It Can Never Happen?

While pessimism warns us of dangers lurking before our very own eyes, optimism may propel us into false security. Pessimism should only be considered initial and not a final predicament in any situation – this is the first step to success.

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Time and again, we have been subjected to instances that are disturbing, and deep within us we ‘realize’ the potential dangers and risks surrounding us, and the ‘voice’ within adamantly rejects this threatening situation confronting us, as such because we fail to recognize this ‘voice’ within us our mental clinging to the outer world detaches us from the inner voice of ‘TRUTH’ thereby throwing us totally of the tracks as it were.

The second step to success and wealth is to convince yourself of the importance of self-control, self awareness and self-discipline.

We must listen to the voice within and realize the existence of the innate force or the Dynamic Willpower – the mighty power expressing through the mind, body and the intellect! Thus the second step qualifies that you develop faith in not just what you can do and achieve but most importantly developing faith in yourself (your innate, inherent and latent qualities).

Step three requires that through constant vigilance, employing the power of intelligence, self analysis and introspection and through careful understanding and use of these concepts, you can learn to live beyond the demands of the mind in whatever environment you find yourself – this will qualify you to implement and embrace the road to wealth.

There is no such thing as a free lunch. If you hate to put in any work/effort but love to attain success, you will have to reconsider your views.

So to achieve the latter, you have to do the former and the sensible idea is to find out what really gives us pleasure and then find out if it is possible to make money from doing it.

“If you do not start you will not succeed.”



The statement ‘haste makes waste’ stands true even today, and more often than not, some of us tend to feel frustrated when we cannot live up to our ideals and the standards we set for ourselves all the time.

On other occasions, we may feel that had we taken the challenge that came our way that perhaps things may well have changed for the better, yet there is also the possibility that in our over anxiety to reach the goal we try too hard and burn ourselves out entirely!

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Has This Happened to You?

The question that now remains to be asked how do we begin, how can we achieve success in life?

Well, my friend, rest assured that this blog has been written to answer this question satisfactorily, eliminating confusion or anomalies whatsoever.

There are many strategies that one can employ and various means through which you can plough yourself to achieving the goal. One common thread in all of them is self-belief, self-righteousness or honesty and ethical living (in words, deeds, thoughts and actions) pertaining to your lifestyle – this is Step four.


In any business the emphasis on moral and ethical standards ranks the highest, and this should not be ignored or overlooked.

The only way to achieve equanimity, balance or equilibrium even after you become the wealthiest individual is to have your sense of realizing the true essence of life.

Nothing in life is constant. Life is ever changing and things that seem to have existence today may cease to exist tomorrow and this is a fact that you – and everyone else – must learn to accept.

Step five, when you discover something profound and beautiful, the natural tendency is to share it with others.
In the following blogs what you will discover are the true ways to achieve complete success, and this is a blog that will allow you to unleash your innate qualities to the fore, thereby allowing you to reap the benefits and the rewards that thousands of people all over the world at this very second are enjoying because they have become wealthy.

Following the guide within the coming blogs, and it is my sincere believe that every person has the potential to succeed in life.

“Wealth is more than just money.”

The 5 Principles to Unlocking Wealth

These principles are a key to unlocking amazing cache of wealth, abundance and success. They are all centered on our true innate qualities, which as a matter of fact are universal and have a spiritual basis. These principles are:

• Truth
• Righteousness
• Peace
• Love, and
• Non-violence

The practice of these virtues will enable anyone to progress in life without any doubt.

The reason is simple.

These universal principles are all attractive and needless to say, they form the cornerstones of the code of ethics. You cannot go wrong practicing the importance to moral values, codes of conduct and obeying the Law of Nature in your pursuit of Wealth.

In the coming blogs, you will discover the goal of reaching financial freedom while at the same time, acquiring the perfect art of happiness through the understanding that the measure of joy is not ‘directly’ proportional to just monetary wealth.

