The first thing to know about before investing in the Philippines Stock Market

The first thing to know about before investing in the Philippines Stock Market

Philippines Stock Market Investing

Before we get into Philippines stock market for investing we should take and considered some investing rule of the one world's richest stock market investor. Here's the rule:

"Rule No.1: Never lose money.

Rule No.2: Never forget rule No.1"

- Warren Buffett

This rule are very powerful to me, here's why:

Question: 

If you have Php. 10,000.00 invested in the Philippines stock market for 2 years, on first year you are 20% gain and after another year you are 20% loss, How much is your money now after 2 years?

A. > Php. 10K

B. < Php. 10K

C. Even

Same scenario, but -20% and then +20%:

A. >Php. 10K

B. <Php. 10K

C. Even

It's easy after I do the math, but I find it surprising that in both cases, I end up with Php. 9,600.00. I lose money in either scenario. It's a scary thought given the up and down annual returns of the stock market.

Now, it's up to you to decide and make a plan to protect and avoid losing money before getting into the Philippines stock market.