INVESTMENT PRINCIPLES FOR 2018!

Don’t just aim to make money, aim to hit your financial goals. For 2018, this should be you creating short term goals and aligning it to your investment strategy. Remember for short term goals, you must put it in investments that you can take right away, has low volatility but at the same time can give you a respectable amount of return.

The difference between short term goals from long term goals is that, you need the money soon, so that means you may need to put in more cash to that investment as compared to your long term goals where you can take more risks but at the same time you do no need to put a lot of money in it.

2. Invest on where the economy is headed

This is one of my biggest techniques which I elaborate during our seminars. My style is to invest on stocks where I know the economy is headed. One of which is I consumption. Filipinos love to spend money and I will invest in stocks where I know Filipinos will spend the most. That’s why I believe SMPH, WLCON, MRSGI, JFC, CNPF, MAXS, PGOLD, RRHI and PIZZA will be recipients of where Filipinos will spend.

3. Invest on assets that will take advantage of the low interest rate environment

Banks will do well since interest rates are low. Invest in banks because an economy cannot grow without banks. Banks will be one of the biggest recipients of our low interest rate environment. If you want to start your own business or venture into real estate, it would also be a good time to borrow because of the low interest rate environment. Just be sure to study the business very well, as starting a business positions you to a larger amount of risk.

4. Invest on a business that will make life more convenient for Filipinos

Think about Uber, Airbnb, Grab, Waze, and other businesses that have changed the status quo because they made life easier for Filipinos. Spot businesses like that and invest in them. Again the prevailing theme is that more Filipinos have more money now and they will be willing to spend more just to experience a degree of convenience.

5. If you want growth: avoid investments that give you fixed returns

Bank deposits, time deposits and bonds wont do well as interest rates are low and as the economy is growing.

6. If you want high dividends: invest in Real Estate Investment Trusts

Real Estate Investment Trusts (REITs), allow you to earn dividends off the leasable income of companies. Imagine a mall, listed as a REIT, you can buy shares of that mall and receive high dividends from its rental income. This is one of my favorite investments to preserve my cash.

7. If you want to diversify:  invest in an Exchange Traded Fund in another country

This is also one of my favorites because this allows me to position in other markets without going to the specifics of stocks in certain countries. This gives me the exposure to other countries and it allows me to diversify by investing into an asset that I know will do well and perform for the long term. One of my favorite ETFs, are the gold ETFs, as this gives me an exposure to gold without buying tangible gold bars.

In closing

I hope that the principles that I presented wont just remain as principles but you use them to your advantage this 2018! My greatest desire is to see more Filipinos invest and start businesses so we elevate our economy into heights that we have never seen before. It can be done and it will be done! We all have a part to make it happen!

Happy New Year!

New book and other books on Investing, Business and Finance.