This concise, precise and straight-to-the-point blog explores avenues that are most definitely going to change your life for the better.

Unlike many other blogs on the same subject, this blog delves on subject areas relevant to aspects of your personal life and growth that I can guarantee will bring back that smile on your face.

Rewire Your Wealth Beliefs

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      Once upon a time, I was a grade five student studying in Angeles City. We live in a resettlement provided by the government since our barangay was ravaged by volcano lava. Our house was buried in mud and the whole community was covered by sand and lava . In fact, most of the houses' roofs cannot even be seen. The eruption of Mt. Pinatubo almost removed our barangay from the Philippine map. Our barangay became an ocean of sand.

Be an absolute realist and eternal optimist
Years later, the volcano tamed and pulled all its fangs against our province. People began visiting the scar-plagued community we live in.The visits became regular and the people starts to build houses again. My father built a small house also as well as a piggery to support our living. He even managed and cultivated some sugarcane in our barangay of which this day is still existing. During those years I am coming with my kin in visiting our beaten barangay. One day, they discussed about the future of the children. Since I am a valedictorian in elementary and an honor lister in high school, they have high hopes on me. One man suddenly blurted out that I will never be a successful person. That I will never be able to buy a car. Somehow, as a young man who is just starting to shape it's dreams began to doubt its ability and confidence. I was shaken.

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That comment lingers in my mind for many years until I decided that it's time for me to carve out my own future and bring out the best in me. I hired successful mentors, associated myself with great people and began borrowing the ideas of my heroes. My heroes are my father who is an epitome in rewiring old thoughts into a winning attitude, my boss for his business acumen and developing his employees potential, Bro Bo in spiritual and wealth abundance, Robin Sharma in leadership skills and others. The four people mentioned above are the cornerstone of my belief and in the building of my character. I borrowed most of my ideas and beliefs from them. There are also great people whom I admired so much like Dr. Jose Rizal for patriotism, Abraham Lincoln for focusing in his dreams despite various setbacks and crippling challenges and many more. In fact, I have a lot of books from others. I do get a lot of inspiration in reading books.

Rewire Your Beliefs
      Are you familiar with Julie's Bakeshop? The owner, Tita Julie has 500 branches scattered all over the Philippines. Bro. Bo asked Tita Julie on what is the secret of her success on the 70th birthday of Tita Julie. Tita Julie said "Everything I need comes to me!" What a wealth belief! Imagine what kind of life you would live if you wake up every morning with that thought, and you believe that in your mind and heart, everything you need comes to you. Do you need certain wisdom and knowledge? It will come to you. Do you need money and capital? It will come to you. Do you need people to help you in business? They will come to you. You've got to believe that those things that you need will come to you and they will.

Always Make Your Cup Empty!

Recently, I received an e-mail from my friend. I am posting it here for everyone's view.

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"A master was trying to explain something to a student. Now this student was not a brand new student, but a senior student who had learned many things. He had knowledge and experience aplenty to draw upon. But each time the master tried to explain something new to the student, the student kept trying to hold it up against his own notions of the way the world is and how it ought be, and he was unable to see the lessons in what the master was trying to teach him.

Finally, the master poured a full serving of tea into his own cup, and into the cup of the student. Then he told the student he wanted to give to him some of the tea from his own cup. He began pouring tea from his cup into the student's cup, but the student's cup was already full, and all the tea from the master's cup spilled out over the cup onto the surface below. The student said, "Master, you can't pour anything into my cup until I empty it to make room for what you are trying to give me.", and the master replied "Yes I know."
"And I can't give you any new thoughts or ideas or perspectives on life's lessons until you clear out some thoughts that are already teeming in your mind to make room for what I have to teach you.

" Then the master paused for a brief moment, meeting the student's eyes with his own knowing look and calmly but sternly said: " If you truly seek understanding, then first, empty your cup!" The student pondered for a moment with a look of absolute bewilderment. Then a look of enlightenment came over him, followed by a smile, and a look of receptiveness. The master started to explain again, and this time the student saw what the master was trying to say."

