Investment Options

[GregZ]

I put this under Banking In The Philippines because WE need options over sticking money in a near zero savings account.  I snatched the 3 quotes from a topic that was talking about rental condo units mainly.  But I am interested in knowing what investment options are used by people living in the Philippines.  US, Aussie dollars... Pounds... I'm interested in all the options.

 

1.  Where are you from? 

2.  Where do you have your money?

3.  What currency are you in?

4.  What investments do you use?

5.  What kind of return are you getting?

 

ME:

1.  From USA

2.  I don't have much right now, but bank in USA (USAA) and have stocks through USAA also.  I do everything online and just liquidated most of my stocks.

3.  US dollars only

4.  I just sold the REIT CIM (Chimera Investment).  I sold it for no capital gain but while I held it for the last 1.5 years it was paying 15-20%.  I'd like to re-buy it as long as it stays under $3.50 ($3.10 or so right now).  My other stocks are not worth mentioning... holdings are small and they are way under water (reason I am holding them).  Maybe they will come back?  They are in marine transport (FREE & SBLK if I remember right) and 1 small bank (Carver in New York).

5.  Return on the REIT was over 15%. 

 

My grandfather made a small fortune in the Philippine real estate market. His philosophy was very simple. "When the market is down, buy as many properties as you can afford. When the market is up, way above your wildest dream, don't sell." What he meant was that real estate is for the long haul. The market will fluctuate up and down, but in the long term, the market will continually rise. Sometimes rising prices is because currency is devaluing due to inflation or manipulation by the government. The US Federal Reserve and the European Central Bank are busy printing money at the moment.

 

I will hit 65 years next month and according to the US Census Bureau my remaining life expectancy is 18.7 years. I plan is to violate grandfrather's rule. It's time to sell. That includes our family farm, which I co-own with my brothers and sisters. The question is, "Where do you put the proceeds?"

 

I think jpbago is correct. For the past 20 years we have been heavily vested in oil companies, oil exploration, oil distribution, etc. Until someone can develop a replacement for the internal combustion engine, oil will remain a valuable commodity with prices, at a minimum, reflecting the rate of inflation. If there is a replacement for the internal combustion engine, it will take 20 years to get rid of all the cars & trucks. We have also been heavily vested in gas. While prices are down because of excessive supplies, that's okay before we are in it for the long term. Alternative energy like solar, wind farms, etc. does not interest me because profitability is based on government subsidies and incentive programs. What the government gives, they can taketh away.

 

Tobacco and sugared water companies are good investments. I hate these products and I won't smoke or drink sodas. My wife and older son think I am being emotional. My wife bought Pepsico and my son bought Coca-Cola even if neither of them consume the product. As defensive stocks, we have commodities like ConAgra, Procter & Gamble, Heinz, Kraft, Kimberly Clarke, etc. They are actually doing well at the present time. As a general rule no single stock company can be more than 4% of our cumulative portfolio. 

 

Technology stock has been a mixed bag for me. My plan was to buy Apple at $95, but a little earlier the stock was trading at the $40 range. I could not convince myself to do it. Big mistake.

 

Going back to Philippine real estate. I would buy or construct a house for lifestyle reasons. It would be something for me to occupy and enjoy. I would not buy as an investment. My preference is a high level of liquidity for an uncertain future. US Bureau of Census maybe right. My plan should be for 20 more years plus an additional 5 years as insurance.  

 

 

A good real-investment for long term would in Phil be a good piece of land.  A new condo with good  renting potential could be a good investment  I think-if you have the money  - but think min 5-10 years.  

 

About stocks - hope oil will be good  ( as the economy of my country depends on that) but think the problem there can be too much oil - as US and now AUS will find a lot more.  To make investment in things as Coke and tobacco - is that smart on long term? Company that provide some basic products for agriculture should be smart.

 

 

JJ, I already have my house here for 9 years. I enjoy it alot especially the peace and quiet.

 

The original inquiry was on income property. If you are buying for your use, think lifestyle. It's for your enjoyment. If you are renting to others, consider the return-on-investment and pulling hair if something goes wrong. We have a property management division at our company. They handle the call if a tenant has plumbing issues at 2:00am in the morning.

