[prnd32]

important talaga ang malaki ang capital. kasi maliit lang naman mga movement, minsan lang may major move like TDY and that time na nag-IPO ang CAL.

stock market is not a get-rich-quick scheme.. you can start with a small capital and learn how to make it grow.. historical average is about 20%-26% p.a. (as per bauer and TSO) and with a bit of luck, potential earnings would increase %age wise.. of course, there is the other side of the coin..
Post Merge: Aug 10, 2012, 12:08 PM

ano po ibig ninyo sabihin sa reason kung bakit mataas or mababa yung P/E?

This is the way i understand the P/E (price to earning ratio). Ang "price" ay ang "market price", ang presyo kung magkano mo pwedeng bilihin o ibenta ang isang share sa stock market.  Ang "earning" naman ay ang sinasabing kita ng kumpanya kada isang share, ito ang tinatawag na EPS (earning per share).  Pag iyong dinivide ang "market price" ng "EPS", ang resultang pigura ay P/E.  Ang "market price" ay hindi kontrolado ng kumpanya (market ang nagdidikta), samantalang ang EPS ay maaari nilang kontrolin (pero hindi ibig sabihin pwede nilang dayain).  Ang sinasabi ni TSO, isa lamang sa mga maraming batayan ang P/E sa pagpili ng stocks.

[bauer]

samantalang ang EPS ay maaari nilang kontrolin (pero hindi ibig sabihin pwede nilang dayain).   

In real life situation, pwedeng 'lutuin' ang financial reports even if it is listed stock.

[batangpromdi]

stock market is not a get-rich-quick scheme.. you can start with a small capital and learn how to make it grow.. historical average is about 20%-26% p.a. (as per bauer and TSO) and with a bit of luck, potential earnings would increase %age wise.. of course, there is the other side of the coin..
Post Merge: Aug 10, 2012, 12:08 PM

nasabi ko po na malaki capital kelangan kasi base po yan sa experience ko. cya nga pala, hindi ako long term sa stocks, more ako sa tsupita.

[prnd32]

In real life situation, pwedeng 'lutuin' ang financial reports even if it is listed stock.

"Window dressing" ba tawag dun sir?
Post Merge: Aug 10, 2012, 04:06 PM

nasabi ko po na malaki capital kelangan kasi base po yan sa experience ko. cya nga pala, hindi ako long term sa stocks, more ako sa tsupita.

oic.. sir, sa tsupit ba kailangan full-time ka nakatutok during trading session?

[bynlee_3]

stock market is not a get-rich-quick scheme.. you can start with a small capital and learn how to make it grow.. historical average is about 20%-26% p.a. (as per bauer and TSO) and with a bit of luck, potential earnings would increase %age wise.. of course, there is the other side of the coin..
Post Merge: Aug 10, 2012, 12:08 PMThis is the way i understand the P/E (price to earning ratio). Ang "price" ay ang "market price", ang presyo kung magkano mo pwedeng bilihin o ibenta ang isang share sa stock market.  Ang "earning" naman ay ang sinasabing kita ng kumpanya kada isang share, ito ang tinatawag na EPS (earning per share).  Pag iyong dinivide ang "market price" ng "EPS", ang resultang pigura ay P/E.  Ang "market price" ay hindi kontrolado ng kumpanya (market ang nagdidikta), samantalang ang EPS ay maaari nilang kontrolin (pero hindi ibig sabihin pwede nilang dayain).  Ang sinasabi ni TSO, isa lamang sa mga maraming batayan ang P/E sa pagpili ng stocks.

ahhh. so mas maganda kung mataas na positive ang P/E?

[TSO]

"Window dressing" ba tawag dun sir?

No.

It is outright financial manipulation.

Some examples:
1. Adjusting estimated useful life to move depreciation expense up or down.
2. Changing the discount rate used by actuaries to manipulate: (1) pension liabilities and (2) pension expense.
3. Classifying finance leases as operating leases to reduce debt on the balance sheet
4. A manufacturing company classifying the transfer of unsold goods to the warehouse (based on a customer's order) as revenue even when rights of ownership haven't been relinquished yet.
Post Merge: Aug 10, 2012, 11:06 PM

ahhh. so mas maganda kung mataas na positive ang P/E?

No. The problem with high positive P/E multiples is that you are likely to overpay for the company's future performance. Benjamin Graham has always espoused low P/E multiples (i.e. below 16×) for success, provided you perform the proper due diligence.

