How To Pick The Right Stocks For Cost Averaging: Passive Stock Market Investing Part 3

Posted by Fitz Villafuerte under Investing on February 21, 2011

Welcome to the third and final part of this series.

Hopefully by now, you already know how to do cost averaging and likewise understand how cost averaging works from a mathematical point of view.

As promised, in this last part – we shall examine actual Philippine stocks and see how your investment would have performed if you did cost averaging on them.

From the previous post, you can see that cost averaging is favorable if the trend is sideways and/or upwards.

This is the key when choosing the best stocks for cost averaging.

In reality, stock prices go up and down – but if you look at their long term performance, you’ll see that some companies would fit this criteria. Examples are Jollibee (JFC) and Ayala Land, Inc (ALI).

The blue line (JFC) has an upward trend for the past five years while the brown line (ALI) has been moving on a sideways direction.

In general, blue chip companies are the best stocks to buy for cost averaging – because they have a national reputation for quality, reliability and the ability to operate profitably in good times and bad. Short to say, they are the leaders in their industry. (Blue Chip – Wikipedia)

So while it’s true that the past trend of a stock DOES NOT indicate it’s future performance, blue chip companies have strong fundamentals that makes them less likely to go bankrupt in the foreseeable future.

Again, there’s no guarantee, but personally, I’d rather buy shares from well-known and stable companies that have experienced financial growth in the past than “unknown” and “unproven” public companies. Do you agree?

Now assuming you invested at most P5,000 each to JFC and ALI every quarter from January 2008 until October 2010 and sold all your stocks last January 2011. How much would you have gained? The tables show the results below.

Jollibee (JFC)

Ayala Land, Inc. (ALI)

As you can see, for JFC, your money has grown by around 73% from January 2008 to January 2011 (giving you a profit of P41,750) while for ALI, your investment has grown by at least 64% (with a gain of P33,810).

Combined, your total cash of P109,715 which you invested little by little in the past three years is now worth a total of P185,275. Invest that same amount in a time deposit account and you’ll be nowhere near that amount after three years!

IMPORTANT: Major assumptions in the calculations above:

  • Stock prices were based on the range of closing prices during the first week of the indicated month
  • A board lot of 10 was used for the stock price of JFC – a PSE rule that got implemented only last July 2010
    • As a rule, you can only buy stocks in multiples of the board lot.
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    • If the old rule was applied, the board lot of JFC would have been 100 before July 2010 – making an investment of P5,000 impossible because you’ll need more than that to buy the minimum required number of JFC stocks
  • Transaction fees, taxes and other costs when buying and selling stocks have been ignored
  • Likewise, income received from dividends have also been ignored

There are other minor assumptions made in the examples above. However, what’s important for you to see now is how cost averaging was applied to JFC and ALI with profitable results in the end.

Also, note that since you’re “allowable budget” per company per quarter is only P5,000 – then you should NOT spend more than that every period to stay within the general principles of cost averaging.


  • Cost averaging is an investment strategy that allows you to passively invest without having to worry about “timing the market” and closely monitoring your investments.
  • In the stock market, it is recommended that you apply cost averaging on companies which have shown stable growth and performance over the past years to minimize your risks.
  • There are no guarantees in the stock market, but with blue chip stocks in general, the longer you invest – the higher your potential profit would be. Again, always keep in mind, there are no guarantees.

Lastly, before you invest, be sure to have ALL THREE of these requirements: an emergency fund, an investment objective and a thorough understanding of what you’re investing on.

I hope you found this series truly informative and educational.

By now, I hope you have already subscribed to Ready To Be Rich so you can receive more updates from this website in the future. If not, then please fill in the form below:

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Easy Series Reference:

FREE DOWNLOAD: Cost Averaging Template in MS Excel

Disclaimer: The information above should not be taken as financial advise from an expert. This article is merely for educational purposes. Please consult a wealth manager or a certified financial planner before making any major investment decision.


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112 Responses to “How To Pick The Right Stocks For Cost Averaging: Passive Stock Market Investing Part 3”

  1. […] How To Do Cost Averaging: Passive Stock Market Investing Part 1 How To Pick The Right Stocks For Cost Averaging: Passive Stock Market Investing Part 3 […]

  2. Adrian Pazon says:

    Hi Fitz,

    Good Job! on these posts.

  3. Lois says:


    Thank you for this very helpful information. I just have a question thouh, should you still continue to buy even if the price of the share is higher? Also, what if your P5000 can no longer buy the minimum board lot? (these is just a hypothetical question. i don’t know if it happens, but just in case it does, what should you do?). I really appreciate your response.

  4. Fitz says:

    Hi Lois, that scenario does happen and to stick with the general principles of cost averaging, then you should not buy the stock if the price gets too high for your budget.

    This is a “good problem” actually because it means your previous stock purchases are “earning”.

    At this point, you have several options like investing it in another instrument, start cost averaging on a new stock, or simply saving the money so you have funds if a new investing opportunity comes. πŸ˜€

  5. xavi says:


    just to clarify, are you recommending that the investor stop buying if the stock price is too high? however, am i right in saying that the investor would not know when a price is too high, therefore, he should still invest. of course, given that theres budget. thank you.

  6. Fitz says:

    The investor will know if the price is too high – it depends on the current price of the stock and the board lot as assigned by the PSE.

    For example, if your investing budget is only P2,000 per quarter

    Stock ABC price: P1.75
    Stock ABC Board Lot: 1,000
    The Board Lot requires the investor to buy only multiples of 1,000 of Stock ABC. This means this January, he can buy 1,000 shares of Stock ABC for a total investment of P1,750.

    Stock ABC price: P2.25
    Stock ABC Board Lot: 1,000
    By April, the price of Stock ABC has risen. The Board Lot for the new price is still 1,000. This means the minimum amount you can invest is now P2,250 (2.25 x 1,000). Since your budget is only P2,000 then you should not buy Stock ABC at this time because the price is too high and you don’t want to go over your investing budget.

    Stock ABC price: P1.90
    Stock ABC Board Lot: 1,000
    By July, the price of Stock ABC fell. Since the minimum amount to buy the shares is now P1,900 (1.90 x 1,000), then you can now buy Stock ABC shares again.

    If I were this investor, I would have taken my P2,000 last April and invested it in another investment instrument.

    I hope my answer is clear. Do reply if you need more clarification.

