Building Wealth Through

Stock Market Investing

Presented by:
Juan G. Barredo
VP-Sales & Customer Support
COL Financial Group Inc.
GLARING FACTS!
“of people live “Only 2 out of 10
70% paycheck to
paycheck.”
Filipino households
have a bank
Source: https://retirehappy.ca/fina
ncial-stress-affecting-workplace/# deposit account.”
Source: Money Sense survey 2012

“of households in “Only 4 out of 10

<1% Manila that own Filipinos actually
stocks, bonds, save money.”
Source: BSP National Baseline Survey
mutual funds, or 2015
Govt Securities”
Source: Money Sense Survey 2012

“of people say that

1 in 5 “households receive
money stress is
financial assistance
from abroad”
40% affecting their
Source: Money Sense Survey 2012 productivity at work”
Source: https://retirehappy.ca/financial-
stress-affecting-workplace/#
 3 Principles in
Building Wealth

Pay Yourself First (Save)

Invest Money Well

Make Money Work for

You Over Time
Why Save? Your starting point…
The Proper Saving Formula
Build up Capital!

Income – Savings = Expenses ✓

Income – Expenses = Savings 

Keep your money

SAFE!
 Why Invest? Keeping up with the
RISE in the cost of goods!
Beat Inflation!

BIG MAC Price (1970-2030*)

250

200

150

100

50

* Assuming a continuous 3.3% Inflation 0

Why Invest? Investing over time… 159M

Let your Money

The Power of
work for you ! Compounding
9.8M 13.8M

2.06M
1.02M 913K
457K 234K
148K
94K

109,001
69,658
66,277

80,870
63,060
60,000

O YR 5 YR 10 YR 15 YR 30 YR 60 YR

1% SAVINGS 9.5% INVESTMENTS +60K /YR

Disclaimer: Past performance does not guarantee future results

 The Stock Market

past performance does not guarantee future results

Stock Exchange
Companies (Stock Broker) Investors
(IPO) (Shareholders)

The Stock Market :

• Companies can raise capital
• You can invest in these ‘publicly listed’ companies
• This is governed by the Philippine Stock Exchange (PSE)
 The Stock Market
How do I Make Money?
▪ Price Appreciation - the rise of a stocks’ price over
time as promoted by its potential value
▪ Dividends – distributed profits companies issue to
their shareholders:
▪ Cash dividends
▪ Stock dividends

Stock prices of good to great companies climb over time as a function

of ever growingpast
demand overtaking
performance a fixed supply
does not guarantee of shares
future results
Stocks for the Long Run…. Outperform!
Effective Annual Yield (as of end 2016)
10.0% 9.4%
8.7%
8.0%

6.0%
3.7%
4.0%
2.5% 2.7%
2.0% 1.5%

0.0%
PSEi 91-Day T-Bills Inflation
5 year CAGR 10 year CAGR

History has proven that investing in quality stocks can provide greater
returns than most instruments;
past performance doesgiving a good
not guarantee runresults
future over inflation…

Disclaimer: Past performance does not guarantee future results

 PSE Index
A barometer for Philippine Corporate Performance
# PSE INDEX MEMBER CODE # PSE INDEX MEMBER CODE
1 AYALA CORPORATION AC 16 METROBANK MBT
2 ABOITIZ EQUITY VENTURES, INC. AEV 17 MEGAWORLD CORPORATION MEG
3 ALLIANCE GLOBAL GROUP, INC. AGI 18 MANILA ELECTRIC COMPANY MER
4 AYALA LAND, INC. ALI 19 METRO PACIFIC INVESTMENTS MPI
5 ABOITIZ POWER CORP. AP 20 PETRON CORPORATION PCOR
6 BDO UNIBANK, INC. BDO 21 PUREGOLD PRICE CLUB INC PGOLD
7 BANK OF THE PHILIPPINE ISLANDS BPI 22 ROBINSONS LAND RLC
8 DMCI HOLDINGS, INC. DMC 23 ROBINSONS RETAIL HOLDINGS RRHI
9 FIRST GEN CORPORATION FGEN 24 SEMIRARA MINING & POWER SCC
10 GLOBE TELECOM, INC. GLO 25 SECURITY BANK CORPORATION SECB
11 GT CAPITAL HOLDINGS, INC. GTCAP 26 SM INVESTMENTS CORP SM
12 INTL CONTAINER & TERMINAL SERV ICT 27 SAN MIGUEL CORPORATION SMC
13 JOLLIBEE FOODS CORPORATION JFC 28 SM PRIME HOLDINGS, INC. SMPH
14 JG SUMMIT HOLDINGS, INC. JGS 29 PLDT INC TEL
15 LT GROUP, INC. LTG 30 UNIVERSAL ROBINA CORP URC
 Investing in
Property vs. Stock