  

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"Learners are Brave"

        Great people love to learn. They have this endless thirst for knowledge and wisdom. No matter how many titles, Phds and millions they have, they keep on learning. Yet, most of us ordinary persons who are supposed to be hungry for knowledge resist learning. Unknown is scary for most people. When new ideas or concepts begins to challenge our thinking, we get frightened. We are afraid to leave ou

r comfort zone. We do not want to risk on anything that is not familiar to us. Thus, most of the times we are rejecting some challenging situation in our life. We do not know that the most fruitful and liberating moments in our life will come from taking risks outside our comfort zone. It is in taking risks that will mirror the inner strength we have within. 

Some people say that success lies in the courage zone, a place where courage is taking over your fears. Always put yourself in the courage zone. Sometimes, the comfort zone which we feel safe is the most dangerous place in our life. 

Great people read books daily. They have lust for learning. Some of my heroes even have libraries. These people also felt uncomfortable when faced by a daunting task and yet they proceed in grasping new ideas because growth is there. 

I remember Thomas Szasz who says: “Every act of conscious learning requires the willingness to suffer an injury to one’s self-esteem. That is why young children, before they are aware of their own self-importance, learn so easily; and why older persons, especially if vain or important, cannot learn at all.”

I Broke my Piggy Bank!

Today, I broke my piggy bank (figuratively). After six months of putting my leftover coins during the day, I almost collected 500 dirhams (equivalent to 6,000 pesos). Not bad for someone who is just putting all the coins left in his pocket at the end of a wonderful day.


About a year ago, I bought a penny box with Spiderman draped all over its skin. It's the only available penny box that suits me because all other kinds of penny box are for females. You have Barbie, Dora, Sailormoon and Hello Kitty. Everyday, I am putting all my coins there at the end of the day.



After six months, my wife went to the Candy Store located in Dubai Mall together with her friends. My wife likes going to that store whenever she is in Dubai Mall. It's one of her therapy actually. When they went to the Candy Store which is just opposite the Aquarium, she remembers me. And since she knows that I am fond of saving even the smallest amount of money, she bought this gigantic Hershey you can see at the left. At first glance, you will mistaken it as a giant Hershey full of chocolate syrup. If you will not weigh it and check the slit at the tip of the bottle, you will not think that it is a penny box.


The 500 dirhams coins we saved were used to purchase 3 grams of gold. My wife went to gold souk and purchased 3 grams of gold coins. She kept the receipt and hide the coins 100 meters below the sea level (just kidding). 




Small Things Carried Out Everyday Produces Stunning Results Overtime
       Did you ever dream of becoming a millionaire someday? Most probably, the answer is yes. Perhaps you want to help your parents when they are old or send your siblings to school. Or maybe you want to take care of your future and establish a college plan for your children. Or perhaps your uncle is so poor his life entirely depends on your generosity. There are millions of reasons why a person is dreaming of becoming a millionaire someday. Or maybe you are struggling in your finances right now and you want to get out of your situation. The quick solution is to buy a lotto ticket and hope that you could be the lucky winner of the million pesos jackpot. Or go to Eat Bulaga or Happy, Yipee, Yehey gameshow and hopes that ladyluck will strike you.


There is nothing wrong in hoping but the chances of winning the lotto jackpot is almost nil. The percentage of winning the jackpot is .0000002%. There are no quick riches. In fact some lotto winners lives are worse after a few years than when they did not won. I am not saying you should not buy a lotto ticket, you sure can buy but do not depend on luck to become a millionaire. Create your own luck. Luck is nothing but the marriage of preparation and opportunity. 


Breaking my penny box will surely not result to millions but it is a good starting point for me. I remember this words from Ralph Emerson Waldo,Sow a thought and you reap an action; sow an act and you reap a habit; sow a habit and you reap a character; sow a character and you reap a destiny.  It is the habit of valuing money which in turns forms part of of your character. 