  7. desertman says:


    I think what Fitz is pointing out is that your guide in determining whether the stock price is too high or not will be your budget. But correct me if I’m wrong guys coz the best way to determine if the stock price is too high or not is by looking at the stock’s performance history. PSE and other online stock brokers give you at least 1 year stock price history right? From there, you can determine whether the stock price is too high, abnormal or just on the average. Of course, if you will follow the basics of cost averaging, you will buy irregardless of the increase or decrease in stock price. But just like what Fitz said, a more sound investor would not buy if the stock price is high which is also the basic principle in buying stocks. Just my two cent πŸ™‚

  8. xavi says:

    thanks fitz and desertman.

    ok, i got confused i thought fitz meant that an investor should no longer invest if the price is too high (based on value and not budget constraints).

  9. nixtol says:

    Hi! I just stumbled to this site today, and I must say that this blog is truly informative for newbies πŸ™‚

    I have a question as regards to this post.

    I’ve read that it’s better if you “diversify” you portfolio. If I’m not mistaken, this means buying stock from other companies/industries in order to be relatively safe?

    If so, when’s the best time to buy stocks from another company? I mean, if for example I can only afford P5k per month on buying stocks, should I invest all 5k to a single blue-chip company, or 2.5k on 2 companies? Or, would it be a good time to buy from another company if you can’t afford the lot from your “original” company?

    sorry if magulo πŸ™


  10. desertman says:


    First, “diversify” means not only buying stocks of more than one type of industry, but it also means investing into different types of financial instruments (TD,FXTN,forex,UITF,etc..)And choosing from any of these investment gateways would all depend on how much risk you can take as an investor. The higher the risk the higher the return of course.

    On your next question, the rule of thumb in buying stock is buy when the price is low. So better check the performance history of the stock if you want to have a better profit. but how to choose which stock to buy all depends on you. You can opt to invest in a single blue chip or in more than one stock. Either way, you can follow the cost averaging principle. But if you are asking if it’s a good time to buy from another company just because you cannot afford the lot from your original company, the answer is no. It’s always a good time to buy from another company if the stock price is good and not because that’s where you available money would fit in. just my two cent πŸ™‚

  11. nixtol says:


    thanks for clearing things up! πŸ™‚

  12. desertman says:


    anytime chief! good luck… πŸ™‚

  13. Kristina says:


    This post is very interesting. It makes me want to do cost averaging. as a beginner what stocks do you think I should choose? I am currently clueless on what stocks are doing good in the market or not. I plan to make my money stay for a couple of years. Help!


  14. desertman says:


    According to CitiSec Online chief (i forgot his name), in choosing which stock to invest in, specially if you are not that well versed with the stock market, it’s safer to choose blue chip stocks. And how to choose which are blue chip stocks? Again, he said the simplest thing to do is to try to look around your sorroundings and then see which business is doing good. Examples are Jollibee, San Miguel, SM, etc.. Then check the PSE listing for the board lot and the price of the stock you want to invest in. But if you want a more precise reference, try checking out PSE and other online stock brokers’ website and you can see the stock price history there.

    Goodluck ma’am. πŸ™‚

  15. Fitz says:

    I owe you a lot here… thanks for helping out. I should buy you coffee one of these days. πŸ˜€

  16. desertman says:


    Thank you for the coffee sir. Sad to say, I am currently working abroad. I regularly visit your site though to get some tips and give some pieces of advice in return. Maybe we could meet someday coz I am planning to be back in the Phils next year “for good” to leave the corporate world again and concentrate on my business. I am crossing my fingers that i will be doing the right thing this time. Remember my comment on your Reader Mail #17? Just a suggestion Sir Fitz, maybe you can put a space in ur site where we can monitor the recent comments posted in ur articles. That would be more efficient for those waiting for replies right? Again, just my two cents. πŸ™‚

  17. Kristina says:


    Thanks! I’ll surely do that! Hopefully I’ll find the discipline to stay on this kind of plan! Wish me luck! ;b


    Thank you very much for your posts and blogs I have learned a lot. I find them very interesting. Keep up the good work!

  18. rand says:

    Hi Fitz,

    Thanks for your blog.

    What are the criterias in selecting stocks? Do you have a strategy when to buy and when to sell?



  19. Fitz says:

    Hi Rand, at its simplest, for cost averaging, buy blue chip stocks. Buy anytime at regular periods for the long term. Sell when the value of your shares reach your investment objective. πŸ˜€

  20. LittleJowell says:

    Hi Fitz!!!

    Very nice post.. Informative. Incidentally, i just got sign up for Citiseconline. Ready to invade Stock Market. :).

    In line with this, may I ask your expertise on what’s the best thing that I can do not that I have my account. I haven’t bought yet stocks since I am waiting for my User Name and Password from them. If you can help me on what would be my next move, especially when buying my first stock would be appreciated.

    Other readers can also share. All information that you can give would be much appreciated.

    Thanks much!

    LittleJowell (newbie in investing)

  21. LittleJowell says:

    ***what’s the best thing that I can do NOW that I have my account.

  22. Fitz says:

    Things to do: 1. Define an investment objective for the stock market 2. Learn the Citiseconline interface 3. Choose a blue chip stock for cost averaging 4. Input an EIP order

    Tip for Citisec: GEMSS
    Stock criteria for cost averaging
    G – Growing industry
    E – Earnings visibility
    M – Management credibility
    S – Superior products
    S – Strong balance sheet

  23. Dennis says:


    I like the post, very informative! Got one question, did you also include the commission paid on the gain/loss?



  24. Fitz says:

    Hi Dennis, no the broker’s commission and other transaction fees are not included in the computation to make the illustration simpler.

  25. Manny says:

    What do you think of these companies’ stocks, are they ok for cost averaging?:

    BDO – Banco De Oro
    SMC – San Miguel Corporation
    AC – Ayala Corporation
    AEV – Aboitiz Equity Ventures
    PNB – Philippine National Bank
    SM – SM Investments

  26. Fitz says:

    I’m not a professional stock market analyst but in my own opinion, BDO, AC and SM are good for cost averaging.

  27. hoshi says:

    hi po! I’ve started to do passive trading just last month and I’m planning to continue it, quarterly. I’m glad that currently the PSEi is doing well.

    my question is am i gaining profit already while waiting for the next quarter? if ever, how can i compute that? i remember on the day when I bought my stocks, the market was not that good.

  28. Fitz says:

    Hi hoshi, you only gain profits when you sell your stocks.

    But it has “potential income” based on the current prices. Just multiply the current price of the stock against the number of shares you have then subtract transaction fees and broker commissions to know how much you’ll get if you sell your stocks.

    And you don’t have to wait for next quarter, if you need the money after a month and the price is high enough, you can sell it already for profit. But of course, that’s not the point of passive trading.

