- 12 minutes ago
Stock investing is often seen as complicated or inaccessible, but understanding the basics can help ordinary Filipinos make more informed financial decisions. From how stocks work and how investors may earn through dividends or asset appreciation, to the risks involved and how beginners can get started, financial literacy plays an important role.
A GCash speaker joins Beyond the Headlines to discuss GStocks PH, the basics of stock investing, what first-time investors should consider, and why learning before investing matters.
Join us on Beyond the Headlines. Look Deeper. Think Better.
A GCash speaker joins Beyond the Headlines to discuss GStocks PH, the basics of stock investing, what first-time investors should consider, and why learning before investing matters.
Join us on Beyond the Headlines. Look Deeper. Think Better.
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00:00space so that you know it's readily accessible as in when we need it for our short-term needs
00:07so that's where investing comes in so investing is the second phase of your financial journey
00:12wherein after building the solid foundation we now start to build the structure in our financial
00:19portfolio so just like in a house you know there are different components in a house different
00:24you know rooms in a house with different purpose you have the living room it has this purpose that
00:29kitchen the dining room and the bedrooms and in the house there are also systems in place so that's
00:34how your financial portfolio should be and those investment products will form part of your financial
00:41portfolio each product will have its purpose in your portfolio so for investments the primary purpose of
00:49your of investments in your financial portfolio is to grow your wealth so investments in general
00:56of course should outperform your savings and why is it important to invest well the number one um i
01:05would say the number one uh villain in in this uh financial uh superhero story if you think about it
01:12would be inflation and everybody talks about it now before inflation is just a headline but now we feel
01:18it every day you know the the rising uh cost of uh fuel prices at the pump is really not
01:25just affecting
01:26transportation but it's affecting um all the essential goods and services uh down the supply chain
01:33and that affects also our money so if you set aside money in the bank and the bank is paying
01:38you what
01:38three and a half percent per per year that's a good interest rate by the way because that's what's being
01:44offered by the digital banks if you go to the traditional banks the interest rates are much
01:49lower so what does those numbers mean three and a half percent it doesn't mean anything if you don't
01:54compare it to a benchmark and our benchmark here would be the inflation inflation the inflation rate is how
02:00fast um are the prices of goods and services rising and as of the latest report it slowed down but
02:08it's
02:08still accelerated at 6.1 so that means if your money is in a bank earning three and a half
02:13percent
02:14per year but the price of goods and services is rising are rising by 6.1 percent then that's that
02:20means
02:20you're worse off that means after a year's time the money that you set aside in a bank
02:25is worth less because it's buying you know it can afford less goods and services so that's where the
02:32investment part comes in so the investment part is not only meant to preserve the value of your money
02:37to preserve the value of your capital but more so to grow it and and personally i truly appreciate
02:43no how you underscored the relationship between inflation and interest that we find in banks
02:51because not everybody at least in my circle have that appreciation to make benchmarks and comparisons
02:57every time they see these figures so now i'm not sure if you've heard about this but i'm also hearing
03:04a
03:04lot of misconception that before someone could particularly engage in stocks and the stock
03:09market they need to be wealthy is that true well you don't need to be wealthy or a millionaire to
03:19start investing but you can potentially be wealthy or become a millionaire when you do invest so i guess
03:27that's uh that's that's that's a proper way to actually put that uh into context um but yes uh the
03:33the misconception is true um people think that the stock market is only for the rich uh a lot of
03:41people
03:41have the impression that they need millions of pesos or hundreds of thousands of pesos to start
03:48investing but the reality is it's not really in the amount that you start um with but rather in the
03:55consistency and the discipline as you move along you see we do not build wealth overnight um not every
04:02one of us have the you know the benefit of um you know being second or third generation wealth so
04:08for
04:08those that are really going to build first generation wealth you really have to start small and uh for
04:14stock market investments it can be as low as uh you know less than a thousand pesos because the minimum
04:20investment really depends on the stock that you want to buy um so yes it's very accessible it's very affordable
04:27um the the minimum investment that you can start with in the stock market is less than your typical bill
04:36in a restaurant my god i had breakfast earlier um and i just compared your typical spend in a restaurant
04:43for one person a full service restaurant is anywhere between 600 to 750 pesos and the last time i checked
04:51um all the stocks listed at the pse um considering the minimum required you know minimum number of
04:58shares required to buy the stock it can be as low as 500 pesos for some companies so think about