What I am saying here is that you cannot ignore your obligation to do due diligence with stocks possessing very low or very high multiples because they could be caused by market events in the case of the former, and a significant depression in reported net income in the case of the latter. Blindly shelving high P/E businesses can result in missed opportunities.

It is far better to use an average figure for your denominator, PROVIDED the average is applicable to the company going forward.

[bauer]

^ TSO more than sufficiently answered all the questions and i do agree with him

[prnd32]

ahhh. so mas maganda kung mataas na positive ang P/E?

Not necessarily.  As mentioned in previous reply, hindi lang P/E ang dapat basehan sa pag-pili ng stocks.  Ngayon kung gusto mong P/E lamang ang iyong gagawing basehan, mas gugustuhin kong piliin yung mas mababang P/E.

[eboy]

Get investments from other people and invest for them. Charge a management fee while you're at it. You will need at least 18M to turn this into a business you can live off of (2% Mgt Fee per year). GETTING that 18M is a whole different story and relies on a sound investment process, a solid track record, and a very strong network of friends with money.

2% is not normal; 2% management fee is what you would charge someone with the minimum balance, say P25k.  Usually there are investment breakpoints, e.g. 100k to 250K you charge 1.5%; 251k to 500 1%, etc... I have a small portion of my portfolio actively managed and I negotiated a management fee of .4% (my FP wanted .75% initially, I said no way).
Also, as an FP, you can only properly service a small number of clients; 100-200 is usually the max.  Anymore, you start hiring associates and start giving away your low-balance accounts.  Clients will call you whenever the market hiccups, and you better be there to answer/return their call and hold their hands.  Your big clients will be actively poached by other FAs, who will be offering them lower management fees. 
Wealthy investors will be leery of giving up all that money to one person; they will probably go to an institution's wealth management group (HSBC, Chase, Banco De Oro, et al).  If you want to gain the trust of these people, start working here, work on getting big accounts, gain their trust, then start your own firm and convince your former clients to transfer their account with you (after a period of non-compete has passed).

[pmtmember]

@eboy may I ask if you have your own firm?

[eboy]

@eboy may I ask if you have your own firm?

No, not yet. In a few years I plan on joining a friend's FP firm as a partner.

[skicker]

I missed out sa oportunity to make a killing noong early 90's sa stocks. Noong nasa service pa ako nagba basa basa na ako sa mga stocks/mutual funds at I had the chance to invest in aonline brokerage firm calles sharebuilder where it allows you to invest a certain amount of money to buy stocks at $4 per transaction. Para ito sa mga maliliit na investor. Pang matagalan ito at maganda pag bulid ng portfolio. Ang napili ko e GE ang di ko pinansin e apple na at that time nasa $7 per share pa siya. Looking back now ang apple eh almost $600 per share na siya. Sayang

[bauer]

Opportunities abound in the market place at any given time.  Both the rotten eggs (hidden) and golden eggs are ready to be pick.  Buyer's remorse is time wasted. 

Taking definitive action after careful study and evaluation should bring good fortune to anyone who devotes time and patience in a rough sailing market place such as stocks.

[skicker]

True Sir Bauer. Kaya lang I had the opportunity nung panahon na yon at kung meron lang PMT noon baka mas nakagawa ako ng matalinong desisyon noon. Tama rin na dapat na pag aralan muna  at alamin ang lahat ng info sa isang stock before taking plunge. Oh well talagang ganon, now I have more time to evaluate at sa tulong nyo na me kaalaman dito palagay my chance of maging successful  ay malaki.

[thisistheday]

I missed out sa oportunity to make a killing noong early 90's sa stocks. Noong nasa service pa ako nagba basa basa na ako sa mga stocks/mutual funds at I had the chance to invest in aonline brokerage firm calles sharebuilder where it allows you to invest a certain amount of money to buy stocks at $4 per transaction. Para ito sa mga maliliit na investor. Pang matagalan ito at maganda pag bulid ng portfolio. Ang napili ko e GE ang di ko pinansin e apple na at that time nasa $7 per share pa siya. Looking back now ang apple eh almost $600 per share na siya. Sayang

Hindsight is always 20/20. Apple almost went bankrupt in the late 90s. When Apple was at USD300 I thought it's still cheap and was going to be even bigger. Of course I didn't buy the stock.
There are other stocks out there that look like bargains now that's where I am looking now.