spend So what I do you want to follow me? I I time the market like, okay In one day, uh, okay game like I think 5% is a Grossly overreaction the psi 5% one day. Oh my gosh the next day like for sure So that's why I look at triggers I look at how How the public reacted to the sauna for instance. I look at our covet case numbers To see because all of these are all they all reflect one thing which is a return to normality And a return to normality means spending No spending means the businesses don't get more money So Essentially, if you think about it the companies they all need us. It's all up to us to keep them afloat Without us spending they won't have a recent function and they won't be able to grow So how I would put I would time the market and I so far right now I decided to put more money Like 80 percent of whatever invest in the stock market is all in equity funds because Well, I don't have the stomach to do individual stocks all the time I do have stock holdings in bdo bdo because That has a lot it has a lot to one. Yeah, that's a lot to go for like because bdo was the largest bank in the country and It's very it was very it's very rare for bdo to report a loss which it did during covid which I can't blame them and When everything normalizes bank Companies will go to banks to borrow money in order to expand their Their businesses so Yeah, my bed is on bdo Uh, I it's a good who are my stock buys my stock buys our bdo So far that's the only one I would buy right now Because everything else is so overpriced like Ayala corporation is trading is still trading practically on the same level as pre covid prices The reason as to why I care about pre covid price pre lockdown price and present price is essentially the investors think that This company is so strong that The pandemic never happened Which I don't agree. I don't I think no matter how a big company you are I don't think you should be able to return to pre pandemic level prices Until the country itself normalizes. Okay, Tai or about to go you might go into another lockdown again. So There that's that's why I looked at the prices before lockdown all right gg guys stay safe out there and uh Wear a waterproof jacket