I've been advocating investing in stocks because i feel that this is my small way of contributing to our economy. Just to set this aside, I'm not an expert in stocks and have not gained millions of pesos but i do understand investing in stocks so i try, as best as i can, to teach other people that investing in stocks is worth the time (and money).
Last January 23, 2010, we had our son baptized. We got some cash gifts so i decided to put the money into stocks last January. During that time, stocks are trading at low prices because of the economic recession and the Philippine Stock Market is still on its way to recovery.
I decided to buy two stocks using BPI Trade. I bought 6,000 shares of Megaworld Corporation (MEG) P1.18 per share and 800 shares of Ayala Land Corporation at P10.50 per share. The Megaworld amounted to P7,104 while the Ayala Land at P8,425. I guess most of you reading this blog have the P7k or P8k just sitting idle in your bank accounts earning a meager 1.5% interest. There are risks in investing in stock market but the profit is high as well. If you want to learn more, read here.
Today, i sold my Megaworld stocks at a P2.56 per stock giving me P8k return. More than 100% of what i have initially invested
I'm keeping my Ayala Land stocks for the meantime. It is currently trading at P16.50 well above my purchase price of P10.50. I still believe that the real estate in our country will continue to grow so i'm holding on to this stock. So that's how i earned 114% in 268 Days. Every now and then, i get to think of investing more money in the stock market. I imagine if only i have P1,000,000 back in January and invested everything in those two stocks, i could have gotten another million by today. But life does not work that way. There are risks and i have yet to prepare myself to handle those kind of risks.
I hope this post will encourage you to start investing portion of your savings in the stock market. If you are a little hesitant, you may want to try Peso Cost Averaging as a strategy.
