A Portrait of the Investor as Filipino

Consider this: In a survey released in 2008 by the Philippine Stock Exchange (PSE) it was found that less than one half of one percent of Filipinos have stock market accounts. Only about a tenth of a percent trade at least once a year (active investor = trades at least once a year).

Compare that with the number of active investors in our neighboring countries as a percentage of their population: South Korea 10%, HongKong 17%, Malaysia 18%, Australia 25%, Japan 25%, Singapore 33%. How come we can't come up with a measly one percent?!

I know... I know... we are a poor country, wealth is concentrated in the hands of a few, our politicians are lousy, investors don't have confidence in our government, the peace and order is bad, corruption is the worst, and did I already mention that we are a poor country? Blah, blah, blah. Its so easy to come up with excuses. Excuses ease. Excuses soothe. Excuses are a balm to our wounded pride as we explain away why a country that used to be second only to Japan in this region has been called the "sick man of Asia."

But enough with excuses. This is the ICT Age! Friends, classmates, countrymen, check out these online stockbrokers and see how easy it is to invest in the Philippine stock market: http://www.bpitrade.com.ph/;
http://www.citiseconline.com.ph/;
http://www.philstocks.com.ph/.
(I know only these three. If there are others don't hesitate to share. Check out this site for a comparison of the three:
www.mariecasas.com/2007/03/27/stock-trading-online/)

Hep! Before you start making another excuse, you can open an account for as low as P5,000! Hep! Stop that excuse right there! Yes, you're right there is a risk of losing your money. But there is no such thing as a riskless investment! Risk and return is the yin ang yang in both investing and life. When are we going to get out of our shells and invest in our own country's future? Why do we prefer to keep our money under the matress while, in the meantime, foreign investors enjoy the PSE's 63% gain in 2009?

Let the law student in you be assured that The Securities Regulation Code of 2000 (RA 8799) recognizes "uncertificated securities" or those securities evidenced by electronic or similar records (Sec. 3.14). So don't worry if you don't get certificates of stock for the shares you buy. The online brokerages offer speed, convenience and real-time data that the old-style brokerages can't.

We are entering a new decade. The Filipino has proven himself adept in the online world. Let that deftness be our brush and ICT our palette. Its about time we make a new portrait of the investor as Filipino. (With apologies to Nick Joaquin.)


Source of PSE survey data: http://www.dotnewbie.com/