    By picking blue-chip stocks, the stock prices just goes up in the long term (it goes up and down, but general direction should be up) and available for you to sell for profit when you have met your investment objectives already.

    I hope I was clear with my answer and congratulations for buying stocks when the market was bad, it means you got them at a low price! πŸ˜€

  29. LittleJowell says:

    Hi there again Fitz!

    Just got another question here.

    Right now, I’m into EIP, which means, I’m in a long term passive trading.

    What if you are on a long term passive trading, how will you know if your investments are ready to sell? Will you wait for the time you set before you sell? Is 10 years ideal for passive trading? Or, 5yrs will do?

    Thanks agian in advance!


  30. Fitz says:

    Hi LittleJowell,

    You have to have an investment goal – which means you have to set how much you actually want or for what purpose are you going to use the money.

    Let’s say the goal is to buy a car. Then you will sell your stocks when it’s high enough to buy yourself a car. Make your goal rewarding enough for you to be motivated to continue investing for the long term.

    All the best,

  31. LittleJowell says:

    Thank you very much!

    This helps a lot. Yeah! I actually have my goal why I did this. To complete the payment of my house which I am still paying for my monthly amortization through Pag-IBIG.

    Hopefully, within 5 years or less, I will complete the payment and start again, this time, my Retirement. πŸ™‚

    Thanks again and don’t stop giving advise and help to those who really need your expertise. I’m one of those. πŸ˜€


  32. hoshi says:

    Thank you very much po!I’ll add your comment in my notes.

    Yes i think i bought my stocks at the low price. but i think i have to buy more shares and i’m willing to wait three to five years.

    by that time, i hope my investment in stock market is still doing well and will be more than enough to fund my future business.

    mabuhay po kayo!

  33. elleica says:

    Hi Fritz!

    I’ve been a subscriber of your blog for some time now and I really find all the posts informative and easy to understand. I am now considering investing in the stock market through City Sec Online’s Easy Investment Program. Do you know about it and do you have some feedback about it?

    Basically, it follows the Cost Averaging Plan you discussed in this series. πŸ™‚

    Thanks a lot for your posts and keep them coming! More power! πŸ™‚

  34. elleica says:

    oops! my bad.. i called you Fritz (I happen to know someone by that name).. it should have been Fitz.. i’m sorry..

  35. Fitz says:

    Hi elleica,

    I am actually enrolled in Citiseconline’s Easy Investment Program and have blogged about them here:

    Learning About The Philippine Stock Market

    My account manager there is Ms. Shan Loquinario and you may call her at 6333777.

    Tell her I referred you so she can personally assist you in getting a slot in one of their free stock market seminars just in case you’re interested to attend one.

  36. adam says:

    I have one question, im already into EIP in citiseconline..My question is if i would like to buy a stock no tunder the EIP let say 25k for JFC do i need to sell it right away before it closes the market? or not? is it ok if i leave it there for a year, and then after a month i want to add again another 25k then leave it again there, is it allowed by citiseconline? thanks for any reply..

  37. ikaela says:

    Hi Fitz,

    I tried downloading your free cost averaging template but the link seems to be broken. Would you please make it available to us again? It’s been very helpful to me and I do hope you consider sharing it with us. πŸ™‚

  38. Fitz says:

    Hi ikaela,

    You can try again, it’s now working fine. If you’re still having trouble, then please tell me and I’ll upload the file on another server.


  39. ikaela says:

    Yes, I’m able to download it now, thank you very much Fitz!

  40. Enzo says:

    Hi guys,

    This cost averaging method is really proven (theoretically) to be the best method in minimizing risk if your target is long term (at least 5 years) and your only investing with giant companies.

    I am a member of Bo Sanchez’s Truly Rich Club and he has already blessed me in so many ways. Part of the blessing is he will help you choose what companies to invest, at what price you should stop buying and what price you should start selling and reinvest the profit to other giant companies (he has a group of financial analysts doing this stuff, so he is just sharing to us what he learns from his mentors). This method is called Strategic Averaging Method (SAM) and the potential growth in this method is exponential compared to the purely passive way of investing. If you want to learn more, you may visit this website:

    I hope you will also find this really helpful in attaining your goal of financial freedom.

    More power to you! Enzo

  41. Citrine says:

    For those who are just starting out, Citiseck Online has a recommended list of companies that you can buy based on their analysis. The list (called Investment Guide, issued daily) will indicate if a company is a buy and it also tells you when to sell (when the target price is reached). This service is FREE for account holders of Citisec Online. There’s really no need to subsribe to any newsletter telling you which one to buy or when to sell. Citisec Online is all you need and they are professionals. By the way, I don’t work for Citisec Online, but I really find their analysis very helpful for my own investment.

    Good luck to us!

  42. Enzo says:

    I agree with Citrine. Citiseconliine issues investment guide on a daily basis for free for all account holders. I can opt to cancel my subscription with Truly Rich Club and instead, I will base my decision on the investment guide. However, Truly Rich Club ( ) isn’t just all about the Stock Market. It is also about having an abundance mindset. Why? All the technical stuff Bo will teach about the Stock Market won’t work if you don’t have an abundance mindset. You will also receive many more blessings such as ebooks, newsletters, videos, audios.
    By the way, one of the financial analysts of Bo Sanchez is working with Citiseconline. Although they are not connected with each other, Citiseconline and Truly Rich Club share the same advocacy: to help and encourage Filipinos to regularly invest their savings (big or small amount) on the stock market.

  43. Richie says:

    Hi Fitz.

    Need your opinion re stocks for cost averaging. Among the following, which stocks would you buy (choose 2 pls):

    AC ayala corp
    ALI ayala land
    BDO banco de oro
    ICT Intl Container Terminal Svcs
    JFC jollibee
    SM sm investments
    SMPH smprimeholdings
    TEL pldt
    URC universal robina corp
    MPI metro pacific

    Will wait for your reply. Thanks Fitz.


  44. Fitz says:

    Hi Richie,

    Just my personal opinion… go for JFC and ALI.

  45. Richie says:

    Thank you Fitz. God bless you…and me too in my investment πŸ˜‰

  46. April Belle says:

    Hi Fitz,

    Your articles are very helpful, Thanks for posting the nitty gritty details of PESO COST AVERAGING. Pls. continue inspiring Filipinos to be knowledgeable investors.
    I just have a few questions, if you don’t mind. You mentioned that you are also a Citiseconline investor. I wanted to understand the portfolio there better.
    1. Would you know if the Average Price listed there includes the commission and fees?
    2. Is the market price listed based on the best “Bid” Price?
    3. When you add an EIP order, the site automatically lists a price, Is this the best “Ask” Price?
    and lastly,
    If I only have Php 5k to invest monthly, would it be more “cost-effective” , “wiser” to invest it in two stocks to somehow be able to diversify or just invest in 1 stock? I ask this because I read in some article that investing in small amounts would not be wise if the commission becomes quite significant. And to be extra careful when doing this on a regular basis because the commission adds up! I guess my question is how small is “small” such that the Citiseconline commission becomes quite significant?

