Wednesday 27 August 2014


Let me have that disclosure first before I got kidnapped or anything! :) More details on this but first: Investopedia has put the right meaning on BUY AND HOLDA passive investment strategy in which an investor buys stocks and holds them for a long period of time, regardless of fluctuations in the market. 

An investor who employs a buy-and-hold strategy actively selects stocks, but once in a position, is not concerned with short-term price movements and technical indicators.  

That's the beauty about stock market. Like a lot about life, learning is an everyday process. I have prepared some points about my personal action items towards the buy and hold strategy. But first some history.

I'll never look at the BUY AND HOLD strategy ever again. Before, I'm an avid fan of Peso Cost Averaging method. I reckon it makes sense since you're building your wealth over time compared to the buy and hold strategy that's sort of boring and only requires a one time investment. NOT UNTIL, I had a conversation with my 2 friends J and K. I gathered that this portfolio {see below} is a real portfolio of someone we know. And, the figures shocked me big time. I got inspired! If he can do it, so we can! :)

Let the figures speak for themselves. However, can I just emphasize that after leaving his Php 24,000 to DMCI for 10 years, the investment ballooned to Php 10.56M? How's that?!!! 

After picking up my jaw from the floor, I summed up the following action items:

1. Open another account specifically for long term investment. I have opened my online stock account before but this time I intend to open another for a specific purpose. And that's for my retirement fund. I tried to lump them into one account, however, there's a speculative trader within me. I got giddy when stock market goes bullish, next thing I now is that I'm realizing gains from my portfolio. Not a bad thing at all but I want to try this strategy as I have a feeling it will work {well, it worked for him}. Word of caution though - we still have to be diligent and do our own research. For some instructions on how to open a COL online account, click HERE.

2. Put aside a fraction of my cash inflow and invest into a good company. Not necessarily blue chip but a company that has a good potential. Case in point: DMCI was a second liner stock and who would've thought it will catapult to greater heights? But wait, be aware of this risk: it's a double edged sword. Investing in 2nd liners can work positively or otherwise. How can we know which stocks will catapult? That's a good question. That requires some intentional studying. 

3. Pray and muster up some patience to wait. Waiting for me has always been a challenge! I just don't like it. But just as a seed won't be a tree tomorrow, our investment does the same. It needs time to blossom into a colossal amount. Now, I am excited by the mere thought of it. And may I add, we all have this commodity. TIME. Whatever station in life you may be in, you always have 24 hours a day!

Tips: Take time to research about DMCI, Puregold and Double Dragon. Also, do some readings about property sector. This sector has the most robust growth over a 10-year period. Best to capitalize on that.

Lastly, let me leave you with this Chinese proverb: The best time to plant a tree was 20 years ago. The second best time is now. More thoughts along these lines on my post called IT'S NEVER TO LATE TOO INVEST IN STOCK MARKET. -CMK


  1. Hi,

    Is it possible to open another COL account? So far my investments in COL is for my retirement but I want to try trading too. :-)

    Allocate some amount specifically for trading only and see how it goes.

    Let me know please if COL allows second account.


    1. Hello - your question is just in time and the answer is YES. I have received a message from COL Team asking if I want to replace my existing account or I want a new one. Once confirmed, they'll be happy to process your 2nd account. Good luck :)

    2. Hi..

      can you let me know the requirements/procedure on how to open for the second account?

      I would like to open another account for a buy and hold strategy. :-) Let us see if it works out well.


    3. It's the same as before ( - only difference is this time, I didn't go at COL office personally. I've sent them via LBC (located in SM near our place). Yay for buy and hold! :P

  2. hi po! maganda po ba un kaisen intl ng IMG? thanks

    1. Hello Lyn! I can't comment on that because I've never invested in IMG yet. I do have a first hand experience in ATR Kim Eng, FAMI, BDO UITF and Sun Life Mutual Funds investment as of yet :)

  3. Thanks Kristine for this very informative article!

    I also started out using the cost averaging method, but what didn't make sense was that I get to pay for each and every transaction cost. I figured that if I just put a one-time investment, my returns could be higher.

    People think that a buy and hold strategy is risky because it involves a single infusion of capital. I think that the risk can be minimized by in-depth research and entering with a margin of safety.

    I’m into long-term stock investing, and I also like to share an article about what to do with short-term market fluctuations. Click on my name to read about it.

  4. HI Kristine. May I ask the companies you invested for this buy and hold strategy?


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