Piggy Bank Savings Enough to buy 3 Grams of Gold Coins
 If for 20 years my wife will keep buying 3 grams of gold every six months from the penny box, she will accumulate 120 grams of gold total. At the current price of 177 dirham per gram, that is equivalent to 21, 240 dirhams (more or less 250,000 pesos). Not bad for someone throwing his coins in the penny box. Obviously, if these coins can generate some money in the future, how much more when you save a big chunk of your salary in your savings account. We are not talking about coins here anymore who can generate 250,000 pesos in 20 years but paper money whom you can accumulate to become a millionaire someday.


I am sure you we can.

Half Empty, Half Full Glass

What can you see on the glass image on the right? Is it half full or half empty? Some people will say it's half empty while other people say it's full.

The glass is either half full or half empty. It is your choice that will make the description of the glass correctly. If you think it is half empty, then you are correct. But if you say it is half full, you are also correct.

What I am trying to point here is that an event or situation can be perceived as negative or positive. It really depends on how you look at it.

Recently, I bumped my good friend whom I admire so much because of his integrity and cheerfulness. He smiled a lot and little by little as the conversation took longer, his heart is about to confess one of the most uneventful part of his life. I listened while he is pouring his hearts out!

"Everything can be taken from a person but one thing: to choose one's own attitude in any given set of circumstances, to choose one's own way."


"My wife and I have been married for years now and still we don't have a child. My wife is really frustrated on our situation. So, what she did was, she went to the doctor and asked for a diagnosis. The doctor told us to do this and that in order to conceive a baby. I did my part as well by going to the doctor and be examined. For a couple of weeks,we are taking the medicine prescribed by our doctor. We followed every bit of advice she offered. On the day of we tested if my wife is pregnant, she was slightly positive. There is hope! And so we took care of it and the doctor advised us that on this date, we should take a test again in order to make sure that the baby was conceived. We waited for that day as though it was eternity. My wife is getting scared as the days passed by. Finally, the night we were waiting has arrived. The next day will either break or make our hearts. "

"We didn't have to wait for the judgement day because on that night itself, right before we were going to sleep, the inevitable happened. My wife went to the washroom and horror upon horrors, there is blood coming out! The situation is soul crushing!  We were devastated so much so that my wife kept on crying the whole night. I will tell you that our hearts our broken. Next day, the blood still came out. My wife went to the doctor to confirm what we had suspected, there is no more sign of a baby! Throughout this ordeal, I stayed with my wife, comforting her and listening to her and absorbing every pain she went through. I on the other hand is devastated as well, but with a twist. I knew that ordeal is a positive sign that after all these years, there is hope after all. It is just a matter of time but soon we will have a baby."

"For every tear that my wife shed, I am pulling one kilo of strength for my soul. Oh yes,it will come, it will come, it is just a matter of time."

In financial matters, the same rule applies. I have a friend who earns more than a hundred thousand pesos and yet he is buried in debts. His credit cards are fully utilized and the banks are running after him. He is stressful and always worried.

My other friend on the other hand earns 30,000 pesos only and yet he has more than enough for his savings. He always thanked God for the blessings he has been receiving. He is very generous and a loving father to his kids.

My Stock Portfolio

As a stock investor, perhaps you are wondering what are the stocks I am buying. Well, I have bought various stocks already and sold them at a profit. After selling all my stocks before, I purchased again every month and below are the current stocks I have.

Action	Stock Code	Market Price	Ave. Cost Price	% Gain/Loss
BUY | SELL	ALI	15.9000	15.0918	5.36%
BUY | SELL	FPH	60.7000	62.8556	-3.43%
BUY | SELL	MWIDE	11.0600	8.9262	23.90%
BUY | SELL	SCC	214.8000	213.5281	0.60%
BUY | SELL	VLL	3.1800	3.1794	0.02%

ALI - is the largest and most diversified real estate company in the Philippines.ALI is a brand of it's own. A company that sets the benchmark in almost every aspect of real estate industry.

