Monday, September 28, 2009

5 stocks I would own for life

I always advocate investing in the stock market indirectly through mutual funds and UITFs. However I would not advice against investing in the stock market directly also. It is easy to do this, just contact any of the licensed brokers of the Philippine Stock Exchange. You might prefer the online brokers like BPI Trade or Citiseconline or go with the traditional ones. As a reminder, investing in stocks means that you are buying a part of the ownership of the company, thereby receiving part of its profit and partaking in its future growth. This goes both ways too as you also suffer its losses and the decline of its value. Be sure you understand how it works before putting your money in it. Don't forget to diversify, never put all your money in stocks, even if it will post amazing returns.

I consider myself a value investor, not a stock trader. This means that I do not really care much of the stock prices on a day to day basis. I believe in the fundamentals of the companies whose stocks I will purchase, I personally use their products and services and believe that they will continue to make profits well into the future. I would be proud to tell people that I own these companies, even if it means that I only own 0.000001% of it. To quote Warren Buffet, "Our favorite holding period is forever."

So here they are:

1. Jollibee Foods Corporation
price: P50 per share
2008 sales: P44 billion
Do I really need to describe Jollibee, I mean is there a pinoy out there who does not recognize its omnipresent brand. They also own Chowking, Red Ribbon, Greenwich and more. They are actively expanding overseas and besides, I love chickenjoy.

2. San Miguel Corporation
price: P67 per share
2008 sales: P168 billion
I love companies involved in food, I believe they will always make a profit. When it comes to food, San Miguel is a giant, with interests in poultry, processed meat, dairy, animal feeds, alcoholic and non-alcoholic beverage flour and many more. They also do business overseas and truly, San Miguel Beer is the best in the world for me.

3. JG Summit Holdings Inc.
price: P6 per share
2008 sales: P97 billion
This is another food company with businesses in coffee, snacks, chocolates, instant noodles, ice cream and more through Universal Robina. Not only that, it owns Cebu Pacific, Sun Cellular, Digitel, Robinsons and United Industrial Corporation ( a major real estate devloper in Singapore, Hong Kong and China.)

4. SM Investments Corporation
price: P325 per share
2008 sales: P118 billion
You only need to visit one of their malls and know that it is making tons of money. This company has interests in retail, banking and real estate. It is also expanding in Asia and I don't think the malling habits of pinoys will change anytime soon.

5. Ayala Corporation
price: P305 per share
2008 sales: 64 billion
Talk about Ayala Land, BPI, Globe Telecom and Manila Water and you've got a great mix of companies in one stock. They have been in business for 175 years, I think it would be safe to assume that they will survive the next century.


So there you have it, the 5 stocks I would own for 10, 20 or 30 years and the only stocks I would invest in directly. I do not plan to take them to grave. They will be sold piece by piece slowly as the need arise. Happy investing!

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