The Right Ingredients: A Guide In Managing Your Investment Portfolio

​An investor's worst enemy is not the stock market but his own emotions.

Wealthy people invest first and spend what's left and broke people spend first and invest whats left. Last week, PSE Academy, the official market education website of the Philippine Stock Exchange, Inc. (PSE) conducted a free webinar about managing your investment portfolio . The resource speaker was Mr. Alexander Gilles, Consultant for Market Education, First Metro Securities Brokerage Corporation. Here's the excerpt from the webinar.

​Build Your First Investment Porfolio

​Let your money grow, as fast as safely as possible.

Take a picture!

• ​What is portfolio management?
• Objectives: income or growth?
• Why is it necessary to invest money?
• Look at your savings and income.
• How fast can money grow?
• How to build a portfolio?
• Follow sectors of the economy!
• Attend more classes on basics
• Review/Open Forum

1. What is Portfolio Management?

Choosing the Right Ingredients ----> Cook ----> Collection of Shares of Stock
                                                                                                                              |
                                                                                                                        Results
                                                                                                                              |
                                                                                                                             V
                                                                                                            Health and Wealth

2. Objectives of Portfolio Management

Choosing the Right Investments  ----> Assemble ----> Money grows 9%  to 12% a year
                                                                                                                                                     |
                                                                                                                                             Results
                                                                                                                                                     |
                                                                                                                                                    V
                                                                                                                   Retirement Money and Legacy

3. Why is it necessary to Invest Money?

Inflation ----> Counter-Act! ----> Your Money should also grow
                                                                                                       |
                                                                                              Win over
                                                                                                       |
                                                                                                      V
                                                                                 Real Money Growth %

4. Look at your Savings and Income

Money for Household: Cash
Money you need after some years: Bonds
Money in case of emergency: Cash
Money for Retirement and Legacy: Stocks

5. How fast should your money grow?

​Future Needs ----> Faster Growth, over long-term
Next Few Years ----> Slow but sure, via Bonds, 3-5%

6. How fast can money grow?

My Long-Term Investments = More than 7%
Philippine Economy = 7%

7. What is Economic Growth?

GDP (Gross Domestic Product)

1980s = 0%
1990s = 2%
2000s = 4%
2010s = 6%
2020s = 8%

8. How to build a Portfolio?

Recap