  47. April Belle says:

    Hi Citrine or Fitz or whoever can help:

    I just checked out the investment guide at COL and I have a question:
    When the recommendation is “HOLD” which means that the expectation of the share price is to move by +/- 15%, Does that mean you should stop buying your regular EIP shares but hold on to it or just continue buying shares and hold on to it?

    Thanks in Advance!

  48. Fitz says:

    Hi April,

    To answer your questions:

    1. The average price already includes the commission and fees when you bought the stocks. It does NOT include the commission and fees when you eventually SELL the stocks.

    2. Yes, that’s the best price at that particular moment, but market prices can change instantaneously, so it’s sometimes helpful to have a particular price in mind and buy when the market price goes down that level (if you’re buying stocks).

    3. An EIP order will give you the market price, which again is the best price at that particular moment. Since EIP orders are triggered manually – you can again, have a specific price in mind, and trigger your order once the market price touch that level.

    4. I’d recommend buying only one stock with the P5k. But personally, instead of investing monthly, I’d instead do it quarterly and buy two stocks – which translates to a P7.5k budget for each stock.

    5. The recommendations of COL when it comes to buying, selling and holding are more geared towards investors who wants to be more active with making money in the stock market. If you’re on regular EIP, you shouldn’t really pay much attention to those.

    COL’s EIP is actually designed for people who don’t have time to monitor the market and do technical and fundamental analysis. It’s a semi-automatic (“semi” because you have to still buy and sell manually) investment plan with high profit probability if you’re investment horizon is long term (5 years or more).

    Indeed, the commissions and fees can add up – but I’ve also observed that the sum only eats up a very small percentage of your profit in the long term because you’re investing in “GEMMS”. Additionally, the regular dividends you receive tend to “cancel out” those fees in the long run.

    These transaction fees only becomes a concern if you buy and sell stocks for short and medium term.; and an important factor if you are into stock trading.

    How small is “small”? I believe anything lower than P5,000 is “small” – one reason why COL pegged it at that price.

    The same argument goes for the bid and ask prices by the way. Not much a concern if you’re in a long term EIP strategy.

    Under the rules of EIP, and cost averaging in general, you’re supposed to buy regardless if the prices is up, going up, down, or going down. You just have to buy regularly without exceeding your set budget.

    However, I do understand your concern and I know some people who actually take market price movements into consideration. This type of strategy is called by many names, such as Strategic Cost Averaging or Modified Cost Averaging.

    It’s a good strategy to do if you have time to study the market and do technical and fundamental analysis. It’s likewise more profitable, but of course, at the expense of your time because studying and timing the market requires skills and focus.

    There are groups, such as that of Bo Sanchez’ Truly Rich Club, who helps people do this strategy, in exchange for a regular membership fee. If you’re interested in doing this, then their group could help you.

    I’m not connected with them so I can’t really explain much further how that works. I’m more of a passive investor when it comes to the stock market, and so far – I’m content with how my stocks have grown over the years.

    Perhaps, in the near future – I might study and take on that strategy and see how exactly that works. And when I do, I’d surely write about it here.

    My finally recommendation – just do the regular EIP for now. After a year or two, or when you feel that you’re up to it, then modify your investment plan to a more strategic one that considers market price action.

    Hope I was able to help.

  49. Citrine says:

    Hi April,

    Hold means the analyst doesn’t expect the stock to go up much further because they think it’s already overpriced (based on their estimates). The stock, therefore can just bounce around in the near future (+ or – 15). It could also mean that the company is having some short term problems which could hinder growth or expansion (in terms of profit). For example, JFC (Jollibee) is having problems with their subsidiaries in China which might result in loses. As a result, the analyst may see this as a hindrance to growth, therefore he or she places a HOLD rating (until the problem goes away).

    To add to what Fitz, if you can only afford one stock for your budget, select a “conglomerate stock” like MPI, SMC, FPH, AC. They stocks are like mini index funds. This means they have several businesses running (not only one). For example, if you buy AC, you’re effectively buying ALI (Ayala Land Inc. – Greenbelt, Glorieta, etc.), MWC (Manila Water Company), GLO (Globe Telecommunications), Honda Motors and Suzuki Philippines, etc. This is more cost effective since your risk factor is diversified. If you buy only one specialize stock like PAL (Philippine Airlines) you risk everything if the airline industry or tourism collapses.

    Good luck,


  50. Citrine says:

    Sorry for the grammar errors… I’m in a rush πŸ™‚

  51. April Belle says:


  52. Richie says:

    Hi again Fitz.

    In your reply above you said…

    ………4. I’d recommend buying only one stock with the P5k. But personally, instead of investing monthly, I’d instead do it quarterly and buy two stocks – which translates to a P7.5k budget for each stock.

    Why is buying stocks better quarterly than monthly (with 5k)? I thought it is better to do it frequently to take advantage of highs and lows of the stock bought? Will there even be a difference with fees in quarterly and monthly purchases?

    Pls enlighten. Thanks again Fitz.


  53. Fitz says:

    Hi Richie,

    There’s no better frequency in my opinion (and fees are the same regardless of the frequency), as long as you’re investing regularly. However, buying monthly is recommended because it “forces” you to get into the habit of investing.

    However, with only P5k – you’ll most likely be limited to buying only one stock monthly – not good if you want to diversify your portfolio.

    Although technically speaking, you can actually buy 2 or more stocks with just P5k – but since your budget is small – you might not be able to do cost averaging for a long time because you’ll be limited by the stock’s board lot.

    For example, if Stock ABC is currently at P5 (board lot 100) – then a P2,500 budget (assuming you’re buying two stocks monthly) will allow you to buy 500 shares.

    But when the price goes down to P4.95 where the board lot becomes 1,000 – then you won’t be able to buy any shares at all, and have to wait until the price goes above P5 to be able to buy shares again because that’s when the board lot goes back to 100.

    I guess the decision here lies on what stock/s you are actually planning to buy and taking into account the stocks price range and its board lot.

    Lastly, based on personal experience, investing quarterly produces not much difference in terms of “potential income” because markets often move in “multiples of 3” – meaning it changes direction every 3 periods (3 days, 3 weeks, 3 months, etc.).

