Yes, even those who are still starting and can only invest P5000 a month into the Stock Market. There is a higher probability that you can earn bigger returns with SAM than with Passive Investing or Easy Investment Program.

This conversations are from TrulyRichClub Members with Bo Sanches.

1. Those with zero investments & starting only now, when using your monthly savings, buy shares of these 5 companies each month. For those who don’t have regular savings because you don’t have a regular income, I’m sorry, Stock Market investing isn’t for you.  Please get regular income!  If your money is small, alternate your purchases.  You can buy 2 or 3 companies this month.  Next month, buy the other 2 or 3 companies. Don’t be afraid if your money goes down in value “on paper”. Stocks tend to go up and down.  Just develop the habit of investing your money every month.  Believe me, you’ll “profit” for the rest of your life.
2. Those with less than P300,000 in their investments, perhaps you already have bought Stocks previously. If your money is smaller than P300,000, I suggest you divide your money into 6 parts, and invest one part for the next 6 months.

Example: One of my maids have P120,000 in her Stock Market.  So she’ll divide that into 6 parts—P20,000 each part.  She’ll invest P20,000 every month for the next 6 months.  She also is able to invest P2,000 from her salary each month, so she’ll be investing P22,000 a month these next 6 months.  (On the 7th month and onwards, she’ll be investing P2,000 a month.)

She’ll divide the P22,000 a month into 5 Stocks equally.  Obviously, it won’t be an exact division—because each company has their respective lot sizes.

3. Those with more than P300,000 in their investments, if you have more than P300,000 in your Stock Market investments, I suggest you divide your money into 12 parts.  And invest one part each month for the next 12 months.

Example #1: If you have P600,000, divide that amount into 12 parts. Each part is P50,000.  Invest P50,000 every month for the next 12 months.  And then divide P50,000 by the 5 SAM Stocks.

Example #2: If you have P6 Million, divide that amount into 12 parts.  Each part is P500,000.  Invest P500,000 every month for the next 12 months.  And then divide P500,000 by the 5 SAM Stocks.

And remember: Keep adding
your monthly savings
into your
Stock Market investments.  Don’t forget!

Why Slow?

I’m sure people are asking, “Bo, I have money in my hand.  I want to be fully invested—so I can earn more.  Why don’t I just dump everything I have in these 5 Stocks?”

Here’s why: My Mentor is seeing a problem in the US Market.

Yes, the Philippines Stocks seems to be resilient.  But if the US Stock Market collapses, the Philippine Stocks will go down too.  Let’s say this happens three months from now. (We don’t know.) At least you’re holding 3 months of cash in your hands—and you can buy more at a lower price.

Perhaps you’re wondering, “Then why buy now if we believe that the Stock Market will go down even lower?”

Answer: We don’t really know what will happen.  What if the US Market won’t have another crash and the Philippine Stock Market will continue to rise?  Then you’ll be happy that your monthly investments are going up with it.

By getting in slowly, we avoid the fear that usually affects Stock Market Active Traders—which causes them to make wrong decisions.

Happy investing! May your dreams come true.
(Bo Sanchez)