Characteristics of Investment-Linked Insurance Policies

There are numerous insurance policies available right now but oftentimes, we get confused as to which of these policies is best-suited for us and will provide highest possible gain and maximum protection as well. Hence, we have summarized below the general characteristics of insurance policies for your convenience. But first, let us discuss the different types of risk as these should be highly considered in obtaining an insurance policy. These are: Speculative Risk where there is a possibility of  gain or loss; and Pure Risk where there is no possibility of gain (e.g. death, disability or old age) Therefore, being insured helps … Continue reading Characteristics of Investment-Linked Insurance Policies

Elements of Investing

Benjamin Graham defines investing as “an investment operation in which, upon thorough analysis, promises safety of principal and an adequate return.” Note that investing, according to Graham, consists equally of three elements: You must thoroughly analyze a company and the soundness of its underlying businesses before you buy a stock; You must deliberately protect yourself against serious losses; and You must aspire “adequate”, not extraordinary, performance. Graham goes even further, fleshing out each of the key terms in his definition of: Thorough analysis – the study of the facts in light of the established standards of safety and value; Safety of … Continue reading Elements of Investing

Foreign Equity Restrictions and Anti-Dummy Law

Just recently, the Securities and Exchange Commission (SEC) revoked Rappler’s business registration due to violation of the Foreign Equity Restrictions and Anti-Dummy Law. Have you ever wondered what are in these rulings? Here’s a quick glimpse. The Extent of Foreign Equity in the Philippines Under the law, the general rule for foreign equity in the Philippines is 40%. However, due to the liberalization of the foreign investment law, foreign investors may now capitalize in domestic or export enterprises to as much as 100% of the capital of these enterprises, provided that: a. these enterprises are not on the Negative List; … Continue reading Foreign Equity Restrictions and Anti-Dummy Law

Informative Podcasts

This website was born out of our desire to help Filipinos become more financially literate and find financial independence. This desire was fueled when we stumbled upon inspirational podcasts in Spotify, the Read to Lead Podcast. We are in no way connected to the network but we would like to use this opportunity to thank them for helping us find a way to make this website possible. Read to Lead podcasts are useful in such a way that they interview best-selling book authors. The authors share their insights about business, leadership, entrepreneurship, and many others. If you have some idle time, … Continue reading Informative Podcasts

Stock Trading 101

In today’s era, people are becoming more engaged with businesses and investments where their money works for them. One of the common investment vehicles used are stocks. Following are the fundamental concepts of stocks, its characteristics, types, and several factors to consider when buying or selling shares of stocks. Stocks are considered to be a fair share in a company – a claim on company’s assets and earnings. These are sometimes referred to as equity or equities and are issued by companies to raise capital in order to grow the business or undertake new projects. These can either be ordinary … Continue reading Stock Trading 101

A Great Way to Save a Lot

A wise Chinese businessman once told me that before purchasing something, he considers the following: The minimum capital requirement to recover the amount he spent. Meaning, he has to know how much capital he needs to invest that will gain an amount equal to the amount he spent. For example, he wants to buy a nice watch worth Php 50,000. If he has a business where he gains 10% on his sales, then he has to shell out Php 500,000 (or Php 50,000 divided by 10%) in order to gain back his Php 50,000. Pretty large sum of money, right? … Continue reading A Great Way to Save a Lot

Easy way to find FS

Philippine financial statements are available online through the following steps: Go to PSE Edge Portal. Type the Company Name. Go to the lower section of the page to find the company you are searching for. Click the company name. From there, you may navigate through the Stock Data, Company Information, Directors and Management, Financial Reports, Company Disclosures, and Dividends and Rights. In order to download the financial statements, kindly go to Company Disclosures. Find or Control+F and type “Annual Report”. Then a new window will appear so you may download the attachment or financial statement (or portion of the financial … Continue reading Easy way to find FS