Maids Can Invest in the Stock Market, Why Can't You?

Last week, I wrote about how to open PDF files on iBooks, and gave away a copy of Brother Bo Sanchez' free e-book entitled "My Maid Invests In The Stock Market... And Why You Should, Too!". As promised, I will be sharing my thoughts about this e-book, and how it has affected my mindset when it comes to investing in the stock market.

Before reading Brother Bo's e-book, I was already investing in the stock market, or should I say, trading in the stock market. I started with a capital of Php1,250 and was only able to buy the minimum board lot of one of the blue chip companies here in the Philippines. Fast forward two and a half years later and out came this ebook with a really catchy title. I mean, really? Maids? Investing in the stock market? Yeah, right! But after reading the whole thing from cover to cover, multiple time, I was kinda wishing Brother Bo published this e-book one year earlier, back when the economy was still down and most stocks were cheaper.

But let's not dwell with the past and just try to move forward. Through this e-book I learned that Money Cost Averaging is actually feasible in a rising any market. I've never liked this investing strategy, partly because, it requires a lot of discipline, and more discipline. But experience has taught me that cost averaging actually works. Details will be discussed in a future post.

"Be fearful when others are greedy, and be greedy when others are fearful." This is one of Warren Buffett's rules on investing, which was quoted in the e-book. Why did I highlight this? Because when others were fearful (because of the global economic crisis), I WAS TOO! And it cost me. It cost me a lot. Let's charge that to experience. "How much of a lost opportunity was it?", one might ask. Here's how much:

• MEG was worth around fifty centavos per share back in early 2009, today it is worth around Php 2.50.
• AP was worth around five pesos per share back in late 2008/early 2009, today it is worth around Php 25.00
• DMC was worth around five pesos per share back in late 2008/early 2009, today it is worth around Php 33.00

In addition to these two valuable lessons, Brother Bo gave us a freebie by actually listing down some stocks that he recommends (this was then only available to Truly Rich Club members). Here are the YTD performances of some of them: 

Notice that the stock prices of most of the companies listed in the e-book rose pretty high. Their growth rates beat interest rates of bonds + regular savings + time deposit accounts combined. For the one that didn't, well, it gave out huge cash dividends. :D

In a nutshell, "My Maid Invests In The Stock Market... And Why You Should, Too!" is a good read. Had this book been published one year earlier, it would have made a big difference in my net worth. But this is not about me. It's about you, my dear readers. This e-book makes you realize how easy it is to invest in the stock market. And how instrumental stock market investing could be to the achievement of your financial goals. Bo's maids can invest in the stock market, why can't you?