Part III: My Experience on Investing in the Stock Market with COL Financial

Last week I had the chance to revisit my COL Financial account after my colleague (who helped me identify which stocks to buy) alerted me that the PSE (Philippine Stock Exchange) stocks I bought sometime in June last year were actually doing good. It has been one year since the time I opened my COL account, and it’s really exciting and rewarding knowing that a year has already passed since I first invested, and now is the right time to see if my “long-term” investment strategy is already bearing fruit. Most readers have been waiting and asking for this brief, so here goes my second update on my investment experience with PSE stocks.

So what happened to my investments since my last update, you ask?

Ever since my last update on my investing experience with COL, my Meralco (MER) stocks had an 11% gain from PHP30,000 when I started back in 2015 to PHP34,000 just last week. On top of that, the one that gained the most out of the four stocks that I bought at the same time last year was Metro Pacific Investments Corp (MPI), with a peak grand increase of 53.06% in just a year. I invested in PHP50,000 in MPI last year, and now its value is at PHP76,497. That’s an earning of almost PHP27,000 in a year for MPI alone (with only an investment of 50K), without doing anything. How cool is that? Definitely cooler than letting my money sit in a plain old, interest-starved savings account (not that I’m against having a savings account, I actually have emergency money stashed in my savings account). Wish I had invested more in this stock last year, but what the heck, who would’ve accurately known, right? For now I’m just so happy that my two stocks did well.

53% Gain on MPI Investment through COL Financial

See the 53.06% gain on MPI (Metro Pacific Investments)? Sweet!

Along with major gains, also comes some bearable losses on my two other stocks. My Metrobank (MBT) and Megaworld (MEG) suffered a loss of -2.83% (a loss of around PHP-1,130), and -2.56% (around PHP-720), respectively. These are tolerable losses for me, given the measly loss compared to my gains above. For now, I’m sticking with them since I’m investing in the long term anyway as I’ve discussed in my first post, and I am expecting that these two stocks will recover soon enough.

Another dividend received. Awesome!

About two weeks ago I received another email from COL Financial stating that I’ve received another dividend from Meralco (MER) that has been credited to my account. It was just a small amount (PHP 166.32, which was lower than my previous dividend earning), but earning is earning. Besides, I love the fact that I am earning dividends on top of my earnings from the rise and fall of my actual investments. I can then use my dividend earnings to withdraw for my personal use, or to reinvest in stocks (of course, I’m choosing the latter).2016 MER Dividend COL Financial

My next actions

As part of revisiting my COL account, I made some changes to my portfolio as well. Three changes, actually. One is to avoid any setback by changing government policies, the other as part of my long-term plan to continue to grow and add to my investment, and the last one, well, it just made sense to cash out.

  1. I sold my Meralco (MER) stocks and used the money to buy Energy Development Corp (EDC) stocks

It was a tough decision, really, to think that my Meralco (MER) stocks gained 11% in a year and continuously surprised me with unexpected dividends. However, this is a preparation for upcoming changes in government policies, given we have a new president and new administration that favors the production and use of renewable energy in the country. Add to that the Philippines’ commitment to the United Nations of reducing carbon emission by 2030 and to address issues of climate change, green energy is surely the way to go in the long run. This is the reason why I bought Lopez Company EDC stocks from the money I got by selling my MER stocks, because Meralco is mostly using coal-fired power plants and EDC is mostly focused on developing and generating renewable energy. Plus, I’m a supporter of green energy, so it’s a bit personal to me, too (It’s just me. LOL. But please, don’t take your investments personally). I invested around PHP38,000 of my money in EDC stocks, I am highly positive that this investment of mine will grow a lot faster than my previous MER stocks.

EDC Investment COL Financial

My initial investment in Energy Development Corp (EDC) highlighted in yellow above. Notice that it’s initially red (negative)? That’s mostly how it is – initial investments turn red at the first few hours or even days, but will eventually start to recover.

2. I topped up on my investment, adding in an additional PHP10,000 to my account, which I then invested on Energy Development Corp (EDC) stocks

This just shows my positive outlook on the growth of green energy sector in the Philippines, and also I wanted to add some of my hard-earned money to my existing investment which is this one, as part of my long term investment plan. If you keep adding up on your growing investments and always manage risks, you’ll only benefit from it and thank yourself in the long run.

EDC Investment COL Financial added 10K to my investment

See my EDC stocks in the highlighted (in yellow) item above after I deposited 10K, and also see the increase in my Total Portfolio Value. As of this time, my investment value for EDC is at -2.14%. Yeah it’s a negative, but not enough to shake me up.

3. I sold my MPI stocks for PHP 75,000, re-invested the money on my other existing stocks along with the purchase of a new stock (Alliance Global, Inc.-AGI)

As of writing this, it seemed that my MPI investment has already reached its peak with a gain of 53.06%, and has already started to drop in value. I know that my goal is long term, however knowing that there is a gain of roughly half the amount of my investment which has just dropped 3% and continues to fall in value, of course I had to somehow cash out so I sold all my MPI stocks for PHP75,000 and redistributed PHP48,000 of it in my current EDC (Energy Development Corp.) and MEG (Megaworld) stocks, which are currently all negative.

Why invest more on an investment that’s negative, you ask? I added more funds into the already negative stocks I own because I’m optimistic that these stocks have no way to go but up in the long run. So buying more stocks at a lower price made sense to me as an investor. I also bought PHP26,000 worth of fresh stocks from AGI (Alliance Global, Inc.) which is owned by one of my business idols, business tycoon Andrew Tan of McDonald’s Philippines, Emperador Brandy, real-estate firm Megaworld, and Resorts World Manila.

New stocks bought from AGI

My new company stock AGI (Alliance Global Group, Inc.) is highlighted in yellow above. Notice that every stock I have is already bloody red, so this will be another starting ground that we’ll check on to on my next update. Question is, how will this fare, in like, a year from now?

Some final thoughts…

Through this article or the previous posts I’ve done regarding my stock market investments, I’ve repeatedly stressed out that I’m investing in the long term (5-10 years), because I’m positive that as long as the company I’m investing in is a rock solid company that will likely survive in the long run, my investment with that company will likely bear fruit in the long run as well, all while riding the highs and lows of the stock market. However, over the course of my trading experience with COL Financial, I’m starting to learn that I’m also into medium term investing, which involves me checking every now and then over the course of some months to a year, and then making some changes depending on the conditions of the stock, and only if they made sense. So I’m not exclusively a long term trader, after all.

So there you go. Quite a lot of changes there, but I think these changes were necessary and were for the best of my portfolio. Now that we’re back to square one where I’ve reaped and re-invested my earnings and everything’s now back to bloody red (negative), let’s wait and see its progress. Let’s re-visit again after some time, and I hope and I’m positive that the next update will be great news again.

If you wish to know more, I’ve also written about COL’s Mutual Fund Supermarket, and also about the time I ambush interviewed its founder Edward Lee. If you’re looking to find out alternatives, check out my reply to a reader who asks which is the better investment between COL stock market and BDO Equity Fund.

Best,

FRUSTRATEDBILLIONAIRE

Have you experienced stock trading yourself? How did it go? Feel free to comment, share your tips, or ask a question. Please also like me on Facebook and Twitter! Thank you!

 

FrustratedBillionaire