Top Ten Tips To Successful Investing

This useful investing tips I have linked below from its original location is a good advise to all freshmen investors including me. It was posted by the management of FAMI (First Metro Asset Management Inc.) last February 22, 2012. Learn more how to unload your money to the stock market through some simple tips that will promote handsome profits to your portfolio.

Top 10 Tips to Successful Investing!

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Top 10 Tips to Successful Investing!

Here’s 10 quick tips to get you started on investing and creating your winning porfolio!


1. Start Early.

The only way you can make the most out of the limited time you have is to start early. The sooner you invest, the more time your money will have for growth. If you delay, you will almost certainly have to invest much more to achieve a similar result. Let the power of compounding work for you.

2. Keep Some Cash Aside

It is always a good idea to have some money set aside in case of emergencies. Maintaining six to nine months worth of living expenses will insulate you from a sure fire formula for investment loss – distress selling.

3. Know Your Risk Profile

What is the point of investing in the stock market if you are going to lose sleep, or a heart attack (whichever comes first) every time prices go through a rough patch. You need to be realistic about your risk appetite. An investment advisor can help you determine your tolerance for risk.

4. Never Forget About Inflation

Don’t fall into the false sense of security that very conservative investments might give you. The returns may look respectable at the start but not after you deduct the effects of inflation. Keep in mind that risk is not just about losing money. It is also about not having enough in the end.

5. Think Carefully About How Long You Can Stay Invested

If you plan to stay invested for a long period of time, say five years or more, then it is okay to get into the stock market and let your money work harder for you. But if you will need your funds very soon, you are going to be better off with low risk investments.

6. Spread Your Money Across Investments

Don’t put all your eggs in one basket. Depending on your goals and attitude to risk, you will probably want to spread your money across different types of investment – equities, bonds and cash. You may also want to diversify within each of these categories. An equity fund, for example, will invest your money in a variety of companies but you may want to ensure you have a range of industry sectors too.

7. Invest Regularly

Investing regularly can be a great way to build up a significant lump sum. You will also benefit from what is known as cost averaging. In this way you hardly feel the pain caused by delayed gratification since you are saving small amounts that you can easily afford.

8. Choose Your Funds Carefully

You should select investments based on your personal circumstances and goals. Don’t assume all funds investing in equities are the same – look at what a fund invests in and check if you are comfortable with its investment style and objectives. Choosing the right fund manager is nearly as important as choosing the right fund.

9. Remember That Time and Not Timing Is The Key To Successful Investing

Even the most experienced fund managers fail when it comes to timing the markets. As an investor your concern should be to have as much time as possible to stay invested. Take the long-term view and stay in a fund that you are comfortable with for as long as necessary. Successful investing is not a matter of timing but rather a matter of TIME.

10. Review Your Investment Regularly

There are a number of reasons why you might need to change your investment portfolio. Your goals might have changed over time or your resources might have changed significantly. Whatever the reason may be, your life stage will play a vital role in determining the right investment mix for you. It is prudent to review your investment once or twice a year at the very least to determine if you are still on track to hitting your goals

          

Companies With Good Fundamentals This February 2012

The month of February, 2012 is the continuation of the stock market rally in the Philippine Stock Index.  This means that the Philippine Stock Exchange index have reached its ultimate highest peak in its history. This took place last February 23, 2011 when it reaches to the 4,997.04 level.  This is because local investors as well as offshore fund managers still relies the bullish trend of the Philippine economy.

It’s good to know how the market is doing the past weeks this month.  Trending to date are oil companies because of the current tension in Iran as it recently imposed an oil embargo to some European countries.  The current oil price (as of this writing) is at US$109.77 per barrel which is seen to be the longest sustained price since January of last year. The Brent spot price is higher at US$126.65 per barrel. This will increase more in the coming weeks if problems in Iran will escalate. Recently, Bloomberg.com reported that SWIFT (Society for Worldwide Interbank Financial Telecommunication) is prepared to cut off Iran’s Central Bank together with its 24 banks and financial institutions to receive its financial messaging service that would possibly unable the country to use the international financial system. Read more on this link: www.bloomberg.com/news/2012-02-24/swift-may-expel-iran-s-central-bank-hindering-oil-payments.html

Among the Philippine oil companies currently traded with high volumes are The Philodrill Corporation, PNOC-Energy Development Corporation, Philix Petroleum, Petron Corporation and Oriental Petroleum and Meniral Corporation. EDC is a blue-chip company.

Another trending sector this month is the financial.  Most banking stocks in the country are already in the blue-chip level.  These were Banco de Oro Universal Bank, Rizal Commercial Banking Corporation, Bank of the Philippine Islands, Union Bank of the Philippines, Security Bank and Metropolitan Banking & Trust Company. Either of these companies have good price increase this month.

In the sector of mining, two good stocks were highly guarded by security traders. They are Dizon Copper Silver Mines and NiHao Mineral Resources. This two have almost tripled their trading prices in just this month. Some mining industries are still laggard as investors are on the sidelines because of the incoming new executive order on mining which will be released in the later date of February this year by the Philippine government.  This will be related to the issuing of Financial & Technical Assistance Agreement (FTAA) to the new mining companies that will apply business in the country. If the said agreement will favor the mining investors, possible candidate for mining that will be good to invest in are Lepanto Consolidated Mining, Philix Mining, Atlas Mining, Manila Mining, Marcventures Holding Inc., Nickel Asia and Apex Mining among others.

The recent problem regarding inadequate power supply in Mindanao is one of the latest concerned issue in the electric power companies. Aboitiz Power is the only public listed company engaged in power supply in Mindanao particularly in areas of Davao and General Santos. It is necessary for investors to put their capital here as it was observed from the last few days of trading that its price was increasing substantially.

That was the good news I have gathered this month in the investment world here in the Philippine economy. It’s up to the reader to take action and be reminded of the consumer saying “CAVEAT EMPTOR” or let the buyer beware.