Investment in
P1.0M Investment in 2002 P1.0M
2002
Makati CBD per SMPH Price/share in
P180,000 P3.03
sqm in 2002 2002
Makati CBD per SMPH Price/share in
P523,000 P29.20
sqm in 2016 2016

MAKATI CBD
Investment Value Investment Value in
P2.9M P12.7M
in 2016 2016
Compounded Compounded Rate of
Rate of Return
7.9%
Return
19.9%
 Investing
Time Deposit vs. Stock

Investment in
P1.0M Investment in 2002 P1.0M
2002
Range of
6.3% to 1.1% BDO Price/share in 2002 P16.69
Interest Rate
Investment
P1.4M BDO Price/share in 2016 P113.20
Value in 2016

TIME DEPOSIT
Compound Rate Investment Value in
2.6% P8.2M
of Return 2016
Compound Rate of
Return
16.3%
C’mon…
Investors got
Learning the Basics:
to do some Stock Market 101
work…
Remember these guidelines:
▪ Invest for the Long term
▪ Invest into Quality businesses at
Reasonable prices
▪ Invest using Diversification
▪ Invest by using a Plan
Invest for the LONG TERM

Companies need time to grow well (and allow for compounding)

Looking for GEMSS!

S
S • Strong
M • Superior
Products/
Balance
Sheet
• Management Services
E Credibility

• Earnings
G Growth What makes a story stand out?

• Growing
Industry
We like
discounts too!
Knowing some Fundamentals:
Looking for Value!
Is a Stock Fairly Priced?

P12.00 Expensive

P10.00 Fair Value

P8.00 Cheap
Where to find?
Some Brokers, Bloomberg & Reuters Terminals
Look for Value: COL’s Investment Guide
Know what is fair and what is not…
Code Company Price COL Rating COL FV Buy Below

Two types of Price: 1) Market Value 2) Fair Value

Manage risk through Diversification!

“Don’t put all your eggs • Investments should be

in one basket” spread into various
instruments to handle risk

• Stock investments can be

spread into various
industries or stock picks

• Mutual Funds can be an easy

way to diversify
Buy Stocks with a Plan! Keep your
emotions in check
Use a Methodology:

• Value & Growth Investing

(Fundamental Analysis)
Trading • Trend Timing
(Technical Analysis)

• Gradual Buy and Hold

Strategy
Peso Cost • Make steady and fixed
Averaging Peso investments through
time on good companies
COST AVERAGING:
No rocket
Investing made science needed!
Simple and Easy

Peso Cost Averaging Advantages:

• It is simple and easy to do

Investing a fixed amount of money
Into your favorite Stocks/Mut. Funds
At regular intervals
Over a period of time
• No need to time the market
• It reduces market price risk
and volatility
• You can start investing
anytime even with a small
amount of investments and
build your way in
Peso Cost Averaging
Peso Cost Averaging is a personal wealth-
building strategy that involves investing a
fixed amount of money at regular intervals
over a long period
Designed to reduce market risk by stretching out
the purchase of stocks over time, buying more
when prices are low and buying less when it is
high, effectively keeping your average cost down

Month 1 6
Buy Php5,000 worth of stock ABC at market
price

5
Month 2
Buy Php5,000 worth of stock ABC at market 4
price

3 Average Cost
Month 3
Buy Php5,000 worth of stock ABC at market
price 1 2 3 4 5 6 7 8 9
Months/Years
Peso Cost Averaging
Date of Stock Amount of Stock Ave Cost per
Price per Share # of Shares*
Purchase Purchase (Php) share
1-Jun 5,000 10 500 10.00

1-Jul 5,000 11.75 426 10.80

1-Aug 5,000 11.5 435 11.03

1-Sep 5,000 11 455 11.02

1-Oct 5,000 10 500 10.80

1-Nov 5,000 9 556 10.45

1-Dec 5,000 7.5 667 9.90

1-Jan 5,000 8 625 9.61

1-Feb 5,000 9 556 9.54

Your
1-Mar 5,000 9.1 549 9.49average cost
remains low
1-Apr 5,000 9.5 526 9.49

1-May 5,000 10 500 9.53

*You buy less shares when prices are high and more
shares when it is low (subject to board lot regulations)
Peso Cost Averaging
P35.50

The PLAN: Quarterly Cost Averaging of ALI Total Investment: P105,000

Investment: P15,000 per Quarter Current Value: P122,527 (+16.7%)
Peso Cost Averaging

Ayala Land (2006-2018) P40.75

What more if you have been doing

this for the last 5 to 10 years?
 Introducing COL’s EIP
COL Investing Simple and Easy
The COL Easy Investment Program is the
latest service from COL Financial which
makes it easier for our customers to apply
the method of peso-cost-averaging.

