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No, Stock Investing Isn’t Just for the Rich — Here’s How You Can Start

Beginner’s guide to stock investing in the Philippines. Learn how Filipino yuppies can start investing in stocks with just PHP 1,000 today.

Author

Marianne Lim
June 02, 2025

Investing in the stock market can sound intimidating, confusing, or even out of reach, especially when no one really taught us this stuff in school.

But here’s the truth: Stock investing is one of the most powerful tools you can use to build long-term wealth. You don’t need to be rich, a finance nerd, or a risk junkie to get started.

Today’s newsletter is your absolute overview into investing in the Philippine stock market – explained in a beginner-friendly, no-BS way.

In today’s edition, we’ll go over:

  • What stock investing is

  • When you should and should not invest in stocks

  • How to get started 

  • Beginner-friendly stock picks

TLDR;

The Bottom Line

  • Stock investing means owning part of a company, and you can start in the Philippines with as little as PHP 1,000.

  • Only invest when you have financial stability and a long-term mindset. Don’t invest if you're in debt or chasing fast returns.

  • Beginners should start with blue-chip stocks, dividend payers, or index funds like FMETF for lower risk and simplicity.

  • Getting started is as easy as opening a broker account, funding it, and investing consistently in quality stocks.

The content

What Does It Mean to Invest in Stocks?

When you buy a stock, you're essentially buying a piece of a company. If the company does well, your share becomes more valuable, and they might even give you a cut of the profits in the form of dividends. If they do poorly, your investment could lose value.

In the Philippines, the Philippine Stock Exchange (PSE) is the main market where stocks are bought and sold. 

When You Should Invest in Stocks

  1. You have an emergency fund (3–6 months of expenses).
    Stocks are volatile. You don’t want to sell them at a loss just because you need cash. 

    Don’t have your emergency fund yet? Check our previous article on how to get started.

  2. You don’t need the money for at least 5 years.
    Stock investing is best for long-term goals like retirement, buying a house, or future family plans.

  3. You’re willing to learn and manage risk.
    Even if you’re passive, understanding the basics is crucial.

When You Should NOT Invest in Stocks

  1. You're in debt with high interest.
    If you’re drowning in credit card or loan payments, pay that off first. Stocks won’t save you from compounding debt.

  2. You expect quick profits.
    Stocks are not a “get-rich-quick” scheme. The market goes up and down, sometimes even irrationally.

  3. You panic easily when you see red.
    If you’re going to lose sleep every time your stock dips, you might not be emotionally ready yet.

Actionable Tips for You

How to Get Started: A Quick Step-by-Step

  1. Set your goal.
    Is this for retirement? For future business capital? For your kid’s education? Define the why.

  2. Choose a stockbroker.
    Some beginner-friendly online brokers in the Philippines include. 

    We linked resources on how to open an account under each broker. 

  3. Fund your account.
    Even PHP 1,000 goes a long way when you're learning.

  4. Decide what to invest in.

  5. Be consistent.
    Try investing a fixed amount regularly regardless of market conditions.

  6. Track and learn.
    Use apps like Investagrams, or PSE Edge to monitor stocks and stay informed.  Your chosen broker would also have regular market insights and reports you can study.

What Stocks Should Beginners Choose?

Choosing your first stock can feel overwhelming, but you don’t need to get it perfect. The key is to start simple, consistent, and learn as you go. Here are some beginner-friendly options:

1. Blue-Chip Stocks

These are large, established companies with strong reputations and a history of stability. They may not always grow fast, but they’re relatively safer bets for long-term investors.
 ✅ Examples:

  • Jollibee Foods Corp. (JFC) – Dominant in fast food, locally and globally

  • Ayala Land Inc. (ALI) – Real estate development giant

  • SM Investments Corp. (SM) – Conglomerate with retail, property, and banking exposure.

💡 Tip: Choose companies that are leaders in their industries. They would generally be less volatile.

2. Dividend Stocks

If you like the idea of earning passive income from your stocks, look for companies that regularly share their profits with shareholders (as dividends).
 ✅ Examples:

  • PLDT (TEL)

  • San Miguel Corporation (SMC)

💡 Tip: Dividend income can be reinvested to grow your portfolio faster.

3. Index Funds / ETFs (Exchange-Traded Funds)

If picking individual stocks feels too risky or time-consuming, start with the First Metro Philippine Equity Exchange Traded Fund (FMETF). It automatically gives you exposure to the top 30 companies in the PSEi.

✅ Why it’s great for beginners:

  • Instantly diversified

  • Requires less monitoring

  • Professional fund managers handle the rebalancing

💡 Tip: You can buy FMETF through most online brokers like COL Financial and FirstMetroSec.

4. Consumer Staples and Utilities

These are businesses people rely on no matter what (food, electricity, water, and basic services). They're usually more stable even during economic slowdowns.
 ✅ Examples:

  • Puregold (PGOLD) – Grocery retail chain

  • Manila Water (MWC) – Utility provider

  • MERALCO (MER) – Electricity distributor

💡 Tip: These are often resilient during market downturns.

How to Know If a Stock is Worth Buying:

  • Is it profitable? (Check its earnings. Annual reports and company news are great starter points). 

  • Does it have a competitive edge?

  • Is the company growing?

  • Do you understand the business?

  • Can you hold this for 5–10 years?

Don’t just chase hype. Stick to what you understand, and build your portfolio one quality stock at a time.

Do you want a deep dive into how to study and choose which stocks are worth investing? Reply to this email and let us know!

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