Written by Emina Sotto / Photos by Andrea Chan / Poster by Monica Dimapilis
The Investment Mentorship Program is a year-long, progressive learning program that teaches the basics of investing all the way to advanced topics.
“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.