05:04that
05:05it's really accessible it's really affordable and then then then you raised also something that i
05:11personally like because we talk about inclusion so it's already accessible and available to more
05:17everyday filipinos now it is our time to make that decision also and to invest responsibly responsibly
05:25so to to to convince further you know those of our friends who are watching who are not yet
05:31into stocks how can they actually make money in stocks so yeah there's two ways that we make money
05:40in stocks uh firstly through is through capital appreciation so that's when you buy a particular
05:46company or a particular stock at a certain price and then when the price goes up you can sell that
05:52stock and then you know you make money out of the difference so i just would like to explain why
05:58uh you know stock prices move either up or down again it's an investment that reflects ownership in a
06:07business so the primary fundamental here would be the underlying business so if the underlying
06:13business is performing well if the underlying business is expanding growing its revenues and profits
06:21then naturally the value of the ownership of the part ownership that you bought into that business
06:28would grow therefore the stock price would also reflect that the stock price would also increase so
06:35that's capital appreciation because you're putting your money in a business a business a business that
06:39operates every day with the purpose of maximizing shareholder value then of course you should expect
06:46that your capital uh will appreciate and that will be reflected in the stock price so and it you know
06:52it can
06:52it can move um uh at different paces depending on of course uh a lot of factors but yeah there's
07:00that so
07:01for example you can buy a stock for one peso after a year the stock will be trading at two
07:06pesos
07:06and then you you would have potentially doubled your money of course there's no guaranteed returns here
07:12so these are all potential returns so there's the capital appreciation part that's one way to make
07:17money in the stock market the other way to make money in the stock market is through dividends so
07:23dividends are you know shares in the profits of the company that are distributed to the owners so when
07:32i say owners the shareholders or the stock holders including yourself if you already bought a stock into
07:38that company so after every business cycle the company would determine how much their net income is
07:45and then from there would declare dividends and the dividends will be distributed to the shareholders so
07:51this can be a form of passive income on top of your capital appreciation now if you want to maximize
07:56returns and growth in your in your stock investment what we highly suggest that if you don't need the
08:02dividends once you receive the dividends you can just invest it back so that you get more shares
08:07you you make your ownership bigger so yeah there's actually two ways for you to make money in the stock
08:13market and um historically speaking um i looked at the 30 year uh historical returns of the
08:20psei um it it generated an eight percent compounded annual growth rate what does that mean if your
08:30money is if you put an investment that that gives you at least eight percent compounded annual growth rate
08:38and you hope and you keep that investment for 20 years which is you know your typical uh lifespan for
08:45an
08:45investment for retirement assuming you start at 30 you would have tripled your principle in 20 years
08:52so that's what eight percent compounded annual growth rate means so so my point is probably right now
08:59they're seeing the stock market as sluggish uh moving sideways but this is just a part of a greater mic
09:05you know this is just a market cycle from a greater uh long-term uh market trend so um i
09:14see this as an
09:14opportunity for uh for for for our viewers to look at really good companies um that are now trading at
09:22very low values um because of you know uh economic condition so yeah um think about it as if you
09:30go to a
09:31mall there's a mall wide sale and uh you know you select uh stocks to buy yeah and and you've
09:39mentioned
09:40also about uh certain parts or portions of everyday filipinos who are also a little bit more skeptical
09:47given the current conditions and their impression of such so my next question is also just as important
09:55how can an investor also lose money in stocks and what they should or should not do to avoid this
10:05yes so um you know just like any other investments um there's a potential to make money there are you
10:12know there's a reward to to your principal investment but those rewards would also come with risks so the
10:19higher the potential reward the higher the potential risks as well and um yes that's true people can
10:27lose money in the stock market if uh they actually don't know what they're doing so again i'll go back
10:32to
10:33the fundamentals um you have to understand the underlying business you have to see if that
10:40underlying business will withstand the current market situation okay so there are businesses that
10:47regardless of you know challenging market conditions they will continue to make money
10:51because they produce essential items so that can be a good start okay um so so there's that now for
10:58those
10:58who are trading stocks or investing in stocks and they're doing it speculatively without studying
11:04the company without looking at the financials or even you know studying the broader market
11:11they potentially would lose in short-term trades because that's how the markets work
