I broke my piggy bank to buy a company!
I’ve been doing this for the past 5 years or so. Every year I literally break my piggy bank to buy a company. You must be smiling and asking yourself how big my piggy bank is considering that I have bought myself a company with just my piggy bank.
Saving in my piggy bank to buy a company is not a complicated process. I usually start at January every year. Every time I arrive home, I empty my pockets for loose change. I sort out the ten pesos, Five pesos, one peso and twenty five centavos. (These are the only coin denominations we have so far in the Philippines) I then deposit the fives and tens in one piggy bank. The one peso goes to a “sinking fund.” The sinking fund is used for emergency purposes like sari-sari store (mom and pop store) purchases or used as fare for my household helps. The twenty five centavos just goes to a jar which will be deposited into a bank once it reaches a certain level.
For the five and ten pesos alone, the average savings I can accumulate in a year is somewhere from P 5,000.00 to P 10,000. For the year 2009, I raked in almost P 7,000.00. For the year 2010, I will abolish the “sinking fund.” I will instead place the one peso in another piggy bank.
There are three reasons why I always break the piggy bank at the end of the year. First is to comply with the law on hoarding coins. It is government’s policy to promote the free circulation of coins in order that we might have an ample supply of coins in circulation. Secondly, I want to somehow give myself a pat on a back and see for myself how much I have saved just using spare change and coins for the entire year. The last reason is of course to use the money, that is to buy a company.
So how do I buy a company with my P5,000 or P 10,000 ? Of course I do it buy buying stocks in the stock market. As I have always ranted in this blog, when you buy a stock, you are buying a portion of a business. Buying stocks makes me a “part owner” of the company I buying stocks from. Instead of spending the money on stuff that just comes and go, I further grow the money in my piggy bank by buying businesses. When the business grows, my money also grows with it.
So that’s how I buy companies using money from my piggy bank! I look forward to writing a post someday on “How I made millions from my piggy bank” whahahaha !!! 
Why don’t you try it? Starting saving in your piggy bank today and learn stock market investing.
Hi ! my name is Zigfred Diaz, Thanks for visiting my blog where you can learn stock market investing the Warren Buffett way and using other value investing methods ! Never miss a post from this blog. Subscribe to my full feeds for free. Click here to subscribe to D’Intelligent Investor by Email
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this is very informative and so helpful. this sounds easy yet takes a lot of discipline and patience.
but i believe one should start with something and add a bit of sacrifice to achieve your goals.
thanks for this info.
nice blog.
arbee: Thanks ! Yes, putting aside money for investment requires a lot of discipline. But in the end it is very rewarding
I tried this strategy before but couldn’t the sustain at the end of the month. hehe. by the way zig, my partner and i started an informal investment partnership that espouses a value investing strategy. i want to formalize it so i could also help other people achieve their goals. any suggestion?
xuzhu: Just make sure you don’t reach 20 partners because that would be a violation of the securities regulation code. Also include in your contract of partnership and let your partners really understand that you follow value investing and that they should be with you in the long run. I run a partnership also that invest in stocks and bonds and follows value investing. We started just late last year. One of my rules is that I don’t take in partners that I do not personally know nor do I take in partners that are not close to me because those who are not close to me wouldn’t be able to trust me. I emphasize to them that they stick with me in the long run. (I tell them that they can have a little dividend at the end of 5 years perhaps) heheheeh
I update them once or twice a year on how the fund is doing. With regards to commissions, I don’t charge any unless we make a profit. The commission is 25 % over an above 5 % interest. (This is what the earn if the put the money in time deposit) I got this idea from the Buffett partnership 
Thanks! very informative. Im from Cebu and for a couple of months I’ve been studying on investing to the stock market. Can you give the steps on how to open an online stock market account. Many thanks….
Carlo: Hello, continue dropping by this blog as I will feature informative articles on the subject. I will inform you once I will write a post on how to start an online account. Thanks
Hi, could you give us some tips on how to choose the companies to invest in? If possible, pls. share to us the companies you buy and how you were able to choose them. Thanks so much.
Debbie: I will, in due time. I am still establishing the foundation necessary to properly understand stock market investing. Do drop by my blog from time to time.