    My personal opinion – you should do cost averaging anywhere between every two weeks up to every three months (quarterly) – less than that and transaction fees will eat up your capital, and more than that and you’ll miss important market movements.

    Hope I was able to clarify my stand on this concern. Others who have different opinion regarding this are welcome to share their thoughts. πŸ˜€

  54. Richie says:

    Thank you Fitz for patiently explaining and answering my inquiries.

    Where can I find out about board lots?

    And, when reading about stock market in the newspaper, how can I say if it’s going well or not? Pardon me for my ignorance.

    Thanks and God bless you Fitz.


  55. Jo says:

    Where do I put the commissions/ fees in your Cost Averaging Template? Do I include it in the stock price or just not include it at all?

  56. Fitz says:

    Hi Jo,

    The “Amount Invested” column should contain the total amount you “spent” – that’s your investing budget less the fees and commissions already.

    When you buy a stock, you can look in your electronic receipt (or transaction records) how much exactly was spent.

    So for example, if bought 100 shares of a stock worth P15, you’ll notice that the amount you spent is not exactly P1,500 but a little more than that – maybe around P1,530 – that’s what you put in the “Amount Invested” column.

  57. bryan says:

    Hi Fitz,

    Thanks for your informative posts. Just a quick question, is this method also “appropriate” in gold/silver investing?

  58. Fitz says:

    Hi Bryan,

    In my opinion, this method can likewise be applied to precious metals and commodity investing – however, I wouldn’t recommend it because the prices of those tend to follow a sideways pattern – and is highly affected by global economics – which is very complex.

    As an illustration, you should know that the price of gold tend to be inversely correlated to the US Dollar, and usually directly correlated to the Australian Dollar.

    Thus, when the US economy is good, gold prices tend to go down, and vice versa. For the Aussie currency, when it’s value is up, then gold prices tend to go up as well.

    So what happens to gold prices when both US and Australia experience economic growth? Gold can really go either way – now that’s a headache.

    The stock market gives you “more control” because all you need to do is to find a good company which you believe will grow over the years.

    Hope I was able to answer your concern. πŸ˜€

  59. Erwin Ramos says:

    Hi Fitz,

    Well, cost averaging can be the best strategy in investing. I have started on this strategy only this June 2012, applying it on my mutual funds and UTIFs.

    Personally for me, cost averaging is the best for me because there are advantages:
    – as I work in the office, I don’t have the time to study/monitor the market the whole day every day, so no need to time the markets, whether it’s up or down
    – no big lump sum is needed here but rather a small regular amounts on regular intervals that you buy shares or units
    – very easy to subscribe (buy) and redeem (sell) your units — I use BPI express online
    – mutual funds and UITFs are diversified so you know deep inside that you don’t put your eggs in one
    – my MFs and UITFs are balanced from most conservative to the most aggressive (I have applied some formula on this πŸ˜‰ )

    Now, my target horizon for doing this cost averaging is up to 20 yrs (as long as we job to keep πŸ˜‰ ). So 20 years after, I believe there will be a lot of money and a lot of happy people…hehehe.

    Well, I need your advise here on this part.

    When applying this cost-averaging technique, buying is not a problem as you do it regularly.

    Question #1 –> when exactly should I actully sell?

    – should I sell because it is already earning (whether big or small profit)?
    – should I sell because it has reached a certain N months or N years already?
    – should I sell once in while or regularly (like every 5 yrs)?

    Assuming 20 yrs of waiting has passed (whew!) and we need to “enjoy” our retirment years (hopefully we are still alive and healthy! πŸ˜‰ ), and we will “withdraw” our units/shares.

    Question #2 –> What will happen if at that time (i.e. 2032 and you are 60 yrs old, the market is really down), do you think it’s advisable to sell still? Do you think overall I earned?

    Question #3 –> Is there some kind of a strategy or technique in selling within the long 20 yr period? Do you have a tip for me in my scenario?

    Sorry for this lengthy story, but I really really do appreciate your sound advice here. I am sure a lot has the same story as mine.

    More and more power to you Fitz!

    (Hope you copy your response to my email.)

    THanks thanks Fitz!

  60. Fitz says:

    Hi Erwin,

    When you invest, you should always have an objective. If this is for your retirement, then you should calculate how much exactly do you need for retirement.

    The simplest formula is ten times your current annual income. So if you’re earning P600,000 a year – then your target retirement fund is P6M.

    So if the value of your investments reach P6M, then it’s time to sell.

    Of course, the market is unpredictable and it can be down when it’s time for you to retire – so being informed with the country’s economic outlook is important, specially during the last 5 years before your planned retirement.

  61. Aaron says:

    Good Day Sir!

    Assuming I have 5,000 pesos to invest monthly, and am considering the 2 stocks below:

    Stock A – Price=Php60; Board Lot=10; Minimum Order=Php600

    Stock B – Price=Php37; Board Lot=100; Minimum Order=Php3700

    Is it more appropriate to choose Stock A (which can be bought multiple times over) or Stock B (minimum order only) or would it not matter? Is the purpose of cost-averaging not met if you are always only buying the minimum order?


  62. Fitz says:

    Hi Aaron, I’d go for Stock A because it can be bought multiple times rather than Stock B. Yes, the effect of cost-averaging is less when you’re always just buying the minimum order.

    If you really want to invest in Stock B, my suggestion is to do it quarterly so you have P15,000 to buy Stock B. Otherwise, a monthly purchase of just Stock A is good enough to cost-average.

  63. koko says:

    Hi again Sir Fritz,

    Assuming that I have 12k and Im focusing on two companies. 6k per company.

    Stock A = Price 28Php;Board lot 100;I can buy 200 stocks = 5600Php
    Stock B = Price 32Php;Board lot 100;I can buy 100 stocks = 3200Php

    Total amount spent was only 8800Php. My budget is 12k. 6k per stock.
    Meaning I still have an extra money of 3200Php.

    What am I going to do with the 3200Php left? Am I going to buy it again to Stock A or Stock B?if so is it still cost averaging? or buy it to another stock? or just save it until next month?

    Thanks a lot for the help πŸ™‚

  64. Fitz says:

    Hi koko. Personally, I’d just save the P3,200 – maybe find a new investment or actually buy myself something I like. πŸ˜€

    You can buy another stock if you want, but for short or medium-term trading. This means you have to study the market and look for stocks that will be good to buy and sell after a few weeks / months.

    Anyway, usually, I just use that money to buy books, or pay for seminars. I’ve also used that to reward myself with an out of town vacation. And sometimes, I just save it.

