What newbie investors can learn from the rich


Posted at Dec 04 2017 01:43 PM | Updated as of Dec 04 2017 01:57 PM

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MANILA - New investors need to keep a diverse portfolio and look at the investing habits of the rich to get a good head start, a top fund manager said.

Assets that are easy to liquidate are the best options for beginners like condominiums or properties for rent, empty lots, mutual funds, stocks, bonds, art and jewelry, said First Metro Asset Management president Gus Cosio.

"Rich people will have a number of property investments and rich people sometimes will invest even in property that is very speculative in nature, like properties in Palawan with a long term view that it would be the next Boracay, for example," Cosio said. 

The rich also buy shares in privately held companies, which have a tendency to grow once they go public.

"I would consider a good investment (as) something that you do not have to maintain," Cosio said.

Cosio also recommends mutual funds for beginners to give them access to listed equities.
"Investing in mutual funds is also accessible even for small wage earners who can easily start investing with only P1,000," he said.
Portfolio diversification or growing assets is also encouraged by having more than one mutual fund. There are even investors who put money in competing mutual fund providers to grow their assets, he said.

First Metro also launched the MSCI Investable Market Index to show how private consumption expenditure in the Philippines is moving the economy.

He said revenues of companies in the country are also largely dependent on private consumption expenditures, which include rent, telecom, entertainment, travel and staple goods.

"What we’ve launched is an index to make people understand that there is that portion of the market that is affected by this growth, by this strength of private consumption expenditure 73 to 75 percent of our growth domestic product," Cosio said.