Comments on: MM Stock Portfolio Up 110% in 39 Months… :)

By: 100kpinoy

100kpinoy — Sat, 11 Feb 2012 12:09:23 +0000

was it really hypothetical portfolio trade? i have a feeling this is true… if so, nice moves!!

this is one of the reason the rich gets richer… putting their spare cash into investing rather than into savings account that gains less than inflationary costs, not to mention time+opportunity loss.

i am one of those who wish to elevate financial literacy and achieve financial freedom… as of now, taking it one step at a time.

nice article and thanks for sharing ;)

By: Mari

Mari — Sat, 04 Feb 2012 01:58:18 +0000

MM, I’m a nurse and quite interested to start investing but just don’t know where to begin. I know you are a busy man but could you please point me where to start in all of these? I’m just plain clueless but very interested. Thank you very much.

By: Marketman

Marketman — Fri, 03 Feb 2012 08:28:13 +0000

Gerry, you are right, I haven’t been fond of many local stocks, as I feel even large family owned companies are not really run for their public stockholders… but there are a few I would buy and/or have in the past, bought — Ayala, Aboitiz, The Gokongwei Group of Companies, PLDT, among others. But the recent 2-3? year run-up in local stocks is something I essentially did not ride upwards…

By: Gerry

Gerry — Fri, 03 Feb 2012 08:16:16 +0000

I think that the local stock market is riddled with insider trading problems. The DBP-Philex-Ongpin deal, backdoor listing rumors that crop up every so often, and just today the dubious SSS sale of its Meralco share. It seems that there are no controls in the local markets and there are so many abuses. Remember the BW scam? Nobody seemed to have been punished for that debacle. I see that your portfolio is 90% foreign which is not a ringing endorsement of the local market.

By: Lei

Lei — Fri, 03 Feb 2012 02:24:31 +0000

MM, I have you to thank for giving clear and concise explanation on the merits of investing in the stocks. Being a regular reader way back from late 2005, I know that you really meant good in sharing your experience in the subject matter. I took the plunge way back in 2010, just before the May presidential elections. I entered the stock market indirectly thru the UITF being offered by local banks with the choice of investing all the amount in the stock market. You can choose to invest in bonds if you so like. At present, those entered in 2010 have these figures, a profit of 52.82% from may 2010, 42.21% july 2010, and 39.26 coming from aug 2010. I religiously track each using the free portfolio tracker from bloomberg.com. =)

I am a clear and true testament that an ordinary individual with no background(academic or work acquired) in the finance sector can do make money out of investing. It sure beats the rate being offered by time deposits. Oh, btw, just an added info, I found out that I was nominated for our company’s internal club in the position of director for financial wellness! whoah! even though it is just a nomination, i was dumbfounded and i realized that i must be really doing something good with my finances for the rest to notice. i emailed you privately the name of my company, but for the rest, it is in the top 10 global company. so that is a great acknowledgment indeed! and MM is one of my mentor in that area. =)

hope you can continue sharing your knowledge on how to best save & invest!!! again, thanks MM!

By: zaN

zaN — Fri, 03 Feb 2012 01:30:35 +0000

I just googled : What if you purchased $1,000 of Apple stock in 2001?

https://www.warrenschooltech.org/archives/89

Result: 90K+

WOW… IF only we can predict the future of even just ONE stock would do years from now.

By: Thel from Florida

Thel from Florida — Thu, 02 Feb 2012 22:14:08 +0000

In 1996 I bought some brk.b (Berkshire Hathaway) for $47K. By 2007 it was worth $160K but nowadays it’s only hovering at $120K. Will just leave it there for now, I’m sure it will go up again. In 2005, I’m so LUCKY to locked up a $100K jumbo CD for 4.83% for ten years. A nice $5K+ interest income every year and more than enough to buy a set of Pratesi beddings.

By: psychomom

psychomom — Thu, 02 Feb 2012 21:29:09 +0000

thanks for the update. i have been teaching my son (who is now 11) the value of saving, spending and giving to charity from his weekly allowance. maybe we can venture into investments for his future instead of just keeping his savings in jars……

By: KUMAGCOW

KUMAGCOW — Thu, 02 Feb 2012 21:16:59 +0000

These all look Chinese to me, I wonder if there are stockmarkets for dummies book somewhere

By: Ted

Ted — Thu, 02 Feb 2012 20:31:47 +0000

It’s really hard to predict when the Market is going up or when it will crash. But if you invest your money in a more diversified way like mutual funds then it’s much safer and you don’t have to worry about the ups and downs of the market. Before investing, do your research and if you don’t like to take too much risks, put your money in index funds. Below is a summary of a friend’s Mutual fund portfolio, the money was put in a mix of index funds (Total Stock, International Stocks, and Total Bond funds) with monthly purchases of about 10% of income (always pay yourself first) between those 3 funds.

Activity summary
Total value as of 01/31/2007 $126,106.27
Purchases $44,772.38
Investment return $11,929.42
Total value as of 02/01/2012 $182,808.07

Activity summary
Total value as of 01/31/2009 $86,275.96
Purchases $26,056.63
Investment return $70,475.48
Total value as of 02/01/2012 $182,808.07

So depending on which time frame you do your analysis on the portfolio, it would still average out to about 8% a year which is the norm. So the rule to follow should be, to invest only what you can afford but do it religiously, you don’t need a big amount to invest, you can start small, all you have to do is meet the minimum investment amount (you can do that by saving the money first and once you meet the minimum start investing in the fund). Stop watching it’s ups and downs daily or you will just get frustrated. Lastly, don’t chase after the market, don’t sell when it’s down or buy when it’s up,,,which most investors do.