    Moreover, you have to look into how realistically you can sustain the 12k per month investment. If you foresee some financial challenges in the future in producing that 12k, then it’s best to save that “loose change” for those times.

    Remember that cost averaging means staying within your set limit. So don’t buy more units of the same stock/s just because you have extra money.

  65. Marius de Jess says:

    Now, dear Fritz:

    Forgive me, but with all your command of investments, have you made more than enough money with what you teach, so that your life saving is growing as to outstrip inflation and also getting bigger in real buying power all the time, and you are getting from the returns of your investments all the cash by which you face your daily costs of living, and you are saving abundantly so that when you cannot anymore do investments, you can just sit back or lie in bed comfortably, resting assuredly that your accumulated money can last as to outstrip your remaining years, notwithstanding all the costs of medicinal and doctors’ and hospitals’ costs of staying alive comfortably?

    Marius de Jess

  66. Lois says:

    uhm @Marius, i think that is the goal of investing. but it also depends with what you want to accomplish. sorry, but i don’t understand the purpose of your question to Fitz… although i know it’s for me to answer! i just can’t help to comment! hahaha!

  67. Fitz says:

    Hi Marius,

    Are you asking me if I’m already financially free? I’d say yes.

    I’m actually already retired, and can afford not to work for the rest of my life and still live a comfortable life until I die, thanks to my savings and investments.

    But, that’s assuming I’m just alone in this world.

    And as part of the “Sandwich Generation”, I am now working in preparation for the financial challenges of elder care.

    My parents did not plan for retirement, but that doesn’t mean they don’t deserve to be comfortable and happy in their sunset years.

    So, in this regard, I am not yet financially free. But I know I can do it, the same way I’ve done it before just for myself.

    Thanks for also sharing your thoughts on his question. πŸ˜€

  68. CJ says:

    Hi Fitz

    This blog is really informative and it really inspired me to start my journey on financial freedom.

    I just have some question in mind that I hope you could help me.

    1.) Is it advisable to put my money in an investment using peso cost averaging instead of putting it into bank savings account? Given that I don’t have savings yet? I’m thinking that my money would earn much if I put it in investment rather than in savings.

    2.) What if I’m buying stocks at 5k a month, then I had a salary increase, is it advisable to increase my budget so I can buy more stocks? Let’s say instead of 5k per month, I’ll make it 8k for the next coming months.?

    3.) Let’s say after 10 years, I decided to sell my stocks, wouldn’t it be a problem to me to sell my stocks? Who’s going to buy my stocks? Is it easy to sell my stocks?

    I would greatly appreciate your help Sir Fitz…:-)

  69. Romelle says:

    Hi CJ,

    I know your question is directed to sir Fitz, but I would like to give you some tips as well.

    1) First of all, you don’t want to put any money in the stock market that you’re NOT willing to LOSE. As you know, the stock market is a two way street. It can go up and down. You can lose a big chunk of your hard earned money overnight if there’s a some bad news on the stock you just bought.

    2) It’s definitely okay to increase your monthly contributions when you have extra cash to spare (or throw away money that you don’t care if you lose it).

    3) If you’re worried that you can’t sell your stocks when you need to, just concentrate on companies with LARGE VOLUMES (at least 700,000 average transactions per day). AGI (Alliance Global) is a good example for this. As long as your stock is popular, there’s always a buyer on the other side (other investors will bid/buy your stocks at their price or your price – depending on the current demand on the market). Again, stick with the companies with the largest volumes and you can peacefully sleep at night.


  70. Joee says:

    Hi Fitz,

    I hope you could enlighten me on the following concerns:

    1. Would you recommend to a beginner investor like me to diversify my baskets? I’m considering of investing in the stock market and also in ALFM Peso Bond Fund for a more conservative risk. Or would it be wiser to start with one and focus on that until I learn the ropes?

    2. My knowledge in investing is still limited, I have been reading investment materials for weeks. and to be honest, its quite hard because I’m not following a systematic way. Since a personal mentor is not available to me, would you suggest I go for paid subscriptions mentoring? If funds are lower, is it risky to skip this?

    Would I be able to get the same amount of guidance through reading online and such? if so, (aside from regularly reading your blog) what would you recommend that I read to monitor the situation int he stocks, so i would know what actions to make?

    thank you very much!

  71. alvin says:

    Hi Fitz,

    first of all, you know me from way back (UP college of engineering days, ES1 SAs) unless i mistook you for somebody else. i’m starting an EIP account, was looking for info and found myself reading your blog. if you are who i think you are, then it’s nice to be reconnected. i guess your blog just found another purpose πŸ™‚

    going back to the original purpose of your blog, any tips on what stocks to buy under COL’s EIP program? i plan to invest on 2 or 3 on a quarterly basis for 5 years given my objective. i usually want to have a starting point and study the recommendations as opposed to my personal choices and take it from there.

    thank you and more power. unlike you, i wish i started this journey earlier πŸ™‚

  72. java says:

    Greetings Mr. Fitz:

    May I know whats your Top 10 “Blue Chip” Companies ?
    Thank you and God Bless.


  73. Fitz says:

    Hi java. If you’re looking for a long-term investment, you can check out this list:

    Best Philippine Stocks

  74. Claude Mortel says:

    Hi Fitz,

    I want to ask if peso cost averaging is feasible in the PSE since stocks are bought by lots. Since cost averaging will require us to buy a number that isn’t divisible by the stock lots, can we still use this strategy? Thanks!

  75. Joy says:

    If I buy shares using peso cost averaging through an online broker (e.g. COL Financial), am I still eligible to receive dividends — that is on the assumption that I am investing in a dividend-paying company?

  76. Fitz says:

    @Claude – yes, you can use this strategy, just buy the most number of lots you can buy without going over your decided fixed budget.

    @Joy – yes, you are still very much eligible to receive dividends

  77. chris says:

    hi fitz!

    may mga tanong lang ako sa col EIP.

    1.ok lang ba na magkaiba mailing address sa residence address sa OSTA kasi nagrerent lang ako ng boarding house,ang ilalagay ko sanang mailing address e yong address ng company na pinagtatrabahuhan ko? pa rin ba EIP Account ko kapag matagal kong di nalagyan ng in zero balance…ilang years pa bago nila ideactivate?

    sorry if i resort in asking you..this past few days kasi di nagrereply sa email yong helpdesk ng col.hirap din tumawag.


