2. WHY Invest?
Investing is the most effective way to
build your personal wealth and reach
your financial goals!
Retirement
Children/
Education
Cost of
Living/Housing
Stock Market 101 -
michellelyncruz.wordpress.com
3. WHY Invest?
Safeguard capital against INFLATION!
YEAR
1970 100
1980 162
1990 265
2000 432
2010 704
If I could buy an item for Php100 in
1970 – what about today?
Inflation measures
the rise in the cost of
goods; it is the rate of
which the purchasing
power of money falls
by if not invested.
Stock Market 101 -
michellelyncruz.wordpress.com
4. Why invest in the stock market?
• The Stock Market is the place
where you can invest in
‘publicly owned’ or PSE listed
companies
• You invest into a company to
participate in its ability to grow
and earn profits
• You make money through:
– Price Appreciation
– Earning Dividends
Stock Market 101 -
michellelyncruz.wordpress.com
5. Stock Market Superior Track Record
History has proven that investing in
quality stocks can provide greater
returns than most instruments;
giving a good run over inflation…
0
1
2
3
4
5
PSEi 91 D T- Bill Inflation
Series 1
Series 2
Column1
Effective Annual Yield
As of Dec 2014
Stock Market 101 -
michellelyncruz.wordpress.com
7. Peso Cost Averaging
Peso Cost Averaging is a personal
wealth-building strategy that involves
investing a field amount of money at
regular intervals over a long period.
Month 1
Month 3
Month 2
Buy Php 5,000 worth of stock ABC at
market price
Buy Php 5,000 worth of stock ABC at
market price
Buy Php 5,000 worth of stock ABC at
market price
Designed to reduce market risks by
stretching out the purchase of stocks over
time, buying more when prices are low and
buying less when it is high, effectively
keeping your average cost down.
Stock Market 101 -
michellelyncruz.wordpress.com
8. Peso Cost Averaging
You buy less shares when
prices are high and more
shares when it is low
Your average
cost remains
low
Stock Market 101 -
michellelyncruz.wordpress.com
9. Cost Averaging
A viable long term plan
Stock/Indicator Effective
Annual Yield
Time Frame
TEL 13.6 % 20 yrs
BPI 16.0% 20 yrs
ICT 6.4% 18 yrs
Retire with an Extra 10 Million!
Invest Monthly Php 5,000
# Years 21
Return Rate 16.0%
Total Investment(P) 1,260,000
Will result in a…
Future Value (P) Php10M
Investment Gain 740%
Stock Market 101 -
michellelyncruz.wordpress.com
10. Top 10 Winners of TrulyRichClub’s Stocks
Stock Market 101 -
michellelyncruz.wordpress.com