Features:

Premium Stock List – have access to our

research and premium growth stock
recommendations.

EIP Portfolio – have access to your EIP

positions anytime and track their performance.

Schedule Calendar – plan out your purchases

over time by building a continuing calendar of
orders that will prompt you through Email
reminders.
 Some Stocks We Like
Long Term
COMPANY NAME COMPANY NAME
We filter looking for good AC Ayala Corp. JFC Jollibee Foods Corp
stocks by looking for ‘GEMSS’
ALI Ayala Land Inc. MBT Metrobank

Growing industry AP Aboitiz Power MPI Metro Pacific Inv Corp.

Earnings / predictability BDO BDO Unibank Inc. RLC Robinsons Land Corp.
Management credibility BPI Bank of Phil Islands SM SM Investments
Superior products or services
DMC DMCI Holdings Inc. SMPH SM Prime Holdings Inc
Strong balance sheet
GTCAP GT Capital Holdings URC Universal Robina Corp

ICT Int’l Container Term FMETF First Metro Phil Equity

Introducing
Mutual Funds!

Professionally managed funds

that are pooled together and
invested in various asset
classes and held by multiple
shareholders
 Invest in Mutual Funds with COL!

©COL Fund Source

4 Common Types
INVESTMENT
of Mutual Funds ASSET CLASS OBJECTIVE

Long Term Capital

Stocks Growth

Stocks & Income & Capital

Fixed Income Growth

Bonds Income

Government Income &

Securities & Preservation of
Time Deposit Capital
 • Index funds Invest in all off
member companies of the
Introducing index they track
Equity Index • In the Philippines, an index
Funds! fund invests in a basket of
30 of the largest companies
in its list
 PSE Index
A barometer for Philippine Corporate Performance
# PSE INDEX MEMBER CODE # PSE INDEX MEMBER CODE
1 AYALA CORPORATION AC 16 METROBANK MBT
2 ABOITIZ EQUITY VENTURES, INC. AEV 17 MEGAWORLD CORPORATION MEG
3 ALLIANCE GLOBAL GROUP, INC. AGI 18 MANILA ELECTRIC COMPANY MER
4 AYALA LAND, INC. ALI 19 METRO PACIFIC INVESTMENTS MPI
5 ABOITIZ POWER CORP. AP 20 PETRON CORPORATION PCOR
6 BDO UNIBANK, INC. BDO 21 PUREGOLD PRICE CLUB INC PGOLD
7 BANK OF THE PHILIPPINE ISLANDS BPI 22 ROBINSONS LAND RLC
8 DMCI HOLDINGS, INC. DMC 23 ROBINSONS RETAIL HOLDINGS RRHI
9 FIRST GEN CORPORATION FGEN 24 SEMIRARA MINING & POWER SCC
10 GLOBE TELECOM, INC. GLO 25 SECURITY BANK CORPORATION SECB
11 GT CAPITAL HOLDINGS, INC. GTCAP 26 SM INVESTMENTS CORP SM
12 INTL CONTAINER & TERMINAL SERV ICT 27 SAN MIGUEL CORPORATION SMC
13 JOLLIBEE FOODS CORPORATION JFC 28 SM PRIME HOLDINGS, INC. SMPH
14 JG SUMMIT HOLDINGS, INC. JGS 29 PLDT INC TEL
15 LT GROUP, INC. LTG 30 UNIVERSAL ROBINA CORP URC

An Index Fund invests in all of these… even with Php 5,000!

 Affordable
(Min: PHP 5,000)

Professionally Liquid
Benefits of (Buy/Redeem Anytime)
Managed
investing in
Mutual
Funds

Easy and Convenient Diversified

 Getting Started
with Stock Market Investing
Educate Yourself
Do your
preplanning

Do Your Homework
Choose Funds/
Companies to
invest in

Invest over Time

3 easy steps to open a
COL FINANCIAL
ACCOUNT
1 APPLY 2 SUBMIT 3 FUND

Fill-out our Submit to our Fund your COL

application forms accounts officers account
FUNDING
Your COL account is a pre-paid account. How much you fund
is how much you can invest.

SAMPLE PAYMENT SLIPS:

OPTIONS:
COL CASHIER Cash or check, COL’s cashier located
at our business center can receive your funding.

PARTNER BANKS

ONLINE BILLS PAYMENT Enroll COL FINANCIAL as a

merchant on your online banking with our partner banks.

OVER-THE-COUNTER BILLS PAYMENT

Fill-out a payment slip at a bank branch near you and
submit to the bank teller for processing.
 Customer Support:
THANK YOU! Helpdesk @colfinancial.com

Service Hot Line:

(632) 6-515-888

Poch Mendieta
poch.mendieta@colfinancial.com
Mobile: +63 927 308 7157