Why Do Filipinos don't Invest in Stock Market (Money Making Part 3)

By: System Admin in Finance

I've published few articles regarding money making but this one is more on the logical reason why people don't like to have more money than usual. Let's talk about stock market. Investing in stock market is also putting up/running your own business at home. Majority of the Filipino population tend to have too little interest in this field of money making.stock_market.jpg

Most of us think that this is only for people who are capable of dispensing large amount of capital but in reality you can invest by simply buying small shares that would only cost you a few hundreds upto a few thousands. My previous officemate had a stock share from Petron which was only Php1,700. My dormate in Los BaƱos way back in 2000 invested Php500 in PLDT. You can buy shares in Meralco, etc.

Looking at the value of these shares, this is just equivalent of buying a few cups of coffee from Starbucks. So why are we Filipinos haven't taken this great opportunity to earn a better income? See some obvious reasons below.

1. Wrong mentoring of parents. Our culture is fixed when it comes to future preparation. Your parents most likely mentioned to you when your were a kid that you have to study hard to earn your diploma for you to easily look for job(to become an employee). We've been mentored this way. Being an employee means fixed salary. No matter how good you are and even if you double your efforts than what you exerted the previous month, you would still get the same pay. Again, fixed income is the result of bad parent's mentoring.

2. Crab mentality. Your own business partner might even pull you down because he/she don't like you to prosper. Or this could apply to your friends who don't like you to progress or you mingle too much to those people who don't have dreams of lifting up their social status.

3. Lack of understanding about stock market investments. I mean, in stock market, you have to know to interpret the details of economic statistics. You might say that an investor can hire and economist. YES and NO. Yes, if the investor can afford one. If NO, the investor has to drive his own boat. One thing to bear in mind, being a successful businessman doesn't necessarily relates to your I.Q but it could be merely through implementation of an innovative business strategy using basic logical reasoning. When I say basic, it's like a simple math-multiplication, division, addition and subtraction.

4. Fear of not getting a better return of investments (ROI). We are all afraid to take the risk of losing money. Most of us always like to have win-win situation but this is not always the case in stock market community. There is no guarantee or assurance of getting a positive ROI. It's part of the game. You just have to play it seriously and lay your cards in the right place.

5. Culture and tradition. This is what we are and we've been for like this for many decades. Women were being portrayed as housewives and only need to be home and do the usual household chores. But study shows, women are critical thinkers and often they are willing to risk than men. Check why we have a lot of women going abroad than men.

Bottom line, we have culture problems that we need to break. Being an employee means steady income and what if the company closes? Is your savings enough to back up your monthly expenses?

System Admin


System Admin

DiversityHuman.com Administrator came from a very humble beginning. Born in the middle of the jungle. Raised by a very loving mother. Grew with a very hard working father. Experienced poverty at the lowest level.

Posted by DiversityHuman.com on 04 Feb 2012

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