Investing in Stock Market

I am an avid reader of Bo Sanchez soul food newsletter. He inspired every one of his unique touches of message that I wouldn’t know will have a great impact in my so-called life.

The best contribution that sticks on my mind is about the financial freedom he profess and wealth-building seminars that he shared.

One lazy evening of August 2009, somebody texted me if I am interested in investing in the stock market. At first thought, this is a spam since the number is not registered in my phonebook. The only thing that makes me believe the sender is when I read below the message that she got my number from Bo Sanchez list from previously attended seminars which he refers.

Well, I thought I may give it a try since Bo is making a step to help us in our financial wealth.

I have attended the 4-hour free training at Philippine Stock Exchange building and it was great! I already have ideas in investing in stock market before but not this big. It was a sensational collaborative interaction that finally exudes me to continue investing in this famous stock market.

The stock market is the place where people can invest in ‘publicly listed’ companies. You invest into a company to participate in its growth and earnings potential. You can make money though the Share Price Appreciation and Earning Dividends.

Investing your money into solid growing companies potentially offer better returns over saving instruments and inflation. History has proven that investing in stocks, provides greater returns than most investors can earn through guaranteed savings; plus gives a good run over inflation.

The risk of investing in stock market diminishes over time, as it allows you to ride out the choppiness of markets. It allows you to benefit from the power of compounding as gains/dividend are reinvested and allowed increase earnings potential. Compounding is the act of reinvesting your earnings/dividends to accelerate the income generated by your invested capital.

Choosing quality stocks can dramatically increase your ability to learn. Some points in choosing stocks are:

1.      History of the company – make sure there are good stories to tell

2.      Foundation reputation

3.      Good service

4.      Market value over time

5.      Top percentage gainers

6.      Checking the latest quarter earnings report – revenue growth and earnings growth

7.      Big companies with stability

8.      Low debt

There are many ways to play the market and earn a decent living. You can start on this one!

Have a nice weekend!