11:15um stock prices and the market in general go up and down in the short term that's how it works
11:22you look at
11:23the chart you know it's it's it seems um i would say very volatile you know very malikot it goes
11:31up it
11:31goes down but if you zoom out because if you're looking at it say for a six month view it
11:37looks very
11:38volatile and there seems to be no clear direction but if you zoom it out zoom it out for two
11:42years five
11:43years you can see the trend so clearly so i guess another way to avoid uh losing um not only
11:51in stocks but
11:53for investments in general would be to align um the investment product with your goal in your
12:01investment horizon okay so here's what i'm trying to say if you're gonna need the money if you're if
12:07you're gonna use the money within the next three months or the next year don't put it in a stock
12:12market i'd rather you just put it in savings or put it in you know higher interest earning time
12:18deposits but if you're not going to use the money in the short term say you'll need it three to
12:25five
12:25years from now then you can invest it in a stock market that's how it works the longer you stay
12:31in
12:31the market the better chances of you actually uh getting uh positive returns so it's really you know
12:38a lot of people are trying to time the market so meaning they're trying to look for the perfect
12:43timing to get in and get out if you're really good at what you're doing you're actually going
12:48to make money there but for those who are trying but you know don't know enough yet chances are they'd
12:55lose so what we say is really time in the market meaning how long you stay in the market beats
13:02timing
13:03the market or trying to trade the market so it works better for um you know for investors who are
13:11there buying quality companies quality businesses um you know investing for the long-term growth
13:19potential of the business and then staying invested because aside from the price movement there's also
13:24the dividend payouts so say even if the stock price goes down for you know this year the company
13:31will still be profitable the company will still be paying out dividends so you know the returns are
13:37still there so yeah it really you know you have to you have to invest um that in products that
13:45would
13:45match your goals that would match your investment horizon actually i'm also learning so much from
13:53this conversation yeah i was able to have that appreciation of the time element and yes there is
14:01still no shortcuts now we need to understand what the eggs that we have and what are they for
14:07and to understand also about exactly no before we put them in so because this conversation is helpful
14:14to me and i'm sure to our viewers what if at this point in the conversation they already said okay
14:19i'm
14:20interested but i don't know where and how to begin so can you tell us more about g stocks ph
14:27yeah oh i'm glad you asked about it um so we've made stock investing very accessible um before uh an
14:37investor would have to go to a an office of a stock broker uh to actually open an account because
14:43they
14:43need to do a physical appearance as part of the kyc process of the know your your customer process
14:49forget about all those because now in g stocks um you can actually open an account from the comfort of
14:55your home all you need is your mobile phone your gcash uh app your gcash account and of course a
15:02stable internet connection so you know um log into your gcash app and from there uh you'll see four
15:09tabs at the top um it starts with the wallet then there's also a save tab uh a borrow tab
15:15and an invest
15:17tab so you tap on the invest tab and then from there you'll see the selection of investment products
15:22available within the gcash app including g stocks and that's it so tap these stocks and
15:29when you tap these stocks you will be redirected to our partner broker our partner broker is ab capital
15:35securities ab capital is one of the 124 active uh licensed uh stock brokers in the philippine stock
15:45exchange uh the account opening process is very easy it's real time um when you do open an account
15:52uh the first step would be not for you to enter your details because we already have those so the
15:59form is already pre-filled out all you have to do is review your details see if everything's in order
16:03and then from there confirm after confirming um we'll ask for additional details um i think this is
16:10really more on the address but everything is a drop down and then from there click next and that's
16:16it your account is already open um the entire process is probably two minutes or less depending
16:21on the user and your account is instantly approved there is no approval process that you know would take
16:29one or two days unlike with other brokers in our case your account is instantly approved and right
16:35after opening your account you can have access to you know the online trading platform the online
16:40trading app you can see all the stocks you can see all the indices real-time market data feed
16:44and of course access to our research so from there you can top up your account and uh topping
16:52up your account is also easy you wouldn't need a bank account because the source of the funds will
16:56just be your gcash wallet and the the the cash in process is you know a two three step approach
17:04so from the home page of your g g stocks app you will see there a cash in button just
17:09tap
17:09the cash in button key in the number of uh you know the amount of money that you want to
17:13put in
17:14say 500 pesos or 1000 pesos and then click next and then from there um your account will be funded
