road map for retail investors
TRANSCRIPT
HI, MY NAME IS JET MOJICAI am an independent portfolio manager and
founder of BOH Society
B O H S O C I E T Y
WHAT YOU SHOULD KNOW
• You can make (and lose) money in the stock market
• Blue chips can earn you 10-30% in a year
• Small and micro cap companies can give you 100-200% in a year
• Take on more risk and generate higher returns
B O H S O C I E T Y
WHAT YOU SHOULD KNOW
Year Yield/Return
2009 63%
2010 38%
2011 4%
2012 33%
2013 1.3%
2014 23%
2015 -3.9%
Average Annual Return 24%
Geometric Mean Return 21%
B O H S O C I E T Y
• Access to comprehensive research. Whether it’s about global macro, sector issues, or company-specific developments, they have access to all types of research from in-house and sell-side analysts.
• First call about deals, earnings, and rumors. A typical portfolio manager gets 10-12 calls a day from brokers, insiders, and investment bankers. The bigger the fund, the earlier the call.
• And when they STILL get it wrong, it’s okay! Time in the market, not timing the market, right?
Portfolio managers and HNW individuals get all the support.
THE TRUTH IS…
B O H S O C I E T Y
You buy books about the stock market
You read the daily business news
You visit the PSE website regularly
You join free stock market groups
You follow experts on Twitter
And nothing you do seems to be enough
EXPERTS
YOU ARE ON YOUR OWN…
PHP 0
PHP 200,000
PHP 400,000
PHP 600,000
PHP 800,000
PHP 1,000,000
PHP 1,200,000
2013 2014 2015
Equity Capital
Equity Capital
Sometimes you make money more often times you don’t…
BUT WITH STOCK TIPS…
INVESTING CAN BE HARD BUT WITH THE RIGHT FRAMEWORK… YOU CAN SUCCEED
B O H S O C I E T Y
Fundamental Analysis
• Making investment decisions based on fundamental economic, industry and company factors
• Uses economic and accounting data
Technical Analysis
• Making decisions based on past price trends of individual stocks and the whole stock market
• Uses price and volume data
IN FUNDAMENTAL ANALYSIS
B O H S O C I E T Y
• What is the market valuation this year? How about next year? How does current valuation compare to historical valuation?
• What was the valuation methodology and assumptions used to determine growth rate and required rate of return?
• What are the growth prospects of the stock and the industry?
• What is cheap? What is expensive?
• What kind of stocks will benefit in the current economic environment?
IN FUNDAMENTAL ANALYSIS…
B O H S O C I E T Y
End Goal: Buy, Sell or Do Nothing?
• Current price < intrinsic value –> undervalued, buy
• Current price > intrinsic value –> overvalued, sell
• Current price = intrinsic value –> fairly valued, do nothing
BUT IN TECHNICAL ANALYSIS…
B O H S O C I E T Y
End Goal: Buy, Sell or Do Nothing?
• What is the underlying price trend?
• Will the stock continue to move in the direction of the trend?
AS RETAIL INVESTORS…
•Generate investing and trading ideas
•Plan how and when to buy and sell stocks
•Execute your planned trades
B O H S O C I E T Y
You will need to be able to…
REMEMBER WHAT YOU ARE DOING THIS FOR…
Year Yield/Return
2009 63%
2010 38%
2011 4%
2012 33%
2013 1.3%
2014 23%
2015 -3.9%
Average Annual Return 24%
Geometric Mean Return 21%
B O H S O C I E T Y
SO WHAT DO YOU NEED TO DO?
•Get a broker / online broker
•Ask them for EVERYTHING!
•Analyze everything on your own!
B O H S O C I E T Y