The Investment Mentorship Program is a year-long, progressive learning program that teaches the basics of investing all the way to advanced topics.
Written by Emina Sotto / Photos by Andrea Chan / Poster by Monica Dimapilis
“Hanggang saan aabot ang 100 pesos mo?”
The Investment Mentorship Program: Open Session started with this question, asked by MEcO’s very own mentors Jaime Manzano and Kahane Pe, who facilitated the event to a room full of mentees and non-mentees, including invited senior high school students from the Ateneo, striving to become student-investors in CTC 114 last October 13.
The answer to the question according to the duo is to invest. Why invest? To battle inflation and to buy financial freedom for your future self.
To start the lesson, Jaime and Kahane first defined stocks as the portion of a company or a good located in the Philippine market that move with supply and demand. Afterwards, they moved on to explaining the difference between investors and traders. They compared investing to a marathon, where enduring the longest is more important than being the fastest.
The main point of their discussion revolved around the FTSR Framework that stands for fundamentals, technicals, sentiment, and risk management; those of which are important factors to consider when it comes to stocks and the stock market.
Under fundamentals or creating the portrait of a company, concepts such as market capitalization, the P/E ratio (price to earnings), and earnings per share were given light.
Moving on to technicals or the forecast using a chart of where prices will go, the types of trends were explained as well as the concepts of support and resistance. Support is the point in the where the stock price does not fall, while the resistance is the point where the stock price does not rise.
Furthermore, sentiments predict the stock prices based on current events regarding a specific stock. They summarized this in one word: news. They emphasized how powerful news can affect how investors perceive the company thereby dictating their desire to invest.
Lastly, they explained risk management, examples of which are cut-loss and diversification.They compared cut-loss to an “exit point” when things do not go as planned, where investors must minimize their losses. On the other hand, diversification was explained as “not putting all eggs into one basket” or investing in more than one stock.
In order to facilitate the discussion and to deepen the understanding of the attendees, simple activities were given.
To understand fundamentals, attendees were asked to search the stock code, CEO, and net income of a certain company.
An activity using an online application called Investagrams, made use of the line tool to distinguish support and resistance points in a graph, to grasp the concept of technicals.
To give emphasis to the impact of sentiments, a group challenge on determining why the stock price dropped for a certain company was accomplished.
Finally, to give sense to diversification, an activity on classifying a list of stocks based on their sectors (according to pse.com.ph) was executed.
Mentors were present in assisting the attendees throughout the session.
To end the workshop, Vice President for Investment Strategies, Jason Gusilatar, announced the expansion of the program to senior high school students, also acknowledging the few who were present, as he believes in investing on the youth. He also extended his invitation to the attendees to join the other open sessions of the Investment Mentorship Program in the near future, hoping to encourage more students to become student-investors.
The first open session of the Investment Mentorship Program was highly informative and enjoyable. Mentors Jaime Manzano, Kahane Pe, Dan Reyes, and Thea Zabala were successful in organizing the first open session for the Investment Mentorship Program, as the room full of attendees were able to acquire new knowledge regarding the basics of stocks and the stock market. Together with other mentors present: Jolo Gutierrez, Tim Sio, and Adrian Syliangco, they were able to effectively and efficiently guide the participants in having a fruitful and meaningful experience all throughout the workshop.
Through this event, MEcO was able to highlight its core competency of financial literacy, with the goal to educate and build a community of student-investors in the Ateneo.
Interested in attending the next Open Session? Be sure to like the Ateneo Management Economics page on Facebook for updates and announcements.
Article by Robert G. Tan / Photos by Marco Millan
Invest! is a two-day event that strives to provide an avenue for investment education and stocks training.
The Ateneo Management Economics Organization (MEcO) once again held its annual INVEST! With this year’s theme being entitled “Seek the Peak”, the organizers thought of inviting two speakers to talk – with the first one (link to article: tinyurl.com/INVEST-First-Day) being held a week before the other.
Last September 18, Edmund Lee, the head of a trading institute, had given a talk about the stock market and personal finance. On the 25th of September, however – the event’s organizers were able to invite a professional trader to talk about investing and trading, as well as the implications that arise from each of the two.
With Day One having a corporate CEO take the stage – Day Two of INVEST! saw Brian Ngan, the Chief Investment Officer of the Cedarside Holdings Corporation, grace the newly renovated halls of Escaler. MEcOnistas Alex Cordova and Nicole Salazar returned as the event’s hosts – first introducing Daisie Zeng, who lead the opening remarks in front of a jam-packed audience.
Mr. Ngan began his talk by introducing two words – investing and trading, terms that are different but often used interchangeably. These two form the stock market’s first and second paradigm, respectively. The first one, investing, is when you buy stocks now and hold on to it for a long time. “Investing is about picking the right companies to invest in,” said the speaker. Trading, on the other hand, is when you buy a stock and sell it after a few days. He then said that you shouldn’t do both simultaneously and that it is “more prudent to be the first one – the long-term kind of investor.” This is because according to him, people either don’t have the time to invest/trade or don’t know how to altogether.
He recalls the story of when he met with a couple of people from Macroasia Corporation, an aviation company specializing in aircraft maintenance and catering. He did this after noticing something unusual in Macroasia’s income charts. The fact that it is a business owned by corporate magnate, Lucio Tan, gives it the identity of being the prime food provider in Philippine Airlines (PAL), also owned by the Tan family; and that is exactly what people think it is in the investment world. However, after meeting the people behind Macroasia and tasting their food (which he said rivalled that of five-star hotels), Mr. Ngan discovered that for eight years, Macroasia Corporation has been the food supplier of twelve airlines, including Singapore and Cathay Pacific. And the only thing they supply to PAL is their famous arroz caldo. He says that, “Not only is this company misunderstood. They are hedging their risks.”
He told this story to show the crowd that investing isn’t just about the numbers. It’s about the story. And from this, he claims, arise two types of people: the number crunchers and the story tellers. The reason why people didn’t know anything about Macroasia is because they didn’t ask. Mr. Ngan describes investing as a “bridge between the numbers and the narrative.” Storytellers need to learn the discipline gotten from numbers, while number crunchers need to get the imagination to know about the narratives behind them.
Indeed, there is a place for everyone in the world of investing. But if one wants to do trading as a profession, Mr. Ngan points out that one needs to learn the rules of the game. Active trading is not for the faint of heart. And even though “the mind, the money management, and the method” are very vital in trading for a living, they are not the most important thing. “You need to have the fortitude or the mental preparation to win a lot or to lose a lot.”
If one were to survive in a world of story tellers and number crunchers, one has to have “balls of steel.”