Below is a good article of Bo Sanchez on this great habit for investors – an easy way on how to invest in the Philippine Stock Market.
You can retire in two ways.
You can retire like Lola Penny or you can retire like Lola Pilar.
Penny is a pseudonym. That’s not her real name.
But Lola Pilar is no pseudonym.
Pilar is my mother.
She is 85-years old.
Today, I give my mother a nice monthly allowance.
I do it not because she needs it, but because Ineed it. I need to show my love to her.
But in reality, my mother doesn’t need my money.
Let me tell you why.
Many
moons ago, my mother worked in a small music store as a Cashier. Her
salary was P120 a month. After working for 19 long years, she received a
separation pay: A whopping P2000!
She invested that P2000 in the Stock Market.
The year was 1966.
And
whenever she had extra money, she’d invest in very well known
companies. My parents bought the stocks of giant companies of their
time: San Miguel. Ayala. Etcetera.
My
father retired at the age of 65. He passed away at 88. For those 23
years, my parents sold a portion of their stocks–little by little—for
their big expenses.
After
Dad passed away, Mom announced, “I’m selling all my stocks.” I was
surprised that she still had P1 Million from that last sale—even if they
were already withdrawing their cash from there little by little.
I asked her, “Did you sell everything?”
Mom said, “Yes, I did. Well, I left the crumbs…”
Crumbs?
“What crumbs?” I asked.
She explained, “Oh, I left the very little investments scattered in various companies. They’re very tiny. Nothing much.”
That conversation took place three years ago.
Just
two months ago, I told her, “Mom, you’re 85. You better sell whatever
you have left in the Stock Market. Yes, I know they’re crumbs. But just
collect them anyway.”
She agreed. She called up her stockbroker and said, “Can you sell all the tiny stocks I have left?”
She was expecting P10,000. At most, P20,000.
But she got the shock of her life. The stockbroker told her, “Mrs. Sanchez, your stocks are worth P1.2 Million.”
Mom turned to me and said, “Bo, I’m rich!”
I told her, “Mom, you’ve always been rich. You just think you’re poor.”
Forty-five
years ago, my mother planted P2000 in the Stock Market. And through the
years, she planted little seeds of P50, P100, and P200 in giant
companies.
Because she planted in the spring, today, she isn’t begging in the fall.
In
her whole life, my mother never received a huge amount of money. She
never inherited money. She never won the Lotto. She only built her
wealth slowly.
Remember this truth I heard from David Bach:Wealth is not built in days; Wealth is built in decades.
There are two ways of retiring in life: Are you going to be a Lola Penny or a Lola Pilar?
God places the two roads before you.
Penny Poverty or Pilar Prosperity?
You choose.
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