When you invest in a stock you become part-owner of that company. Owning a portion of a company means you are entitled to a small portion of the assets and earnings of that company. The Philippine Stock Exchange lists the companies we can own in the Philippine stock market.
Investing is not a one-time deal. It is a regular and continuous process where you add value to your investments. Invest in stocks regularly such as yearly or even monthly.
|Invest P10,000 at the age of||20||30||40||50|
|Invest in how many years||40||30||20||10|
|Total investment by 60||5M||2M||640K||185K|
|No. of years investing P2,000/month||1||2||3||4|
To diversify means to spread your investments and not to place everything in one stock. As they say, “do not put everything in one basket.” Choose stocks in different industries or sectors to spread the risk of your finances.