  78. Fitz says:

    Hi Chris,

    1. Okay lang na magkaiba, but preferred na pareho. I would suggest ang gamitin mo is bahay ng parents or kapatid mo instead of your company address, para hindi mo na kailangan ipabago just in case mag-iba ka ng work.

    2. When you set your EIP schedule, meron yun start and end date. The system will just keep reminding you to “buy”, but you can choose to “skip” it until dumating ang end date na set mo.

    Yes, your account with COL will remain active, kahit hindi mo lagyan ng funds, as long as you own stocks. Kahit one time lang at hindi mo na nadagdagan ulit – active ang account mo. I’m not sure though kung paano kung wala kang stocks na hawak. You have to ask them that.

    Also, I’m not sure about the limit, but my cousin, na one time lang bumili ng stocks, ay more than 7 years nang walang activity yung account niya, pero active status pa rin.

    Hope I was able to help.

  79. Lois says:

    my EIP account was dormant for about 1 year. when i attended a seminar at COL i asked Mr. Laraya, who was the speaker at that time, about it and he said your account could remain active but eventually it might be closed down, he just doesn’t know how long.

  80. Lois says:

    just to clarify, what i meant by dormant was no funds and no existing stocks.

  81. Fitz says:

    Hi Lois, I’ll ask my account manager at COL about this. But yes, with no funds and no stocks, your account will eventually be closed.

    In my opinion, if you’re planning to become active again, you can just try to “open a new account” but mention to your account manager that you used to have an account with them so he/she can either reactivate it, or close it permanently and open you a new one.

    If you’re NOT planning to become active, then I see no harm in just letting the account go.

  82. Noel D says:

    Hello Fitz,

    its now 2355 (+3UTC) here in kuwait, and am really thankful to you. It is through your blog my longtime investment interest in Philippine Stock Exchange, (SEC) comes to Start soon. I have with me hard(downloaded)copy of COLFinancial SAIF(2pp), OSTA terms & conditions1-29, and 2 Specimen Signature Cards, ready for transmission.
    I prefered to open COL plus account to avail more enhance investment guidance, and proceed using the motivation and methods as in COL starter account. This is my status since i subscribed and followed your blog almost 2 years ago. From here, just as you doi believed COLFinancial. (Thanks for that honest Ask&Reply byMarius de Jess, Jan16th)

  83. Noel says:

    Hello Fitz,

    Ask ko lang po, meron kasi akong Stock Certificate (Manila Electric Company) wayback 2001 pa , then ngayon gusto ko na itong ipaconvert ng cash.

    1. I heard from a friend, na through online broker daw. Tama po ba?
    2. Kung sakali pong mabenta ko, paano po ba computation? Komisyon ng broker, TAX, etc.. Lets say meron po akong 300 stock since 2001, tapos ang price ngayon ng MER eh nasa 333Php per stock. So meron po akong 99,900Php Total earned. Sa price po na to, magkano po mapupunta sa akin at sa broker?

    Censya na po Sir Fitz, newbie lang po pagdating sa Stock Market..Napasubo lang dati. Kaya napabili ng Stock..:)


  84. Fitz says:

    Hi Noel,

    Bring the certificates to any PSE-licensed stock broker, and ask for assistance on how you can sell back your shares to the market.

    Online brokers, like COL Financial, tend to have lower fees, so it’s best to approach them first – but do some shopping as well, and compare the rates of at least 3 more brokers.

    Finally, congrats na rin… kung 2001 mo pa binili yan, malaki na value niyan at kumita ka na ng at least, doble sa ginastos mo noon.

  85. Bond says:

    hi fitz, very informative po itong blog mo salamat. meron lang po akong katanungan. pwede ba akong bumili ng stocks anytime kasi iba yung timing dito sa ibang bansa. censya na po newbie pa lang po ako. paano po kung 5,000 eip program lang po ako nag avail tapos may extra income pag minsan pwede bang iba ibang company ako bumili every month ok lang ba yun kahit di consistent sa iisang company pwede ba yun sa col eip program.

    Salamat and best regards, Bond

  86. Fitz says:

    Hi Bond, you can buy stocks anytime that the Philippine Stock Market is open. But with the EIP program, you have to buy the same company. Hindi pwede iba-iba.

  87. Bond says:

    Thank you fits sa inputs. col ba close sila ng public holidays sat or sunday. nagdeposit na ako sa banko thru over the counter at online pero wala pa akong nareresib na activation password sa col. kaya naisip ko baka close sila kasi holiday kahapon at sabado ngayon linggo bukas. one more thing kailangan ko po bang iiscan yung receipt ng bangko at paano ifoforward yung confirmation ng banko reference po ba ang kailangan doon kasi diko po alam ang format kung paano iemail sa col. censya na po bago lang m.

    salamat, Bond

  88. Benz says:

    Hellopor sir fitz where poh prefered n mag invest ng 5k monthly para sa JFC san anu ang mga requirementes na kailangan ko?

  89. young02 says:

    Hi Sir Fitz,

    Good day! I would like to inquire if you still have the file for “Cost Averaging Template in MS Excel”? I’m having a file not found error when clicking the link you have on this page. It would be helpful for me since I’m just starting to invest in this scheme. More power to you!

  90. Benz says:

    hello sir hindi makakaapekto ang pagbaba ng market ng JFC kng kasalukuyang bumababa ang market ng JFC At kabibili ko lng ng shares?

  91. Benz says:

    what i main is my investment?

  92. Anne says:

    hi sir Fitz, got confused in what replied:

    Fitz on August 10th, 2013 at 5:18 am
    Hi Bond, you can buy stocks anytime that the Philippine Stock Market is open. But with the EIP program, you have to buy the same company. Hindi pwede iba-iba.

    i just started my COL-EIP and bought only a minimum number of JFC stocks, which gives me a remaining balance that i can use to buy another stocks of another company. Is this okay? i plan to divide my 5K to JFC and ALI. And with the cost averaging strategy, i will invest with JFC every month and ALI every quarter. is this okay?

    also, there was an error downloading the Cost Averaging Template in MS Excel.

    thanks for all the helpful advices πŸ™‚

  93. Fitz says:

    Hi Anne,

    Basically, you are doing cost averaging on two companies… JFC and ALI.

    The amount should always be the same for each company for each period.

    So let’s say you divided your P5k this way – P4k every month towards JFC, and P1k every month towards ALI, then here’s what you can do:

    First, buy the maximum number of JFC stocks every month that you can buy with P4k.

    Second, buy the maximum number of ALI stocks every quarter (every 3 months) that you can buy with P3k.

    Since we have board lots and you cannot spend exactly the amount you specified, the remaining balance can be carried over to the next period.

