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5 Stock Tips to Get You Started on the Future
The easiest way to invest is by partnering with the country's biggest tycoons.
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Every one who's serious about investing for the future knows that leaving money in a bank is a sure fire way of losing money. The math is simple: Banks give you a stodgy 1% interest annually on your savings while inflation—the price of everyday goods and services—rise on an average of 3.67% every single year. Think about it. By the time you retire, you would have lost approximately 60% of your hard-earned money.

To accumulate wealth over the long run, history shows that stocks undeniably outperform all asset classes, including real estate. Our very own Philippine Stock Composite Index (PCOMP), an index composed of the biggest companies in the country, has risen by an annualized rate of 12.72% from 2003 to 2016—and that includes the 48% drop the market experienced in the 2008 US Sub-prime Mortgage crisis. 

But how to get started? You can purchase shares in equity index mutual funds. These are investment vehicles aimed at tracking the performance of the Philippine Stock Composite Index (PCOMP). Or, just buy shares in the companies of the country’s richest tycoons and be their business partners.

1| SM Investments Corporation

SM Investments Corporation (stock code: SM) was founded in 1958 when Henry Sy Sr. (net worth $13.7 billion) opened "Shoe Mart" along Rizal Avenue. Today, it is the country’s largest listed company with a market value of P937.17 billion. This year, revenues are expected to hit P392.64 billion with a net income of P30.26 billion. Its main business interests include:

  • SM Markets, WalterMart, Alfamart, The SM Store (Retail)
  • SM Prime Holdings (Property)
  • BDO Unibank & China Banking Corporation (Banking)

2| JG Summit Holdings Inc.

JG Summit Holdings Inc. (stock code: JGS) was founded in 1957 by John Gokongwei Jr. (net worth $6.8 billion) as a company called Universal Corn Products Inc. Today, it has a market value of P593.44 billion and revenues are expected to reach P260.05 billion and net income P30.26 billion. Its main business interests include:

  • Universal Robina Corporation (Food & Beverage)
  • Robinsons Land Corporation (Real Estate & Hotels)
  • Cebu Pacific (Air Transportation)
  • Robinsons Bank (Banking & Finance)
  • JG Summit Petrochemical Corp. & JG Summit Olefins Corp. (Petrochemicals)
  • PLDT Inc. (Telecommunications)
  • Meralco (Power Distribution)

*JG Summit’s interests in PLDT Inc. and Meralco are non-controlling interests.

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3| Ayala Corporation

Ayala Corporation (stock code: AC) is one of the oldest business groups in the country having gone through seven generations of Ayala’s and 180 years of history. Today, it has a market value of P539.41 billion and the chairman is Jaime Zobel de Ayala (net worth $4.1 billion). Revenues this 2017 are expected to come in at P229.60 billion, with a net income of P26.12 billion. Its main business interests include:

  • Ayala Land Inc. (Real Estate)
  • Bank of the Philippine Islands (Financial Services)
  • Globe Telecom (Telecommunications)
  • Manila Water Company (Water infrastructure)
  • Integrated Micro-Electronics (Electronics manufacturing)
  • AC Energy Holdings Inc. (Power generation)
  • AC Infrastructure Holdings (Infrastructure)

4| Aboitiz Equity Ventures

Aboitiz Equity Ventures (stock code: AEV) was founded by Paulino Aboitiz in the late 1800s as a company engaged in abaca trading and general merchandise in Ormoc, Leyte. Today, it has become the holding company of the Aboitiz family (net worth $5 billion) and has gone through five generations of family and professional management. The company has a market value of P428.73 billion, revenues this 2017 are expected to come in at P133.75 billion with net income of P23.53 billion. Its main business interests include:

  • Aboitiz Power Corporation (Power)
  • Union Bank of the Philippines, City Savings Bank, PETNET (Banking and Financial Services)
  • Pilmico Foods Corporation (Food)
  • Aboitiz InfraCapital Inc., Republic Cement Group, APO Agua Infrastructura, Inc (Infrastructure)
  • Aboitiz Land Inc. (Property development)

5| GT Capital Holdings

GT Capital Holdings (stock code: GTCAP) started in 1963 when Dr. George Ty (net worth $4.6 billion) built Metropolitan Bank and Trust Company to serve the Chinese-Filipino community. Decades later, the Ty formed GT Capital to house the company’s non-banking businesses. Today, it has a market value of P219.62 billion with revenues expected at P213.12 billion and net income at P15.12 billion. Its main business interests include:

  • Metrobank (Banking)
  • Toyota Motors Philippines (Auto assembly and importation, dealership and financing)
  • Metro Pacific (Infrastructure & utilities)
  • Federal Land & Pro Friends (Property development)
  • Axa (Life & Non-life insurance)
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About The Author
Jason Mariposa, CFA
Mark Jason Mariposa is a holder of the right to use the Chartered Financial Analyst designation from CFA Institute (US) and works as an investment analyst at Citisecurities Inc., a sister company of COL Financial Group, the country’s largest online stock brokerage. He is also an instructor at Caylum Trading Institute also a sister company of COL Financial Group.
View Other Articles From Jason
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