The share price against it earnings is expensive. Investors are willing to put a premium to the price of it's share given it's vast knowledge and experience in real estate. Since the company has 4300 hectares of land bank, it is well position to capitalize on the hot property market in the next ten years. Net income has been growing every year except in Year 2009. 

The net income for the 1st quarter is 1.6 billion pesos and it's well on it's pace to break it's previous net income record in Year 2010. Liquidity is not an issue also because the current ratio is 1.96:1 for the 1st quarter of Year 2011. The debt to equity ratio is also good at .53:1. Overall, ALI has huge cash in the coffers and can capitalize on every market opportunity.

Since the company is growing and with it's steady net income and on it's way of achieving it's 10 billion pesos net income target, it might be beneficial to include it in the stock portfolio.


FPH - this stock is recommended by Bo Sanchez.(by the way, if you want to know his stock recommendation, please click on the Truly Rich Club banner on the right side).


I checked Citiseconline's research on this and below is there analysis on FPH.


Cheap from all angles.  FPH’s is cheap, no matter how you value the stock. At Php57.00,
the stock is trading at a 30.3% discount to its market based NAV of Php82/sh.  It is also 
trading at a very compelling 2010E P/E of 8.7X vs. the PSEi’s 10.5X.  Moreover, FPH is 
currently trading at a steep 28.75% discount to our fair value estimate of Php80.00/sh, 
which is conservative since it includes a 20% holding company discount.  


Cash hoard now secure. FPH will be in a net cash position of Php7.6Bil following the sale 
of its 6.7% stake in Meralco to the Metro Pacific group, based on our estimates. FPH plans 
to use its cash hoard to maximize shareholder value.


FPH could be one of the highest dividend paying stocks this year. After resuming its 
Php1.00/sh cash dividend in 2009, management said it will pay a Php2.00/sh this year. 
Based on a Php2.00/sh cash dividend, FPH’s dividend yield would be 3.5%, making it one 
of the highest yielding issues in the market.


MWIDE - The outlook for the property sector is bright because of the strong economy, growing OFW remittances and skyrocketing tourism. The ties of MWIDE with Henry Sy will ensure billions worth of revenues in the coming years because SM Malls are sprouting like mushrooms everywhere. Also since MWIDE uses high technology in construction (it is the first company actually to extensively use advance technology), it has a big advantage right now compared to Ayala Land and Megaworld. It is also setting up a billion pesos precast manufacturing complex that will increase its production and lead time.


MWIDE is bidding for government projects also this year as it tried to spread the profit from SM to other clients.


SCC - is a defensive company and is not vulnerable from cyclical downturns. It is a great company with competent management. The power plant business is slowly gaining momentum and will realize its full potential in a couple of years. Global demand for coal is soaring coal prices are skyrocketing. Being the only large scale coal producing company in the Philippines, it is well established to capitalize on global energy demand and a rising Philippines expected to gobble up more electricity. As one of the large companies giving a large dividend pay-out, it’s worth including SCC shares in my portfolio. 


VLL - After checking the Price Earnings of other real estate listed in the stock market, VLL is on the bottom part but I believe that sooner the correct fair value of the company will reflect in the market. The recent buy back of the Company and the management's confidence in their own internal processes and financial condition, reflects the company's belief that it's share price is grossly undervalued. The current ratio is very strong, and the longterm debt are manageable. 2011 could be a record year and given the hot property market still soaring, VLL can capitalize on this. It is a cash rich company and it's subdivisions are well known throughout the country.

The ratios and key performance indicators I mentioned above were based from 1st quarter 2011 reports. It's latest financial reports strongly suggests that VLL is undervalued and is currently selling at a bargain.