    So if you only spent P3.8k this month on JFC, you have P200 that will be carried over next month, but you should not buy P4,200 worth of JFC… only buy P4k max – which measn you only have to add P3.8k to your COL account for JFC next month.

    I hope I was clear on the explanation.

    I’ll fix the template in a while, thanks for pointing that out.

  94. Archie says:

    Thanks for clearing up my mind guys.. Made my day:))

  95. oliver says:

    Hello fitz,

    Question lang po sa cost averaging, pag nag start po ako sa 5k and ginagawa ko na sya for let’s say 8mos, tapos nagkaron na po ako ng mas mataas na budget na 10k pwede ko po bang palitan yung budget ko?pwede po ba na 10k worth of stocks na ang bilihin ko sa succeeding months? Hoping you could answer my question sir. Thanks po and God bless!

  96. Fitz says:

    Hi Oliver. No you cannot invest more – technically, it has to be 5k “forever”. However, what you can do is to “stop” your 5k and start a new cost averaging with the 10k, or continue with the original 5k and start a new cost averaging with the other 5k on another company.

    If you do the first option, you’re basically doing cost averaging with 10k a month on the stock, but you cannot include the stocks you bought before (when it was still 5k a month) in your average price monitoring.

    Personally, I like to second option better, because it allows you to diversify.

    But either option is okay, neither of them can give higher profits because it all depends on the company and the economy.

    Basta once you decide on the amount, you have to stick with it… it should never go down, but if you want to increase it, it should mean you can afford to sustain that increase for a long time and not just a temporary increase because you had more money.

  97. oliver says:

    Hi fitz,

    Thank you for the quick response..=) I have another question, I read in one of your response that it is better to do cost averaging quartely. My question is why? Does it have any advantages over the other strategies (monthly or yearly) thanks in advance for answering..I hope you won’t stop educating newbies like me on how to invest and be financially free..=)

  98. Fitz says:

    Hi Oliver, it’s not better in general, but better for that specific person.

    The frequency of investing depends on how much you can afford and what stock you are planning to buy.

    With P5k a month, buying a stock like JFC or ALI is okay because they’re less than P200 right now. But if you’re planning to buy an expensive stock like TEL which is now above P2,000 per share, then that P5k is not enough for you to even buy one board lot… it would be better to “save” the P5k and buy TEL every three months, which gives you P15k budget and at least 2 board lots.

  99. Amethyst says:

    Actually, TEL is close to P3000 a piece, not P2000. You can only buy one board lot (5 x P3,000 = P15,000).

  100. Gerald says:

    Hi fitz,

    Good day!

    Can I ask what is volume means?

    Thanks and God speed

  101. JHUNMC says:

    How Do I Report My Losses of a Stock If a Company Declares Bankrupt and Unfortunately I bought their stocks?

  102. Jimbo says:


    Thank you for your blog, truly enriching. I would like to ask if you would recommend this deviation from a straight forward cost averaging method to buying more shares if prices are low while still maintaining regular intervals of buying, say monthly.

    For example:

    I would buy stock ABC on equal amounts and on regular intervals while trend is sideways or uptrend but when it’s price plummets I would increase my position on the said stock, while still maintaining regular intervals? I would reduce the amount of shares I buy once it goes sideways again.

    I would truly appreciate your reply on this.

  103. Jocelyn says:

    Hi Fits,
    Thank you for your informative blog. Learned a lot from here.

    Just a question please.
    For example, the amount I am depositing per month is 5k in my account.
    And let’ say stock ABC is 32.5 px per share, board lot is 100, so for that first month, my total amount invested is 3250 leaving my account 1750…For the next month, I will again depositing 5k in my account. When buying, shouldn’t i add the 1750 left from previous month to the next month in buying the stock. In this case, this will increase the capacity to buy more right? STill maintaining the 5k deposit per month…

    Would greatly appreciate your response on this please as I have already started doing the EIP in COL.

    Many Thanks.

  104. Jam says:

    Hi fitz, thanks for sharing investment tips. If you were to choose 2 stocks on which to do cost averaging on a 30,000 quarterly investment, would you recommend 2 companies from the same industry, like ALI and SMPH? or is it also okay to split into 3, like ALI, SMPH and MPI? Thanks in advance.

  105. Ruel Gatchalian says:

    Thanks for this article. I have a question – would you advise against selling my EIP stocks that I’ve accumulated for 3 years at a conservative growth of 4.72%, and use the money to buy from another company, like EEI? Thanks, and keep up the good work!

  106. Fitz says:

    Hi Ruel. If you’re holding blue-chip and growth stocks, then don’t sell them. If you’re holding second or third-liners, then yes, sell them and buy another company that has better stability and growth potential.

  107. […] How To Pick The Right Stocks For Cost Averaging […]

  108. Adda Morallo says:

    Hi Fitz!!! I tried to copy your table above, coincidentally those are my two stocks.. Pls make your template available…

  109. George says:

    Hi Sir Fritz,

    I just want to clarify how your Excel template works. My stock broker is COL and we all know that it consists of the charges when you are calculating for the average price. So what should I include in the Excel, the price without the charges? Thanks!

  110. Catherine says:

    Hi Fitz,


    Thank you for your blog its enlighten me.. Hehe im very much interested in making investment at COL Financial, kaya lang I have some question.

    1. After investing 5k do i need to deposit 5k every quarter?
    2. Do i need to buy stock every quarter?
    3. If I sell my stocks do I need to sell all example: i have 100 stock of jfc and i want to sell these stock do I need to sell the 100 stocks or can i sell 50stocks only.

    Thank you so much po..

  111. Fitz says:


    1. It’s not required to deposit 5k every quarter (or every month). But investing should be a habit, and it’s recommended to deposit and invest (buy stocks) regularly so you can grow your wealth.

    2. Do it at a frequency that your budget can afford. It can be quarterly, monthly, every 4 months, etc. – just as long as you do it more than once a year.

    3. No need to sell all. You can sell as many or as little as you want.

  112. Kristel says:

    Hello Sir Fitz,

    For the first month of my peso cost averaging I bought shares of Company A (3500 for 100 shares)and company B (1280 for 100 shares), tig 100 shares which totaled around 4800. My monthly investment is 5k.

    For my second month I bought shares of Company C (2000 for 10 shares) and Company D (2500 for 30 shares). Which totaled 4,500 pesos.

    Now im cofused, what should I do on my third month to do the peso cost averaging method? Should I buy Comapany A & B again with 100 shares each? Does it make sense to buy the same number of shares every month? Is it okay for me to buy shares of two new companies again?

    I would really appreciate your help.

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