 

 

I wholeheartadly agree, for all my life I have believed in property being a solid investment but now I do not.

 

My wife stopped taking me to meetings and conferences for Realtors. At our table, I like to ask silly questions like, "Why do you call it real estate? Shouldn't you call it, 'loan estate,' "bank estate," or 'borrowed estate' since you don't really own the property? Why do you want Americans to upgrade to a newer property after paying off the 30 years mortgage?"

 

There is another way to invest through REITs (Real Estate Investment Trusts). A good REIT can generate 6% to 10% return during a time when the bond market pays less than 1%. The secret to a good REIT is their property portfolio. Look for those that own office buildings and apartments with at least a 70% average occupancy rate. The money is from rentals. The REIT does not pay corporate income taxes. It is like a Sub-Chapter S corporation. The money is taxed as dividend income.  

 

 

 

[JJReyes]

My nephew is a stockbroker with the Philippine Stock Exchange. He is a graduate of the Wharton School of Finance, from a prominent family on his mother's side with pretty good connections. The Benitez family holdings include ownership of Philippine Women's University of which 40% was sold about a year ago to Science & Technology Institute. STI is for-profit vocational training with more than 90 campuses. I will see my nephew this April. Let me ask.

[Bruce]

Greg says:

 

1.  Where are you from? 

2.  Where do you have your money?

3.  What currency are you in?

4.  What investments do you use?

5.  What kind of return are you getting?
 

Caught you! Are you really a Nigerian and this is a 419 scam? :dance:  :hystery:

 

All I can say is that I invested in my 'good looks' and lost my ass! :mocking:   

 

Actually, I have no real money anymore, just a cash flow and I have, over time built a boarding house in Samar and slowy adding to that so in 10 years... I will not be rich, but will have enough between my small SS check and then rentals to support me and my charity efforts.
 

My key to success is to learn to live within your means.
 

[JJReyes]

My key to success is to learn to live within your means.

 

Amen. My wife and I measure success by being debt free. We never buy a new car. Only a quality previously owned vehicle with low mileage and a relatively new model. A paid mechanic accompanies us to the used car lot, My preference is a car rental company like Hertz whose customers are mostly business executives. They have car lots for their used vehicles. The maintenance programs are pretty good. We only pay cash. If you can't afford to pay in cash, you can't afford to make the purchase. All our credit cards are convenience cards.  

[i am bob]

That is what is holding me up from crossing the great Pacific...

 

I will go once I have no debt left.

[GregZ]

My nephew is a stockbroker with the Philippine Stock Exchange. He is a graduate of the Wharton School of Finance, from a prominent family on his mother's side with pretty good connections. The Benitez family holdings include ownership of Philippine Women's University of which 40% was sold about a year ago to Science & Technology Institute. STI is for-profit vocational training with more than 90 campuses. I will see my nephew this April. Let me ask.

I'm interested in Philippine Stock Exchange... as a developing market that is close to good investment opportunities.  I'm guessing that it won't be as easy as signing in online with a broker site, doing some research and executing trades for 200 php each.  For now I just consider US companies doing well overseas.

 

---------------

BRUCE: All I can say is that I invested in my 'good looks' and lost my ass! :mocking:   

 

Actually, I have no real money anymore, just a cash flow and I have, over time built a boarding house in Samar and slowy adding to that so in 10 years... I will not be rich, but will have enough between my small SS check and then rentals to support me and my charity efforts.

 

My key to success is to learn to live within your means.

-------------------

Two ways to be rich:  1. Make more!  2. Want less! :cheersty:  I tried to make more and that didn't work for me.....

-----------

 

Amen. My wife and I measure success by being debt free. We never buy a new car. Only a quality previously owned vehicle with low mileage and a relatively new model. A paid mechanic accompanies us to the used car lot, My preference is a car rental company like Hertz whose customers are mostly business executives. They have car lots for their used vehicles. The maintenance programs are pretty good. We only pay cash. If you can't afford to pay in cash, you can't afford to make the purchase. All our credit cards are convenience cards.  