Stock Market Terms and Definitions 2

In the previous blog, we have discussed some of the stock market terms and definitions. These stock market terms like Closing Price,Target Price, Outstanding Shares, Market Capitalization, Sales, Net Profit, Earnings Per Share, Net Profit Margin, PE Ratio, Dividend Yield, Price to Book value, ROE can be seen in http://theofwinvestor.blogspot.com/2011/07/stock-market-terms-and-definitions.html

We will continue with the definition of other stock market terms. Here we go.

Common Stock - A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders and other debtholders have been paid in full. 

Example: Randy Corporation issued 1,000 common stock to you and 1,000 preferred stock to your sister. In this case, since you are the owners of the common stock of Randy Corporation, you can vote on company policies and board of directors that will represent you in the company. Your sister on the other hand is not entitled to vote on company policies and board of directors.

Preferred Stock - Also known as "preferred shares". A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights. 

Example: Randy Corporation issued 1,000 common stock to you and 1,000 preferred stock to your sister. The company became successful and you decided to declare dividends (remember, you are the owner of the common stock and as such is entitled to direct the company policies). In this case, your sister must be paid out first from these dividends before you can pay yourself.

After ten years, Randy Corporation went bankrupt because of mismanagement. In this case, your sister who owns the preferred stock must be paid first from the sale of assets before you can pay yourself.

In the Philippine's stock market, things are changing. Recently, PLDT issued preferred voting shares which can vote on the election of board of directors.

Which one is better, common stock or preferred stock?

I think common stock appreciates more than the preferred stock in terms of share prices. Investors tend to buy these type of stock than the preferred stock. Common stock normally outperforms the preferred stock in the long-run. Sometimes there are companies that issue 10% dividends of the net income to preferred stocks. For example, Randy Corporation has 1,000,000 net income for the Year 2010. In this case, 100,000 (1,000,000x10%) must be paid to the preferred stockholders. 

All my stocks right now are common stocks because some companies have common stock only and if the company has preferred stock, the share price of preferred stock normally is way behind the price of common stock.

Value Investing - The strategy of selecting stocks that trade for less than their intrinsic values. Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated.

A good example of this is VLL Company. Out of the many property developers listed in the stock market, VLL has the lowest price to earnings ratio. It means that investors are not keen in buying VLL's stock although it is a good buy. I bought VLL last week because i believe that it is undervalued and that in just a matter of time before the price will shoot up.

That's it for the meantime. Happy Investing!

What is Average Price in Citiseconline's Portfolio?

Recently, I tried to compute the average price column as shown in my portfolio by using the sales price of the shares. Unfortunately, I did not come up with the correct figures. I have used all the mathematical equation I know but all of them were futile.

Action	Stock Code	Market Price	Ave. Price	% Gain/Loss
BUY | SELL	ALI	15.9000	15.0918	5.36%
BUY | SELL	FPH	60.7000	62.8556	-3.43%
BUY | SELL	MWIDE	11.0600	8.9262	23.90%
BUY | SELL	SCC	214.8000	213.5281	0.60%
BUY | SELL	VLL	3.1800	3.1794	0.02%

So I asked the helpdesk of Citsec to provide the computation of the Ave. Price column. The customer service replied quickly to my queries and explained this Ave. Price column.


All the while, I thought the computation is based on selling price but when I received the e-mail from Citisec, the computation is based on cost. 


Below are data taken from my actual portfolio with Citisec. I bought ALI twice on a different date and price.

The average price computation in your portfolio shows the actual cost per share that you paid for based on your total purchase cost (including transactions charges) divided by your total number of shares.  This is a running computation, which is automatically computed by the system every time you acquire shares of the same stock.  

Below is a sample computation of your purchase and average costs:

                

   Average Cost    = (21,061.95 + 851.40) / (1,400 + 52)

                                             = 21913.35 / 1,452

                                             = 15.0918

By the way, I want o thank Citisec for their superb customer service. It really helps for us investors who are just starting to venture in the stock market.