How to Buy Stocks using SAM of Truly Rich Club

I am a newbie investor in stocks. Me and my wife just started less than a year ago and we keep on learning from it. We know investing in stocks is risky, so we chose a mentor to guide us all the way. That’s why we joined the Truly Rich Club of Bo Sanchez.

One of the perks of being a member is their monthly Stocks Update with list of stocks we can buy or sell. They call this SAM or Strategic Averaging Method. The term is only for Truly Rich Club member, you cannot find it in other financial websites. This is Bo’s strategy of long term investment via cost averaging to minimize the risk of potential loss.

Here’s a sample SAM table on the last issue of stocks update dated April 10. All the stocks listed here we call it as SAM Stocks.

SAM

Let me explain how to read this table per column.

STOCK refers to the stock symbol of the company. FYI, there are more than 200 companies listed in Philippine Stocks Exchange, all of them have different code. Ex: BDO is Banco De Oro, FPH is First Philippine Holdings. If you want more detail about it, you can find it in PSE website or COL website.

CURRENT PRICE stands for the price as of writing of stocks update. This varies everyday on the market.

BUY BELOW PRICE stands for the price we are advice to buy the stock. If the current price is higher than it, don’t buy the stocks even if it is listed in SAM

TARGET PRICE or the fair value. Current price of each company shares are sometimes under valued. This means, on actual, their shares can be higher base on their financial reports. That is what Bo Sanchez and his team are doing, find under valued blue chips companies where we can invest. The company have the potential to reach this price in coming days, weeks or even months.

ACTION TO TAKE. For the last column, this is quite understandable. Base on the company situation or price of the share is buy below price, they will recommend action to take either BUY, SELL or HOLD. Only buy those SAM stocks with BUY rating.

Prices of stocks changes every day. In choosing which stocks to buy, always refer to the SAM stocks table. Try to compute of each companies upside percentage.

For example, let’s take BDO. Current price is 89.75, target price is 112. To compute upside, follow this formula:

UPSIDE = (Target Price – Current Price) / Current Price x 100% =  (112-89.75) / 89.75 x 100% = 19.86%

This means, your upside is 19.86%. In short, you still have the chance of earning this percentage if you buy this stocks. Try to compute other stocks upside and see the potential earning you will get before it reach the target price. The higher the upside, the better it is. Although this is not 100% as no one can predict the market. Stock price can go lower or higher than the target price.

Sometimes, aside from regular stocks update from the Truly Rich Club,  Bo Sanchez is also sending current update wheter to BUY or SELL the stocks. If  this happens, just follow his advice. In case it is a SELL alert, you can opt not to sell your stocks on hand. This means that the stocks already hit the target price and growth maybe stagnant in coming days. You can sell your stocks and use the fund to buy another SAM stocks with less value and more upside potential. If you don’t want to sell, you can keep the stocks for as long as you want. Remember, these are blue chips companies.

Invest in stocks for long term.  Don’t be tempted to go astray and buy stocks aside from our SAM stocks. Keep on saving and investing.

 

COL Financial vs Truly Rich Club

While both have stock picks option, they are very different in business model and advocacy. In fact, they complement each other. Most of TRC members are COL Financial account holders where they buy their stocks. They both have stock picks of their own, base on their insights. However, it is good to have the best of both worlds. If you are both subscriber, you get insights from both of them. Choose the best that suits your investment goal and objective. There is no right or wrong. They are just recommendation, they are not 100% sure thing. Buying those stocks is still up to us. Invest for the long term as most of these recommendations are base on a long term play. It’s not for stocks trading where risks can be higher and not suitable for new investors.

I’m a subscriber of both and I value their insights. In the end, I decide what is best for me and my portfolio base on their recommendations. With limited capital, it’s also not practical to buy all the recommendations that they have.

col financial vs truly rich club

Do you have account in COL for trading stocks? Check this GUIDE if you want to open one.

Do you know how to buy and sell stocks in COL? Check this GUIDE to learn how to.

P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.