Do you know how much your Php10, 000 would be worth now if 10 years ago you’ve decided to invest this small amount in the Philippine stock market? If you’re that smart one, it might now be worth millions!
Below is a list of some blue chip stocks listed in the Philippine stock exchange with their corresponding price per share taken on the 1st week of January for both 2001 and 2011. In this 10 year period, big changes in the stock share prices are apparent.
PX is the best performer with a whopping 11619% gain. Its share price multiplied more than 117 times! If you bought Php10, 000 worth of PX shares on January 2001 and forgot about it for 10 years, it would now be worth more than Php1, 170,000! What’s cooler than that? If your investment were Php100, 000, you have just earned more than Php11, 170,000! You’re a now a multi-millionaire!
As of August 03, 2011, PX share price is at 22.55. So if you’ve waited for another few months, you’re Php10, 000 is now worth more than 1.67 million pesos!
The other 3 stocks performed well too. JFC share price lifted more than 9 times, ALI increased almost 4 times and BPI more than doubled.
Php100, 000 bought on BPI shares would be worth more than Php200, 000. It is the least performer in the list yet without a doubt it has outperformed any savings and time deposit account offered by any bank in the country. That's cash and stock dividends not yet included. I’m sure the cash dividend is significant considering that BPI regularly pays out cash dividends.
The 4 stocks above are not the only blue chip stocks listed in the Philippine stock exchange, there a lot of others to choose from. I think the share price of most if not all of them has appreciated significantly. However, it is important to note that past performance is not a guarantee of future performance. There are risks in investing in the stock market as with other form of investments. Knowledge is the best defense against risk. For newbie investors like me, investing for the long term say more than 5 years in big and stable companies is wise.
I’ve been investing in the Philippine stock market for a few months now and my investment has appreciated almost 20% and still growing! I’m very happy about it. Who knows what would happen to my investment in the next 10 years. However, with things starting to change in our country, I’m very hopeful. ^_^
To learn how to start investing in the Philippine stock market, click here.