17:21instantly also and once your account is funded you can select the company that you want to buy
17:27place your buy order everything is easy to use it feels like you're just using social media
17:31so from that from the time that they that you know our viewers are seeing this video they can open
17:38their account they can fund their account they can invest um all within the same day everything is done
17:46real time and also uh sorry i just wanted to add aside from secondary market trading we also have um
17:54primary market offerings available in g stock so whenever there's an ipo initial public offering or a
18:01follow-on offering our investors can also participate also through the app you've mentioned um instant
18:10approval earlier does that mean that everyone is eligible or are there still filters that our viewers
18:17need to be more mindful of so that their application gets approved immediately right right well thanks for
18:25asking i forgot about the eligibility um okay first uh you have to be at least 18 years old so
18:31um for our
18:32gcash users that's you know that's the first requirement anyway um uh you have to be at least 18 years
18:38old you have to be a filipino citizen um and you need to have a fully verified gcash account now
18:46a fully
18:46verified gcash account would allow us to initiate that kyc because we have all the in pertinent information about you
18:54um so if your account is not yet fully verified i suggest you do so upgrade your gcash account
19:01um from a basic to a fully verified it's very easy um you just go to your account uh within
19:07gcash app and
19:08uh you know submit the additional required information i think you also need to take a photo of your id
19:14and
19:14upload it in in gcash it's a very easy process that you can do at home so when you have
19:19a fully verified
19:20gcash account you're filipino and of course you're at least 18 years old you can open a gstocks ph
19:26account so basically it's available to almost all the users and and i'm glad because i just turned 18
19:35yesterday but but anyhow no no but before i was just kidding but before we happy birthday
19:42no no no no but before we end this conversation john because i know this has been educational for
19:50me and i'm sure for our viewers if you have one final advice for our viewers so that they will
19:59have
19:59to get themselves started no with the stock market and also with investments in general what would that be
20:06okay the first best investment that you can do is an investment in yourself so it's very important
20:11to educate yourself do your own research at the end of the day is your real money hard-earned money
20:17that you're putting into the market so you want to be sure at least well there are risks but you
20:22want
20:22to be able to do your you know your due diligence and that you're almost sure that you're putting your
20:27money in the right assets that actually would fit your uh personal profile and your investment goals
20:34now um at gcash we ensure that our users um receive the proper education and guidance uh through
20:43our continued continued um market education and advisory efforts so um we continuously provide the
20:50guidance to you so that you know doing your own research will be easier we provide bite-sized
20:56information i invite everyone to uh join us in facebook we are on facebook we have a facebook
21:02community that's g invest community on facebook i'll say that again g invest community on facebook
21:08here um at least you can see the market updates uh you know together with your facebook feed and
21:16it's a very very healthy community um the members are active they're sharing their experiences
21:22um healthy conversations about how to be better at investing how to make better returns
21:27and uh from there um we also have our para coach uh within the gcash app so para coach is
21:34our ai
21:35powered wealth coach um you can use para coach it's free um interactive para coach a para coach can give
21:44you guidance not only in investing but everything that you need um in personal finance may it be budgeting
21:50saving or you know any questions that you may ask and uh what i really like about para coach is
21:56that
21:57i know we've been speaking english the entire time but para coach uh converses in the language that's
22:02most uh you know comfortable to you i understand um this program is based in cebu so uh para coach
22:10para coach is very fluent in cebuano so that's financial inclusion at its best oh you bet
22:20thank you very much uh john for your time and for this conversation it has been insightful
22:26for me and i believe for the rest of our viewers thank you thank you dj and more power to
22:33your show
22:34so the stock market may be accessible but accessibility and understanding are two different
22:41things the important thing is not simply having access to an investment platform
22:47the better important thing is also knowing what you are investing in understanding the risks doing
22:55your research and making decisions based on your own financial goals and capacity because when it
23:03comes to investing knowledge should come before action so i'm dj moises and shout out to coffee first
23:11for supporting conversations that matter this is beyond the headlines let's continue to look deeper
23:17and think better have a good afternoon
23:25it starts with a fresh shot of espresso
23:29bold rich pulled just right then comes the milk steamed smooth creamy and balanced the perfect latte is not
23:43brushed it is crafted one cup at a time your perfect latte is ready coffee first then everything else
23:58is
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