I think that educating Filipinos to invest in the stock market would increase this percentage. The Philippines has a very high number of depositors in saving accounts. The only vehicle of investments most Filipinos know are either real estate or businesses. If only those who saved in the bank will instead invest in stocks.

The government has been doing all it can to encourage investing in stocks. They have slashed transaction fees, taxes etc. when buying and selling stocks. They’ve done all they can with regards to this aspect. I believe what is lacking is educating the public about stocks.

The Philippine stock exchange market education department has been going around the country on road shows to promote investing in stocks. But I think the best way to educate Filipinos to invest in stocks is by integrating finance and stock market topics in the high school curriculum. Some private schools has done this, but I believe this should be mandated by law.

Anyway, I think this is a nice topic to blog about. I will write a post sometime about how the government can encourage Filipinos to invest in stocks. Thanks for the idea.

Who usually invest in the stock market? (demographics etc.) Why do you think so?

What can encourage Filipinos to invest in the stock market? Given that there are already online brokers which will make it easier for them and more convenient, how can they encourage more Filipino investors?

JFC maybe a good company, stable earnings etc., has all the attributes of a good value investment. But the price as of now is somewhat expensive, so I wouldn’t recommend buying it as of now.

To know what companies to invest in, the number one vale investing rule is make sure you invest in companies whose business you understand. If you don’t understand the business then don’t invest or do further research. Take note when you buy stocks you are buying a business, and you should know your own business !

Once you understand what your business is all about, then it’s time to look at the financial statements. Read the annual reports. 5 years of financial data would be good, 10 years is even better. Look for stable earnings both gross and net among other things. Ask yourself it the company’s business model, products etc. will still be relevant 10 years from now. Look for a “competitive advantage.” Does the business have a well defined “moat” such that no matter what the competition does it will hardly make a dent if any to the company’s bottom line. Of course of primary importance is a good management team.

Evaluating a company’s fundamentals using value investing principles is both an art and a science. It takes a lot of study before making your final decision. I highly recommend Phil Town’s Rule number 1 and Peter Lynch book “Learn To Earn” for a starter course on how to do this.

And lastly, keep on reading D’ Intelligent Investor. Your number source for value investing in the Philippine Stock Market

im on a learning stage in stock investing. Can i ask you where can i find if how much is per share of stocks for example jollibee?..napagusapan na din kasi yung jollibee..as you had said, stable ung earnings, or maybe i could ask for your advice if what kind of stocks shall i start to invest. thanks.

Thank you very much for the info. We will do that.

Thanks
katherine

Thanks
kate