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Should I convert some of my cash into bitcoin?

Short answer, yes I am. As an investor, I try to allocate my assets equally among stocks, bonds, real estate, precious metals, business ventures and cash. There will be further allocations within each asset class as well. The most liquid of the asset class is of course cash, hence it forms an important part of any investor's portfolio. Now what form of currency will you be holding? Perhaps the US dollar, euro, Philippine peso, yuan will be among those. What about bitcoin? Here is a video where Winces Casares explains why bitcoin works as money:


Although he says that bitcoin is superior to gold, I will not be in a rush to sell my precious metals and buy bitcoin. That does not make sense from a risk management point of view. However I am quite comfortable exchanging 5% of my cash holdings into bitcoin. Some people will say that bitcoin has no intrinsic value. Well all forms of currency have no intrinsic value, and it is impossible to predict the future exchange rates. Just as no one…
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Investing in the next generation of business magnates

We are familiar with the current set of business taipans and their respective companies: Henry Sy with SM Investments, John Gokongwei with JG Summit and Lucio Tan with the LT Group among others. However I am more excited about the prospects of our new business magnates. First on the list would be Michael Cosiquien and Edgar Saavedra and their company, Megawide Construction. These two engineers are transforming Megawide into a diversified business involved in construction,  airport operation, renewable energy. Second on the list is Injap Sia and his DoubleDragon Properties. This real estate company is growing so fast that established ones like Vista Land and Filinvest are getting left behind. Third but certainly not the least would be Dennis Uy with the PSE newbie, Chelsea Logistics. This company aims to be the prime mover of goods and services in the country. With a significant ownership of the 2GO group and more planned acquisitions, it is well on its way of becoming a shipping and l…

COL Financial now offering mutual funds

I am happy to share that online brokerage COL Financial is now offering its clients the convenience of buying mutual funds from the top fund houses in the Philippines. As such, investors can easily buy into these funds without having to open accounts with each one of them. I have been a client of COL Financial for many years and do encourage everyone to have a look at their platform. It is now a supermarket for buying Philippine stocks and mutual funds. Do pay particular attention to management fees when choosing a fund and don't focus on past returns as the former is a certainty whereas the latter is history. As they say in the fine print: past performance is not an indicator of future outcomes. Choose a fund house with at least a decade of experience and consider your exposure to a particular asset class. Buying five different equity funds is 100% exposure to the stock market and is not a sound investment decision. Consider buying a balanced fund from 2 different fund hous…

greater manila and metro cebu

If you are asking where to invest in the county, you cannot go wrong with these two areas. Growth in the greater manila area and metro cebu is at such a dizzying pace, its almost impossible to keep track. I'm particularly excited with cebu's airport expansion, having recently been awarded to Megawide-GMR consortium. An expanded airport would bring in more tourists and investments to metro cebu, further accelerating its economic growth. I'm also thrilled with Ramon Ang's unsolicited proposal to build a new manila airport on reclaimed land. Although SMC taking on more debt would negatively affect my outlook for the stock but that remains to be seen. It seems  the government looks determined to solving overcapacity at the existing NAIA, having commissioned a feasibility study to determine where best to put it. There is also the upcoming skyway which will finally serve to link NAIA with Clark airport via NLEX and SCTEX. It would be wonderful for the greater manila area to …

one year on...

Time flies and it has been a year since my last post. A quick look at things and I'm surprised the blog has reached 20,000 visits. Even if it's a miniscule number for a five year old blog, I'm still happy to have the privilege of sharing my investment views with the world.  Not surprisingly, the most popular post is "do not invest in Philippine pre-selling condos", as you can see on the right column. Investors may agree or disagree on what was written but at the end of the day, it is your money and only you can decide where best to invest it.
So what's new. Not much I would say. Still very positive on keeping and growing my investments in the Philippines. Still trying to pay off debt and save at least 10% of my monthly income. Still diversifying investment money evenly into stocks, bonds, cash, real estate, precious metals and small business ventures. Overall it was a good financial year and looking forward to the next one. Hopefully it was the same for you. …

a forgotten savings account with Pag-Ibig

I've always thought of myself as a diligent record keeper, particularly investment records. It turns out that I have totally forgotten about one particular investment account, that is with the Home Development Mutual Fund or also known as the Pag-Ibig Fund. I remember that the contribution to this fund was a mandatory deduction when I was working in the Philippines. A rough estimate would mean  that I probably have 10k pesos with them. It turns out that it's a pretty good place to invest as well. For starters, all contributions are guaranteed by the Government of the Philippines. They have also paid dividends of 4.13% and 4.17%, tax free, in the past two years. Their housing loan program looks interesting as well, perhaps for future real estate investments. I quickly registered with their online services. However, it is still in the process of being fully implemented, hence there isn't a way of checking my existing account balance with them. They have also started acceptin…

find your balance

Do you remember learning to ride a bicycle as a kid and people will say, "Oh it's easy, just find your balance". Do you also recall that feeling of serenity and accomplishment when you finally did? It turns out that investors need to do the same as well. If riding a bike is about balancing your body between left and right, then investing is  seeking to find the balance between risk and return. Being too aggressive and taking on excessive risk could cause your portfolio to go down the drain. On the other hand, being too conservative and taking minimal risk could cause inflation to beat your portfolio and you end up not reaching your investment goal. Finding this balance is a journey all investors undertake. Some may find it earlier than others. As for me, I still haven't found my balance, although I feel close to it.  Happy investing!