When you go around our country, you’ll see proof of the Filipino dream of owning a business. In every corner, you’ll most likely see a sari-sari store, a food cart, or an internet shop. Year after year, you cannot stop entrepinoys from putting up a business of their own. Not all of us can afford to put up our own business or even have the time to manage it. So, how can an average Filipino go into business with only P5000?
Did you know, with that amount, you can already be part owner of every SM mall with Henry Sy, be in business with Manny Pangilinan’s PLDT, or share the profits from John Gokongwei’s C2 and Chippy? And there’s plenty more where you can choose from: banks, media, real estate, power generation, and even mining! How? The stock market!
What is the Stock Market?
In simple terms, the stock market is the place where you can buy a part of a company. You cannot do this for all companies but definitely, a lot of the biggest and most successful businesses in the country are “available” in the stock market.
Who do you think owns PLDT? Manny Pangilinan? Several big investors? Actually, hundreds of thousands of companies and normal people own PLDT. And you can be like them.
Why not own all of the branches?
Imagine this – you walk inside Jollibee and imagine that it would be nice to own your own branch. A franchise is worth millions you argue, but wait, there’s another way! You can buy stocks of the company. When you buy stocks of Jollibee Foods Corporation (JFC), you become part owner of the company so one way or another you are a co-owner of every Jollibee, Red Ribbon, Greenwich, Chowking, and MangInasal everywhere!
Crazy as it sounds, owning stocks makes it possible for you to own big corporations. If you buy a share of a company, you own a small part of the business – Kasosyo ka na!
How can you earn?
1. Dividends – because you are a part owner, you will receive a portion of the company’s profit. For every text message sent (Globe) , every Chicken Joy sold (Jollibee) – you get a cut in the company’s earnings.
2. Price appreciation – over time, the price of the share that you own may go up or down. If the company grows and succeeds over the years, the value of your shares rises as well. When you sell the shares for more than what you bought them – kumita ka na! Take a look at this example:
In 2001, the stock of property developer DMCI was worth 26 centavos per share. If you bought 10,000 shares amounting to P2, 800 (including commission and fees),you will be in for a big surprise. Fast forward to 2012, DMCI stock price is already P58! Your tiny P2800 is now Half a Million pesos!
How do you choose a company?
Choosing a stock is pretty simple – buy the stock of a company where you are a customer. Invest in a company that you actually know and understand. Would you actually waste money to put up a business you know nothing about? Just a reminder though, there’s no such thing as a risk free investment. As with any business, there will be both good and bad times over the years. But if you believe in the business and the people who run it, you will share the success in their success in the years to come.
You can still achieve your dream!
These big companies all started with a dream, but it didn’t end there. Being an entrepreneur requires time, knowledge and money to grow the business. If you have that dream but can’t start a business yet, don’t give up. Live your dream of having your own business through the stock market and become part of a business empire today!
TRIVIA: As a stockholder, you can actually attend the stockholders meetings of YOUR company and ask the Chairman/CEO about the business. Yes, you can ask Manny Pangilinan or the Ayalas even if you only own a few shares of the company—even ONE share! After all, you are their business partner.
Do you want to be a co-owner of successful businesses in the Philippines?
We have a Seminar for beginners that will teach you how to do that.
Understand the stock market the simple and easy way.