---------------------

I used to resemble these remarks.  However, last truck I bought $35k sticker for $22k and interest under 5%.  With 10-15% returns (sometimes 60%) I can't see using my cash and the used trucks same year, make, etc, with miles and unknown history.  $33k. (US dollars)

 

--------------------------

That is what is holding me up from crossing the great Pacific...

 

I will go once I have no debt left.

----------------

KEEP ON that MISSION bob! :dance:  One payment at a time.

 

I keep losing the quotes when I am trying to edit.... so excuse the mess. :bash:

[stevewool]

well i am form  England

 Money is in the bank

British Pound

Investments £40000 COLLECTIVE RETIREMENT ACCOUNT

Up and Down, but have not lost any money yet

[JJReyes]

I used to resemble these remarks. However, last truck I bought $35k sticker for $22k and interest under 5%. With 10-15% returns (sometimes 60%) I can't see using my cash and the used trucks same year, make, etc, with miles and unknown history. $33k. (US dollars)

 

There is always a way to rationalize or justify your investment strategy. Each person has a different approach. We do have a significant amount of money in our self-directed IRAs and joint trading accounts. Big cheers last week because my wife owns shares in Heinz, which overnight went up in value by 20% because Warren Buffet and his friends at 3G decided to buy the entire company. She also owns Berkshire Hathaway B shares, which had modest gains after the announcement. I would have loved to get what Warren Buffett negotiated as part of the deal. He gets 9% return on Heinz Preferred.

  

All our purchases are cash only. It indicates we are living within our means. As we enter into our retirement years, one decision is to liquidate tangible assets including property holdings in the Philippines. My family thinks I am irrational because property values are skyrocketing in Metro Manila and Metro Cebu. Precisely, it is a good time to sell. Capital gains in the Philippines are still reasonable, which is another reason to sell before the politicians, always hungry for more revenues, decides to increase the capital gains tax. 

Edited February 17, 2013 by JJReyes

[GregZ]

Big cheers last week because my wife owns shares in Heinz, which overnight went up in value by 20%

BIG CONGRATS to the wife!!! :540:  

Not that it matters much JJ, but I think you are right-on with the property plan in the Philippines.  I've looked & looked and decided that I MAY get involved from an investment angle, but if I buy a property it will have the fall back plan of just me living on it an enjoying it or letting the family enjoy it as I don't have a lot of confidence in the futures of those properties today.  That said, I have already committed to a beach place with resort potential.  :bash: We'll see if I just set up my private tiki bar there or one to share with customers.

 

Same topic but different sub-category:  Is anyone here investing, specifically stocks, in a country other than YOUR origin?  I'd like to hear about other investments also, but I am most comfortable with stock investing so may use information here to pursue that type of investment later on myself.

:nudie:

 

Example: Trading or "buy & hold" in the Brazil, China or US stock market by someone NOT from 1 of those countries?

 

I don't know anyone who has done anything like that and if you have would like to know what route you took to get involved there.  Through an investment company in your home country?  Directly?  My attention is currently on Philippine, Australia and Brazil markets.  Thoughts on those countries?  Whether from that country or not... :cheersty:

[earthdome]

I am from the USA and here are my plans, not fully implemented yet.

 

I will be moving my tax deferred retirement savings (US 401K) to a self directed IRA (Individual Retirement Account, still tax deferred until withdrawal).

 

I have about 20% of my retirement in my old condo which I will rent out for about a 5% return, plus it will help protect me against monetary inflation.

 

The retirement savings I plan on putting 20% in emerging asian markets (excluding japan), another 20% in emerging Central/South American markets, another 20% in a hard asset/commodity fund, the remaining 40% in a more traditional mutual fund targeted towards long term dividend paying stocks.

 

I can do this in the USA by purchasing mutual funds or EFT's (Exchange Traded Funds) matching those sets of criteria.

 

Reading into my choices you can see that I am not bullish long term on the US economy, at least not for the next decade or so.

 

I prefer to use mutual funds or EFT's rather than purchasing individual stocks. I don't want the job of micro managing a portfolio during retirement.